Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 18, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FAF | ||
Entity Registrant Name | First American Financial Corp | ||
Entity Central Index Key | 1472787 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 107,781,233 | ||
Entity Public Float | $2,921,903,015 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $1,190,080 | $834,837 |
Accounts and accrued income receivable, less allowances of $34,662 and $31,831 | 276,610 | 236,895 |
Income taxes receivable | 5,547 | 37,632 |
Investments: | ||
Deposits with banks | 21,445 | 23,492 |
Debt securities, includes pledged securities of $120,742 and $123,956 | 3,450,252 | 2,819,817 |
Equity securities | 402,412 | 358,043 |
Other long-term investments | 159,783 | 183,976 |
Investments, Total | 4,033,892 | 3,385,328 |
Loans receivable, net | 73,755 | |
Property and equipment, net | 395,287 | 361,348 |
Title plants and other indexes | 530,589 | 523,879 |
Deferred income taxes | 19,712 | 27,478 |
Goodwill | 959,945 | 846,026 |
Other intangible assets, net | 55,812 | 46,347 |
Other assets | 198,626 | 185,658 |
Total assets | 7,666,100 | 6,559,183 |
LIABILITIES AND EQUITY | ||
Deposits | 2,332,714 | 1,692,932 |
Accounts payable and accrued liabilities: | ||
Accounts payable | 26,264 | 26,378 |
Personnel costs | 184,994 | 183,344 |
Pension costs and other retirement plans | 477,763 | 388,993 |
Other | 165,084 | 197,097 |
Accounts payable and accrued liabilities | 854,105 | 795,812 |
Deferred revenue | 202,764 | 192,184 |
Reserve for known and incurred but not reported claims | 1,011,780 | 1,018,365 |
Income taxes payable | 6,228 | |
Deferred income taxes | 95,128 | 93,362 |
Notes and contracts payable | 587,337 | 310,285 |
Total liabilities | 5,090,056 | 4,102,940 |
Commitments and contingencies (Notes 18 and 20) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized—500 shares;Outstanding—none | ||
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—107,541 shares and 105,900 shares | 1 | 1 |
Additional paid-in capital | 2,109,712 | 2,077,828 |
Retained earnings | 662,310 | 520,764 |
Accumulated other comprehensive loss | -199,106 | -145,544 |
Total stockholders’ equity | 2,572,917 | 2,453,049 |
Noncontrolling interests | 3,127 | 3,194 |
Total equity | 2,576,044 | 2,456,243 |
Total liabilities and equity | $7,666,100 | $6,559,183 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Accounts and accrued income receivable, allowances | $34,662 | $31,831 |
Pledged securities included in debt securities | $120,742 | $123,956 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 107,541,000 | 105,900,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Direct premiums and escrow fees | $2,115,274 | $2,184,464 | $2,041,740 |
Agent premiums | 1,841,618 | 2,044,862 | 1,709,905 |
Information and other | 619,949 | 627,645 | 645,023 |
Net investment income | 71,041 | 89,895 | 81,031 |
Net realized investment gains | 31,768 | 9,211 | 67,686 |
Net other-than-temporary impairment losses | -1,701 | -3,564 | |
Total revenues | 4,677,949 | 4,956,077 | 4,541,821 |
Expenses: | |||
Personnel costs | 1,410,752 | 1,445,582 | 1,334,866 |
Premiums retained by agents | 1,470,895 | 1,636,694 | 1,370,193 |
Other operating expenses | 833,681 | 885,805 | 836,319 |
Provision for policy losses and other claims | 450,023 | 530,356 | 397,717 |
Depreciation and amortization | 85,597 | 74,916 | 74,950 |
Premium taxes | 57,194 | 56,715 | 51,304 |
Interest | 19,247 | 15,301 | 9,066 |
Total expenses | 4,327,389 | 4,645,369 | 4,074,415 |
Income before income taxes | 350,560 | 310,708 | 467,406 |
Income taxes | 116,345 | 123,644 | 165,678 |
Net income | 234,215 | 187,064 | 301,728 |
Less: Net income attributable to noncontrolling interests | 681 | 697 | 687 |
Net income attributable to the Company | $233,534 | $186,367 | $301,041 |
Net income per share attributable to the Company’s stockholders: | |||
Basic | $2.18 | $1.74 | $2.83 |
Diluted | $2.15 | $1.71 | $2.77 |
Cash dividends declared per share | $0.84 | $0.48 | $0.36 |
Weighted-average common shares outstanding: | |||
Basic | 106,884 | 106,991 | 106,307 |
Diluted | 108,688 | 109,102 | 108,542 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||||||||||
Net income | $80,738 | $80,937 | $50,688 | $21,852 | $51,789 | [1] | $64,095 | $34,948 | $36,232 | $234,215 | $187,064 | $301,728 |
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized gain (loss) on securities | 18,862 | -32,992 | 31,445 | |||||||||
Unrealized gain on securities for which credit losses have been recognized in earnings | 776 | 2,327 | 3,902 | |||||||||
Foreign currency translation adjustment | -16,694 | -13,650 | 5,131 | |||||||||
Pension benefit adjustment | -56,496 | 49,324 | -13,571 | |||||||||
Total other comprehensive income (loss), net of tax | -53,552 | 5,009 | 26,907 | |||||||||
Comprehensive income | 180,663 | 192,073 | 328,635 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | 691 | 694 | 691 | |||||||||
Comprehensive income attributable to the Company | $179,972 | $191,379 | $327,944 | |||||||||
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total stockholders' equity | Noncontrolling Interests |
In Thousands | |||||||
Balance value at Sep. 30, 2011 | |||||||
Purchase of Company shares, value | ($67,100) | ||||||
Purchase of Company shares, shares | -3,200 | ||||||
Balance value at Dec. 31, 2014 | 2,576,044 | 1 | |||||
Balance shares at Dec. 31, 2014 | 107,541 | 107,541 | |||||
Balance value at Dec. 31, 2011 | 2,034,939 | 1 | 2,081,242 | 124,816 | -177,459 | 2,028,600 | 6,339 |
Balance shares at Dec. 31, 2011 | 105,410 | ||||||
Net income | 301,728 | 301,041 | 301,041 | 687 | |||
Dividends on common shares | -37,612 | -37,612 | -37,612 | ||||
Shares issued in connection with share-based compensation plans, value | 15,040 | 16,270 | -1,230 | 15,040 | |||
Shares issued in connection with share-based compensation plans, shares | 1,829 | ||||||
Share-based compensation expense | 14,839 | 14,839 | 14,839 | ||||
Net activity related to noncontrolling interests | -4,072 | -746 | -746 | -3,326 | |||
Other comprehensive income (loss) (Note 19) | 26,907 | 26,903 | 26,903 | 4 | |||
Balance value at Dec. 31, 2012 | 2,351,769 | 1 | 2,111,605 | 387,015 | -150,556 | 2,348,065 | 3,704 |
Balance shares at Dec. 31, 2012 | 107,239 | ||||||
Net income | 187,064 | 186,367 | 186,367 | 697 | |||
Dividends on common shares | -51,324 | -51,324 | -51,324 | ||||
Purchase of Company shares, value | -64,606 | -64,606 | -64,606 | ||||
Purchase of Company shares, shares | -2,951 | ||||||
Shares issued in connection with share-based compensation plans, value | 7,938 | 9,232 | -1,294 | 7,938 | |||
Shares issued in connection with share-based compensation plans, shares | 1,612 | ||||||
Share-based compensation expense | 22,301 | 22,301 | 22,301 | ||||
Net activity related to noncontrolling interests | -1,908 | -704 | -704 | -1,204 | |||
Other comprehensive income (loss) (Note 19) | 5,009 | 5,012 | 5,012 | -3 | |||
Balance value at Dec. 31, 2013 | 2,456,243 | 1 | 2,077,828 | 520,764 | -145,544 | 2,453,049 | 3,194 |
Balance shares at Dec. 31, 2013 | 105,900 | 105,900 | |||||
Net income | 234,215 | 233,534 | 233,534 | 681 | |||
Dividends on common shares | -89,939 | -89,939 | -89,939 | ||||
Shares issued in connection with share-based compensation plans, value | 10,457 | 12,506 | -2,049 | 10,457 | |||
Shares issued in connection with share-based compensation plans, shares | 1,641 | ||||||
Share-based compensation expense | 19,302 | 19,302 | 19,302 | ||||
Net activity related to noncontrolling interests | -682 | 76 | 76 | -758 | |||
Other comprehensive income (loss) (Note 19) | -53,552 | -53,562 | -53,562 | 10 | |||
Balance value at Dec. 31, 2014 | $2,576,044 | $1 | $2,109,712 | $662,310 | ($199,106) | $2,572,917 | $3,127 |
Balance shares at Dec. 31, 2014 | 107,541 | 107,541 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $234,215 | $187,064 | $301,728 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Provision for policy losses and other claims | 450,023 | 530,356 | 397,717 |
Depreciation and amortization | 85,597 | 74,916 | 74,950 |
Amortization of premiums and accretion of discounts on securities, net | 24,579 | 26,782 | 17,264 |
Excess tax benefits from share-based compensation | -6,856 | -6,202 | -2,372 |
Net realized investment gains | -31,768 | -9,211 | -67,686 |
Net other-than-temporary impairment losses | 1,701 | 3,564 | |
Share-based compensation | 19,302 | 22,301 | 14,839 |
Equity in earnings of affiliates, net | 16,545 | -5,316 | -6,514 |
Dividends from equity method investments | 5,002 | 11,552 | 11,585 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | |||
Claims paid, including assets acquired, net of recoveries | -469,750 | -479,310 | -445,986 |
Net change in income tax accounts | 45,872 | 2,589 | 64,486 |
(Increase) decrease in accounts and accrued income receivable | -9,950 | 23,645 | -29,398 |
(Decrease) increase in accounts payable and accrued liabilities | -15,003 | 5,318 | 83,979 |
Increase in deferred revenue | 10,333 | 20,102 | 14,844 |
Other, net | 795 | -26,114 | -3,325 |
Cash provided by operating activities | 360,637 | 378,472 | 429,675 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash effect of acquisitions/dispositions | -163,320 | -5,837 | -32,476 |
Net decrease in deposits with banks | 4,211 | 4,747 | 2,522 |
Purchases of debt and equity securities | -1,969,009 | -1,532,710 | -1,796,314 |
Proceeds from sales of debt and equity securities | 928,386 | 621,255 | 954,626 |
Proceeds from maturities of debt securities | 373,969 | 488,684 | 491,674 |
Net change in other long-term investments | 8,025 | 6,443 | 6,591 |
Net proceeds from sale of loans receivable | 42,284 | ||
Net paydowns on loans receivable | 23,926 | 33,597 | 31,839 |
Capital expenditures | -97,222 | -87,142 | -83,892 |
Proceeds from sale of property and equipment | 12,058 | 5,807 | 7,767 |
Cash used for investing activities | -836,692 | -465,156 | -417,663 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | 647,857 | 281,739 | 317,957 |
Net proceeds from issuance of debt | 594,477 | 249,144 | 440,065 |
Repayment of debt | -325,110 | -168,205 | -510,544 |
Net activity related to noncontrolling interests | -682 | -1,894 | -4,094 |
Excess tax benefits from share-based compensation | 6,856 | 6,202 | 2,372 |
Net proceeds in connection with share-based compensation plans | 3,601 | 1,736 | 12,668 |
Purchase of Company shares | -64,606 | ||
Cash dividends | -89,939 | -51,324 | -44,705 |
Cash provided by financing activities | 837,060 | 252,792 | 213,719 |
Effect of exchange rate changes on cash | -5,762 | -1,800 | 105 |
Net increase in cash and cash equivalents | 355,243 | 164,308 | 225,836 |
Cash and cash equivalents—Beginning of year | 834,837 | 670,529 | 444,693 |
Cash and cash equivalents—End of year | 1,190,080 | 834,837 | 670,529 |
SUPPLEMENTAL INFORMATION: | |||
Interest | 17,327 | 10,827 | 8,909 |
Premium taxes | 58,148 | 54,629 | 45,375 |
Income taxes, less refunds of $13,925, $1,329 and $32,269 | $72,028 | $120,313 | $87,324 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Cash Flows [Abstract] | |||
Income taxes, refunds | $13,925 | $1,329 | $32,269 |
Description_of_the_Company
Description of the Company | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||
Description of the Company | NOTE 1. | Description of the Company: | ||||||||||
First American Financial Corporation (the “Company”), through its subsidiaries, is engaged in the business of providing financial services. The Company consists of the following reportable segments and a corporate function: | ||||||||||||
· | The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions involving the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant records and images; and provides banking, trust and investment advisory services. The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies and the District of Columbia. The Company also offers title insurance and other insurance and guarantee products, as well as related settlement services in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. | |||||||||||
· | The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 46 states. In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 39 states and the District of Columbia. | |||||||||||
The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. | ||||||||||||
Spin-off | ||||||||||||
The Company became a publicly traded company following its spin-off from its prior parent, The First American Corporation (“TFAC”) on June 1, 2010 (the “Separation”). On that date, TFAC distributed all of the Company’s outstanding shares to the record date shareholders of TFAC on a one-for-one basis (the “Distribution”). After the Distribution, the Company owns TFAC’s financial services businesses and TFAC, which reincorporated and assumed the name CoreLogic, Inc. (“CoreLogic”), continued to own its information solutions businesses. | ||||||||||||
Significant Accounting Policies: | ||||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method. Investments in which the Company does not exercise significant influence over the investee are accounted for under the cost method. | ||||||||||||
Reclassifications, revisions and out-of-period adjustments | ||||||||||||
Certain 2012 and 2013 amounts have been reclassified to conform to the 2014 presentation. | ||||||||||||
The consolidated balance sheet as of December 31, 2013 was revised for an error which resulted in an adjustment between income taxes receivable and deferred income taxes. The adjustment resulted in an increase to income taxes receivable of $11.1 million, an increase in deferred income tax assets of $27.5 million and an increase in deferred income tax liabilities of $38.6 million. | ||||||||||||
During 2014, the Company identified and recorded adjustments to correct for certain errors in foreign currency translation and transactions in prior periods. These adjustments resulted in an increase to other operating expenses of $5.0 million. | ||||||||||||
The Company does not consider these adjustments to be material, individually or in the aggregate, to either the current year or any previously issued consolidated financial statements. | ||||||||||||
Use of estimates | ||||||||||||
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. | ||||||||||||
Cash and cash equivalents | ||||||||||||
The Company considers cash equivalents to be all short-term investments that have an initial maturity of 90 days or less and are not restricted for statutory deposit or premium reserve requirements. | ||||||||||||
Accounts and accrued income receivable | ||||||||||||
Accounts and accrued income receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Amounts are charged off in the period they are deemed to be uncollectible. | ||||||||||||
Investments | ||||||||||||
Deposits with banks are short-term investments with initial maturities of generally more than 90 days. | ||||||||||||
Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, various corporations, certain state and political subdivisions and mortgage-backed securities. | ||||||||||||
The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2014 and 2013, the fair value of such investments totaled $120.7 million and $124.0 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. | ||||||||||||
Equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and marketable common and preferred stocks of corporate entities. | ||||||||||||
The Company classifies its publicly traded debt and equity securities as available-for-sale with unrealized gains or losses classified as a component of accumulated other comprehensive loss. See Note 15 Fair Value Measurements for additional discussion of the determination of fair value. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities is recognized under the effective yield method and included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt and equity securities are determined on a first-in, first-out basis. | ||||||||||||
The Company evaluates its debt and equity securities with unrealized losses on a quarterly basis for potential other-than-temporary impairments in value. | ||||||||||||
If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is other-than-temporarily impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2014, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell debt securities before recovery of their amortized cost basis. | ||||||||||||
If the Company does not expect to recover the amortized cost basis of a debt security with declines in fair value (even if the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security), the losses the Company considers to be the credit portion of the other-than-temporary impairment loss (“credit loss”) is recognized in earnings and the non-credit portion is recognized in other comprehensive income. The credit loss is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted at the rate implicit in the security immediately prior to the recognition of the other-than-temporary impairment. | ||||||||||||
Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. | ||||||||||||
The Company determines if a non-agency mortgage-backed security in a loss position is other-than-temporarily impaired by comparing the present value of the cash flows expected to be collected from the security to its amortized cost basis. If the present value of the cash flows expected to be collected exceed the amortized cost of the security, the Company concludes that the security is not other-than-temporarily impaired. The Company performs this analysis on all non-agency mortgage-backed securities in its portfolio that are in an unrealized loss position. For the securities that were determined not to be other-than-temporarily impaired at December 31, 2014, the present value of the cash flows expected to be collected exceeded the amortized cost of each security. | ||||||||||||
Cash flows expected to be collected for each non-agency mortgage-backed security are estimated by analyzing loan-level detail to estimate future cash flows from the underlying assets, which are then applied to the security based on the underlying contractual provisions of the securitization trust that issued the security (e.g., subordination levels, remaining payment terms, etc.). The Company uses third-party software to determine how the underlying collateral cash flows will be distributed to each security issued from the securitization trust. The primary assumptions used in estimating future collateral cash flows are prepayment speeds, default rates and loss severity. In developing these assumptions, the Company considers the financial condition of the borrower, loan to value ratio, loan type and geographical location of the underlying property. The Company utilizes publicly available information related to specific assets, generally available market data such as forward interest rate curves and securities, loans and property data and market analytics tools provided through a third party. | ||||||||||||
The table below summarizes the primary assumptions used at December 31, 2014 in estimating the cash flows expected to be collected for these securities. | ||||||||||||
Weighted | Range | |||||||||||
average | ||||||||||||
Prepayment speeds | 10 | % | 8.8 | % | – | 14 | % | |||||
Default rates | 2.5 | % | 1.8 | % | – | 3.7 | % | |||||
Loss severity | 18.7 | % | 3.6 | % | – | 28.5 | % | |||||
As a result of the Company’s security-level review, the Company recognized $1.7 million and $3.6 million of other-than-temporary impairments considered to be credit related on its non-agency mortgage-backed securities in earnings for the years ended December 31, 2014 and 2012, respectively. The Company did not recognize any other-than-temporary impairments considered to be credit related in 2013. It is possible that the Company could recognize additional other-than-temporary impairment losses on securities it owns at December 31, 2014 if future events or information cause it to determine that a decline in fair value is other-than-temporary. | ||||||||||||
The following table presents the change in the credit portion of the other-than-temporary impairments recognized in earnings on debt securities for which a portion of the other-than-temporary impairments related to other factors was recognized in other comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,478 | $ | 16,478 | $ | 33,656 | ||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 1,701 | — | 3,564 | |||||||||
Accumulated losses on securities that matured or were sold during the year | — | — | (20,742 | ) | ||||||||
Cumulative credit loss on debt securities held at end of period | $ | 18,179 | $ | 16,478 | $ | 16,478 | ||||||
When a decline in the fair value of an equity security, including common and preferred stock, is considered to be other-than-temporary, such equity security is written down to its fair value. When assessing if a decline in fair value is other-than-temporary, the factors considered include the length of time and extent to which fair value has been below cost, the probability that the Company will be unable to collect all amounts due under the contractual terms of the security, the seniority of the securities, issuer-specific news and other developments, the financial condition and prospects of the issuer (including credit ratings), macro-economic changes (including the outlook for industry sectors, which includes government policy initiatives) and the Company’s ability and intent to hold the security for a period of time sufficient to allow for any anticipated recovery. | ||||||||||||
When an equity security has been in an unrealized loss position for greater than twelve months, the Company’s review of the security includes the above noted factors as well as other evidence that might exist supporting the view that the security will recover its value in the foreseeable future, typically within the next twelve months. If objective, substantial evidence does not indicate a likely recovery during that timeframe, the Company’s policy is that such losses are considered other-than-temporary and therefore an impairment loss is recorded. The Company did not record other-than-temporary impairment losses related to its equity securities for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Other long-term investments consist primarily of investments in affiliates, which are accounted for under either the equity method or the cost method of accounting, investments in real estate and notes receivable. The carrying value of investments in affiliates is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In making the determination as to whether an individual investment in an affiliate was impaired, the Company assessed the then-current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to the Company), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity was operating. The Company recognized impairment losses on equity method investments in affiliates of $22.5 million, 7.8 million and $7.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Investments in real estate are classified as held for sale and carried at the lower of cost or fair value less estimated selling costs. An impairment loss is recognized when the carrying value exceeds the estimated undiscounted future cash flows from the investment. | ||||||||||||
Notes receivable are carried at cost less reserves for losses. Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. | ||||||||||||
Property and equipment | ||||||||||||
Property and equipment includes computer software acquired or developed for internal use and for use with the Company’s products. Software development costs, which include capitalized interest costs and certain payroll-related costs of employees directly associated with developing software, in addition to incremental payments to third parties, are capitalized from the time technological feasibility is established until the software is ready for use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. | ||||||||||||
Depreciation on buildings and on furniture and equipment is computed using the straight-line method over estimated useful lives of 5 to 40 years and 1 to 15 years, respectively. Capitalized software costs are amortized using the straight-line method over estimated useful lives of 1 to 15 years. Leasehold improvements are amortized over useful lives that are consistent with the lease term. | ||||||||||||
Title plants and other indexes | ||||||||||||
Title plants and other indexes at December 31, 2014 included title plants of $514.6 million and capitalized real estate data of $16.0 million, and at December 31, 2013 included title plants of $523.1 million and capitalized real estate data of $0.8 million. Title plants are carried at original cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is carried at cost, less amortization. Capitalized real estate data is amortized using the straight-line method over estimated useful lives of 3 to 15 years. | ||||||||||||
Business Combinations | ||||||||||||
Amounts paid for acquisitions are allocated to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair value at the date of acquisition. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. | ||||||||||||
Goodwill Impairment | ||||||||||||
The Company is required to perform an annual goodwill impairment assessment for each reporting unit. The Company’s four reporting units are title insurance, home warranty, property and casualty insurance and trust and other services. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on current guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e., a likelihood of greater than 50%) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego the qualitative assessment and perform the quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of the qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform the quantitative impairment test. If, however, the more likely than not threshold is met, the Company performs the quantitative test as required and discussed below. | ||||||||||||
Management’s quantitative impairment testing process includes two steps. The first step (“Step 1”) compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, a second step (“Step 2”) must be completed to determine if the fair value of the goodwill exceeds the carrying amount of goodwill. | ||||||||||||
Step 2 involves calculating an implied fair value of goodwill for each reporting unit for which Step 1 indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | ||||||||||||
The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes multiple cash flow scenarios that reflect a range of possible outcomes and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the equity or asset. | ||||||||||||
The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future goodwill impairment losses that could be material. | ||||||||||||
The Company elected to perform qualitative assessments for 2014 and 2013, the results of which supported the conclusion that the fair values of the Company’s reporting units were not more likely than not less than their carrying amounts and, therefore, a quantitative assessment was not considered necessary. For 2012, the Company performed a quantitative assessment and determined that the fair values of its reporting units exceeded their carrying amounts and, therefore, no additional analysis was required. As a result of these assessments, the Company did not record any goodwill impairment losses for 2014, 2013 or 2012. | ||||||||||||
Other intangible assets | ||||||||||||
The Company’s intangible assets consist of noncompete agreements, customer relationships, trademarks, patents and licenses. Each of these intangible assets, excluding licenses, is amortized on a straight-line basis over its useful life ranging from 1 to 20 years and is subject to impairment assessments when there is an indication of a triggering event or abandonment. Licenses are an intangible asset with an indefinite life and are therefore not amortized but rather assessed for impairment by comparing the fair value of the license with its carrying value at least annually and when an indicator of potential impairment has occurred. | ||||||||||||
Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of intangible assets with finite lives, whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. | ||||||||||||
Reserve for known and incurred but not reported claims | ||||||||||||
The Company provides for title insurance losses by a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. | ||||||||||||
The process of assessing the loss provision rate and the resulting IBNR reserve involves evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also reviewed and used in the reserve analysis. These include real estate and mortgage markets conditions, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. | ||||||||||||
For recent policy years at early stages of development (generally the last three years), IBNR is estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees, and adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. | ||||||||||||
The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information it may have concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. | ||||||||||||
Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70% to 80% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. Based on historical experience, management believes a 50 basis point change to the loss rates for the most recent policy years, positive or negative, is reasonably likely given the long duration nature of a title insurance policy. For example, if the expected ultimate losses for each of the last six policy years increased or decreased by 50 basis points, the resulting impact on the Company’s IBNR reserve would be an increase or decrease, as the case may be, of $98.7 million. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss ratios exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. | ||||||||||||
The Company provides for property and casualty insurance losses when the insured event occurs. The Company provides for claims losses relating to its home warranty business based on the average cost per claim as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience adjusted for estimated future increases in costs. | ||||||||||||
Contingent litigation and regulatory liabilities | ||||||||||||
Amounts related to contingent litigation and regulatory liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. The Company records legal fees in other operating expense in the period incurred. | ||||||||||||
Revenues | ||||||||||||
Title premiums on policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by independent agents are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Revenues earned by the Company’s title plant management business are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | ||||||||||||
Direct premiums of the Company’s specialty insurance segment include revenues from home warranty contracts which are generally recognized ratably over the 12-month duration of the contracts, and revenues from property and casualty insurance policies which are also recognized ratably over the 12-month duration of the policies. | ||||||||||||
Revenues earned by the Company’s trust operations are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | ||||||||||||
Premium taxes | ||||||||||||
Title insurance, property and casualty insurance and home warranty companies, like other types of insurers, are generally not subject to state income or franchise taxes. However, in lieu thereof, most states impose a tax based primarily on insurance premiums written. This premium tax is reported as a separate line item in the consolidated statements of income in order to provide a more meaningful disclosure of the taxation of the Company. | ||||||||||||
Income taxes | ||||||||||||
The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is considered more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||||||
The Company recognizes the effect of income tax positions only if sustaining those positions is considered more likely than not. Changes in recognition or measurement of uncertain tax positions are reflected in the period in which a change in judgment occurs. The Company recognizes interest and penalties, if any, related to uncertain tax positions in tax expense. | ||||||||||||
Share-based compensation | ||||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized in the Company’s financial statements over the requisite service period of the award using the straight-line method for awards that contain only a service condition and the graded vesting method for awards that contain a performance or market condition. The share-based compensation expense recognized is based on the number of shares ultimately expected to vest, net of forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | ||||||||||||
The Company’s primary means of providing share-based compensation is through the granting of restricted stock units (“RSUs”). RSUs granted generally have graded vesting and include a service condition; and for certain key employees and executives, may also include either a performance or market condition. RSUs receive dividend equivalents in the form of RSUs having the same vesting requirements as the RSUs initially granted. | ||||||||||||
In addition, the Company has an employee stock purchase plan that allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each offering period. The offering periods are three-month periods beginning on January 1, April 1, July 1 and October 1 of each fiscal year. The Company recognizes an expense in the amount equal to the value of the 15% discount and look-back feature over the three-month offering period. | ||||||||||||
Earnings per share | ||||||||||||
Basic earnings per share is computed by dividing net income available to the Company’s stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if dilutive stock options had been exercised and RSUs were vested. The dilutive effect of stock options and unvested RSUs is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options and vesting of RSUs would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the hypothetical windfall tax benefit that the Company receives upon assumed exercise or vesting and the hypothetical average unrecognized compensation expense for the period. The Company calculates the assumed proceeds from excess tax benefits based on the “as-if” deferred tax assets calculated under share based compensation standards. | ||||||||||||
Certain unvested RSUs contain nonforfeitable rights to dividends as they are eligible to participate in undistributed earnings without meeting service condition requirements. These awards are considered participating securities under the guidance which requires the use of the two-class method when computing basic and diluted earnings per share. The two-class method reduces earnings allocated to common stockholders by dividends and undistributed earnings allocated to participating securities. | ||||||||||||
Employee benefit plans | ||||||||||||
The Company recognizes the overfunded or underfunded status of defined benefit postretirement plans as an asset or liability on its consolidated balance sheets and recognizes changes in the funded status in the year in which changes occur, through accumulated other comprehensive loss. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation (the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for the other postretirement plans). Actuarial gains and losses and prior service costs and credits that have not been recognized as a component of net periodic benefit cost previously are recorded as a component of accumulated other comprehensive loss. Plan assets and obligations are measured annually as of December 31. | ||||||||||||
The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income earned on the Company’s deferred compensation plan assets is included as a component of net investment income and the income earned by the deferred compensation plan participants is included as a component of personnel costs on the consolidated statements of income. | ||||||||||||
Foreign currency | ||||||||||||
The Company operates in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. The functional currencies of the Company’s foreign subsidiaries are generally their respective local currencies. The financial statements of the foreign subsidiaries are translated into U.S. dollars as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at average rates prevailing throughout the period. Translation adjustments resulting from the translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included within other operating expenses. | ||||||||||||
Reinsurance | ||||||||||||
The Company assumes and cedes large title insurance risks through reinsurance. Additionally, the Company’s property and casualty insurance business uses reinsurance to limit risk associated with natural disasters such as windstorms, winter storms, wildfires and earthquakes. In reinsurance arrangements, the primary insurer retains a certain amount of risk under a policy and cedes the remainder of the risk under the policy to the reinsurer. The primary insurer pays the reinsurer a premium in exchange for accepting this risk of loss. The primary insurer generally remains liable to its insured for the total risk, but is reinsured under the terms of the reinsurance agreement. The amount of premiums assumed and ceded is recorded as a component of direct premiums and escrow fees on the Company’s consolidated statements of income. The total amount of premiums assumed and ceded in connection with reinsurance was less than 1.0% of consolidated premium and escrow fees for each of the three years in the period ended December 31, 2014. Payments and recoveries on reinsured losses for the Company’s title insurance and property and casualty businesses were immaterial during the three years ended December 31, 2014. At December 31, 2014, a reinsurance receivable of $25.0 million, which related to a large commercial title claim, was included in the Company’s consolidated balance sheets in accounts and accrued income receivable. The Company collected $23.2 million of the receivable in February 2015 and expects to collect the remaining $1.8 during the remainder of 2015. No reinsurance receivable was included in the consolidated balance sheets at December 31, 2013. | ||||||||||||
Escrow deposits and trust assets | ||||||||||||
The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $6.3 billion and $4.7 billion at December 31, 2014 and 2013, respectively, of which $2.2 billion and $1.6 billion, respectively, were held at the Company’s federal savings bank subsidiary, First American Trust, FSB. The escrow deposits held at First American Trust, FSB are temporarily invested in cash and cash equivalents and debt and equity securities, with offsetting liabilities included in deposits in the accompanying consolidated balance sheets. The remaining escrow deposits were held at third-party financial institutions. | ||||||||||||
Trust assets held or managed by First American Trust, FSB totaled $3.0 billion at December 31, 2014 and 2013. Escrow deposits held at third-party financial institutions and trust assets are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. However, the Company could be held contingently liable for the disposition of these assets. | ||||||||||||
In conducting its operations, the Company often holds customers’ assets in escrow, pending completion of real estate transactions and, as a result, the Company has ongoing programs for realizing economic benefits, including investment programs, borrowing agreements, and vendor services arrangements with various financial institutions. The effects of these programs are included in the consolidated financial statements as income or a reduction in expense, as appropriate, based on the nature of the arrangement and benefit received. | ||||||||||||
Like-kind exchanges | ||||||||||||
The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of each such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds held by the Company totaled $2.4 billion and $1.4 billion at December 31, 2014 and 2013, respectively. The like-kind exchange deposits are held at third-party financial institutions and, due to the structure utilized to facilitate these transactions, the proceeds and property are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the return on the proceeds. | ||||||||||||
Recently Adopted Accounting Pronouncements: | ||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued updated guidance intended to eliminate the diversity in practice regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. The adoption of the guidance had no impact on the Company’s consolidated financial statements. | ||||||||||||
Pending Accounting Pronouncements: | ||||||||||||
In June 2014, the FASB issued updated guidance intended to eliminate the diversity in practice regarding share-based payment awards that include terms which provide for a performance target that affects vesting being achieved after the requisite service period. The new standard requires that a performance target which affects vesting and could be achieved after the requisite service period be treated as a performance condition that affects vesting and should not be reflected in estimating the grant-date fair value. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued updated guidance for recognizing revenue from contracts with customers to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within and across industries, and across capital markets. The new revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of recognition. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. Revenue from insurance contracts is not within the scope of this guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently assessing the impact of the new guidance on its consolidated financial statements. | ||||||||||||
In April 2014, the FASB issued updated guidance which changes the criteria for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The updated guidance is effective for interim and annual reporting periods beginning after December 31, 2014, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its consolidated financial statements. |
Statutory_Restrictions_On_Inve
Statutory Restrictions On Investments And Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Insurance [Abstract] | |
Statutory Restrictions on Investments and Stockholders' Equity | NOTE 2. Statutory Restrictions on Investments and Stockholders’ Equity: |
Investments totaling $133.0 million and $128.9 million were on deposit with state treasurers in accordance with statutory requirements for the protection of policyholders at December 31, 2014 and 2013, respectively. | |
Pursuant to insurance and other regulations under which the Company’s insurance subsidiaries operate, the amount of dividends, loans and advances available to the Company is limited, principally for the protection of policyholders. As of December 31, 2014, under such regulations, the maximum amount of dividends, loans and advances available to the Company from its insurance subsidiaries in 2015, without prior approval from applicable regulators, was $570.0 million. | |
The Company’s principal title insurance subsidiary, First American Title Insurance Company (“FATICO”), maintained total statutory capital and surplus of $971.3 million and $996.0 million as of December 31, 2014 and 2013, respectively. Statutory net income for the years ended December 31, 2014, 2013 and 2012 was $393.1 million, $199.1 million and $301.9 million, respectively. FATICO was in compliance with the minimum statutory capital and surplus requirements as of December 31, 2014. | |
FATICO, which was previously domiciled in the state of California, redomesticated to Nebraska effective July 1, 2014. FATICO’s statutory-based financial statements were prepared in accordance with accounting practices prescribed or permitted by the Nebraska Department of Insurance for the year ended December 31, 2014 and by the California Department of Insurance for the year ended December 31, 2013. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the states of Nebraska and California. Both states have adopted certain prescribed accounting practices that differ from those found in the NAIC SAP. Specifically, the timing of amounts released from the statutory premium reserve under both Nebraska’s and California’s required practice differs from NAIC SAP resulting in total statutory capital and surplus that was lower by $11.7 million and $193.8 million at December 31, 2014 and 2013, respectively, than if reported in accordance with NAIC SAP. Additionally, for the year ended December 31, 2014, the state of Nebraska granted a permitted accounting practice to FATICO that differs from Nebraska’s prescribed accounting practices; specifically, the determination to not record a bulk reserve within the known claims reserve resulting in total statutory capital and surplus that was higher by $8.2 million at December 31, 2014 than if reported in accordance with Nebraska’s required practice. | |
Statutory accounting principles differ in some respects from generally accepted accounting principles, and these differences include, but are not limited to, non-admission of certain assets (principally limitations on deferred tax assets, capitalized furniture and other equipment, premiums and other receivables 90 days past due and assets acquired in connection with claim settlements other than real estate or mortgage loans secured by real estate), reporting of bonds at amortized cost, amortization of goodwill, deferral of premiums received as statutory premium reserve, supplemental reserve (if applicable) and exclusion of the incurred but not reported claims reserve. |
Debt_and_Equity_Securities
Debt and Equity Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | |||||||||||||||||||||||||
Debt and Equity Securities | NOTE 3. Debt and Equity Securities: | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investments in debt securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Amortized | Gross unrealized | Estimated | |||||||||||||||||||||||
(in thousands) | cost | gains | losses | fair value | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 64,195 | $ | 968 | $ | (181 | ) | $ | 64,982 | ||||||||||||||||
Municipal bonds | 577,703 | 10,981 | (1,007 | ) | 587,677 | ||||||||||||||||||||
Foreign bonds | 194,749 | 2,009 | (8 | ) | 196,750 | ||||||||||||||||||||
Governmental agency bonds | 198,330 | 1,562 | (2,018 | ) | 197,874 | ||||||||||||||||||||
Governmental agency mortgage-backed securities | 1,812,766 | 8,491 | (9,095 | ) | 1,812,162 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 15,949 | 1,306 | (717 | ) | 16,538 | ||||||||||||||||||||
Corporate debt securities | 568,774 | 8,759 | (3,264 | ) | 574,269 | ||||||||||||||||||||
$ | 3,432,466 | $ | 34,076 | $ | (16,290 | ) | $ | 3,450,252 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 66,400 | $ | 669 | $ | (685 | ) | $ | 66,384 | ||||||||||||||||
Municipal bonds | 491,143 | 5,113 | (10,291 | ) | 485,965 | ||||||||||||||||||||
Foreign bonds | 221,298 | 1,836 | (626 | ) | 222,508 | ||||||||||||||||||||
Governmental agency bonds | 267,713 | 233 | (5,401 | ) | 262,545 | ||||||||||||||||||||
Governmental agency mortgage-backed securities | 1,426,489 | 2,074 | (25,254 | ) | 1,403,309 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 19,658 | 1,167 | (1,803 | ) | 19,022 | ||||||||||||||||||||
Corporate debt securities | 355,893 | 7,279 | (3,088 | ) | 360,084 | ||||||||||||||||||||
$ | 2,848,594 | $ | 18,371 | $ | (47,148 | ) | $ | 2,819,817 | |||||||||||||||||
The cost and estimated fair value of investments in equity securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Cost | Gross unrealized | Estimated | |||||||||||||||||||||||
(in thousands) | gains | losses | fair value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Preferred stocks | $ | 14,976 | $ | 596 | $ | (47 | ) | $ | 15,525 | ||||||||||||||||
Common stocks | 378,938 | 16,680 | (8,731 | ) | 386,887 | ||||||||||||||||||||
$ | 393,914 | $ | 17,276 | $ | (8,778 | ) | $ | 402,412 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Preferred stocks | $ | 9,915 | $ | 1,567 | $ | (397 | ) | $ | 11,085 | ||||||||||||||||
Common stocks | 324,184 | 25,137 | (2,363 | ) | 346,958 | ||||||||||||||||||||
$ | 334,099 | $ | 26,704 | $ | (2,760 | ) | $ | 358,043 | |||||||||||||||||
The Company had the following unrealized gains (losses) as of December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Debt securities for which an other-than-temporary impairment has been recognized | $ | 604 | $ | (625 | ) | $ | (4,435 | ) | |||||||||||||||||
Debt securities—all other | 17,182 | (28,152 | ) | 43,041 | |||||||||||||||||||||
Equity securities | 8,498 | 23,944 | 6,750 | ||||||||||||||||||||||
$ | 26,284 | $ | (4,833 | ) | $ | 45,356 | |||||||||||||||||||
Sales of debt and equity securities resulted in realized gains of $34.1 million, $17.2 million and $70.1 million and realized losses of $9.1 million, $15.5 million and $0.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The Company had the following gross unrealized losses as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
(in thousands) | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 8,122 | $ | (27 | ) | $ | 15,124 | $ | (154 | ) | $ | 23,246 | $ | (181 | ) | ||||||||||
Municipal bonds | 137,755 | (689 | ) | 19,625 | (318 | ) | 157,380 | (1,007 | ) | ||||||||||||||||
Foreign bonds | 6,215 | (8 | ) | — | — | 6,215 | (8 | ) | |||||||||||||||||
Governmental agency bonds | 27,479 | (88 | ) | 127,936 | (1,930 | ) | 155,415 | (2,018 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 383,717 | (1,612 | ) | 300,918 | (7,483 | ) | 684,635 | (9,095 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | — | — | 5,611 | (717 | ) | 5,611 | (717 | ) | |||||||||||||||||
Corporate debt securities | 198,079 | (3,151 | ) | 9,683 | (113 | ) | 207,762 | (3,264 | ) | ||||||||||||||||
Total debt securities | 761,367 | (5,575 | ) | 478,897 | (10,715 | ) | 1,240,264 | (16,290 | ) | ||||||||||||||||
Equity securities | 208,922 | (8,587 | ) | 2,340 | (191 | ) | 211,262 | (8,778 | ) | ||||||||||||||||
Total | $ | 970,289 | $ | (14,162 | ) | $ | 481,237 | $ | (10,906 | ) | $ | 1,451,526 | $ | (25,068 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 37,492 | $ | (685 | ) | $ | — | $ | — | $ | 37,492 | $ | (685 | ) | |||||||||||
Municipal bonds | 230,180 | (8,938 | ) | 27,687 | (1,353 | ) | 257,867 | (10,291 | ) | ||||||||||||||||
Foreign bonds | 56,579 | (626 | ) | — | — | 56,579 | (626 | ) | |||||||||||||||||
Governmental agency bonds | 203,011 | (5,375 | ) | 131 | (26 | ) | 203,142 | (5,401 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 838,411 | (20,970 | ) | 124,425 | (4,284 | ) | 962,836 | (25,254 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | — | — | 12,086 | (1,803 | ) | 12,086 | (1,803 | ) | |||||||||||||||||
Corporate debt securities | 129,394 | (2,422 | ) | 12,500 | (666 | ) | 141,894 | (3,088 | ) | ||||||||||||||||
Total debt securities | 1,495,067 | (39,016 | ) | 176,829 | (8,132 | ) | 1,671,896 | (47,148 | ) | ||||||||||||||||
Equity securities | 85,112 | (2,718 | ) | 1,046 | (42 | ) | 86,158 | (2,760 | ) | ||||||||||||||||
Total | $ | 1,580,179 | $ | (41,734 | ) | $ | 177,875 | $ | (8,174 | ) | $ | 1,758,054 | $ | (49,908 | ) | ||||||||||
Substantially all securities in the Company’s non-agency mortgage-backed portfolio are senior tranches and all were investment grade at the time of purchase, however, all have subsequently been downgraded to below investment grade. The table below summarizes the composition of the Company’s non-agency mortgage-backed securities as of December 31, 2014, by collateral type and year of issuance. | |||||||||||||||||||||||||
(in thousands, except number of securities) | Number of | Amortized | Estimated | ||||||||||||||||||||||
Securities | Cost | Fair Value | |||||||||||||||||||||||
Non-agency mortgage- backed securities: | |||||||||||||||||||||||||
Prime single family residential: | |||||||||||||||||||||||||
2007 | 1 | $ | 2,738 | $ | 2,394 | ||||||||||||||||||||
2006 | 3 | 7,433 | 7,377 | ||||||||||||||||||||||
2005 | 1 | 524 | 509 | ||||||||||||||||||||||
Alt-A single family residential: | |||||||||||||||||||||||||
2007 | 1 | 5,254 | 6,258 | ||||||||||||||||||||||
6 | $ | 15,949 | $ | 16,538 | |||||||||||||||||||||
The amortized cost and estimated fair value of debt securities at December 31, 2014, by contractual maturities, are as follows: | |||||||||||||||||||||||||
(in thousands) | Due in one | Due after | Due after | Due after | Total | ||||||||||||||||||||
year or less | one | five | ten years | ||||||||||||||||||||||
through | through | ||||||||||||||||||||||||
five years | ten years | ||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||
Amortized cost | $ | 4,909 | $ | 40,264 | $ | 17,032 | $ | 1,990 | $ | 64,195 | |||||||||||||||
Estimated fair value | $ | 4,969 | $ | 40,312 | $ | 17,370 | $ | 2,331 | $ | 64,982 | |||||||||||||||
Municipal bonds | |||||||||||||||||||||||||
Amortized cost | $ | 20,148 | $ | 262,901 | $ | 181,812 | $ | 112,842 | $ | 577,703 | |||||||||||||||
Estimated fair value | $ | 20,239 | $ | 264,952 | $ | 186,168 | $ | 116,318 | $ | 587,677 | |||||||||||||||
Foreign bonds | |||||||||||||||||||||||||
Amortized cost | $ | 46,403 | $ | 131,652 | $ | 13,473 | $ | 3,221 | $ | 194,749 | |||||||||||||||
Estimated fair value | $ | 46,585 | $ | 133,103 | $ | 13,707 | $ | 3,355 | $ | 196,750 | |||||||||||||||
Governmental agency bonds | |||||||||||||||||||||||||
Amortized cost | $ | 2,279 | $ | 171,686 | $ | 12,402 | $ | 11,963 | $ | 198,330 | |||||||||||||||
Estimated fair value | $ | 2,284 | $ | 169,796 | $ | 12,762 | $ | 13,032 | $ | 197,874 | |||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 18,503 | $ | 239,699 | $ | 262,743 | $ | 47,829 | $ | 568,774 | |||||||||||||||
Estimated fair value | $ | 18,640 | $ | 242,236 | $ | 263,623 | $ | 49,770 | $ | 574,269 | |||||||||||||||
Total debt securities excluding mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 92,242 | $ | 846,202 | $ | 487,462 | $ | 177,845 | $ | 1,603,751 | |||||||||||||||
Estimated fair value | $ | 92,717 | $ | 850,399 | $ | 493,630 | $ | 184,806 | $ | 1,621,552 | |||||||||||||||
Total mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 1,828,715 | |||||||||||||||||||||||
Estimated fair value | $ | 1,828,700 | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 3,432,466 | |||||||||||||||||||||||
Estimated fair value | $ | 3,450,252 | |||||||||||||||||||||||
Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Financing_Receivables
Financing Receivables | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Financing Receivables | NOTE 4. Financing Receivables: | |||||||||||||||||||||||
During the fourth quarter of 2014, the Company completed its multi-year process of winding-down the operations of its industrial bank, First Security Business Bank, which included the sale of the bank’s loan portfolio and transfer of its customer deposits to a third party bank. The Company received proceeds from the sale of $42.3 million, net of $8.1 million related to customer deposits, and recorded a gain of $0.5 million. Customer deposits were transferred at par value. Loans receivable, net totaled $73.8 million at December 31, 2013. | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
Notes receivable: | 2014 | 2013 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Secured | 5,810 | 10,533 | ||||||||||||||||||||||
Unsecured | 2,761 | 2,593 | ||||||||||||||||||||||
8,571 | 13,126 | |||||||||||||||||||||||
Loss reserve | (2,441 | ) | (2,584 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 6,130 | $ | 10,542 | ||||||||||||||||||||
Aging analysis of notes receivable at December 31, 2014 and 2013, is as follows: | ||||||||||||||||||||||||
Total | Current | 30-59 days | 60-89 days | 90 days or | Non-accrual | |||||||||||||||||||
past due | past due | more | status | |||||||||||||||||||||
past due | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 5,810 | $ | 4,929 | $ | 28 | $ | — | $ | 43 | $ | 810 | ||||||||||||
Unsecured | 2,761 | 1,121 | 7 | — | — | 1,633 | ||||||||||||||||||
$ | 8,571 | $ | 6,050 | $ | 35 | $ | — | $ | 43 | $ | 2,443 | |||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 10,533 | $ | 5,784 | $ | 3,668 | $ | — | $ | 231 | $ | 850 | ||||||||||||
Unsecured | 2,593 | 771 | — | — | — | 1,822 | ||||||||||||||||||
$ | 13,126 | $ | 6,555 | $ | 3,668 | $ | — | $ | 231 | $ | 2,672 | |||||||||||||
The aggregate annual maturities for notes receivable at December 31, 2014, is as follows: | ||||||||||||||||||||||||
Year | Notes | |||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 2,035 | ||||||||||||||||||||||
2016 | 1,509 | |||||||||||||||||||||||
2017 | 719 | |||||||||||||||||||||||
2018 | 517 | |||||||||||||||||||||||
2019 | 2,603 | |||||||||||||||||||||||
2020 and thereafter | 1,188 | |||||||||||||||||||||||
$ | 8,571 | |||||||||||||||||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Property and Equipment | NOTE 5. Property and Equipment: | |||||||
Property and equipment consists of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Land | $ | 29,700 | $ | 29,816 | ||||
Buildings | 270,689 | 277,131 | ||||||
Furniture and equipment | 186,237 | 182,912 | ||||||
Capitalized software | 466,548 | 402,713 | ||||||
953,174 | 892,572 | |||||||
Accumulated depreciation and amortization | (557,887 | ) | (531,224 | ) | ||||
$ | 395,287 | $ | 361,348 | |||||
Goodwill
Goodwill | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill | NOTE 6. Goodwill: | |||||||||||
A summary of the changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2014 and 2013, is as follows: | ||||||||||||
Title | Specialty | Total | ||||||||||
Insurance | Insurance | |||||||||||
and Services | ||||||||||||
(in thousands) | ||||||||||||
Balance as of December 31, 2012 | $ | 799,092 | $ | 46,765 | $ | 845,857 | ||||||
Acquisitions | 4,456 | — | 4,456 | |||||||||
Foreign currency translation | (4,287 | ) | — | (4,287 | ) | |||||||
Balance as of December 31, 2013 | 799,261 | 46,765 | 846,026 | |||||||||
Acquisitions | 121,252 | — | 121,252 | |||||||||
Foreign currency translation | (5,554 | ) | — | (5,554 | ) | |||||||
Other adjustments | (1,779 | ) | — | (1,779 | ) | |||||||
Balance as of December 31, 2014 | $ | 913,180 | $ | 46,765 | $ | 959,945 | ||||||
For further discussion about the Company’s acquisitions in 2014 see Note 21 Business Combinations. | ||||||||||||
The Company’s goodwill impairment assessments for 2014, 2013 and 2012 did not indicate impairment to any of its reporting units. There is no accumulated impairment for goodwill as the Company has never recognized impairment to any of its reporting units. | ||||||||||||
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||
Other Intangible Assets | NOTE 7. Other Intangible Assets: | |||||||
Other intangible assets consist of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Finite-lived intangible assets: | ||||||||
Customer relationships | $ | 94,850 | $ | 77,382 | ||||
Noncompete agreements | 27,286 | 26,928 | ||||||
Trademarks | 11,241 | 10,026 | ||||||
Patents | 2,840 | 2,840 | ||||||
136,217 | 117,176 | |||||||
Accumulated amortization | (97,282 | ) | (88,624 | ) | ||||
38,935 | 28,552 | |||||||
Indefinite-lived intangible assets: | ||||||||
Licenses | 16,877 | 17,795 | ||||||
$ | 55,812 | $ | 46,347 | |||||
Amortization expense for finite-lived intangible assets was $12.6 million for the year ended December 31, 2014 and $12.0 million for the years ended December 31, 2013 and 2012. | ||||||||
Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: | ||||||||
Year | (in thousands) | |||||||
2015 | $ | 8,886 | ||||||
2016 | $ | 8,423 | ||||||
2017 | $ | 6,799 | ||||||
2018 | $ | 4,462 | ||||||
2019 | $ | 3,690 | ||||||
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Banking And Thrift [Abstract] | ||||||||
Deposits | NOTE 8. Deposits: | |||||||
Deposit accounts are summarized as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except | ||||||||
percentages) | ||||||||
Escrow accounts: | ||||||||
Interest bearing | $ | 1,962,351 | $ | 1,376,921 | ||||
Non-interest bearing | 266,281 | 176,964 | ||||||
2,228,632 | 1,553,885 | |||||||
Savings accounts (1) | — | 22,015 | ||||||
Certificate accounts (1) | — | 26,596 | ||||||
Business checking and other deposits (2) | 104,082 | 90,436 | ||||||
$ | 2,332,714 | $ | 1,692,932 | |||||
Weighted average interest rate: | ||||||||
Escrow accounts | 0.11 | % | 0.13 | % | ||||
-1 | During the fourth quarter of 2014, the Company completed its multi-year process of winding-down the operations of its industrial bank, First Security Business Bank, which included the sale of the bank’s loan portfolio and transfer of its customer deposits to a third party bank. The Company received proceeds from the sale of $42.3 million, net of $8.1 million related to customer deposits, and recorded a gain of $0.5 million. Customer deposits were transferred at par value. | |||||||
-2 | Business checking and other deposits primarily reflect non-interest bearing accounts. | |||||||
Reserve_for_Known_and_Incurred
Reserve for Known and Incurred but Not Reported Claims | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Insurance Loss Reserves [Abstract] | |||||||||||||||||
Reserve for Known and Incurred but Not Reported Claims | NOTE 9. Reserve for Known and Incurred But Not Reported Claims: | ||||||||||||||||
Activity in the reserve for known and incurred but not reported claims is summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 1,018,365 | $ | 976,462 | $ | 1,014,676 | |||||||||||
Provision related to: | |||||||||||||||||
Current year | 385,155 | 380,723 | 335,097 | ||||||||||||||
Prior years | 64,868 | 149,633 | 62,620 | ||||||||||||||
450,023 | 530,356 | 397,717 | |||||||||||||||
Payments, net of recoveries, related to: | |||||||||||||||||
Current year | 196,656 | 182,653 | 160,138 | ||||||||||||||
Prior years | 273,094 | 296,657 | 285,848 | ||||||||||||||
469,750 | 479,310 | 445,986 | |||||||||||||||
Other | 13,142 | (9,143 | ) | 10,055 | |||||||||||||
Balance at end of year | $ | 1,011,780 | $ | 1,018,365 | $ | 976,462 | |||||||||||
“Other” primarily represents reclassifications to the reserve for foreign currency gains/losses and assets acquired in connection with claim settlements. Claims activity associated with reinsurance is not material and, therefore, not presented separately. Current year payments include $174.4 million, $167.3 million and $144.1 million in 2014, 2013 and 2012, respectively, that primarily relate to the Company’s specialty insurance segment. Prior year payments include $23.2 million, $16.0 million and $16.7 million in 2014, 2013 and 2012, respectively, that relate to the Company’s specialty insurance segment. | |||||||||||||||||
The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 7.0%, 8.8% and 6.9% for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
The current year rate of 7.0% reflects an ultimate loss rate of 5.3% for the current policy year and a net increase in the loss reserve estimates for prior policy years of $62.2 million. The increase in loss reserve estimates for prior policy years reflected claims development above expected levels during 2014, primarily from domestic commercial policies. The reserve strengthening associated with domestic commercial policies was $41.4 million and was primarily attributable to several large commercial claims, net of anticipated recoveries, mainly from mechanics liens, and primarily related to policy years 2003, 2005 and 2007. Other factors, including a large international commercial claim from policy year 2004, also contributed to the net increase in the loss reserve estimates for prior policy years. | |||||||||||||||||
As of December 31, 2014, the title insurance and services segment’s IBNR reserve was $802.1 million, which reflected management’s best estimate. The Company’s internal actuary determined a range of reasonable estimates of $726.1 million to $990.5 million. The range limits are $76.0 million below and $188.4 million above management’s best estimate, respectively, and represent an estimate of the range of variation among reasonable estimates of the IBNR reserve. Actuarial estimates are sensitive to assumptions used in models, as well as the structures of the models themselves, and to changes in claims payment and incurral patterns, which can vary materially due to economic conditions, among other factors. | |||||||||||||||||
The prior year rate of 8.8% reflected an ultimate loss rate of 5.0% for policy year 2013 and a net increase in the loss reserve estimates for prior policy years of $148.5 million. The increase in loss reserve estimates for prior policy years reflected claims development above expected levels during 2013, primarily from domestic lenders policies, commercial policies and the Company’s guaranteed valuation product offered in Canada. The reserve strengthening associated with domestic lenders policies was $67.4 million and was primarily attributable to increased claims frequency for policy years 2004 through 2008. The increased claims frequency was primarily due to mortgage lenders and servicers processing a large volume of foreclosures during 2013. As foreclosure processing increases, lenders claims generally increase, because lenders claims typically come from foreclosures in which the lender suffers a loss. At December 31, 2013, the Company expected the high level of foreclosure processing to continue in the near term as mortgage lenders and servicers worked through their foreclosure inventory. The reserve strengthening associated with domestic lenders policies reflected these expectations. The reserve strengthening associated with commercial policies was $38.8 million and was primarily attributable to several large commercial claims, mainly from mechanics liens, and primarily related to policy years 2007 and 2008. The reserve strengthening associated with the guaranteed valuation product offered in Canada was $21.7 million and was primarily attributable to claims frequency exceeding the Company’s expectations during 2013. The increase in frequency primarily related to policy years 2007 and 2010. | |||||||||||||||||
The 2012 rate of 6.9% reflected an ultimate loss rate of 5.1% for policy year 2012 and a net increase in the loss reserve estimates for prior policy years of $62.1 million. The increase in loss reserve estimates for prior policy years reflected claims development above expected levels during 2012, primarily from domestic lenders policies and international business, including the guaranteed valuation product offered in Canada. The reserve strengthening associated with domestic lenders policies was $25.6 million and was primarily attributable to policy years 2005 through 2007. This strengthening was primarily due to an increase in claims frequency experienced during 2012, partially offset by a slight decrease in severity. The reserve strengthening associated with the international business, excluding the guaranteed valuation product, was $15.6 million and was primarily related to increased severity experienced during 2012 for policy years 2003 through 2011. The reserve strengthening associated with the guaranteed valuation product was $11.8 million and reflected an increase in claims frequency experienced during the first half of 2012. The increase in frequency primarily related to policy years 2008 and 2009. | |||||||||||||||||
The current economic environment continues to show potential for volatility over the short term, which may affect title claims. Relevant contributing factors include continuing elevated foreclosure inventory and foreclosure processing and general economic uncertainty. Other factors, including factors not yet identified, may also influence claims development. While real estate and financial market conditions have improved to some extent as evidenced by increased real estate prices and a decline in mortgage defaults, significant uncertainty remains. In addition, while foreclosure inventory and foreclosure processing remain elevated compared to historic norms, the level of inventory and processing has declined from its peak. Nevertheless, the current environment continues to create an increased potential for actual claims experience to vary significantly from projections, in either direction, which would directly affect the claims provision. If actual claims vary significantly from expected, reserves may be adjusted to reflect updated estimates of future claims. | |||||||||||||||||
The volume and timing of title insurance claims are subject to cyclical influences from real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often the lender must realize an actual loss, or at least be likely to realize an actual loss, for title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans, and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. | |||||||||||||||||
A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that sensitivity of claims to external conditions in real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Lenders have experienced high losses on mortgage loans from prior years, including loans that were originated during the years 2005 through 2008. These losses have led to higher title insurance claims on lenders policies, and also have accelerated the reporting of claims that would have been realized later under more normal conditions. | |||||||||||||||||
Loss ratios (projected to ultimate value) for policy years 2005 through 2008 are higher than loss ratios for policy years 1992 through 2004. The major causes of the higher loss ratios for those four policy years are believed to be confined mostly to that underwriting period. These causes included: rapidly increasing residential real estate prices which led to an increase in the incidences of fraud, lower mortgage loan underwriting standards and a higher concentration than usual of subprime mortgage loan originations. | |||||||||||||||||
The projected ultimate loss ratios, as of December 31, 2014, for policy years 2014, 2013 and 2012 were 5.3%, 4.6% and 3.8%, respectively, which are lower than the ratios for 2005 through 2008. These projections were based in part on an assumption that more favorable underwriting conditions existed in 2009 through 2014 than in 2005 through 2008, including, but not limited to, tighter loan underwriting standards. Current claims data from policy years 2009 through 2014, while still at an early stage of development for the more recent policy years within that period, supports this assumption. | |||||||||||||||||
A summary of the Company’s loss reserves is as follows: | |||||||||||||||||
(in thousands, except percentages) | December 31, 2014 | December 31, 2013 | |||||||||||||||
Known title claims | $ | 165,330 | 16.3 | % | $ | 135,478 | 13.3 | % | |||||||||
Incurred but not reported claims | 802,069 | 79.3 | % | 840,104 | 82.5 | % | |||||||||||
Total title claims | 967,399 | 95.6 | % | 975,582 | 95.8 | % | |||||||||||
Non-title claims | 44,381 | 4.4 | % | 42,783 | 4.2 | % | |||||||||||
Total loss reserves | $ | 1,011,780 | 100 | % | $ | 1,018,365 | 100 | % | |||||||||
Notes_and_Contracts_Payable
Notes and Contracts Payable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Notes and Contracts Payable | NOTE 10. Notes and Contracts Payable: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except percentages) | ||||||||
4.60% senior unsecured notes due November 15, 2024, net of unamortized discount of $74 at December 31, 2014, effective interest rate of 4.60% | $ | 299,926 | $ | — | ||||
4.30% senior unsecured notes due February 1, 2023, net of unamortized discount of $760 and $837 at December 31, 2014 and 2013, respectively, effective interest rate of 4.35% | 249,240 | 249,163 | ||||||
Trust deed notes with maturities through 2032, collateralized by land and buildings with a net book value of $52,414 and $55,206 at December 31, 2014 and 2013, respectively, weighted-average interest rate of 5.39% and 5.42%, at December 31, 2014 and 2013, respectively | 34,420 | 38,151 | ||||||
Other notes and contracts payable with maturities through 2020, weighted-average interest rate of 5.30% and 2.96% at December 31, 2014 and 2013, respectively | 3,751 | 22,971 | ||||||
$ | 587,337 | $ | 310,285 | |||||
The weighted-average interest rate for the Company’s notes and contracts payable was 4.52% and 4.34% at December 31, 2014 and 2013, respectively. | ||||||||
On November 10, 2014, the Company issued $300.0 million of 4.60% 10-year senior unsecured notes due in 2024. The notes were priced at 99.975% to yield 4.603%. Interest is due semi-annually on May 15 and November 15, beginning May 15, 2015. The Company intends to use the net proceeds for general corporate purposes. In anticipation of the receipt of the net proceeds from this offering, the Company repaid all borrowings outstanding under its credit facility, increasing the available capacity thereunder to the full $700.0 million size of the facility. | ||||||||
In May 2014, the Company amended and restated its credit agreement with JPMorgan Chase Bank, N.A. in its capacity as administrative agent and the lenders party thereto. The credit agreement is comprised of a $700.0 million revolving credit facility. Unless terminated earlier, the revolving loan commitments under the credit agreement will terminate on May 14, 2019. The obligations of the Company under the credit agreement are neither secured nor guaranteed. The agreement replaced the Company’s $600.0 million senior unsecured credit agreement that had been in place since November 14, 2012. Proceeds under the credit agreement may be used for general corporate purposes. At December 31, 2014, the Company had no outstanding borrowings under the facility. | ||||||||
The credit agreement includes an expansion option that permits the Company, subject to satisfaction of certain conditions, to increase the revolving commitments and/or add term loan tranches (“Incremental Term Loans”) in an aggregate amount not to exceed $150.0 million. Incremental Term Loans, if made, may not mature prior to the revolving commitment termination date, provided that amortization may occur prior to such date. | ||||||||
At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the agreement). The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. The applicable spread varies depending upon the debt rating assigned by Moody’s Investor Service, Inc. and/or Standard & Poor’s Rating Services. The minimum applicable spread for Alternate Base Rate borrowings is 0.625% and the maximum is 1.00%. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.625% and the maximum is 2.00%. The rate of interest on Incremental Term Loans will be established at or about the time such loans are made and may differ from the rate of interest on revolving loans. | ||||||||
The credit agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of an event of default the lenders may accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default the loans will automatically accelerate. As of December 31, 2014, the Company was in compliance with the financial covenants under the credit agreement. | ||||||||
The aggregate annual maturities for notes and contracts payable in each of the five years after December 31, 2014, are as follows: | ||||||||
Year | Annual maturities | |||||||
(in thousands) | ||||||||
2015 | $ | 4,899 | ||||||
2016 | 4,458 | |||||||
2017 | 5,009 | |||||||
2018 | 3,861 | |||||||
2019 | 3,593 | |||||||
Thereafter | 565,517 | |||||||
$ | 587,337 | |||||||
Net_Investment_Income
Net Investment Income | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investment Income Net [Abstract] | ||||||||||||
Net Investment Income | NOTE 11. Net Investment Income: | |||||||||||
The components of net investment income are as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest: | ||||||||||||
Cash equivalents and deposits with banks | $ | 4,471 | $ | 3,694 | $ | 4,407 | ||||||
Debt securities | 56,373 | 47,226 | 45,112 | |||||||||
Other long-term investments | 1,213 | 2,009 | 1,013 | |||||||||
Loans receivable | 3,755 | 5,474 | 8,132 | |||||||||
Dividends on equity securities | 11,961 | 11,776 | 5,388 | |||||||||
Equity in earnings of affiliates, net | (16,545 | ) | 5,316 | 6,514 | ||||||||
Other | 10,488 | 14,400 | 10,465 | |||||||||
Total investment income | 71,716 | 89,895 | 81,031 | |||||||||
Investment expenses (1) | (675 | ) | — | — | ||||||||
Net investment income | $ | 71,041 | $ | 89,895 | $ | 81,031 | ||||||
-1 | Investment expenses include fees paid to third party investment managers, which the Company began utilizing in 2014. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
NOTE 12. Income Taxes: | |||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, domestic and foreign pretax income from continuing operations before noncontrolling interests was $301.8 million and $48.8 million, $286.2 million and $24.5 million, and $449.6 million and $17.8 million, respectively. | |||||||||||||||||||||||||
Income taxes are summarized as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | 87,189 | $ | 86,406 | $ | 82,269 | |||||||||||||||||||
State | 4,751 | 7,887 | 15,229 | ||||||||||||||||||||||
Foreign | 812 | 24,331 | 8,234 | ||||||||||||||||||||||
92,752 | 118,624 | 105,732 | |||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | 15,594 | 8,937 | 60,242 | ||||||||||||||||||||||
State | (304 | ) | 9,774 | 111 | |||||||||||||||||||||
Foreign | 8,303 | (13,691 | ) | (407 | ) | ||||||||||||||||||||
23,593 | 5,020 | 59,946 | |||||||||||||||||||||||
$ | 116,345 | $ | 123,644 | $ | 165,678 | ||||||||||||||||||||
Income taxes differ from the amounts computed by applying the federal income tax rate of 35.0%. A reconciliation of this difference is as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||
Taxes calculated at federal rate | $ | 122,696 | 35 | % | $ | 108,748 | 35 | % | $ | 163,592 | 35 | % | |||||||||||||
State taxes, net of federal benefit | 2,891 | 0.8 | 11,480 | 3.7 | 9,525 | 2 | |||||||||||||||||||
Change in liability for tax positions | 412 | 0.1 | 3,537 | 1.1 | 2,033 | 0.4 | |||||||||||||||||||
Change in capital loss valuation allowance | — | — | — | — | (5,276 | ) | (1.1 | ) | |||||||||||||||||
Foreign income taxed at different rates | (6,091 | ) | (1.7 | ) | 8,567 | 2.8 | 2,881 | 0.6 | |||||||||||||||||
Foreign tax credits | (2,184 | ) | (0.6 | ) | (5,640 | ) | (1.8 | ) | (2,921 | ) | (0.6 | ) | |||||||||||||
Other items, net | (1,379 | ) | (0.4 | ) | (3,048 | ) | (1.0 | ) | (4,156 | ) | (0.9 | ) | |||||||||||||
$ | 116,345 | 33.2 | % | $ | 123,644 | 39.8 | % | $ | 165,678 | 35.4 | % | ||||||||||||||
The Company’s effective income tax rate (income tax expense as a percentage of income before income taxes) was 33.2% for 2014, 39.8% for 2013 and 35.4% for 2012. The differences in the effective tax rates were primarily due to changes in state and foreign income taxes resulting from fluctuations in the Company’s noninsurance and foreign subsidiaries’ contribution to pretax profits, changes in the ratio of permanent differences to income before income taxes and changes in the liability related to tax positions reported on the Company’s tax returns. The effective tax rate for 2012 included the release of a valuation allowance recorded against capital losses. | |||||||||||||||||||||||||
The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Deferred revenue | $ | 9,887 | $ | 8,360 | |||||||||||||||||||||
Employee benefits | 74,068 | 73,302 | |||||||||||||||||||||||
Bad debt reserves | 15,253 | 17,588 | |||||||||||||||||||||||
Investments in affiliates | 13,670 | 8,026 | |||||||||||||||||||||||
Loss reserves | 2,507 | 1,728 | |||||||||||||||||||||||
Pension | 120,401 | 86,858 | |||||||||||||||||||||||
Net operating loss carryforward | 23,727 | 27,762 | |||||||||||||||||||||||
Securities | — | 1,880 | |||||||||||||||||||||||
Foreign tax credit | 2,184 | — | |||||||||||||||||||||||
Other | 8,712 | 6,782 | |||||||||||||||||||||||
270,409 | 232,286 | ||||||||||||||||||||||||
Valuation allowance | (15,706 | ) | (18,119 | ) | |||||||||||||||||||||
254,703 | 214,167 | ||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Depreciable and amortizable assets | 284,532 | 258,855 | |||||||||||||||||||||||
Claims and related salvage | 36,653 | 21,196 | |||||||||||||||||||||||
Securities | 8,934 | — | |||||||||||||||||||||||
330,119 | 280,051 | ||||||||||||||||||||||||
Net deferred tax liability | $ | 75,416 | $ | 65,884 | |||||||||||||||||||||
The exercise of stock options and vesting of RSUs represent a tax benefit that has been reflected as a reduction of taxes payable and an increase to equity. The benefits recorded were $6.9 million and $6.2 million for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
In connection with the Separation, the Company and TFAC entered into a tax sharing agreement which governs the Company’s and CoreLogic’s respective rights, responsibilities and obligations for certain tax related matters. At December 31, 2014 and 2013, the Company had a net payable to CoreLogic of $35.1 million and $56.5 million, respectively, related to tax matters prior to the Separation. This amount is included in the Company’s consolidated balance sheets in other accounts payable and accrued liabilities. The decrease during the current year was primarily the result of tax payments made and an examination settlement reached with a taxing authority for tax matters prior to the Separation. | |||||||||||||||||||||||||
At December 31, 2014, the Company had available a foreign tax credit carryover of $2.2 million. The Company expects to utilize these credits within the carryover period. | |||||||||||||||||||||||||
At December 31, 2014, the Company had available net operating loss carryforwards for income tax purposes totaling $122.5 million, consisting of federal, state and foreign losses of $0.5 million, $38.5 million and $83.5 million, respectively. Of the aggregate net operating losses, $41.2 million have an indefinite expiration and the remaining $81.3 million expire at various times beginning in 2015. The Company carries a valuation allowance of $15.7 million against its deferred tax assets. Of this amount, $13.3 million relates to net operating losses; the remaining $2.4 million relates to other foreign deferred tax assets. The year-over-year decrease in the overall valuation allowance relates to the utilization of certain foreign losses and other foreign deferred tax assets against current year income. | |||||||||||||||||||||||||
The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. The ability or failure to achieve the forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted in the next 12 months. | |||||||||||||||||||||||||
During 2012, the Company released a valuation allowance of $5.3 million previously recorded against certain of its deferred tax assets. Specifically, management determined that it was more likely than not that all of its tax capital loss items will be realized prior to expiration as the result of realized gains from sales of securities and favorable market value activity in its securities portfolio. Application of the accounting guidance related to intraperiod tax allocations resulted in the valuation allowance being credited to tax expense in the amount of $5.3 million during the year ended December 31, 2012. As of December 31, 2014, no significant capital loss carryover remains in the Company’s deferred tax inventory. | |||||||||||||||||||||||||
As of December 31, 2014 and 2013, United States taxes were not provided for on the cumulative earnings of the Company’s foreign subsidiaries of $132.8 million and $121.8 million, respectively, as the Company has invested or expects to invest the undistributed earnings indefinitely. If in the future these earnings are repatriated to the United States, or if the Company determines that the earnings will be remitted in the foreseeable future, additional tax provisions may be required. It is not practicable to calculate the deferred taxes associated with these earnings because of the variability of multiple factors that would need to be assessed at the time of any assumed repatriation; however, foreign tax credits may be available to reduce federal income taxes in the event of distribution. | |||||||||||||||||||||||||
As of December 31, 2014, 2013 and 2012, the liability for income taxes associated with uncertain tax positions was $24.1 million, $47.8 million and $47.9 million, respectively. The net decrease in the liability during 2014 was primarily attributable to an examination settlement reached with a taxing authority for issues related to the timing of deductibility, which, accordingly, did not impact the Company’s consolidated statement of income. The net decrease in the liability during 2013 was primarily attributable to the Company’s effective settlement of a prior year tax return position. The net increase in the liability during 2012 was primarily attributable to the Company’s claim for a timing deduction in a prior year tax return. As of December 31, 2014, 2013 and 2012, the liabilities could be reduced by $3.4 million, $32.6 million and $32.6 million, respectively, of offsetting tax benefits associated with the correlative effects of potential adjustments including timing adjustments and state income taxes. The net amounts of $20.7 million, $15.2 million and $15.3 million as of December 31, 2014, 2013 and 2012, respectively, if recognized, would favorably affect the Company’s effective tax rate. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Unrecognized tax benefits—opening balance | $ | 47,800 | $ | 47,900 | $ | 17,300 | |||||||||||||||||||
Gross (decreases) increases—tax positions in prior period | (24,100 | ) | (600 | ) | 200 | ||||||||||||||||||||
Gross increases—current period tax positions | 400 | 500 | 30,500 | ||||||||||||||||||||||
Expiration of the statute of limitations for the assessment of taxes | — | — | (100 | ) | |||||||||||||||||||||
Unrecognized tax benefits—ending balance | $ | 24,100 | $ | 47,800 | $ | 47,900 | |||||||||||||||||||
The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in tax expense. As of December 31, 2014, 2013 and 2012, the Company had accrued $8.9 million, $4.7 million and $4.2 million, respectively, of interest and penalties (net of tax benefits of $3.7 million, $1.9 million and $1.7 million, respectively) related to uncertain tax positions. | |||||||||||||||||||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India and the United Kingdom. The Company is no longer subject to U.S. federal, state and non-U.S. income tax examinations by taxing authorities for years prior to 2005. | |||||||||||||||||||||||||
It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may significantly increase or decrease within the next 12 months. These changes may be the result of items such as ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. | |||||||||||||||||||||||||
The Company records a liability for potential tax assessments based on its estimate of the potential exposure. New tax laws and new interpretations of laws and rulings by tax authorities may affect the liability for potential tax assessments. Due to the subjectivity and complex nature of the underlying issues, actual payments or assessments may differ from estimates. To the extent the Company’s estimates differ from actual payments or assessments, income tax expense is adjusted. The Company’s income tax returns in several jurisdictions are being examined by various tax authorities. The Company believes that adequate amounts of tax and related interest, if any, have been provided for any adjustments that may result from these examinations. | |||||||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | NOTE 13. Earnings Per Share: | |||||||||||
The Company’s potential dilutive securities are stock options and RSUs. Stock options and RSUs are reflected in diluted net income per share attributable to the Company’s stockholders by application of the treasury-stock method. | ||||||||||||
The computation of basic and diluted earnings per share is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Numerator | ||||||||||||
Net income attributable to the Company | $ | 233,534 | $ | 186,367 | $ | 301,041 | ||||||
Less: dividends and undistributed earnings allocated to unvested RSUs | 514 | 324 | 682 | |||||||||
Net income allocated to common stockholders | $ | 233,020 | $ | 186,043 | $ | 300,359 | ||||||
Denominator | ||||||||||||
Basic weighted-average shares | 106,884 | 106,991 | 106,307 | |||||||||
Effect of dilutive employee stock options and RSUs | 1,804 | 2,111 | 2,235 | |||||||||
Diluted weighted-average shares | 108,688 | 109,102 | 108,542 | |||||||||
Net income per share attributable to the Company’s stockholders | ||||||||||||
Basic | $ | 2.18 | $ | 1.74 | $ | 2.83 | ||||||
Diluted | $ | 2.15 | $ | 1.71 | $ | 2.77 | ||||||
For the years ended December 31, 2014, 2013 and 2012, 133 thousand, 11 thousand and 700 thousand, respectively, of stock options and RSUs were excluded from the weighted-average diluted common shares outstanding due to their antidilutive effect. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ||||||||||||||||
Employee Benefit Plans | NOTE 14. Employee Benefit Plans: | |||||||||||||||
The First American Financial Corporation 401(k) Savings Plan (the “Savings Plan”) allows for employee-elective contributions up to the maximum amount as determined by the Internal Revenue Code. The Company makes discretionary contributions to the Savings Plan based on profitability, as well as the contributions of participants. Participants are allowed to purchase the Company’s common stock as one of the investment options, subject to certain limitations. The Savings Plan held 3,528,000 shares and 3,903,000 shares of the Company’s common stock, representing 3.3% and 3.7% of the Company’s total common shares outstanding at December 31, 2014 and 2013, respectively. | ||||||||||||||||
The Company maintains a deferred compensation plan for certain employees that allows participants to defer up to 100% of their salary, commissions and bonus. Participants can allocate their deferrals among a variety of investment crediting options (known as “deemed investments”). The term deemed investments means that the participant has no ownership interest in the funds they select; the funds are only used to measure the gains or losses that will be attributed to each participant’s deferral account over time. Participants can elect to have their deferral balance paid out while they are still employed or after their employment ends. The deferred compensation plan is exempt from most provisions of the Employee Retirement Income Security Act (“ERISA”) because it is only available to a select group of management and highly compensated employees and is not a qualified employee benefit plan. To preserve the tax-deferred savings advantages of a nonqualified deferred compensation plan, federal law requires that it be unfunded or informally funded. Participant deferrals, and any earnings on those deferrals, are general unsecured obligations of the Company. The Company informally funds the deferred compensation plan through a tax-advantaged investment known as variable universal life insurance. Deferred compensation plan assets are held as an asset of the Company within a special trust, called a “Rabbi Trust.” At December 31, 2014 and 2013, the value of the assets in the Rabbi Trust of $78.6 million and $73.2 million, respectively, and the unfunded liabilities of $76.4 million and $71.1 million, respectively, were included in the consolidated balance sheets in other assets and pension costs and other retirement plans, respectively. | ||||||||||||||||
The Company’s defined benefit pension plan is a noncontributory, qualified plan with benefits based on an employee’s compensation and years of service. The defined benefit pension plan was closed to new entrants effective December 31, 2001 and amended to “freeze” all benefit accruals as of April 30, 2008. | ||||||||||||||||
The Company also has nonqualified, unfunded supplemental benefit plans covering certain management personnel. The Executive and Management Supplemental Benefit Plans, subject to certain limitations, provide participants with maximum benefits of 30% and 15%, respectively, of average annual compensation over a fixed five year period. Effective January 1, 2011, the plans were closed to new participants. | ||||||||||||||||
Certain of the Company’s subsidiaries have separate savings plans and the Company’s international subsidiaries have other employee benefit plans. Expenses related to these plans and expenses related to the Company’s deferred compensation plan, are included in the table below under other plans, net. | ||||||||||||||||
The following table provides the principal components of the Company’s employee benefit plan expenses: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Savings plan | $ | 16,333 | $ | 10,458 | $ | 27,778 | ||||||||||
Defined benefit pension plans | 13,465 | 20,975 | 22,657 | |||||||||||||
Unfunded supplemental benefit plans | 14,614 | 16,673 | 16,553 | |||||||||||||
Other plans, net | 9,259 | 15,479 | 10,166 | |||||||||||||
$ | 53,671 | $ | 63,585 | $ | 77,154 | |||||||||||
The following table summarizes the Company’s benefit obligations, assets and funded status associated with its defined benefit pension and supplemental benefit plans: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Defined | Unfunded | Defined | Unfunded | |||||||||||||
benefit | supplemental | benefit | supplemental | |||||||||||||
pension | benefit plans | pension | benefit plans | |||||||||||||
plans | plans | |||||||||||||||
(in thousands) | ||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 382,035 | $ | 226,458 | $ | 424,462 | $ | 250,226 | ||||||||
Service costs | — | 1,315 | — | 1,915 | ||||||||||||
Interest costs | 18,644 | 10,536 | 17,340 | 9,521 | ||||||||||||
Plan amendment | — | — | — | 2,088 | ||||||||||||
Actuarial losses (gains) | 76,164 | 37,281 | (38,766 | ) | (24,233 | ) | ||||||||||
Benefits paid | (26,176 | ) | (13,453 | ) | (21,001 | ) | (13,059 | ) | ||||||||
Projected benefit obligation at end of year | 450,667 | 262,137 | 382,035 | 226,458 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | 313,469 | — | 294,216 | — | ||||||||||||
Actual return on plan assets | 24,400 | — | 10,971 | — | ||||||||||||
Contributions | 27,672 | 13,453 | 29,283 | 13,059 | ||||||||||||
Benefits paid | (26,176 | ) | (13,453 | ) | (21,001 | ) | (13,059 | ) | ||||||||
Fair value of plan assets at end of year | 339,365 | — | 313,469 | — | ||||||||||||
Reconciliation of funded status: | ||||||||||||||||
Unfunded status of the plans | $ | (111,302 | ) | $ | (262,137 | ) | $ | (68,566 | ) | $ | (226,458 | ) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||||||||||||
Accrued benefit liability | $ | (111,302 | ) | $ | (262,137 | ) | $ | (68,566 | ) | $ | (226,458 | ) | ||||
Amounts recognized in accumulated other comprehensive loss: | ||||||||||||||||
Unrecognized net actuarial loss | $ | 219,081 | $ | 120,642 | $ | 162,084 | $ | 90,303 | ||||||||
Unrecognized prior service cost (credit) | 15 | (24,964 | ) | 40 | (29,142 | ) | ||||||||||
$ | 219,096 | $ | 95,678 | $ | 162,124 | $ | 61,161 | |||||||||
Accumulated benefit obligation at end of year | $ | 450,667 | $ | 262,137 | $ | 382,035 | $ | 226,458 | ||||||||
Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans includes the following components: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Service costs | $ | 1,315 | $ | 1,915 | $ | 1,712 | ||||||||||
Interest costs | 29,180 | 26,861 | 29,068 | |||||||||||||
Expected return on plan assets | (20,850 | ) | (18,776 | ) | (15,553 | ) | ||||||||||
Amortization of net actuarial loss | 22,587 | 32,033 | 28,368 | |||||||||||||
Amortization of prior service credit | (4,153 | ) | (4,385 | ) | (4,385 | ) | ||||||||||
$ | 28,079 | $ | 37,648 | $ | 39,210 | |||||||||||
Net actuarial loss and prior service credit for the defined benefit pension and supplemental benefit plans expected to be amortized from accumulated other comprehensive loss into net periodic cost over the next fiscal year include an expense of $34.0 million and a credit of $4.2 million, respectively. | ||||||||||||||||
Weighted-average actuarial assumptions used to determine costs for the plans were as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.97 | % | 4.18 | % | ||||||||||||
Rate of return on plan assets | 6.5 | % | 6.5 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 4.8 | % | 3.91 | % | ||||||||||||
Weighted-average actuarial assumptions used to determine benefit obligations for the plans were as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.07 | % | 4.97 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 4 | % | 4.8 | % | ||||||||||||
The discount rate assumption used for the Company’s benefit plans reflects the yield available on high-quality, fixed-income debt securities that match the expected timing of the benefit obligation payments. | ||||||||||||||||
The Company adopted updated mortality tables published by the Society of Actuaries in October 2014. The revised RP-2014 tables reflect substantial life expectancy improvements relative to the last tables published in 2000. | ||||||||||||||||
Assumptions for the expected long-term rate of return on assets of the defined benefit pension plans are based on future expectations for returns for each asset class based on the calculated market-related value of plan assets and the effect of periodic target asset allocation rebalancing, adjusted for the payment of reasonable expenses of the plan from plan assets. The expected long-term rate of return on assets was selected from within a reasonable range of rates determined by (1) historical real and expected returns for the asset classes covered by the investment policy and (2) projections of inflation over the long-term period during which benefits are payable to plan participants. The Company believes the assumptions are appropriate based on the investment mix and long-term nature of the plan’s investments. The use of expected long-term returns on plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns, and therefore result in a pattern of income and cost recognition that more closely matches the pattern of the services provided by the employees. | ||||||||||||||||
The Company has a pension investment policy designed to meet or exceed the expected rate of return assumptions for assets of the plan. The policy’s investment objective is to increase the pension plan’s funding status such that the plan becomes fully funded on a plan termination basis by taking progressively less risk through aligning a greater percentage of plan assets with plan liabilities as the plan becomes more fully funded. | ||||||||||||||||
Under the investment policy, asset allocation targets are segmented into liability tracking assets and return seeking assets. The objective of this allocation strategy is to increase the percentage of assets in liability tracking investments as settlement funded status improves. Return seeking assets generally include pooled investment vehicles, foreign and domestic equities, fixed income securities, cash, REITs, and commodities. Liability tracking assets generally include fixed income securities and pooled investment vehicles. The plan maintains a level of cash and cash equivalents appropriate for the timely disbursement of benefits and payment of expenses. | ||||||||||||||||
Subject to the requirements of the investment policy, the investment manager may use commingled investment vehicles including but not limited to mutual funds, common trust funds, commingled trusts, and exchange traded funds. The investment policy prohibits certain investment transactions, including derivatives and other illiquid investments (e.g., private equity and real estate), subject to certain exceptions. | ||||||||||||||||
The investment manager tracks the estimated settlement funded status of the plan on a regular basis. When the funded status is equal to or greater than the next trigger point, the investment manager will rebalance to the allocation associated with that trigger point. The objective of liability tracking assets is to achieve performance related to changes in the value of the plan’s settlement liabilities, which is consistent with the objective of plan termination. | ||||||||||||||||
Asset allocation targets based on settlement funded status for the defined benefit pension plans are as follows: | ||||||||||||||||
Settlement funded status | Return seeking assets | Liability tracking assets | ||||||||||||||
100 | % | 0 | % | 100 | % | |||||||||||
97.5 | % | 15 | % | 85 | % | |||||||||||
95 | % | 30 | % | 70 | % | |||||||||||
92.5 | % | 40 | % | 60 | % | |||||||||||
90 | % | 50 | % | 50 | % | |||||||||||
87.5 | % | 60 | % | 40 | % | |||||||||||
85 | % | 70 | % | 30 | % | |||||||||||
Below 85.0% | 85 | % | 15 | % | ||||||||||||
A summary of the defined benefit pension plan’s asset allocations as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Asset category | ||||||||||||||||
Cash and cash equivalents | 0.3 | % | 0.7 | % | ||||||||||||
Equities | 45.5 | % | 48.3 | % | ||||||||||||
Fixed income funds | 32.5 | % | 29.7 | % | ||||||||||||
Balanced funds | 19.4 | % | 18.9 | % | ||||||||||||
Other | 2.3 | % | 2.4 | % | ||||||||||||
The Company expects to make cash contributions to its defined benefit and unfunded supplemental benefit plans of $21.7 million and $14.1 million, respectively, during 2015. | ||||||||||||||||
Benefit payments for all plans, which reflect expected future service, as appropriate, are expected to be made as follows: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
2015 | $ | 36,141 | ||||||||||||||
2016 | $ | 36,100 | ||||||||||||||
2017 | $ | 38,607 | ||||||||||||||
2018 | $ | 40,498 | ||||||||||||||
2019 | $ | 42,110 | ||||||||||||||
Five years thereafter | $ | 220,002 | ||||||||||||||
The Company categorizes its defined benefit pension plan assets carried at fair value using a three-level hierarchy for fair value measurements. See Note 15 Fair Value Measurements for a more in-depth discussion on the fair value hierarchy and a description for each level. | ||||||||||||||||
The following table presents the fair value of the Company’s defined benefit pension plan assets as of December 31, 2014 and 2013: | ||||||||||||||||
December 31, 2014 | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||
fair value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 1,101 | $ | 1,101 | $ | — | $ | — | ||||||||
Equities (a) | 154,279 | 101,304 | 52,975 | — | ||||||||||||
Fixed income funds (b) | 110,405 | 59,507 | 50,898 | — | ||||||||||||
Balanced funds (c) | 65,856 | — | 65,856 | — | ||||||||||||
Other (d) | 7,724 | — | — | 7,724 | ||||||||||||
$ | 339,365 | $ | 161,912 | $ | 169,729 | $ | 7,724 | |||||||||
December 31, 2013 | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||
fair value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 2,080 | $ | 2,080 | $ | — | $ | — | ||||||||
Equities (a) | 151,604 | 95,860 | 55,744 | — | ||||||||||||
Fixed income funds (b) | 93,210 | 49,281 | 43,929 | — | ||||||||||||
Balanced funds (c) | 59,147 | — | 59,147 | — | ||||||||||||
Other (d) | 7,428 | — | — | 7,428 | ||||||||||||
$ | 313,469 | $ | 147,221 | $ | 158,820 | $ | 7,428 | |||||||||
(a) Investments in passively managed index funds, actively managed mutual funds with holdings in domestic and international equities, and investments in domestic equities. These investments are valued at the closing price reported on the major market on which the individual securities are traded or the Net Asset Value (“NAV”) provided by the administrator of the fund. | ||||||||||||||||
(b) Investments in passively managed index funds and actively managed mutual funds with holdings in domestic and international corporate bonds, sovereign bonds, mortgage-backed securities, and other fixed income instruments. These investments are valued using matrix pricing models and quoted prices of the securities in active markets. | ||||||||||||||||
(c) Investments in global multi-asset risk parity strategy funds with holdings in domestic and international debt and equity securities, commodities, real estate, and derivative investments. These investments are valued using the NAV provided by the administrator of the fund. | ||||||||||||||||
(d) Investments in a guaranteed deposit fund with holdings in insurance contracts. These investments are valued at contract value of the fund including contributions and earnings, less applicable costs and liabilities, as provided by the administrator of the fund. | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements | NOTE 15. Fair Value Measurements: | ||||||||||||||||||||
Certain of the Company’s assets are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||||||
The Company categorizes its assets and liabilities carried at fair value using a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. The hierarchy level assigned to the assets and liabilities is based on management’s assessment of the transparency and reliability of the inputs used to estimate the fair values at the measurement date. The three hierarchy levels are defined as follows: | |||||||||||||||||||||
Level 1—Valuations based on unadjusted quoted market prices in active markets for identical assets or liabilities. | |||||||||||||||||||||
Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets or liabilities at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. | |||||||||||||||||||||
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. | |||||||||||||||||||||
If the inputs used to measure fair value fall into different levels of the fair value hierarchy, the hierarchy level assigned is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||
Assets measured at fair value on a recurring basis | |||||||||||||||||||||
The valuation techniques and inputs used by the Company to estimate the fair value of assets measured on a recurring basis, are summarized as follows: | |||||||||||||||||||||
Debt securities | |||||||||||||||||||||
The fair value of debt securities was based on the market values obtained from independent pricing services that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other market information and price quotes from well-established independent broker-dealers. The independent pricing services monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The pricing services utilize the market approach in determining the fair value of the debt securities held by the Company. The Company obtains an understanding of the valuation models and assumptions utilized by the services and has controls in place to determine that the values provided represent fair value. The Company’s validation procedures include comparing prices received from the pricing services to quotes received from other third party sources for certain securities with market prices that are readily verifiable. If the price comparison results in differences over a predefined threshold, the Company will assess the reasonableness of the changes relative to prior periods given the prevailing market conditions and assess changes in the issuers’ credit worthiness, performance of any underlying collateral and prices of the instrument relative to similar issuances. To date, the Company has not made any material adjustments to the fair value measurements provided by the pricing services. | |||||||||||||||||||||
Typical inputs and assumptions to pricing models used to value the Company’s U.S. Treasury bonds, municipal bonds, foreign bonds, governmental agency bonds, governmental agency mortgage-backed securities and corporate debt securities include, but are not limited to, benchmark yields, reported trades, broker-dealer quotes, credit spreads, credit ratings, bond insurance (if applicable), benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include the structure of issuance, characteristics of the issuer, collateral attributes and prepayment speeds. The fair value of non-agency mortgage-backed securities was obtained from the independent pricing services referenced above and subject to the Company’s validation procedures discussed above. However, since these securities were not actively traded and there were fewer observable inputs available requiring the pricing services to use more judgment in determining the fair value of the securities, they were classified as Level 3. | |||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s non-agency mortgage-backed securities include prepayment rates, default rates and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for default rates is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. | |||||||||||||||||||||
Equity securities | |||||||||||||||||||||
The fair value of equity securities, including preferred and common stocks, were based on quoted market prices for identical assets that are readily and regularly available in an active market. | |||||||||||||||||||||
The following table presents the fair value of the Company’s assets measured on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
U.S. Treasury bonds | $ | 64,982 | $ | — | $ | 64,982 | $ | — | |||||||||||||
Municipal bonds | 587,677 | — | 587,677 | — | |||||||||||||||||
Foreign bonds | 196,750 | — | 196,750 | — | |||||||||||||||||
Governmental agency bonds | 197,874 | — | 197,874 | — | |||||||||||||||||
Governmental agency mortgage- backed securities | 1,812,162 | — | 1,812,162 | — | |||||||||||||||||
Non-agency mortgage-backed securities | 16,538 | — | — | 16,538 | |||||||||||||||||
Corporate debt securities | 574,269 | — | 574,269 | — | |||||||||||||||||
3,450,252 | — | 3,433,714 | 16,538 | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||
Preferred stocks | 15,525 | 15,525 | — | — | |||||||||||||||||
Common stocks | 386,887 | 386,887 | — | — | |||||||||||||||||
402,412 | 402,412 | — | — | ||||||||||||||||||
Total assets | $ | 3,852,664 | $ | 402,412 | $ | 3,433,714 | $ | 16,538 | |||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
U.S. Treasury bonds | $ | 66,384 | $ | — | $ | 66,384 | $ | — | |||||||||||||
Municipal bonds | 485,965 | — | 485,965 | — | |||||||||||||||||
Foreign bonds | 222,508 | — | 222,508 | — | |||||||||||||||||
Governmental agency bonds | 262,545 | — | 262,545 | — | |||||||||||||||||
Governmental agency mortgage- backed securities | 1,403,309 | — | 1,403,309 | — | |||||||||||||||||
Non-agency mortgage-backed securities | 19,022 | — | — | 19,022 | |||||||||||||||||
Corporate debt securities | 360,084 | — | 360,084 | — | |||||||||||||||||
2,819,817 | — | 2,800,795 | 19,022 | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||
Preferred stocks | 11,085 | 11,085 | — | — | |||||||||||||||||
Common stocks | 346,958 | 346,958 | — | — | |||||||||||||||||
358,043 | 358,043 | — | — | ||||||||||||||||||
Total assets | $ | 3,177,860 | $ | 358,043 | $ | 2,800,795 | $ | 19,022 | |||||||||||||
The Company did not have any transfers in and out of Level 1, Level 2 and Level 3 measurements during the years ended December 31, 2014 and 2013. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. | |||||||||||||||||||||
The following table presents a summary of the changes in fair value of Level 3 assets measured on a recurring basis for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Non-agency mortgage-backed securities: | |||||||||||||||||||||
Fair value at beginning of year | $ | 19,022 | $ | 21,846 | |||||||||||||||||
Total gains/(losses) (realized and unrealized): | |||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | (1,701 | ) | — | ||||||||||||||||||
Included in other comprehensive income | 1,225 | 4,174 | |||||||||||||||||||
Settlements | (2,008 | ) | (6,998 | ) | |||||||||||||||||
Fair value as of December 31 | $ | 16,538 | $ | 19,022 | |||||||||||||||||
Unrealized gains (losses) included in earnings for the period relating to Level 3 available-for-sale investments that were still held at the end of the period: | |||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | $ | (1,701 | ) | $ | — | ||||||||||||||||
The Company did not purchase or sell any non-agency mortgage-backed securities during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||
Financial instruments not measured at fair value | |||||||||||||||||||||
In estimating the fair value of its financial instruments not measured at fair value, the Company used the following methods and assumptions: | |||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||
The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments. | |||||||||||||||||||||
Deposits with banks | |||||||||||||||||||||
The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. | |||||||||||||||||||||
Notes receivable, net | |||||||||||||||||||||
The fair value of notes receivable, net is estimated based on the discounted value of the future cash flows using approximate current market rates being offered for notes with similar maturities and similar credit quality. | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
The carrying value of escrow and other deposit accounts approximates fair value due to the short-term nature of this liability. | |||||||||||||||||||||
Notes and contracts payable | |||||||||||||||||||||
The fair value of notes and contracts payable are estimated based on current rates offered to the Company for debt of the same remaining maturities. | |||||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2014 and 2013: | |||||||||||||||||||||
Carrying | Estimated fair value | ||||||||||||||||||||
(in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,190,080 | $ | 1,190,080 | $ | 1,190,080 | $ | — | $ | — | |||||||||||
Deposits with banks | $ | 21,445 | $ | 21,540 | $ | 4,068 | $ | 17,472 | $ | — | |||||||||||
Notes receivable, net | $ | 6,130 | $ | 3,930 | $ | — | $ | — | $ | 3,930 | |||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | $ | 2,332,714 | $ | 2,332,714 | $ | 2,332,714 | $ | — | $ | — | |||||||||||
Notes and contracts payable | $ | 587,337 | $ | 595,087 | $ | — | $ | 588,542 | $ | 6,545 | |||||||||||
Carrying | Estimated fair value | ||||||||||||||||||||
(in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 834,837 | $ | 834,837 | $ | 834,837 | $ | — | $ | — | |||||||||||
Deposits with banks | $ | 23,492 | $ | 23,601 | $ | 2,070 | $ | 21,531 | $ | — | |||||||||||
Notes receivable, net | $ | 10,542 | $ | 9,953 | $ | — | $ | — | $ | 9,953 | |||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | $ | 1,692,932 | $ | 1,693,138 | $ | 1,666,336 | $ | 26,802 | $ | — | |||||||||||
Notes and contracts payable | $ | 310,285 | $ | 301,007 | $ | — | $ | 294,221 | $ | 6,786 | |||||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Share-Based Compensation Plans | NOTE 16. Share-Based Compensation Plans: | ||||||||||||||||
The First American Financial Corporation 2010 Incentive Compensation Plan (the “Incentive Compensation Plan”), effective May 28, 2010, permits the granting of stock options, stock appreciation rights, restricted stock, RSUs, performance units, performance shares and other stock-based awards. Eligible participants in the Incentive Compensation Plan include the Company’s directors and officers, as well as other employees. At December 31, 2014, 6.0 million shares of common stock remain available to be issued from either authorized and unissued shares or previously issued shares acquired by the Company, subject to certain annual limits based on the type of award granted. The Incentive Compensation Plan terminates 10 years from the effective date unless cancelled prior to that date by the Company’s board of directors. | |||||||||||||||||
The First American Financial Corporation 2010 Employee Stock Purchase Plan (the “ESPP”) allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each quarterly offering period. There were 354,000 and 350,000 shares issued in connection with this plan for the years ended December 31, 2014 and 2013, respectively. At December 31, 2014, there were 3.4 million shares reserved for future issuances. | |||||||||||||||||
The following table presents compensation expense associated with the Company’s share-based compensation plans: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Expense: | |||||||||||||||||
Restricted stock units | $ | 17,197 | $ | 20,827 | $ | 13,953 | |||||||||||
Stock options | 271 | 8 | — | ||||||||||||||
Employee stock purchase plan | 1,834 | 1,466 | 886 | ||||||||||||||
$ | 19,302 | $ | 22,301 | $ | 14,839 | ||||||||||||
The following table summarizes RSU activity for the year ended December 31, 2014: | |||||||||||||||||
(in thousands, except weighted-average grant-date fair value) | Shares | Weighted-average | |||||||||||||||
grant-date | |||||||||||||||||
fair value | |||||||||||||||||
RSUs unvested at December 31, 2013 | 2,720 | $ | 17.6 | ||||||||||||||
Granted during 2014 | 740 | $ | 26.76 | ||||||||||||||
Vested during 2014 | (1,099 | ) | $ | 16.08 | |||||||||||||
Forfeited during 2014 | (24 | ) | $ | 18.45 | |||||||||||||
RSUs unvested at December 31, 2014 | 2,337 | $ | 21.21 | ||||||||||||||
As of December 31, 2014, there was $19.6 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 3.0 years. The fair value of RSUs is generally based on the market value of the Company’s shares on the date of grant. The total fair value of shares vested and not distributed for the years ended December 31, 2014, 2013 and 2012 was $3.2 million, $4.3 million and $2.3 million, respectively. | |||||||||||||||||
The following table summarizes stock option activity for the year ended December 31, 2014: | |||||||||||||||||
(in thousands, except weighted-average | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
exercise price and contractual term) | outstanding | average | average | intrinsic | |||||||||||||
exercise price | remaining | value | |||||||||||||||
contractual term | |||||||||||||||||
Balance at December 31, 2013 | 1,270 | $ | 18.03 | ||||||||||||||
Exercised during 2014 | (584 | ) | $ | 15.51 | |||||||||||||
Balance at December 31, 2014 | 686 | $ | 20.18 | 2.2 years | $ | 9,405 | |||||||||||
Vested and expected to vest at December 31, 2014 | 686 | $ | 20.18 | 2.2 years | $ | 9,405 | |||||||||||
Exercisable at December 31, 2014 | 586 | $ | 18.92 | 1.1 years | $ | 8,786 | |||||||||||
As of December 31, 2014, there was $0.8 million of total unrecognized compensation cost related to unvested stock options of the Company that is expected to be recognized over a weighted-average period of 3.0 years. | |||||||||||||||||
Total intrinsic value of options exercised for the years ended December 31, 2014, 2013 and 2012 was $7.0 million, $6.0 million and $7.1 million, respectively. This intrinsic value represents the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option. | |||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 17. Stockholders’ Equity: |
In March 2014, the Company’s board of directors approved an increase in the size of the Company’s stock repurchase plan from $150.0 million to $250.0 million, of which $182.9 million remained as of December 31, 2014. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. The Company did not repurchase any shares of its common stock during the year ended December 31, 2014 and as of December 31, 2014, had repurchased and retired 3.2 million shares of its common stock under the current authorization for a total purchase price of $67.1 million. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | NOTE 18. Commitments and Contingencies: | ||||
Lease commitments | |||||
The Company leases certain office facilities, automobiles and equipment under operating leases, which, for the most part, are renewable. The majority of these leases also provide that the Company pay insurance and taxes. | |||||
Future minimum rental payments under operating leases that have initial noncancelable lease terms in excess of one year as of December 31, 2014 are as follows: | |||||
(in thousands) | |||||
Year | |||||
2015 | $ | 79,243 | |||
2016 | 71,155 | ||||
2017 | 53,431 | ||||
2018 | 36,296 | ||||
2019 | 23,563 | ||||
Thereafter | 60,273 | ||||
$ | 323,961 | ||||
Total rental expense for all operating leases and month-to-month rentals was $93.5 million, $94.6 million and $96.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Other commitments and guarantees | |||||
At December 31, 2014 and 2013, the Company was contingently liable for guarantees of indebtedness owed by affiliates and third parties to banks and others totaling $8.9 million and $14.7 million, respectively. The guarantee arrangements relate to promissory notes and other contracts that contingently require the Company to make payments to the guaranteed party upon the failure of debtors to make scheduled payments according to the terms of the notes and contracts. The Company’s maximum potential obligation under these guarantees totaled $8.9 million and $14.7 million at December 31, 2014 and 2013, respectively, and is limited in duration to the terms of the underlying indebtedness. The Company has not incurred any costs as a result of these guarantees and has not recorded a liability on its consolidated balance sheets related to these guarantees at December 31, 2014 and 2013. | |||||
The Company also guarantees the obligations of certain of its subsidiaries. These obligations are included in the Company’s consolidated balance sheets as of December 31, 2014 and 2013. | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | NOTE 19. Accumulated Other Comprehensive Income (Loss): | |||||||||||||||
Changes in the balances of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||
Unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2011 | $ | (13,409 | ) | $ | 4,793 | $ | (168,837 | ) | $ | (177,453 | ) | |||||
Change in unrealized gains (losses) on securities | 52,409 | — | — | 52,409 | ||||||||||||
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 6,502 | — | — | 6,502 | ||||||||||||
Change in foreign currency translation adjustments | — | 5,131 | — | 5,131 | ||||||||||||
Net actuarial loss | — | — | (46,602 | ) | (46,602 | ) | ||||||||||
Amortization of net actuarial loss | — | — | 28,368 | 28,368 | ||||||||||||
Amortization of prior service cost | — | — | (4,385 | ) | (4,385 | ) | ||||||||||
Tax effect | (23,564 | ) | — | 9,048 | (14,516 | ) | ||||||||||
Balance at December 31, 2012 | 21,938 | 9,924 | (182,408 | ) | (150,546 | ) | ||||||||||
Change in unrealized gains (losses) on securities | (54,000 | ) | — | — | (54,000 | ) | ||||||||||
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 3,809 | — | — | 3,809 | ||||||||||||
Change in foreign currency translation adjustments | — | (13,650 | ) | — | (13,650 | ) | ||||||||||
Net actuarial gain | — | — | 53,080 | 53,080 | ||||||||||||
Amortization of net actuarial loss | — | — | 32,033 | 32,033 | ||||||||||||
Amortization of prior service cost | — | — | (4,385 | ) | (4,385 | ) | ||||||||||
Tax effect | 19,526 | — | (31,404 | ) | (11,878 | ) | ||||||||||
Balance at December 31, 2013 | (8,727 | ) | (3,726 | ) | (133,084 | ) | (145,537 | ) | ||||||||
Change in unrealized gains (losses) on securities | 29,889 | — | — | 29,889 | ||||||||||||
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 1,229 | — | — | 1,229 | ||||||||||||
Change in foreign currency translation adjustments | — | (16,694 | ) | — | (16,694 | ) | ||||||||||
Net actuarial loss | — | — | (109,924 | ) | (109,924 | ) | ||||||||||
Amortization of net actuarial loss | — | — | 22,587 | 22,587 | ||||||||||||
Amortization of prior service cost | — | — | (4,153 | ) | (4,153 | ) | ||||||||||
Tax effect | (11,480 | ) | — | 34,994 | 23,514 | |||||||||||
Balance at December 31, 2014 | $ | 10,911 | $ | (20,420 | ) | $ | (189,580 | ) | $ | (199,089 | ) | |||||
Components of accumulated other comprehensive income (loss) allocated to the Company and noncontrolling interests are as follows: | ||||||||||||||||
Unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
2014 | ||||||||||||||||
Allocated to the Company | $ | 10,894 | $ | (20,420 | ) | $ | (189,580 | ) | $ | (199,106 | ) | |||||
Allocated to noncontrolling interests | 17 | — | — | 17 | ||||||||||||
Balance at December 31, 2014 | $ | 10,911 | $ | (20,420 | ) | $ | (189,580 | ) | $ | (199,089 | ) | |||||
2013 | ||||||||||||||||
Allocated to the Company | $ | (8,734 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,544 | ) | ||||
Allocated to noncontrolling interests | 7 | — | — | 7 | ||||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||
2012 | ||||||||||||||||
Allocated to the Company | $ | 21,928 | $ | 9,924 | $ | (182,408 | ) | $ | (150,556 | ) | ||||||
Allocated to noncontrolling interests | 10 | — | — | 10 | ||||||||||||
Balance at December 31, 2012 | $ | 21,938 | $ | 9,924 | $ | (182,408 | ) | $ | (150,546 | ) | ||||||
The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Unrealized | Foreign | Pension | Total | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Pretax change before reclassifications | $ | 52,693 | $ | (16,694 | ) | $ | (109,924 | ) | $ | (73,925 | ) | |||||
Reclassifications out of AOCI | (21,575 | ) | — | 18,434 | (3,141 | ) | ||||||||||
Tax effect | (11,480 | ) | — | 34,994 | 23,514 | |||||||||||
Total other comprehensive income (loss), net of tax | $ | 19,638 | (16,694 | ) | $ | (56,496 | ) | $ | (53,552 | ) | ||||||
Year ended December 31, 2013 | ||||||||||||||||
Pretax change before reclassifications | $ | (40,396 | ) | $ | (13,650 | ) | $ | 53,080 | $ | (966 | ) | |||||
Reclassifications out of AOCI | (9,795 | ) | — | 27,648 | 17,853 | |||||||||||
Tax effect | 19,526 | — | (31,404 | ) | (11,878 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | $ | (30,665 | ) | $ | (13,650 | ) | $ | 49,324 | $ | 5,009 | ||||||
Year ended December 31, 2012 | ||||||||||||||||
Pretax change before reclassifications | $ | 128,745 | $ | 5,131 | $ | (46,602 | ) | $ | 87,274 | |||||||
Reclassifications out of AOCI | (69,834 | ) | — | 23,983 | (45,851 | ) | ||||||||||
Tax effect | (23,564 | ) | — | 9,048 | (14,516 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | $ | 35,347 | $ | 5,131 | $ | (13,571 | ) | $ | 26,907 | |||||||
The following table presents the effect of the reclassifications out of accumulated other comprehensive income (loss) on the respective line items in the consolidated statements of income: | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||
Year ended December 31, | Affected line items in the | |||||||||||||||
(in thousands) | 2014 | 2013 | consolidated statements of income | |||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||||
Net realized gains (losses) on sales of securities | $ | 23,276 | $ | 9,795 | Net realized investment gains | |||||||||||
Net other-than-temporary impairment losses | (1,701 | ) | — | Net other-than-temporary impairment losses | ||||||||||||
Pretax total | $ | 21,575 | $ | 9,795 | ||||||||||||
Tax effect | $ | (7,959 | ) | $ | (3,811 | ) | ||||||||||
Pension benefit adjustment: | ||||||||||||||||
Amortization of defined benefit pension and supplemental benefit plan items: | ||||||||||||||||
Net actuarial loss | $ | (22,587 | ) | $ | (32,033 | ) | -1 | |||||||||
Prior service credit | 4,153 | 4,385 | -1 | |||||||||||||
Pretax total | $ | (18,434 | ) | $ | (27,648 | ) | ||||||||||
Tax effect | $ | 7,051 | $ | 10,757 | ||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Litigation_and_Regulatory_Cont
Litigation and Regulatory Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ||
Litigation and Regulatory Contingencies | NOTE 20. Litigation and Regulatory Contingencies: | |
The Company and its subsidiaries are parties to a number of non-ordinary course lawsuits. These lawsuits frequently are similar in nature to other lawsuits pending against the Company’s competitors. | ||
For those non-ordinary course lawsuits where the Company has determined that a loss is both probable and reasonably estimable, a liability representing the best estimate of the Company’s financial exposure based on known facts has been recorded. Actual losses may materially differ from the amounts recorded. | ||
For a substantial majority of these lawsuits, however, it is not possible to assess the probability of loss. Most of these lawsuits are putative class actions which require a plaintiff to satisfy a number of procedural requirements before proceeding to trial. These requirements include, among others, demonstration to a court that the law proscribes in some manner the Company’s activities, the making of factual allegations sufficient to suggest that the Company’s activities exceeded the limits of the law and a determination by the court—known as class certification—that the law permits a group of individuals to pursue the case together as a class. In certain instances the Company may also be able to compel the plaintiff to arbitrate its claim on an individual basis. If these procedural requirements are not met, either the lawsuit cannot proceed or, as is the case with class certification or compelled arbitration, the plaintiffs lose the financial incentive to proceed with the case (or the amount at issue effectively becomes de minimis). Frequently, a court’s determination as to these procedural requirements is subject to appeal to a higher court. As a result of, among other factors, ambiguities and inconsistencies in the myriad laws applicable to the Company’s business and the uniqueness of the factual issues presented in any given lawsuit, the Company often cannot determine the probability of loss until a court has finally determined that a plaintiff has satisfied applicable procedural requirements. | ||
Furthermore, because most of these lawsuits are putative class actions, it is often impossible to estimate the possible loss or a range of loss amounts, even where the Company has determined that a loss is reasonably possible. Generally class actions involve a large number of people and the effort to determine which people satisfy the requirements to become plaintiffs—or class members—is often time consuming and burdensome. Moreover, these lawsuits raise complex factual issues which result in uncertainty as to their outcome and, ultimately, make it difficult for the Company to estimate the amount of damages which a plaintiff might successfully prove. In addition, many of the Company’s businesses are regulated by various federal, state, local and foreign governmental agencies and are subject to numerous statutory guidelines. These regulations and statutory guidelines often are complex, inconsistent or ambiguous, which results in additional uncertainty as to the outcome of a given lawsuit—including the amount of damages a plaintiff might be afforded—or makes it difficult to analogize experience in one case or jurisdiction to another case or jurisdiction. | ||
Most of the non-ordinary course lawsuits to which the Company and its subsidiaries are parties challenge practices in the Company’s title insurance business, though a limited number of cases also pertain to the Company’s other businesses. These lawsuits include, among others, cases alleging, among other assertions, that the Company, one of its subsidiaries and/or one of its agents: | ||
· | charged an improper rate for title insurance in a refinance transaction, including | |
· | Levine v. First American Title Insurance Company, filed on February 26, 2009 and pending in the United States District Court for the Eastern District of Pennsylvania, | |
· | Lewis v. First American Title Insurance Company, filed on November 28, 2006 and pending in the United States District Court for the District of Idaho, | |
· | Raffone v. First American Title Insurance Company, filed on February 14, 2004 and pending in the Circuit Court, Nassau County, Florida, and | |
· | Slapikas v. First American Title Insurance Company, filed on December 19, 2005 and pending in the United States District Court for the Western District of Pennsylvania. | |
All of these lawsuits are putative class actions. A court has only granted class certification in Lewis and Raffone. The class originally certified in Slapikas was subsequently decertified. For the reasons stated above, the Company has been unable to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is immaterial to the consolidated financial statements as a whole. | ||
· | purchased minority interests in title insurance agents as an inducement to refer title insurance underwriting business to the Company or gave items of value to title insurance agents and others for referrals of business in violation of the Real Estate Settlement Procedures Act, including | |
· | Edwards v. First American Financial Corporation, filed on June 12, 2007 and pending in the United States District Court for the Central District of California. | |
In Edwards a narrow class has been certified. For the reasons stated above, the Company has been unable to estimate the possible loss or the range of loss. | ||
· | engaged in the unauthorized practice of law, including | |
· | Gale v. First American Title Insurance Company, et al., filed on October 16, 2006 and pending in the United States District Court of Connecticut. | |
The class originally certified in Gale was subsequently decertified. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. | ||
· | overcharged or improperly charged fees for products and services, denied home warranty claims, failed to timely file certain documents, and gave items of value to developers, builders and others as inducements to refer business in violation of certain laws, such as consumer protection laws and laws generally prohibiting unfair business practices, and certain obligations, including | |
· | Bushman v. First American Title Insurance Company, et al., filed on November 21, 2013 and pending in the Circuit Court of the State of Michigan, County of Washtenaw, | |
· | Chassen v. First American Financial Corporation, et al., filed on January 22, 2009 and pending in the United States District Court of New Jersey, | |
· | DeLaurentis v. Data Tree Information Services LLC, filed on January 16, 2015 and pending in the United States District Court for the Southern District of New York, | |
· | Gunning v. First American Title Insurance Company, filed on July 14, 2008 and pending in the United States District Court for the Eastern District of Kentucky, | |
· | Kaufman v. First American Financial Corporation, et al., filed on December 21, 2007 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Kirk v. First American Financial Corporation, et al., filed on June 15, 2006 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Sjobring v. First American Financial Corporation, et al., filed on February 25, 2005 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Snyder v. First American Financial Corporation, et al., filed on June 21, 2014 and pending in the United States District Court for the District of Colorado, | |
· | Wilmot v. First American Financial Corporation, et al., filed on April 20, 2007 and pending in the Superior Court of the State of California, County of Los Angeles, and | |
· | In re First American Home Buyers Protection Corporation, consolidated on October 9, 2014 and pending in the United States District Court for the Southern District of California. | |
All of these lawsuits, except Kaufman and Kirk, are putative class actions for which a class has not been certified. In Kaufman a class was certified but that certification was subsequently vacated. A trial of the Kirk matter has concluded, plaintiff has filed a notice of appeal and the Company filed a cross appeal. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is immaterial to the consolidated financial statements as a whole. | ||
While some of the lawsuits described above may be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that any of these lawsuits will have a material adverse effect on the Company’s overall financial condition or liquidity. | ||
The Company also is a party to non-ordinary course lawsuits other than those described above. With respect to these lawsuits, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the consolidated financial statements as a whole. | ||
The Company’s title insurance, property and casualty insurance, home warranty, banking, thrift, trust and investment advisory businesses are regulated by various federal, state and local governmental agencies. Many of the Company’s other businesses operate within statutory guidelines. Consequently, the Company may from time to time be subject to examination or investigation by such governmental agencies. Currently, governmental agencies are examining or investigating certain of the Company’s operations. These exams or investigations include inquiries into, among other matters, pricing and rate setting practices in the title insurance industry, competition in the title insurance industry, real estate settlement service customer acquisition and retention practices and agency relationships. With respect to matters where the Company has determined that a loss is both probable and reasonably estimable, the Company has recorded a liability representing its best estimate of the financial exposure based on known facts. While the ultimate disposition of each such exam or investigation is not yet determinable, the Company does not believe that individually or in the aggregate they will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. These exams or investigations could, however, result in changes to the Company’s business practices which could ultimately have a material adverse impact on the Company’s financial condition, results of operations or cash flows. | ||
The Company’s Canadian operations provide certain services to lenders which it believes to be exempt from excise tax under applicable Canadian tax laws. However, in October 2014, the Canadian taxing authority provided internal guidance that the services in question should be subject to the excise tax. While discussions with the taxing authority are ongoing, the Company believes that the guidance may result in an assessment. The amount, if any, of such assessment is not currently known, and any such assessment would be subject to negotiation. In the event that the Company disagrees with the ultimate assessment, the Company intends to avail itself of avenues of appeal. While the Company believes it is reasonably likely that the Company would prevail on the merits, a loss associated with the matter is possible. In light of the foregoing, the Company is not currently able to reasonably estimate a loss or range of loss associated with the matter. While such a loss could be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that this matter will have a material adverse effect on the Company’s overall financial condition or liquidity. | ||
The Company and its subsidiaries also are involved in numerous ongoing routine legal and regulatory proceedings related to their operations. With respect to each of these proceedings, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the consolidated financial statements as a whole. | ||
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 21. Business Combinations: |
In March 2014, the Company completed the acquisition of a company that provides loan quality analytics, decision support tools and loan review services for the mortgage industry for a purchase price of $151.2 million. The Company completed additional acquisitions during 2014 for an aggregate purchase price of $11.3 million. The Company allocates the purchase price of each acquisition to the assets acquired and liabilities assumed using a variety of valuation techniques, including discounted cash flow analysis. These acquisitions have been included in the Company’s title insurance and services segment. | |
During the year ended December 31, 2013, the Company completed acquisitions for an aggregate purchase price of $5.3 million in cash and accrued contingent consideration of $1.2 million. The purchase price of each acquisition was allocated to the assets acquired and liabilities assumed using a variety of valuation techniques including discounted cash flow analysis. These four acquisitions have been included in the Company’s title insurance and services segment. |
Segment_Financial_Information
Segment Financial Information | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Segment Financial Information | NOTE 22. Segment Financial Information: | |||||||||||||||||||||||||||
The Company consists of the following reportable segments and a corporate function: | ||||||||||||||||||||||||||||
· | The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions involving the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant records and images; and provides banking, trust and investment advisory services. The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies and the District of Columbia. The Company also offers title insurance and other insurance and guarantee products, as well as related settlement services in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. | |||||||||||||||||||||||||||
· | The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 46 states. In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 39 states and the District of Columbia. | |||||||||||||||||||||||||||
The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Eliminations consist of inter-segment revenues and related expenses included in the results of the operating segments. | ||||||||||||||||||||||||||||
Selected financial information about the Company’s operations, by segment, for each of the past three years is as follows: | ||||||||||||||||||||||||||||
Revenues | Depreciation | Equity in | Income (loss) | Assets | Investments | Capital | ||||||||||||||||||||||
and | earnings of | before | in equity | expenditures | ||||||||||||||||||||||||
amortization | affiliates, net | income taxes | method | |||||||||||||||||||||||||
affiliates | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,304,428 | $ | 77,820 | $ | (16,545 | ) | $ | 373,024 | $ | 6,767,245 | $ | 106,083 | $ | 95,949 | |||||||||||||
Specialty Insurance | 368,666 | 4,978 | — | 52,974 | 506,242 | — | 3,412 | |||||||||||||||||||||
Corporate | 6,415 | 2,799 | — | (75,438 | ) | 464,980 | — | — | ||||||||||||||||||||
Eliminations | (1,560 | ) | — | — | — | (72,367 | ) | — | — | |||||||||||||||||||
$ | 4,677,949 | $ | 85,597 | $ | (16,545 | ) | $ | 350,560 | $ | 7,666,100 | $ | 106,083 | $ | 99,361 | ||||||||||||||
2013 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,606,088 | $ | 66,956 | $ | 7,387 | $ | 350,165 | $ | 5,751,632 | $ | 124,921 | $ | 83,469 | ||||||||||||||
Specialty Insurance | 339,613 | 4,865 | — | 42,132 | 499,788 | — | 3,673 | |||||||||||||||||||||
Corporate | 13,008 | 3,095 | (2,071 | ) | (81,589 | ) | 369,385 | 101 | — | |||||||||||||||||||
Eliminations | (2,632 | ) | — | — | — | (61,622 | ) | — | — | |||||||||||||||||||
$ | 4,956,077 | $ | 74,916 | $ | 5,316 | $ | 310,708 | $ | 6,559,183 | $ | 125,022 | $ | 87,142 | |||||||||||||||
2012 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,200,520 | $ | 67,610 | $ | 7,677 | $ | 473,681 | $ | 5,427,432 | $ | 127,217 | $ | 78,614 | ||||||||||||||
Specialty Insurance | 315,171 | 4,553 | — | 47,459 | 487,780 | — | 5,278 | |||||||||||||||||||||
Corporate | 29,892 | 2,787 | (1,163 | ) | (53,349 | ) | 299,707 | 2,753 | — | |||||||||||||||||||
Eliminations | (3,762 | ) | — | — | (385 | ) | (137,293 | ) | — | — | ||||||||||||||||||
$ | 4,541,821 | $ | 74,950 | $ | 6,514 | $ | 467,406 | $ | 6,077,626 | $ | 129,970 | $ | 83,892 | |||||||||||||||
Revenues from external customers allocated between domestic and foreign operations, and by segment, for each of the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,977,498 | $ | 325,393 | $ | 4,283,067 | $ | 320,413 | $ | 3,865,480 | $ | 332,577 | ||||||||||||||||
Specialty Insurance | 368,666 | — | 339,613 | — | 313,889 | — | ||||||||||||||||||||||
$ | 4,346,164 | $ | 325,393 | $ | 4,622,680 | $ | 320,413 | $ | 4,179,369 | $ | 332,577 | |||||||||||||||||
Long-lived assets allocated between domestic and foreign operations, and by segment, as of December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 1,792,387 | $ | 122,045 | $ | 1,610,310 | $ | 135,912 | $ | 1,580,399 | $ | 151,289 | ||||||||||||||||
Specialty Insurance | 105,062 | — | 105,724 | — | 104,698 | — | ||||||||||||||||||||||
$ | 1,897,449 | $ | 122,045 | $ | 1,716,034 | $ | 135,912 | $ | 1,685,097 | $ | 151,289 | |||||||||||||||||
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data | QUARTERLY FINANCIAL DATA | ||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 1,012,799 | $ | 1,149,969 | $ | 1,259,730 | $ | 1,255,451 | |||||||||
Income before income taxes | $ | 35,253 | $ | 76,458 | $ | 115,952 | $ | 122,897 | |||||||||
Net income | $ | 21,852 | $ | 50,688 | $ | 80,937 | $ | 80,738 | |||||||||
Net income attributable to noncontrolling interests | $ | 128 | $ | 94 | $ | 232 | $ | 227 | |||||||||
Net income attributable to the Company | $ | 21,724 | $ | 50,594 | $ | 80,705 | $ | 80,511 | |||||||||
Net income per share attributable to the Company’s stockholders (1): | |||||||||||||||||
Basic | $ | 0.2 | $ | 0.47 | $ | 0.75 | $ | 0.75 | |||||||||
Diluted | $ | 0.2 | $ | 0.47 | $ | 0.74 | $ | 0.74 | |||||||||
-1 | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 (1) | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 1,146,763 | $ | 1,288,464 | $ | 1,300,978 | $ | 1,219,872 | |||||||||
Income before income taxes | $ | 59,592 | $ | 59,224 | $ | 107,045 | $ | 84,847 | |||||||||
Net income | $ | 36,232 | $ | 34,948 | $ | 64,095 | $ | 51,789 | |||||||||
Net income attributable to noncontrolling interests | $ | 54 | $ | 276 | $ | 205 | $ | 162 | |||||||||
Net income attributable to the Company | $ | 36,178 | $ | 34,672 | $ | 63,890 | $ | 51,627 | |||||||||
Net income per share attributable to the Company’s stockholders (2): | |||||||||||||||||
Basic | $ | 0.34 | $ | 0.32 | $ | 0.6 | $ | 0.49 | |||||||||
Diluted | $ | 0.33 | $ | 0.31 | $ | 0.59 | $ | 0.48 | |||||||||
· | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | ||||||||||||||||
-1 | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Summary_Of_InvestmentsOther_Th
Summary Of Investments-Other Than Investments In Related Parties | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Summary Of Investments Other Than Investments In Related Parties [Abstract] | ||||||||||||||
Summary of Investments-Other Than Investments in Related Parties | SCHEDULE I | |||||||||||||
1 OF 1 | ||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||
SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES | ||||||||||||||
(in thousands) | ||||||||||||||
December 31, 2014 | ||||||||||||||
Column A | Column B | Column C | Column D | |||||||||||
Type of investment | Cost | Market value | Amount at which | |||||||||||
shown in the | ||||||||||||||
balance sheet | ||||||||||||||
Deposits with banks: | ||||||||||||||
Consolidated | $ | 21,445 | $ | 21,540 | $ | 21,445 | ||||||||
Debt securities: | ||||||||||||||
U.S. Treasury bonds | ||||||||||||||
Consolidated | $ | 64,195 | $ | 64,982 | $ | 64,982 | ||||||||
Municipal bonds | ||||||||||||||
Consolidated | $ | 577,703 | $ | 587,677 | $ | 587,677 | ||||||||
Foreign bonds | ||||||||||||||
Consolidated | $ | 194,749 | $ | 196,750 | $ | 196,750 | ||||||||
Governmental agency bonds | ||||||||||||||
Consolidated | $ | 198,330 | $ | 197,874 | $ | 197,874 | ||||||||
Governmental agency mortgage-backed securities | ||||||||||||||
Consolidated | $ | 1,812,766 | $ | 1,812,162 | $ | 1,812,162 | ||||||||
Non-agency mortgage-backed securities | ||||||||||||||
Consolidated | $ | 15,949 | $ | 16,538 | $ | 16,538 | ||||||||
Corporate debt securities | ||||||||||||||
Consolidated | $ | 568,774 | $ | 574,269 | $ | 574,269 | ||||||||
Total debt securities: | ||||||||||||||
Consolidated | $ | 3,432,466 | $ | 3,450,252 | $ | 3,450,252 | ||||||||
Equity securities: | ||||||||||||||
Consolidated | $ | 393,914 | $ | 402,412 | $ | 402,412 | ||||||||
Notes receivable, net: | ||||||||||||||
Consolidated | $ | 6,130 | $ | 3,930 | $ | 6,130 | ||||||||
Other long-term investments: | ||||||||||||||
Consolidated | $ | 153,653 | $ | 153,653 | -1 | $ | 153,653 | |||||||
Total investments: | ||||||||||||||
Consolidated | $ | 4,007,608 | $ | 4,031,787 | $ | 4,033,892 | ||||||||
-1 | As other long-term investments are not publicly traded, reasonable estimate of the fair values could not be made without incurring excessive costs. | |||||||||||||
Condensed_Financial_Statements
Condensed Financial Statements (Parent Company) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure | SCHEDULE II | |||||||||||
1 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED BALANCE SHEETS | ||||||||||||
(in thousands, except par values) | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 328,949 | $ | 221,666 | ||||||||
Income taxes receivable | 5,547 | 37,632 | ||||||||||
Investment in subsidiaries | 3,333,613 | 2,944,803 | ||||||||||
Deferred income taxes | 19,712 | 27,478 | ||||||||||
Other assets | 105,344 | 88,752 | ||||||||||
$ | 3,793,165 | $ | 3,320,331 | |||||||||
Liabilities and Equity | ||||||||||||
Accounts payable and other accrued liabilities | $ | 55,021 | $ | 75,656 | ||||||||
Pension costs and other retirement plans | 451,501 | 371,671 | ||||||||||
Income taxes payable | 6,228 | — | ||||||||||
Due to subsidiaries, net | 77 | 14,236 | ||||||||||
Deferred income taxes | 95,128 | 93,362 | ||||||||||
Notes and contracts payable | 549,166 | 249,163 | ||||||||||
Notes and contracts payable to subsidiaries | 60,000 | 60,000 | ||||||||||
1,217,121 | 864,088 | |||||||||||
Commitments and contingencies | ||||||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none | — | — | ||||||||||
Common stock, $0.00001 par value; Authorized—300,000 shares; | ||||||||||||
Outstanding—107,541 shares and 105,900 shares | 1 | 1 | ||||||||||
Additional paid-in capital | 2,109,712 | 2,077,828 | ||||||||||
Retained earnings | 662,310 | 520,764 | ||||||||||
Accumulated other comprehensive loss | (199,106 | ) | (145,544 | ) | ||||||||
Total stockholders’ equity | 2,572,917 | 2,453,049 | ||||||||||
Noncontrolling interests | 3,127 | 3,194 | ||||||||||
Total equity | 2,576,044 | 2,456,243 | ||||||||||
$ | 3,793,165 | $ | 3,320,331 | |||||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
2 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED STATEMENTS OF INCOME | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenues | ||||||||||||
Dividends from subsidiaries | $ | 342,488 | $ | 372,996 | $ | 285,141 | ||||||
Other income | 6,412 | 12,804 | 29,839 | |||||||||
348,900 | 385,800 | 314,980 | ||||||||||
Expenses | ||||||||||||
Other expenses | 33,959 | 36,184 | 24,569 | |||||||||
Income before income taxes and equity in undistributed earnings (losses) of subsidiaries | 314,941 | 349,616 | 290,411 | |||||||||
Income taxes | 104,523 | 139,127 | 102,940 | |||||||||
Equity in undistributed earnings (losses) of subsidiaries | 23,797 | (23,425 | ) | 114,257 | ||||||||
Net income | 234,215 | 187,064 | 301,728 | |||||||||
Less: Net income attributable to noncontrolling interests | 681 | 697 | 687 | |||||||||
Net income attributable to the Company | $ | 233,534 | $ | 186,367 | $ | 301,041 | ||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
3 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 234,215 | $ | 187,064 | $ | 301,728 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized gain (loss) on securities | 18,862 | (32,992 | ) | 31,445 | ||||||||
Unrealized gain on securities for which credit losses have been recognized in earnings | 776 | 2,327 | 3,902 | |||||||||
Foreign currency translation adjustment | (16,694 | ) | (13,650 | ) | 5,131 | |||||||
Pension benefit adjustment | (56,496 | ) | 49,324 | (13,571 | ) | |||||||
Total other comprehensive income (loss), net of tax | (53,552 | ) | 5,009 | 26,907 | ||||||||
Comprehensive income | 180,663 | 192,073 | 328,635 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | 691 | 694 | 691 | |||||||||
Comprehensive income attributable to the Company | $ | 179,972 | $ | 191,379 | $ | 327,944 | ||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
4 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Cash provided by (used for) operating activities | $ | 54,298 | $ | 71,326 | $ | (38,703 | ) | |||||
Cash flows from investing activities: | ||||||||||||
Net cash effect of acquisitions | (151,570 | ) | — | — | ||||||||
Proceeds from sales of equity securities | — | — | 137,823 | |||||||||
Contributions to subsidiaries | (11,396 | ) | (800 | ) | (10,999 | ) | ||||||
Net change in other long-term investments | 1,490 | 6,549 | 595 | |||||||||
Cash (used for) provided by investing activities | (161,476 | ) | 5,749 | 127,419 | ||||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from issuance of debt | 593,943 | 249,095 | 440,000 | |||||||||
Repayment of debt | (300,000 | ) | (160,000 | ) | (480,000 | ) | ||||||
Repayment of debt to subsidiaries | — | — | (2,902 | ) | ||||||||
Excess tax benefits from share-based compensation | 6,856 | 6,202 | 2,372 | |||||||||
Net proceeds in connection with share-based compensation plans | 3,601 | 1,736 | 12,668 | |||||||||
Purchase of Company shares | — | (64,606 | ) | — | ||||||||
Cash dividends | (89,939 | ) | (51,324 | ) | (44,705 | ) | ||||||
Cash provided by (used for) financing activities | 214,461 | (18,897 | ) | (72,567 | ) | |||||||
Net increase in cash and cash equivalents | 107,283 | 58,178 | 16,149 | |||||||||
Cash and cash equivalents—Beginning of period | 221,666 | 163,488 | 147,339 | |||||||||
Cash and cash equivalents—End of period | $ | 328,949 | $ | 221,666 | $ | 163,488 | ||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
5 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | ||||||||||||
NOTE 1. Description of the Company: | ||||||||||||
First American Financial Corporation became a publicly traded company following its spin-off from its prior parent, The First American Corporation (“TFAC”) on June 1, 2010. On that date, TFAC distributed all of First American Financial Corporation’s outstanding shares to the record date shareholders of TFAC on a one-for-one basis. After the distribution, First American Financial Corporation owns TFAC’s financial services businesses and TFAC, which reincorporated and assumed the name CoreLogic, Inc., continued to own its information solutions businesses. | ||||||||||||
First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company Financial Statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. | ||||||||||||
Supplemental information about non-cash financing activity | ||||||||||||
In 2013, $23.9 million in tax receivables due from subsidiaries were reduced with a corresponding reduction in notes payable to subsidiaries in noncash transactions. | ||||||||||||
NOTE 2. Dividends Received: | ||||||||||||
The holding company received cash dividends from subsidiaries of $79.1 million, $125.1 million and $11.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Supplementary_Insurance_Inform
Supplementary Insurance Information | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | |||||||||||||||||||||||||||
Supplementary Insurance Information | SCHEDULE III | ||||||||||||||||||||||||||
1 OF 2 | |||||||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | |||||||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
BALANCE SHEET CAPTIONS | |||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | ||||||||||||||||||||||||
Segment | Deferred | Claims | Deferred | ||||||||||||||||||||||||
policy | reserves | revenues | |||||||||||||||||||||||||
acquisition | |||||||||||||||||||||||||||
costs | |||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 2,179 | $ | 969,008 | $ | 14,265 | |||||||||||||||||||||
Specialty Insurance | 25,316 | 42,772 | 188,499 | ||||||||||||||||||||||||
Total | $ | 27,495 | $ | 1,011,780 | $ | 202,764 | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 2,375 | $ | 977,355 | $ | 14,544 | |||||||||||||||||||||
Specialty Insurance | 24,437 | 41,010 | 177,640 | ||||||||||||||||||||||||
Total | $ | 26,812 | $ | 1,018,365 | $ | 192,184 | |||||||||||||||||||||
SCHEDULE III | |||||||||||||||||||||||||||
2 OF 2 | |||||||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | |||||||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
INCOME STATEMENT CAPTIONS | |||||||||||||||||||||||||||
Column A | Column F | Column G | Column H | Column I | Column J | Column K | |||||||||||||||||||||
Segment | Premiums | Net | Loss | Amortization | Other | Premiums | |||||||||||||||||||||
and escrow | investment | provision | of deferred | operating | written | ||||||||||||||||||||||
fees | income (1) | policy | expenses | ||||||||||||||||||||||||
acquisition | |||||||||||||||||||||||||||
costs | |||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,603,080 | $ | 83,635 | $ | 253,122 | $ | 2,746 | $ | 761,584 | $ | — | |||||||||||||||
Specialty Insurance | 353,812 | 12,594 | 196,901 | (878 | ) | 45,599 | 364,782 | ||||||||||||||||||||
Corporate | — | 6,415 | — | — | 26,528 | — | |||||||||||||||||||||
Eliminations | — | (1,536 | ) | — | — | (30 | ) | — | |||||||||||||||||||
Total | $ | 3,956,892 | $ | 101,108 | $ | 450,023 | $ | 1,868 | $ | 833,681 | $ | 364,782 | |||||||||||||||
2013 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,900,132 | $ | 79,940 | $ | 343,461 | $ | 1,261 | $ | 816,870 | $ | — | |||||||||||||||
Specialty Insurance | 329,194 | 8,767 | 186,895 | (2,529 | ) | 41,725 | 344,433 | ||||||||||||||||||||
Corporate | — | 13,008 | — | — | 27,264 | — | |||||||||||||||||||||
Eliminations | — | (2,609 | ) | — | — | (54 | ) | — | |||||||||||||||||||
Total | $ | 4,229,326 | $ | 99,106 | $ | 530,356 | $ | (1,268 | ) | $ | 885,805 | $ | 344,433 | ||||||||||||||
2012 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,455,592 | $ | 101,495 | $ | 237,427 | $ | 1,174 | $ | 769,477 | $ | — | |||||||||||||||
Specialty Insurance | 296,053 | 17,513 | 160,290 | (108 | ) | 42,395 | 312,696 | ||||||||||||||||||||
Corporate | — | 29,892 | — | — | 24,462 | — | |||||||||||||||||||||
Eliminations | — | (3,747 | ) | — | — | (15 | ) | — | |||||||||||||||||||
Total | $ | 3,751,645 | $ | 145,153 | $ | 397,717 | $ | 1,066 | $ | 836,319 | $ | 312,696 | |||||||||||||||
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Abstract] | |||||||||||||||||||||
Reinsurance | SCHEDULE IV | ||||||||||||||||||||
1 OF 1 | |||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | |||||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||||
REINSURANCE | |||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Segment | Premiums | Ceded to | Assumed | Premiums | Percentage of | ||||||||||||||||
and escrow | other | from | and escrow | amount | |||||||||||||||||
fees before | companies | other | fees | assumed to | |||||||||||||||||
reinsurance | companies | premiums | |||||||||||||||||||
and escrow | |||||||||||||||||||||
fees | |||||||||||||||||||||
Title Insurance and Services | |||||||||||||||||||||
2014 | $ | 3,627,921 | $ | 28,727 | $ | 3,886 | $ | 3,603,080 | 0.1 | % | |||||||||||
2013 | $ | 3,923,117 | $ | 27,483 | $ | 4,498 | $ | 3,900,132 | 0.1 | % | |||||||||||
2012 | $ | 3,472,675 | $ | 19,884 | $ | 2,801 | $ | 3,455,592 | 0.1 | % | |||||||||||
Specialty Insurance | |||||||||||||||||||||
2014 | $ | 363,044 | $ | 9,232 | $ | — | $ | 353,812 | 0 | % | |||||||||||
2013 | $ | 338,204 | $ | 9,010 | $ | — | $ | 329,194 | 0 | % | |||||||||||
2012 | $ | 305,073 | $ | 9,020 | $ | — | $ | 296,053 | 0 | % | |||||||||||
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ||||||||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE V | |||||||||||||||||||||
1 OF 3 | ||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | |||||||||||||||||
beginning | costs and | to other | from | at end | ||||||||||||||||||
of period | expenses | accounts | reserve | of period | ||||||||||||||||||
Reserve deducted from accounts receivable: | ||||||||||||||||||||||
Consolidated | $ | 31,831 | $ | 12,352 | $ | — | $ | 9,521 | (A) | $ | 34,662 | |||||||||||
Reserve for known and incurred but not reported claims: | ||||||||||||||||||||||
Consolidated | $ | 1,018,365 | $ | 450,023 | $ | 13,142 | $ | 469,750 | (B) | $ | 1,011,780 | |||||||||||
Reserve deducted from notes receivable: | ||||||||||||||||||||||
Consolidated | $ | 2,584 | $ | 128 | $ | — | $ | 271 | $ | 2,441 | ||||||||||||
Reserve deducted from deferred income taxes: | ||||||||||||||||||||||
Consolidated | $ | 18,119 | $ | — | $ | — | $ | 2,413 | $ | 15,706 | ||||||||||||
Note A—Amount represents accounts written off, net of recoveries. | ||||||||||||||||||||||
Note B—Amount represents claim payments, net of recoveries. | ||||||||||||||||||||||
SCHEDULE V | ||||||||||||||||||||||
2 OF 3 | ||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | |||||||||||||||||
beginning | costs and | to other | from | at end | ||||||||||||||||||
of period | expenses | accounts | reserve | of period | ||||||||||||||||||
Reserve deducted from accounts receivable: | ||||||||||||||||||||||
Consolidated | $ | 30,917 | $ | 7,478 | $ | — | $ | 6,564 | (A) | $ | 31,831 | |||||||||||
Reserve for known and incurred but not reported claims: | ||||||||||||||||||||||
Consolidated | $ | 976,462 | $ | 530,356 | $ | (9,143 | ) | $ | 479,310 | (B) | $ | 1,018,365 | ||||||||||
Reserve deducted from notes receivable: | ||||||||||||||||||||||
Consolidated | $ | 2,902 | $ | (132 | ) | $ | — | $ | 186 | $ | 2,584 | |||||||||||
Reserve deducted from deferred income taxes: | ||||||||||||||||||||||
Consolidated | $ | 14,172 | $ | 3,578 | $ | 369 | $ | — | $ | 18,119 | ||||||||||||
Note A—Amount represents accounts written off, net of recoveries. | ||||||||||||||||||||||
Note B—Amount represents claim payments, net of recoveries. | ||||||||||||||||||||||
SCHEDULE V | ||||||||||||||||||||||
3 OF 3 | ||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | |||||||||||||||||
beginning | costs and | to other | from | at end | ||||||||||||||||||
of period | expenses | accounts | reserve | of period | ||||||||||||||||||
Reserve deducted from accounts receivable: | ||||||||||||||||||||||
Consolidated | $ | 30,504 | $ | 4,927 | $ | — | $ | 4,514 | (A) | $ | 30,917 | |||||||||||
Reserve for known and incurred but not reported claims: | ||||||||||||||||||||||
Consolidated | $ | 1,014,676 | $ | 397,717 | $ | 10,055 | $ | 445,986 | (B) | $ | 976,462 | |||||||||||
Reserve deducted from notes receivable: | ||||||||||||||||||||||
Consolidated | $ | 4,183 | $ | 462 | $ | — | $ | 1,743 | $ | 2,902 | ||||||||||||
Reserve deducted from deferred income taxes: | ||||||||||||||||||||||
Consolidated | $ | 21,426 | $ | — | $ | 15 | $ | 7,269 | $ | 14,172 | ||||||||||||
Note A—Amount represents accounts written off, net of recoveries. | ||||||||||||||||||||||
Note B—Amount represents claim payments, net of recoveries. |
Description_of_the_Company_Pol
Description of the Company (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method. Investments in which the Company does not exercise significant influence over the investee are accounted for under the cost method. | ||||||||||||
Reclassifications, Revisions and Out-of-Period Adjustments | Reclassifications, revisions and out-of-period adjustments | |||||||||||
Certain 2012 and 2013 amounts have been reclassified to conform to the 2014 presentation. | ||||||||||||
The consolidated balance sheet as of December 31, 2013 was revised for an error which resulted in an adjustment between income taxes receivable and deferred income taxes. The adjustment resulted in an increase to income taxes receivable of $11.1 million, an increase in deferred income tax assets of $27.5 million and an increase in deferred income tax liabilities of $38.6 million. | ||||||||||||
During 2014, the Company identified and recorded adjustments to correct for certain errors in foreign currency translation and transactions in prior periods. These adjustments resulted in an increase to other operating expenses of $5.0 million. | ||||||||||||
The Company does not consider these adjustments to be material, individually or in the aggregate, to either the current year or any previously issued consolidated financial statements. | ||||||||||||
Use of Estimates | Use of estimates | |||||||||||
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. | ||||||||||||
Cash and Cash Equivalents | Cash and cash equivalents | |||||||||||
The Company considers cash equivalents to be all short-term investments that have an initial maturity of 90 days or less and are not restricted for statutory deposit or premium reserve requirements. | ||||||||||||
Accounts and Accrued Income Receivable | Accounts and accrued income receivable | |||||||||||
Accounts and accrued income receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Amounts are charged off in the period they are deemed to be uncollectible. | ||||||||||||
Investments | Investments | |||||||||||
Deposits with banks are short-term investments with initial maturities of generally more than 90 days. | ||||||||||||
Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, various corporations, certain state and political subdivisions and mortgage-backed securities. | ||||||||||||
The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2014 and 2013, the fair value of such investments totaled $120.7 million and $124.0 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity for additional discussion of the Company’s statutory restrictions. | ||||||||||||
Equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and marketable common and preferred stocks of corporate entities. | ||||||||||||
The Company classifies its publicly traded debt and equity securities as available-for-sale with unrealized gains or losses classified as a component of accumulated other comprehensive loss. See Note 15 Fair Value Measurements for additional discussion of the determination of fair value. Interest income, as well as the related amortization of premium and accretion of discount, on debt securities is recognized under the effective yield method and included in the accompanying consolidated statements of income in net investment income. Realized gains and losses on sales of debt and equity securities are determined on a first-in, first-out basis. | ||||||||||||
The Company evaluates its debt and equity securities with unrealized losses on a quarterly basis for potential other-than-temporary impairments in value. | ||||||||||||
If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is other-than-temporarily impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2014, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell debt securities before recovery of their amortized cost basis. | ||||||||||||
If the Company does not expect to recover the amortized cost basis of a debt security with declines in fair value (even if the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security), the losses the Company considers to be the credit portion of the other-than-temporary impairment loss (“credit loss”) is recognized in earnings and the non-credit portion is recognized in other comprehensive income. The credit loss is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted at the rate implicit in the security immediately prior to the recognition of the other-than-temporary impairment. | ||||||||||||
Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. | ||||||||||||
The Company determines if a non-agency mortgage-backed security in a loss position is other-than-temporarily impaired by comparing the present value of the cash flows expected to be collected from the security to its amortized cost basis. If the present value of the cash flows expected to be collected exceed the amortized cost of the security, the Company concludes that the security is not other-than-temporarily impaired. The Company performs this analysis on all non-agency mortgage-backed securities in its portfolio that are in an unrealized loss position. For the securities that were determined not to be other-than-temporarily impaired at December 31, 2014, the present value of the cash flows expected to be collected exceeded the amortized cost of each security. | ||||||||||||
Cash flows expected to be collected for each non-agency mortgage-backed security are estimated by analyzing loan-level detail to estimate future cash flows from the underlying assets, which are then applied to the security based on the underlying contractual provisions of the securitization trust that issued the security (e.g., subordination levels, remaining payment terms, etc.). The Company uses third-party software to determine how the underlying collateral cash flows will be distributed to each security issued from the securitization trust. The primary assumptions used in estimating future collateral cash flows are prepayment speeds, default rates and loss severity. In developing these assumptions, the Company considers the financial condition of the borrower, loan to value ratio, loan type and geographical location of the underlying property. The Company utilizes publicly available information related to specific assets, generally available market data such as forward interest rate curves and securities, loans and property data and market analytics tools provided through a third party. | ||||||||||||
The table below summarizes the primary assumptions used at December 31, 2014 in estimating the cash flows expected to be collected for these securities. | ||||||||||||
Weighted | Range | |||||||||||
average | ||||||||||||
Prepayment speeds | 10 | % | 8.8 | % | – | 14 | % | |||||
Default rates | 2.5 | % | 1.8 | % | – | 3.7 | % | |||||
Loss severity | 18.7 | % | 3.6 | % | – | 28.5 | % | |||||
As a result of the Company’s security-level review, the Company recognized $1.7 million and $3.6 million of other-than-temporary impairments considered to be credit related on its non-agency mortgage-backed securities in earnings for the years ended December 31, 2014 and 2012, respectively. The Company did not recognize any other-than-temporary impairments considered to be credit related in 2013. It is possible that the Company could recognize additional other-than-temporary impairment losses on securities it owns at December 31, 2014 if future events or information cause it to determine that a decline in fair value is other-than-temporary. | ||||||||||||
The following table presents the change in the credit portion of the other-than-temporary impairments recognized in earnings on debt securities for which a portion of the other-than-temporary impairments related to other factors was recognized in other comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012. | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,478 | $ | 16,478 | $ | 33,656 | ||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 1,701 | — | 3,564 | |||||||||
Accumulated losses on securities that matured or were sold during the year | — | — | (20,742 | ) | ||||||||
Cumulative credit loss on debt securities held at end of period | $ | 18,179 | $ | 16,478 | $ | 16,478 | ||||||
When a decline in the fair value of an equity security, including common and preferred stock, is considered to be other-than-temporary, such equity security is written down to its fair value. When assessing if a decline in fair value is other-than-temporary, the factors considered include the length of time and extent to which fair value has been below cost, the probability that the Company will be unable to collect all amounts due under the contractual terms of the security, the seniority of the securities, issuer-specific news and other developments, the financial condition and prospects of the issuer (including credit ratings), macro-economic changes (including the outlook for industry sectors, which includes government policy initiatives) and the Company’s ability and intent to hold the security for a period of time sufficient to allow for any anticipated recovery. | ||||||||||||
When an equity security has been in an unrealized loss position for greater than twelve months, the Company’s review of the security includes the above noted factors as well as other evidence that might exist supporting the view that the security will recover its value in the foreseeable future, typically within the next twelve months. If objective, substantial evidence does not indicate a likely recovery during that timeframe, the Company’s policy is that such losses are considered other-than-temporary and therefore an impairment loss is recorded. The Company did not record other-than-temporary impairment losses related to its equity securities for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Other long-term investments consist primarily of investments in affiliates, which are accounted for under either the equity method or the cost method of accounting, investments in real estate and notes receivable. The carrying value of investments in affiliates is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In making the determination as to whether an individual investment in an affiliate was impaired, the Company assessed the then-current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to the Company), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity was operating. The Company recognized impairment losses on equity method investments in affiliates of $22.5 million, 7.8 million and $7.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
Investments in real estate are classified as held for sale and carried at the lower of cost or fair value less estimated selling costs. An impairment loss is recognized when the carrying value exceeds the estimated undiscounted future cash flows from the investment. | ||||||||||||
Notes receivable are carried at cost less reserves for losses. Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. | ||||||||||||
Property and Equipment | Property and equipment | |||||||||||
Property and equipment includes computer software acquired or developed for internal use and for use with the Company’s products. Software development costs, which include capitalized interest costs and certain payroll-related costs of employees directly associated with developing software, in addition to incremental payments to third parties, are capitalized from the time technological feasibility is established until the software is ready for use. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. | ||||||||||||
Depreciation on buildings and on furniture and equipment is computed using the straight-line method over estimated useful lives of 5 to 40 years and 1 to 15 years, respectively. Capitalized software costs are amortized using the straight-line method over estimated useful lives of 1 to 15 years. Leasehold improvements are amortized over useful lives that are consistent with the lease term. | ||||||||||||
Title Plants and Other Indexes | Title plants and other indexes | |||||||||||
Title plants and other indexes at December 31, 2014 included title plants of $514.6 million and capitalized real estate data of $16.0 million, and at December 31, 2013 included title plants of $523.1 million and capitalized real estate data of $0.8 million. Title plants are carried at original cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is carried at cost, less amortization. Capitalized real estate data is amortized using the straight-line method over estimated useful lives of 3 to 15 years. | ||||||||||||
Business Combinations | Business Combinations | |||||||||||
Amounts paid for acquisitions are allocated to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair value at the date of acquisition. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the date of acquisition. | ||||||||||||
Goodwill Impairment | Goodwill Impairment | |||||||||||
The Company is required to perform an annual goodwill impairment assessment for each reporting unit. The Company’s four reporting units are title insurance, home warranty, property and casualty insurance and trust and other services. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on current guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e., a likelihood of greater than 50%) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego the qualitative assessment and perform the quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of the qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform the quantitative impairment test. If, however, the more likely than not threshold is met, the Company performs the quantitative test as required and discussed below. | ||||||||||||
Management’s quantitative impairment testing process includes two steps. The first step (“Step 1”) compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, a second step (“Step 2”) must be completed to determine if the fair value of the goodwill exceeds the carrying amount of goodwill. | ||||||||||||
Step 2 involves calculating an implied fair value of goodwill for each reporting unit for which Step 1 indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | ||||||||||||
The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes multiple cash flow scenarios that reflect a range of possible outcomes and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the equity or asset. | ||||||||||||
The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future goodwill impairment losses that could be material. | ||||||||||||
The Company elected to perform qualitative assessments for 2014 and 2013, the results of which supported the conclusion that the fair values of the Company’s reporting units were not more likely than not less than their carrying amounts and, therefore, a quantitative assessment was not considered necessary. For 2012, the Company performed a quantitative assessment and determined that the fair values of its reporting units exceeded their carrying amounts and, therefore, no additional analysis was required. As a result of these assessments, the Company did not record any goodwill impairment losses for 2014, 2013 or 2012. | ||||||||||||
Other Intangible Assets | Other intangible assets | |||||||||||
The Company’s intangible assets consist of noncompete agreements, customer relationships, trademarks, patents and licenses. Each of these intangible assets, excluding licenses, is amortized on a straight-line basis over its useful life ranging from 1 to 20 years and is subject to impairment assessments when there is an indication of a triggering event or abandonment. Licenses are an intangible asset with an indefinite life and are therefore not amortized but rather assessed for impairment by comparing the fair value of the license with its carrying value at least annually and when an indicator of potential impairment has occurred. | ||||||||||||
Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of intangible assets with finite lives, whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable. If the undiscounted cash flow analysis indicates that the carrying amount is not recoverable, an impairment loss is recorded for the excess of the carrying amount over its fair value. | ||||||||||||
Reserve for Known and Incurred but Not Reported Claims | Reserve for known and incurred but not reported claims | |||||||||||
The Company provides for title insurance losses by a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. | ||||||||||||
The process of assessing the loss provision rate and the resulting IBNR reserve involves evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also reviewed and used in the reserve analysis. These include real estate and mortgage markets conditions, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. | ||||||||||||
For recent policy years at early stages of development (generally the last three years), IBNR is estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees, and adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. | ||||||||||||
The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information it may have concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. | ||||||||||||
Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 70% to 80% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. Based on historical experience, management believes a 50 basis point change to the loss rates for the most recent policy years, positive or negative, is reasonably likely given the long duration nature of a title insurance policy. For example, if the expected ultimate losses for each of the last six policy years increased or decreased by 50 basis points, the resulting impact on the Company’s IBNR reserve would be an increase or decrease, as the case may be, of $98.7 million. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss ratios exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. | ||||||||||||
The Company provides for property and casualty insurance losses when the insured event occurs. The Company provides for claims losses relating to its home warranty business based on the average cost per claim as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience adjusted for estimated future increases in costs. | ||||||||||||
Contingent Litigation and Regulatory Liabilities | Contingent litigation and regulatory liabilities | |||||||||||
Amounts related to contingent litigation and regulatory liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. The Company records legal fees in other operating expense in the period incurred. | ||||||||||||
Revenues | Revenues | |||||||||||
Title premiums on policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by independent agents are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Revenues earned by the Company’s title plant management business are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | ||||||||||||
Direct premiums of the Company’s specialty insurance segment include revenues from home warranty contracts which are generally recognized ratably over the 12-month duration of the contracts, and revenues from property and casualty insurance policies which are also recognized ratably over the 12-month duration of the policies. | ||||||||||||
Revenues earned by the Company’s trust operations are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | ||||||||||||
Premium Taxes | Premium taxes | |||||||||||
Title insurance, property and casualty insurance and home warranty companies, like other types of insurers, are generally not subject to state income or franchise taxes. However, in lieu thereof, most states impose a tax based primarily on insurance premiums written. This premium tax is reported as a separate line item in the consolidated statements of income in order to provide a more meaningful disclosure of the taxation of the Company. | ||||||||||||
Income Taxes | Income taxes | |||||||||||
The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is considered more likely than not that some or all of the deferred tax assets will not be realized. | ||||||||||||
The Company recognizes the effect of income tax positions only if sustaining those positions is considered more likely than not. Changes in recognition or measurement of uncertain tax positions are reflected in the period in which a change in judgment occurs. The Company recognizes interest and penalties, if any, related to uncertain tax positions in tax expense. | ||||||||||||
Share-Based Compensation | Share-based compensation | |||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized in the Company’s financial statements over the requisite service period of the award using the straight-line method for awards that contain only a service condition and the graded vesting method for awards that contain a performance or market condition. The share-based compensation expense recognized is based on the number of shares ultimately expected to vest, net of forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | ||||||||||||
The Company’s primary means of providing share-based compensation is through the granting of restricted stock units (“RSUs”). RSUs granted generally have graded vesting and include a service condition; and for certain key employees and executives, may also include either a performance or market condition. RSUs receive dividend equivalents in the form of RSUs having the same vesting requirements as the RSUs initially granted. | ||||||||||||
In addition, the Company has an employee stock purchase plan that allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each offering period. The offering periods are three-month periods beginning on January 1, April 1, July 1 and October 1 of each fiscal year. The Company recognizes an expense in the amount equal to the value of the 15% discount and look-back feature over the three-month offering period. | ||||||||||||
Earnings Per Share | Earnings per share | |||||||||||
Basic earnings per share is computed by dividing net income available to the Company’s stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if dilutive stock options had been exercised and RSUs were vested. The dilutive effect of stock options and unvested RSUs is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options and vesting of RSUs would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the hypothetical windfall tax benefit that the Company receives upon assumed exercise or vesting and the hypothetical average unrecognized compensation expense for the period. The Company calculates the assumed proceeds from excess tax benefits based on the “as-if” deferred tax assets calculated under share based compensation standards. | ||||||||||||
Certain unvested RSUs contain nonforfeitable rights to dividends as they are eligible to participate in undistributed earnings without meeting service condition requirements. These awards are considered participating securities under the guidance which requires the use of the two-class method when computing basic and diluted earnings per share. The two-class method reduces earnings allocated to common stockholders by dividends and undistributed earnings allocated to participating securities. | ||||||||||||
Employee Benefit Plans | Employee benefit plans | |||||||||||
The Company recognizes the overfunded or underfunded status of defined benefit postretirement plans as an asset or liability on its consolidated balance sheets and recognizes changes in the funded status in the year in which changes occur, through accumulated other comprehensive loss. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation (the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for the other postretirement plans). Actuarial gains and losses and prior service costs and credits that have not been recognized as a component of net periodic benefit cost previously are recorded as a component of accumulated other comprehensive loss. Plan assets and obligations are measured annually as of December 31. | ||||||||||||
The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income earned on the Company’s deferred compensation plan assets is included as a component of net investment income and the income earned by the deferred compensation plan participants is included as a component of personnel costs on the consolidated statements of income. | ||||||||||||
Foreign Currency | Foreign currency | |||||||||||
The Company operates in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. The functional currencies of the Company’s foreign subsidiaries are generally their respective local currencies. The financial statements of the foreign subsidiaries are translated into U.S. dollars as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at average rates prevailing throughout the period. Translation adjustments resulting from the translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included within other operating expenses. | ||||||||||||
Reinsurance | Reinsurance | |||||||||||
The Company assumes and cedes large title insurance risks through reinsurance. Additionally, the Company’s property and casualty insurance business uses reinsurance to limit risk associated with natural disasters such as windstorms, winter storms, wildfires and earthquakes. In reinsurance arrangements, the primary insurer retains a certain amount of risk under a policy and cedes the remainder of the risk under the policy to the reinsurer. The primary insurer pays the reinsurer a premium in exchange for accepting this risk of loss. The primary insurer generally remains liable to its insured for the total risk, but is reinsured under the terms of the reinsurance agreement. The amount of premiums assumed and ceded is recorded as a component of direct premiums and escrow fees on the Company’s consolidated statements of income. The total amount of premiums assumed and ceded in connection with reinsurance was less than 1.0% of consolidated premium and escrow fees for each of the three years in the period ended December 31, 2014. Payments and recoveries on reinsured losses for the Company’s title insurance and property and casualty businesses were immaterial during the three years ended December 31, 2014. At December 31, 2014, a reinsurance receivable of $25.0 million, which related to a large commercial title claim, was included in the Company’s consolidated balance sheets in accounts and accrued income receivable. The Company collected $23.2 million of the receivable in February 2015 and expects to collect the remaining $1.8 during the remainder of 2015. No reinsurance receivable was included in the consolidated balance sheets at December 31, 2013. | ||||||||||||
Escrow Deposits and Trust Assets | Escrow deposits and trust assets | |||||||||||
The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $6.3 billion and $4.7 billion at December 31, 2014 and 2013, respectively, of which $2.2 billion and $1.6 billion, respectively, were held at the Company’s federal savings bank subsidiary, First American Trust, FSB. The escrow deposits held at First American Trust, FSB are temporarily invested in cash and cash equivalents and debt and equity securities, with offsetting liabilities included in deposits in the accompanying consolidated balance sheets. The remaining escrow deposits were held at third-party financial institutions. | ||||||||||||
Trust assets held or managed by First American Trust, FSB totaled $3.0 billion at December 31, 2014 and 2013. Escrow deposits held at third-party financial institutions and trust assets are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. However, the Company could be held contingently liable for the disposition of these assets. | ||||||||||||
In conducting its operations, the Company often holds customers’ assets in escrow, pending completion of real estate transactions and, as a result, the Company has ongoing programs for realizing economic benefits, including investment programs, borrowing agreements, and vendor services arrangements with various financial institutions. The effects of these programs are included in the consolidated financial statements as income or a reduction in expense, as appropriate, based on the nature of the arrangement and benefit received. | ||||||||||||
Like-Kind Exchanges | Like-kind exchanges | |||||||||||
The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of each such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds held by the Company totaled $2.4 billion and $1.4 billion at December 31, 2014 and 2013, respectively. The like-kind exchange deposits are held at third-party financial institutions and, due to the structure utilized to facilitate these transactions, the proceeds and property are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the return on the proceeds. | ||||||||||||
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: | |||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued updated guidance intended to eliminate the diversity in practice regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. The adoption of the guidance had no impact on the Company’s consolidated financial statements. | ||||||||||||
Pending Accounting Pronouncements | Pending Accounting Pronouncements: | |||||||||||
In June 2014, the FASB issued updated guidance intended to eliminate the diversity in practice regarding share-based payment awards that include terms which provide for a performance target that affects vesting being achieved after the requisite service period. The new standard requires that a performance target which affects vesting and could be achieved after the requisite service period be treated as a performance condition that affects vesting and should not be reflected in estimating the grant-date fair value. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued updated guidance for recognizing revenue from contracts with customers to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within and across industries, and across capital markets. The new revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of recognition. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. Revenue from insurance contracts is not within the scope of this guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently assessing the impact of the new guidance on its consolidated financial statements. | ||||||||||||
In April 2014, the FASB issued updated guidance which changes the criteria for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The updated guidance is effective for interim and annual reporting periods beginning after December 31, 2014, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its consolidated financial statements. |
Description_of_the_Company_Tab
Description of the Company (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||||||||
Summary of Primary Assumptions used in Estimating Cash Flows Expected to be Collected for Securities | The table below summarizes the primary assumptions used at December 31, 2014 in estimating the cash flows expected to be collected for these securities. | |||||||||||
Weighted | Range | |||||||||||
average | ||||||||||||
Prepayment speeds | 10 | % | 8.8 | % | – | 14 | % | |||||
Default rates | 2.5 | % | 1.8 | % | – | 3.7 | % | |||||
Loss severity | 18.7 | % | 3.6 | % | – | 28.5 | % | |||||
Change in Credit Portion of Other-Than-Temporary Impairments Recognized in Earnings on Debt Securities | The following table presents the change in the credit portion of the other-than-temporary impairments recognized in earnings on debt securities for which a portion of the other-than-temporary impairments related to other factors was recognized in other comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012. | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,478 | $ | 16,478 | $ | 33,656 | ||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 1,701 | — | 3,564 | |||||||||
Accumulated losses on securities that matured or were sold during the year | — | — | (20,742 | ) | ||||||||
Cumulative credit loss on debt securities held at end of period | $ | 18,179 | $ | 16,478 | $ | 16,478 | ||||||
Debt_and_Equity_Securities_Tab
Debt and Equity Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Net Unrealized Gains (Losses) | The Company had the following unrealized gains (losses) as of December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Debt securities for which an other-than-temporary impairment has been recognized | $ | 604 | $ | (625 | ) | $ | (4,435 | ) | |||||||||||||||||
Debt securities—all other | 17,182 | (28,152 | ) | 43,041 | |||||||||||||||||||||
Equity securities | 8,498 | 23,944 | 6,750 | ||||||||||||||||||||||
$ | 26,284 | $ | (4,833 | ) | $ | 45,356 | |||||||||||||||||||
Gross Unrealized Losses | The Company had the following gross unrealized losses as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
(in thousands) | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 8,122 | $ | (27 | ) | $ | 15,124 | $ | (154 | ) | $ | 23,246 | $ | (181 | ) | ||||||||||
Municipal bonds | 137,755 | (689 | ) | 19,625 | (318 | ) | 157,380 | (1,007 | ) | ||||||||||||||||
Foreign bonds | 6,215 | (8 | ) | — | — | 6,215 | (8 | ) | |||||||||||||||||
Governmental agency bonds | 27,479 | (88 | ) | 127,936 | (1,930 | ) | 155,415 | (2,018 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 383,717 | (1,612 | ) | 300,918 | (7,483 | ) | 684,635 | (9,095 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | — | — | 5,611 | (717 | ) | 5,611 | (717 | ) | |||||||||||||||||
Corporate debt securities | 198,079 | (3,151 | ) | 9,683 | (113 | ) | 207,762 | (3,264 | ) | ||||||||||||||||
Total debt securities | 761,367 | (5,575 | ) | 478,897 | (10,715 | ) | 1,240,264 | (16,290 | ) | ||||||||||||||||
Equity securities | 208,922 | (8,587 | ) | 2,340 | (191 | ) | 211,262 | (8,778 | ) | ||||||||||||||||
Total | $ | 970,289 | $ | (14,162 | ) | $ | 481,237 | $ | (10,906 | ) | $ | 1,451,526 | $ | (25,068 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 37,492 | $ | (685 | ) | $ | — | $ | — | $ | 37,492 | $ | (685 | ) | |||||||||||
Municipal bonds | 230,180 | (8,938 | ) | 27,687 | (1,353 | ) | 257,867 | (10,291 | ) | ||||||||||||||||
Foreign bonds | 56,579 | (626 | ) | — | — | 56,579 | (626 | ) | |||||||||||||||||
Governmental agency bonds | 203,011 | (5,375 | ) | 131 | (26 | ) | 203,142 | (5,401 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 838,411 | (20,970 | ) | 124,425 | (4,284 | ) | 962,836 | (25,254 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | — | — | 12,086 | (1,803 | ) | 12,086 | (1,803 | ) | |||||||||||||||||
Corporate debt securities | 129,394 | (2,422 | ) | 12,500 | (666 | ) | 141,894 | (3,088 | ) | ||||||||||||||||
Total debt securities | 1,495,067 | (39,016 | ) | 176,829 | (8,132 | ) | 1,671,896 | (47,148 | ) | ||||||||||||||||
Equity securities | 85,112 | (2,718 | ) | 1,046 | (42 | ) | 86,158 | (2,760 | ) | ||||||||||||||||
Total | $ | 1,580,179 | $ | (41,734 | ) | $ | 177,875 | $ | (8,174 | ) | $ | 1,758,054 | $ | (49,908 | ) | ||||||||||
Amortized Cost and Estimated Fair Value of Debt Securities | The amortized cost and estimated fair value of debt securities at December 31, 2014, by contractual maturities, are as follows: | ||||||||||||||||||||||||
(in thousands) | Due in one | Due after | Due after | Due after | Total | ||||||||||||||||||||
year or less | one | five | ten years | ||||||||||||||||||||||
through | through | ||||||||||||||||||||||||
five years | ten years | ||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||
Amortized cost | $ | 4,909 | $ | 40,264 | $ | 17,032 | $ | 1,990 | $ | 64,195 | |||||||||||||||
Estimated fair value | $ | 4,969 | $ | 40,312 | $ | 17,370 | $ | 2,331 | $ | 64,982 | |||||||||||||||
Municipal bonds | |||||||||||||||||||||||||
Amortized cost | $ | 20,148 | $ | 262,901 | $ | 181,812 | $ | 112,842 | $ | 577,703 | |||||||||||||||
Estimated fair value | $ | 20,239 | $ | 264,952 | $ | 186,168 | $ | 116,318 | $ | 587,677 | |||||||||||||||
Foreign bonds | |||||||||||||||||||||||||
Amortized cost | $ | 46,403 | $ | 131,652 | $ | 13,473 | $ | 3,221 | $ | 194,749 | |||||||||||||||
Estimated fair value | $ | 46,585 | $ | 133,103 | $ | 13,707 | $ | 3,355 | $ | 196,750 | |||||||||||||||
Governmental agency bonds | |||||||||||||||||||||||||
Amortized cost | $ | 2,279 | $ | 171,686 | $ | 12,402 | $ | 11,963 | $ | 198,330 | |||||||||||||||
Estimated fair value | $ | 2,284 | $ | 169,796 | $ | 12,762 | $ | 13,032 | $ | 197,874 | |||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 18,503 | $ | 239,699 | $ | 262,743 | $ | 47,829 | $ | 568,774 | |||||||||||||||
Estimated fair value | $ | 18,640 | $ | 242,236 | $ | 263,623 | $ | 49,770 | $ | 574,269 | |||||||||||||||
Total debt securities excluding mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 92,242 | $ | 846,202 | $ | 487,462 | $ | 177,845 | $ | 1,603,751 | |||||||||||||||
Estimated fair value | $ | 92,717 | $ | 850,399 | $ | 493,630 | $ | 184,806 | $ | 1,621,552 | |||||||||||||||
Total mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 1,828,715 | |||||||||||||||||||||||
Estimated fair value | $ | 1,828,700 | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 3,432,466 | |||||||||||||||||||||||
Estimated fair value | $ | 3,450,252 | |||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Investments Classified as Available-For-Sale | The amortized cost and estimated fair value of investments in debt securities, all of which are classified as available-for-sale, are as follows: | ||||||||||||||||||||||||
Amortized | Gross unrealized | Estimated | |||||||||||||||||||||||
(in thousands) | cost | gains | losses | fair value | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 64,195 | $ | 968 | $ | (181 | ) | $ | 64,982 | ||||||||||||||||
Municipal bonds | 577,703 | 10,981 | (1,007 | ) | 587,677 | ||||||||||||||||||||
Foreign bonds | 194,749 | 2,009 | (8 | ) | 196,750 | ||||||||||||||||||||
Governmental agency bonds | 198,330 | 1,562 | (2,018 | ) | 197,874 | ||||||||||||||||||||
Governmental agency mortgage-backed securities | 1,812,766 | 8,491 | (9,095 | ) | 1,812,162 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 15,949 | 1,306 | (717 | ) | 16,538 | ||||||||||||||||||||
Corporate debt securities | 568,774 | 8,759 | (3,264 | ) | 574,269 | ||||||||||||||||||||
$ | 3,432,466 | $ | 34,076 | $ | (16,290 | ) | $ | 3,450,252 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 66,400 | $ | 669 | $ | (685 | ) | $ | 66,384 | ||||||||||||||||
Municipal bonds | 491,143 | 5,113 | (10,291 | ) | 485,965 | ||||||||||||||||||||
Foreign bonds | 221,298 | 1,836 | (626 | ) | 222,508 | ||||||||||||||||||||
Governmental agency bonds | 267,713 | 233 | (5,401 | ) | 262,545 | ||||||||||||||||||||
Governmental agency mortgage-backed securities | 1,426,489 | 2,074 | (25,254 | ) | 1,403,309 | ||||||||||||||||||||
Non-agency mortgage-backed securities | 19,658 | 1,167 | (1,803 | ) | 19,022 | ||||||||||||||||||||
Corporate debt securities | 355,893 | 7,279 | (3,088 | ) | 360,084 | ||||||||||||||||||||
$ | 2,848,594 | $ | 18,371 | $ | (47,148 | ) | $ | 2,819,817 | |||||||||||||||||
Debt Securities | Non-Agency Mortgage-Backed Securities | |||||||||||||||||||||||||
Composition of Company's Non-Agency Mortgage-Backed Securities | The table below summarizes the composition of the Company’s non-agency mortgage-backed securities as of December 31, 2014, by collateral type and year of issuance. | ||||||||||||||||||||||||
(in thousands, except number of securities) | Number of | Amortized | Estimated | ||||||||||||||||||||||
Securities | Cost | Fair Value | |||||||||||||||||||||||
Non-agency mortgage- backed securities: | |||||||||||||||||||||||||
Prime single family residential: | |||||||||||||||||||||||||
2007 | 1 | $ | 2,738 | $ | 2,394 | ||||||||||||||||||||
2006 | 3 | 7,433 | 7,377 | ||||||||||||||||||||||
2005 | 1 | 524 | 509 | ||||||||||||||||||||||
Alt-A single family residential: | |||||||||||||||||||||||||
2007 | 1 | 5,254 | 6,258 | ||||||||||||||||||||||
6 | $ | 15,949 | $ | 16,538 | |||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Investments Classified as Available-For-Sale | The cost and estimated fair value of investments in equity securities, all of which are classified as available-for-sale, are as follows: | ||||||||||||||||||||||||
Cost | Gross unrealized | Estimated | |||||||||||||||||||||||
(in thousands) | gains | losses | fair value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Preferred stocks | $ | 14,976 | $ | 596 | $ | (47 | ) | $ | 15,525 | ||||||||||||||||
Common stocks | 378,938 | 16,680 | (8,731 | ) | 386,887 | ||||||||||||||||||||
$ | 393,914 | $ | 17,276 | $ | (8,778 | ) | $ | 402,412 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Preferred stocks | $ | 9,915 | $ | 1,567 | $ | (397 | ) | $ | 11,085 | ||||||||||||||||
Common stocks | 324,184 | 25,137 | (2,363 | ) | 346,958 | ||||||||||||||||||||
$ | 334,099 | $ | 26,704 | $ | (2,760 | ) | $ | 358,043 | |||||||||||||||||
Financing_Receivables_Tables
Financing Receivables (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||
Summary of Notes Receivable | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
Notes receivable: | 2014 | 2013 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Secured | 5,810 | 10,533 | ||||||||||||||||||||||
Unsecured | 2,761 | 2,593 | ||||||||||||||||||||||
8,571 | 13,126 | |||||||||||||||||||||||
Loss reserve | (2,441 | ) | (2,584 | ) | ||||||||||||||||||||
Notes receivable, net | $ | 6,130 | $ | 10,542 | ||||||||||||||||||||
Aging Analysis of Loans and Notes Receivable | Aging analysis of notes receivable at December 31, 2014 and 2013, is as follows: | |||||||||||||||||||||||
Total | Current | 30-59 days | 60-89 days | 90 days or | Non-accrual | |||||||||||||||||||
past due | past due | more | status | |||||||||||||||||||||
past due | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 5,810 | $ | 4,929 | $ | 28 | $ | — | $ | 43 | $ | 810 | ||||||||||||
Unsecured | 2,761 | 1,121 | 7 | — | — | 1,633 | ||||||||||||||||||
$ | 8,571 | $ | 6,050 | $ | 35 | $ | — | $ | 43 | $ | 2,443 | |||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 10,533 | $ | 5,784 | $ | 3,668 | $ | — | $ | 231 | $ | 850 | ||||||||||||
Unsecured | 2,593 | 771 | — | — | — | 1,822 | ||||||||||||||||||
$ | 13,126 | $ | 6,555 | $ | 3,668 | $ | — | $ | 231 | $ | 2,672 | |||||||||||||
Aggregate Annual Maturities for Loans and Notes Receivable | The aggregate annual maturities for notes receivable at December 31, 2014, is as follows: | |||||||||||||||||||||||
Year | Notes | |||||||||||||||||||||||
Receivable | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2015 | $ | 2,035 | ||||||||||||||||||||||
2016 | 1,509 | |||||||||||||||||||||||
2017 | 719 | |||||||||||||||||||||||
2018 | 517 | |||||||||||||||||||||||
2019 | 2,603 | |||||||||||||||||||||||
2020 and thereafter | 1,188 | |||||||||||||||||||||||
$ | 8,571 | |||||||||||||||||||||||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property Plant And Equipment [Abstract] | ||||||||
Schedule of Property and Equipment | Property and equipment consists of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Land | $ | 29,700 | $ | 29,816 | ||||
Buildings | 270,689 | 277,131 | ||||||
Furniture and equipment | 186,237 | 182,912 | ||||||
Capitalized software | 466,548 | 402,713 | ||||||
953,174 | 892,572 | |||||||
Accumulated depreciation and amortization | (557,887 | ) | (531,224 | ) | ||||
$ | 395,287 | $ | 361,348 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||
Carrying Amount of Goodwill by Operating Segment | A summary of the changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2014 and 2013, is as follows: | |||||||||||
Title | Specialty | Total | ||||||||||
Insurance | Insurance | |||||||||||
and Services | ||||||||||||
(in thousands) | ||||||||||||
Balance as of December 31, 2012 | $ | 799,092 | $ | 46,765 | $ | 845,857 | ||||||
Acquisitions | 4,456 | — | 4,456 | |||||||||
Foreign currency translation | (4,287 | ) | — | (4,287 | ) | |||||||
Balance as of December 31, 2013 | 799,261 | 46,765 | 846,026 | |||||||||
Acquisitions | 121,252 | — | 121,252 | |||||||||
Foreign currency translation | (5,554 | ) | — | (5,554 | ) | |||||||
Other adjustments | (1,779 | ) | — | (1,779 | ) | |||||||
Balance as of December 31, 2014 | $ | 913,180 | $ | 46,765 | $ | 959,945 | ||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Other Intangible Assets | Other intangible assets consist of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Finite-lived intangible assets: | ||||||||
Customer relationships | $ | 94,850 | $ | 77,382 | ||||
Noncompete agreements | 27,286 | 26,928 | ||||||
Trademarks | 11,241 | 10,026 | ||||||
Patents | 2,840 | 2,840 | ||||||
136,217 | 117,176 | |||||||
Accumulated amortization | (97,282 | ) | (88,624 | ) | ||||
38,935 | 28,552 | |||||||
Indefinite-lived intangible assets: | ||||||||
Licenses | 16,877 | 17,795 | ||||||
$ | 55,812 | $ | 46,347 | |||||
Estimated Amortization Expense for Finite-Lived Intangible Assets | Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: | |||||||
Year | (in thousands) | |||||||
2015 | $ | 8,886 | ||||||
2016 | $ | 8,423 | ||||||
2017 | $ | 6,799 | ||||||
2018 | $ | 4,462 | ||||||
2019 | $ | 3,690 | ||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Banking And Thrift [Abstract] | ||||||||
Escrow, Savings and Investment Certificate Accounts | Deposit accounts are summarized as follows: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except | ||||||||
percentages) | ||||||||
Escrow accounts: | ||||||||
Interest bearing | $ | 1,962,351 | $ | 1,376,921 | ||||
Non-interest bearing | 266,281 | 176,964 | ||||||
2,228,632 | 1,553,885 | |||||||
Savings accounts (1) | — | 22,015 | ||||||
Certificate accounts (1) | — | 26,596 | ||||||
Business checking and other deposits (2) | 104,082 | 90,436 | ||||||
$ | 2,332,714 | $ | 1,692,932 | |||||
Weighted average interest rate: | ||||||||
Escrow accounts | 0.11 | % | 0.13 | % | ||||
· | During the fourth quarter of 2014, the Company completed its multi-year process of winding-down the operations of its industrial bank, First Security Business Bank, which included the sale of the bank’s loan portfolio and transfer of its customer deposits to a third party bank. The Company received proceeds from the sale of $42.3 million, net of $8.1 million related to customer deposits, and recorded a gain of $0.5 million. Customer deposits were transferred at par value. | |||||||
-2 | Business checking and other deposits primarily reflect non-interest bearing accounts. |
Reserve_for_Known_and_Incurred1
Reserve for Known and Incurred but Not Reported Claims (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Insurance Loss Reserves [Abstract] | |||||||||||||||||
Activity in Reserve for Known and Incurred but Not Reported Claims | Activity in the reserve for known and incurred but not reported claims is summarized as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 1,018,365 | $ | 976,462 | $ | 1,014,676 | |||||||||||
Provision related to: | |||||||||||||||||
Current year | 385,155 | 380,723 | 335,097 | ||||||||||||||
Prior years | 64,868 | 149,633 | 62,620 | ||||||||||||||
450,023 | 530,356 | 397,717 | |||||||||||||||
Payments, net of recoveries, related to: | |||||||||||||||||
Current year | 196,656 | 182,653 | 160,138 | ||||||||||||||
Prior years | 273,094 | 296,657 | 285,848 | ||||||||||||||
469,750 | 479,310 | 445,986 | |||||||||||||||
Other | 13,142 | (9,143 | ) | 10,055 | |||||||||||||
Balance at end of year | $ | 1,011,780 | $ | 1,018,365 | $ | 976,462 | |||||||||||
Summary of Loss Reserves | A summary of the Company’s loss reserves is as follows: | ||||||||||||||||
(in thousands, except percentages) | December 31, 2014 | December 31, 2013 | |||||||||||||||
Known title claims | $ | 165,330 | 16.3 | % | $ | 135,478 | 13.3 | % | |||||||||
Incurred but not reported claims | 802,069 | 79.3 | % | 840,104 | 82.5 | % | |||||||||||
Total title claims | 967,399 | 95.6 | % | 975,582 | 95.8 | % | |||||||||||
Non-title claims | 44,381 | 4.4 | % | 42,783 | 4.2 | % | |||||||||||
Total loss reserves | $ | 1,011,780 | 100 | % | $ | 1,018,365 | 100 | % | |||||||||
Notes_and_Contracts_Payable_Ta
Notes and Contracts Payable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Notes and Contracts Payable | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except percentages) | ||||||||
4.60% senior unsecured notes due November 15, 2024, net of unamortized discount of $74 at December 31, 2014, effective interest rate of 4.60% | $ | 299,926 | $ | — | ||||
4.30% senior unsecured notes due February 1, 2023, net of unamortized discount of $760 and $837 at December 31, 2014 and 2013, respectively, effective interest rate of 4.35% | 249,240 | 249,163 | ||||||
Trust deed notes with maturities through 2032, collateralized by land and buildings with a net book value of $52,414 and $55,206 at December 31, 2014 and 2013, respectively, weighted-average interest rate of 5.39% and 5.42%, at December 31, 2014 and 2013, respectively | 34,420 | 38,151 | ||||||
Other notes and contracts payable with maturities through 2020, weighted-average interest rate of 5.30% and 2.96% at December 31, 2014 and 2013, respectively | 3,751 | 22,971 | ||||||
$ | 587,337 | $ | 310,285 | |||||
Aggregate Annual Maturities of Notes and Contracts Payable | The aggregate annual maturities for notes and contracts payable in each of the five years after December 31, 2014, are as follows: | |||||||
Year | Annual maturities | |||||||
(in thousands) | ||||||||
2015 | $ | 4,899 | ||||||
2016 | 4,458 | |||||||
2017 | 5,009 | |||||||
2018 | 3,861 | |||||||
2019 | 3,593 | |||||||
Thereafter | 565,517 | |||||||
$ | 587,337 | |||||||
Net_Investment_Income_Tables
Net Investment Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investment Income Net [Abstract] | ||||||||||||
Schedule of Net Investment Income | The components of net investment income are as follows: | |||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest: | ||||||||||||
Cash equivalents and deposits with banks | $ | 4,471 | $ | 3,694 | $ | 4,407 | ||||||
Debt securities | 56,373 | 47,226 | 45,112 | |||||||||
Other long-term investments | 1,213 | 2,009 | 1,013 | |||||||||
Loans receivable | 3,755 | 5,474 | 8,132 | |||||||||
Dividends on equity securities | 11,961 | 11,776 | 5,388 | |||||||||
Equity in earnings of affiliates, net | (16,545 | ) | 5,316 | 6,514 | ||||||||
Other | 10,488 | 14,400 | 10,465 | |||||||||
Total investment income | 71,716 | 89,895 | 81,031 | |||||||||
Investment expenses (1) | (675 | ) | — | — | ||||||||
Net investment income | $ | 71,041 | $ | 89,895 | $ | 81,031 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Summary of Tax Expenses | Income taxes are summarized as follows: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | 87,189 | $ | 86,406 | $ | 82,269 | |||||||||||||||||||
State | 4,751 | 7,887 | 15,229 | ||||||||||||||||||||||
Foreign | 812 | 24,331 | 8,234 | ||||||||||||||||||||||
92,752 | 118,624 | 105,732 | |||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | 15,594 | 8,937 | 60,242 | ||||||||||||||||||||||
State | (304 | ) | 9,774 | 111 | |||||||||||||||||||||
Foreign | 8,303 | (13,691 | ) | (407 | ) | ||||||||||||||||||||
23,593 | 5,020 | 59,946 | |||||||||||||||||||||||
$ | 116,345 | $ | 123,644 | $ | 165,678 | ||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | Income taxes differ from the amounts computed by applying the federal income tax rate of 35.0%. A reconciliation of this difference is as follows: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||
Taxes calculated at federal rate | $ | 122,696 | 35 | % | $ | 108,748 | 35 | % | $ | 163,592 | 35 | % | |||||||||||||
State taxes, net of federal benefit | 2,891 | 0.8 | 11,480 | 3.7 | 9,525 | 2 | |||||||||||||||||||
Change in liability for tax positions | 412 | 0.1 | 3,537 | 1.1 | 2,033 | 0.4 | |||||||||||||||||||
Change in capital loss valuation allowance | — | — | — | — | (5,276 | ) | (1.1 | ) | |||||||||||||||||
Foreign income taxed at different rates | (6,091 | ) | (1.7 | ) | 8,567 | 2.8 | 2,881 | 0.6 | |||||||||||||||||
Foreign tax credits | (2,184 | ) | (0.6 | ) | (5,640 | ) | (1.8 | ) | (2,921 | ) | (0.6 | ) | |||||||||||||
Other items, net | (1,379 | ) | (0.4 | ) | (3,048 | ) | (1.0 | ) | (4,156 | ) | (0.9 | ) | |||||||||||||
$ | 116,345 | 33.2 | % | $ | 123,644 | 39.8 | % | $ | 165,678 | 35.4 | % | ||||||||||||||
Net Deferred Tax (Liability) Assets | The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Deferred revenue | $ | 9,887 | $ | 8,360 | |||||||||||||||||||||
Employee benefits | 74,068 | 73,302 | |||||||||||||||||||||||
Bad debt reserves | 15,253 | 17,588 | |||||||||||||||||||||||
Investments in affiliates | 13,670 | 8,026 | |||||||||||||||||||||||
Loss reserves | 2,507 | 1,728 | |||||||||||||||||||||||
Pension | 120,401 | 86,858 | |||||||||||||||||||||||
Net operating loss carryforward | 23,727 | 27,762 | |||||||||||||||||||||||
Securities | — | 1,880 | |||||||||||||||||||||||
Foreign tax credit | 2,184 | — | |||||||||||||||||||||||
Other | 8,712 | 6,782 | |||||||||||||||||||||||
270,409 | 232,286 | ||||||||||||||||||||||||
Valuation allowance | (15,706 | ) | (18,119 | ) | |||||||||||||||||||||
254,703 | 214,167 | ||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Depreciable and amortizable assets | 284,532 | 258,855 | |||||||||||||||||||||||
Claims and related salvage | 36,653 | 21,196 | |||||||||||||||||||||||
Securities | 8,934 | — | |||||||||||||||||||||||
330,119 | 280,051 | ||||||||||||||||||||||||
Net deferred tax liability | $ | 75,416 | $ | 65,884 | |||||||||||||||||||||
Changes in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Unrecognized tax benefits—opening balance | $ | 47,800 | $ | 47,900 | $ | 17,300 | |||||||||||||||||||
Gross (decreases) increases—tax positions in prior period | (24,100 | ) | (600 | ) | 200 | ||||||||||||||||||||
Gross increases—current period tax positions | 400 | 500 | 30,500 | ||||||||||||||||||||||
Expiration of the statute of limitations for the assessment of taxes | — | — | (100 | ) | |||||||||||||||||||||
Unrecognized tax benefits—ending balance | $ | 24,100 | $ | 47,800 | $ | 47,900 | |||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Numerator | ||||||||||||
Net income attributable to the Company | $ | 233,534 | $ | 186,367 | $ | 301,041 | ||||||
Less: dividends and undistributed earnings allocated to unvested RSUs | 514 | 324 | 682 | |||||||||
Net income allocated to common stockholders | $ | 233,020 | $ | 186,043 | $ | 300,359 | ||||||
Denominator | ||||||||||||
Basic weighted-average shares | 106,884 | 106,991 | 106,307 | |||||||||
Effect of dilutive employee stock options and RSUs | 1,804 | 2,111 | 2,235 | |||||||||
Diluted weighted-average shares | 108,688 | 109,102 | 108,542 | |||||||||
Net income per share attributable to the Company’s stockholders | ||||||||||||
Basic | $ | 2.18 | $ | 1.74 | $ | 2.83 | ||||||
Diluted | $ | 2.15 | $ | 1.71 | $ | 2.77 | ||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ||||||||||||||||
Principal Components of Employee Benefit Plan Expenses | The following table provides the principal components of the Company’s employee benefit plan expenses: | |||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Savings plan | $ | 16,333 | $ | 10,458 | $ | 27,778 | ||||||||||
Defined benefit pension plans | 13,465 | 20,975 | 22,657 | |||||||||||||
Unfunded supplemental benefit plans | 14,614 | 16,673 | 16,553 | |||||||||||||
Other plans, net | 9,259 | 15,479 | 10,166 | |||||||||||||
$ | 53,671 | $ | 63,585 | $ | 77,154 | |||||||||||
Company's Benefit Obligations, Assets and Funded Status | The following table summarizes the Company’s benefit obligations, assets and funded status associated with its defined benefit pension and supplemental benefit plans: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Defined | Unfunded | Defined | Unfunded | |||||||||||||
benefit | supplemental | benefit | supplemental | |||||||||||||
pension | benefit plans | pension | benefit plans | |||||||||||||
plans | plans | |||||||||||||||
(in thousands) | ||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 382,035 | $ | 226,458 | $ | 424,462 | $ | 250,226 | ||||||||
Service costs | — | 1,315 | — | 1,915 | ||||||||||||
Interest costs | 18,644 | 10,536 | 17,340 | 9,521 | ||||||||||||
Plan amendment | — | — | — | 2,088 | ||||||||||||
Actuarial losses (gains) | 76,164 | 37,281 | (38,766 | ) | (24,233 | ) | ||||||||||
Benefits paid | (26,176 | ) | (13,453 | ) | (21,001 | ) | (13,059 | ) | ||||||||
Projected benefit obligation at end of year | 450,667 | 262,137 | 382,035 | 226,458 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | 313,469 | — | 294,216 | — | ||||||||||||
Actual return on plan assets | 24,400 | — | 10,971 | — | ||||||||||||
Contributions | 27,672 | 13,453 | 29,283 | 13,059 | ||||||||||||
Benefits paid | (26,176 | ) | (13,453 | ) | (21,001 | ) | (13,059 | ) | ||||||||
Fair value of plan assets at end of year | 339,365 | — | 313,469 | — | ||||||||||||
Reconciliation of funded status: | ||||||||||||||||
Unfunded status of the plans | $ | (111,302 | ) | $ | (262,137 | ) | $ | (68,566 | ) | $ | (226,458 | ) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||||||||||||
Accrued benefit liability | $ | (111,302 | ) | $ | (262,137 | ) | $ | (68,566 | ) | $ | (226,458 | ) | ||||
Amounts recognized in accumulated other comprehensive loss: | ||||||||||||||||
Unrecognized net actuarial loss | $ | 219,081 | $ | 120,642 | $ | 162,084 | $ | 90,303 | ||||||||
Unrecognized prior service cost (credit) | 15 | (24,964 | ) | 40 | (29,142 | ) | ||||||||||
$ | 219,096 | $ | 95,678 | $ | 162,124 | $ | 61,161 | |||||||||
Accumulated benefit obligation at end of year | $ | 450,667 | $ | 262,137 | $ | 382,035 | $ | 226,458 | ||||||||
Net Periodic Cost | Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans includes the following components: | |||||||||||||||
Year ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Service costs | $ | 1,315 | $ | 1,915 | $ | 1,712 | ||||||||||
Interest costs | 29,180 | 26,861 | 29,068 | |||||||||||||
Expected return on plan assets | (20,850 | ) | (18,776 | ) | (15,553 | ) | ||||||||||
Amortization of net actuarial loss | 22,587 | 32,033 | 28,368 | |||||||||||||
Amortization of prior service credit | (4,153 | ) | (4,385 | ) | (4,385 | ) | ||||||||||
$ | 28,079 | $ | 37,648 | $ | 39,210 | |||||||||||
Weighted-Average Actuarial Assumptions Used to Determine Costs | Weighted-average actuarial assumptions used to determine costs for the plans were as follows: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.97 | % | 4.18 | % | ||||||||||||
Rate of return on plan assets | 6.5 | % | 6.5 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 4.8 | % | 3.91 | % | ||||||||||||
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations | Weighted-average actuarial assumptions used to determine benefit obligations for the plans were as follows: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.07 | % | 4.97 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 4 | % | 4.8 | % | ||||||||||||
Target Asset Allocation Based On Funded Status | Asset allocation targets based on settlement funded status for the defined benefit pension plans are as follows: | |||||||||||||||
Settlement funded status | Return seeking assets | Liability tracking assets | ||||||||||||||
100 | % | 0 | % | 100 | % | |||||||||||
97.5 | % | 15 | % | 85 | % | |||||||||||
95 | % | 30 | % | 70 | % | |||||||||||
92.5 | % | 40 | % | 60 | % | |||||||||||
90 | % | 50 | % | 50 | % | |||||||||||
87.5 | % | 60 | % | 40 | % | |||||||||||
85 | % | 70 | % | 30 | % | |||||||||||
Below 85.0% | 85 | % | 15 | % | ||||||||||||
Defined Benefit Pension Plan Asset Allocation | A summary of the defined benefit pension plan’s asset allocations as of December 31, 2014 and 2013 are as follows: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Asset category | ||||||||||||||||
Cash and cash equivalents | 0.3 | % | 0.7 | % | ||||||||||||
Equities | 45.5 | % | 48.3 | % | ||||||||||||
Fixed income funds | 32.5 | % | 29.7 | % | ||||||||||||
Balanced funds | 19.4 | % | 18.9 | % | ||||||||||||
Other | 2.3 | % | 2.4 | % | ||||||||||||
Benefit Payments | Benefit payments for all plans, which reflect expected future service, as appropriate, are expected to be made as follows: | |||||||||||||||
Year | (in thousands) | |||||||||||||||
2015 | $ | 36,141 | ||||||||||||||
2016 | $ | 36,100 | ||||||||||||||
2017 | $ | 38,607 | ||||||||||||||
2018 | $ | 40,498 | ||||||||||||||
2019 | $ | 42,110 | ||||||||||||||
Five years thereafter | $ | 220,002 | ||||||||||||||
Defined Benefit Pension Plan Assets at Fair Value | The following table presents the fair value of the Company’s defined benefit pension plan assets as of December 31, 2014 and 2013: | |||||||||||||||
December 31, 2014 | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||
fair value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 1,101 | $ | 1,101 | $ | — | $ | — | ||||||||
Equities (a) | 154,279 | 101,304 | 52,975 | — | ||||||||||||
Fixed income funds (b) | 110,405 | 59,507 | 50,898 | — | ||||||||||||
Balanced funds (c) | 65,856 | — | 65,856 | — | ||||||||||||
Other (d) | 7,724 | — | — | 7,724 | ||||||||||||
$ | 339,365 | $ | 161,912 | $ | 169,729 | $ | 7,724 | |||||||||
December 31, 2013 | Estimated | Level 1 | Level 2 | Level 3 | ||||||||||||
fair value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 2,080 | $ | 2,080 | $ | — | $ | — | ||||||||
Equities (a) | 151,604 | 95,860 | 55,744 | — | ||||||||||||
Fixed income funds (b) | 93,210 | 49,281 | 43,929 | — | ||||||||||||
Balanced funds (c) | 59,147 | — | 59,147 | — | ||||||||||||
Other (d) | 7,428 | — | — | 7,428 | ||||||||||||
$ | 313,469 | $ | 147,221 | $ | 158,820 | $ | 7,428 | |||||||||
(a) Investments in passively managed index funds, actively managed mutual funds with holdings in domestic and international equities, and investments in domestic equities. These investments are valued at the closing price reported on the major market on which the individual securities are traded or the Net Asset Value (“NAV”) provided by the administrator of the fund. | ||||||||||||||||
(b) Investments in passively managed index funds and actively managed mutual funds with holdings in domestic and international corporate bonds, sovereign bonds, mortgage-backed securities, and other fixed income instruments. These investments are valued using matrix pricing models and quoted prices of the securities in active markets. | ||||||||||||||||
(c) Investments in global multi-asset risk parity strategy funds with holdings in domestic and international debt and equity securities, commodities, real estate, and derivative investments. These investments are valued using the NAV provided by the administrator of the fund. | ||||||||||||||||
(d) Investments in a guaranteed deposit fund with holdings in insurance contracts. These investments are valued at contract value of the fund including contributions and earnings, less applicable costs and liabilities, as provided by the administrator of the fund. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value of Assets Measured on Recurring Basis | The following table presents the fair value of the Company’s assets measured on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
U.S. Treasury bonds | $ | 64,982 | $ | — | $ | 64,982 | $ | — | |||||||||||||
Municipal bonds | 587,677 | — | 587,677 | — | |||||||||||||||||
Foreign bonds | 196,750 | — | 196,750 | — | |||||||||||||||||
Governmental agency bonds | 197,874 | — | 197,874 | — | |||||||||||||||||
Governmental agency mortgage- backed securities | 1,812,162 | — | 1,812,162 | — | |||||||||||||||||
Non-agency mortgage-backed securities | 16,538 | — | — | 16,538 | |||||||||||||||||
Corporate debt securities | 574,269 | — | 574,269 | — | |||||||||||||||||
3,450,252 | — | 3,433,714 | 16,538 | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||
Preferred stocks | 15,525 | 15,525 | — | — | |||||||||||||||||
Common stocks | 386,887 | 386,887 | — | — | |||||||||||||||||
402,412 | 402,412 | — | — | ||||||||||||||||||
Total assets | $ | 3,852,664 | $ | 402,412 | $ | 3,433,714 | $ | 16,538 | |||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Debt securities: | |||||||||||||||||||||
U.S. Treasury bonds | $ | 66,384 | $ | — | $ | 66,384 | $ | — | |||||||||||||
Municipal bonds | 485,965 | — | 485,965 | — | |||||||||||||||||
Foreign bonds | 222,508 | — | 222,508 | — | |||||||||||||||||
Governmental agency bonds | 262,545 | — | 262,545 | — | |||||||||||||||||
Governmental agency mortgage- backed securities | 1,403,309 | — | 1,403,309 | — | |||||||||||||||||
Non-agency mortgage-backed securities | 19,022 | — | — | 19,022 | |||||||||||||||||
Corporate debt securities | 360,084 | — | 360,084 | — | |||||||||||||||||
2,819,817 | — | 2,800,795 | 19,022 | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||
Preferred stocks | 11,085 | 11,085 | — | — | |||||||||||||||||
Common stocks | 346,958 | 346,958 | — | — | |||||||||||||||||
358,043 | 358,043 | — | — | ||||||||||||||||||
Total assets | $ | 3,177,860 | $ | 358,043 | $ | 2,800,795 | $ | 19,022 | |||||||||||||
Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis | The following table presents a summary of the changes in fair value of Level 3 assets measured on a recurring basis for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||
Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Non-agency mortgage-backed securities: | |||||||||||||||||||||
Fair value at beginning of year | $ | 19,022 | $ | 21,846 | |||||||||||||||||
Total gains/(losses) (realized and unrealized): | |||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | (1,701 | ) | — | ||||||||||||||||||
Included in other comprehensive income | 1,225 | 4,174 | |||||||||||||||||||
Settlements | (2,008 | ) | (6,998 | ) | |||||||||||||||||
Fair value as of December 31 | $ | 16,538 | $ | 19,022 | |||||||||||||||||
Unrealized gains (losses) included in earnings for the period relating to Level 3 available-for-sale investments that were still held at the end of the period: | |||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | $ | (1,701 | ) | $ | — | ||||||||||||||||
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of December 31, 2014 and 2013: | ||||||||||||||||||||
Carrying | Estimated fair value | ||||||||||||||||||||
(in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,190,080 | $ | 1,190,080 | $ | 1,190,080 | $ | — | $ | — | |||||||||||
Deposits with banks | $ | 21,445 | $ | 21,540 | $ | 4,068 | $ | 17,472 | $ | — | |||||||||||
Notes receivable, net | $ | 6,130 | $ | 3,930 | $ | — | $ | — | $ | 3,930 | |||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | $ | 2,332,714 | $ | 2,332,714 | $ | 2,332,714 | $ | — | $ | — | |||||||||||
Notes and contracts payable | $ | 587,337 | $ | 595,087 | $ | — | $ | 588,542 | $ | 6,545 | |||||||||||
Carrying | Estimated fair value | ||||||||||||||||||||
(in thousands) | Amount | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 834,837 | $ | 834,837 | $ | 834,837 | $ | — | $ | — | |||||||||||
Deposits with banks | $ | 23,492 | $ | 23,601 | $ | 2,070 | $ | 21,531 | $ | — | |||||||||||
Notes receivable, net | $ | 10,542 | $ | 9,953 | $ | — | $ | — | $ | 9,953 | |||||||||||
Liabilities: | |||||||||||||||||||||
Deposits | $ | 1,692,932 | $ | 1,693,138 | $ | 1,666,336 | $ | 26,802 | $ | — | |||||||||||
Notes and contracts payable | $ | 310,285 | $ | 301,007 | $ | — | $ | 294,221 | $ | 6,786 | |||||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Share-Based Compensation Expense | The following table presents compensation expense associated with the Company’s share-based compensation plans: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Expense: | |||||||||||||||||
Restricted stock units | $ | 17,197 | $ | 20,827 | $ | 13,953 | |||||||||||
Stock options | 271 | 8 | — | ||||||||||||||
Employee stock purchase plan | 1,834 | 1,466 | 886 | ||||||||||||||
$ | 19,302 | $ | 22,301 | $ | 14,839 | ||||||||||||
Summary of RSU Activity | The following table summarizes RSU activity for the year ended December 31, 2014: | ||||||||||||||||
(in thousands, except weighted-average grant-date fair value) | Shares | Weighted-average | |||||||||||||||
grant-date | |||||||||||||||||
fair value | |||||||||||||||||
RSUs unvested at December 31, 2013 | 2,720 | $ | 17.6 | ||||||||||||||
Granted during 2014 | 740 | $ | 26.76 | ||||||||||||||
Vested during 2014 | (1,099 | ) | $ | 16.08 | |||||||||||||
Forfeited during 2014 | (24 | ) | $ | 18.45 | |||||||||||||
RSUs unvested at December 31, 2014 | 2,337 | $ | 21.21 | ||||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2014: | ||||||||||||||||
(in thousands, except weighted-average | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
exercise price and contractual term) | outstanding | average | average | intrinsic | |||||||||||||
exercise price | remaining | value | |||||||||||||||
contractual term | |||||||||||||||||
Balance at December 31, 2013 | 1,270 | $ | 18.03 | ||||||||||||||
Exercised during 2014 | (584 | ) | $ | 15.51 | |||||||||||||
Balance at December 31, 2014 | 686 | $ | 20.18 | 2.2 years | $ | 9,405 | |||||||||||
Vested and expected to vest at December 31, 2014 | 686 | $ | 20.18 | 2.2 years | $ | 9,405 | |||||||||||
Exercisable at December 31, 2014 | 586 | $ | 18.92 | 1.1 years | $ | 8,786 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Future Minimum Rental Payments | Future minimum rental payments under operating leases that have initial noncancelable lease terms in excess of one year as of December 31, 2014 are as follows: | ||||
(in thousands) | |||||
Year | |||||
2015 | $ | 79,243 | |||
2016 | 71,155 | ||||
2017 | 53,431 | ||||
2018 | 36,296 | ||||
2019 | 23,563 | ||||
Thereafter | 60,273 | ||||
$ | 323,961 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | ||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | Changes in the balances of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||
Unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2011 | $ | (13,409 | ) | $ | 4,793 | $ | (168,837 | ) | $ | (177,453 | ) | |||||
Change in unrealized gains (losses) on securities | 52,409 | — | — | 52,409 | ||||||||||||
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 6,502 | — | — | 6,502 | ||||||||||||
Change in foreign currency translation adjustments | — | 5,131 | — | 5,131 | ||||||||||||
Net actuarial loss | — | — | (46,602 | ) | (46,602 | ) | ||||||||||
Amortization of net actuarial loss | — | — | 28,368 | 28,368 | ||||||||||||
Amortization of prior service cost | — | — | (4,385 | ) | (4,385 | ) | ||||||||||
Tax effect | (23,564 | ) | — | 9,048 | (14,516 | ) | ||||||||||
Balance at December 31, 2012 | 21,938 | 9,924 | (182,408 | ) | (150,546 | ) | ||||||||||
Change in unrealized gains (losses) on securities | (54,000 | ) | — | — | (54,000 | ) | ||||||||||
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 3,809 | — | — | 3,809 | ||||||||||||
Change in foreign currency translation adjustments | — | (13,650 | ) | — | (13,650 | ) | ||||||||||
Net actuarial gain | — | — | 53,080 | 53,080 | ||||||||||||
Amortization of net actuarial loss | — | — | 32,033 | 32,033 | ||||||||||||
Amortization of prior service cost | — | — | (4,385 | ) | (4,385 | ) | ||||||||||
Tax effect | 19,526 | — | (31,404 | ) | (11,878 | ) | ||||||||||
Balance at December 31, 2013 | (8,727 | ) | (3,726 | ) | (133,084 | ) | (145,537 | ) | ||||||||
Change in unrealized gains (losses) on securities | 29,889 | — | — | 29,889 | ||||||||||||
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 1,229 | — | — | 1,229 | ||||||||||||
Change in foreign currency translation adjustments | — | (16,694 | ) | — | (16,694 | ) | ||||||||||
Net actuarial loss | — | — | (109,924 | ) | (109,924 | ) | ||||||||||
Amortization of net actuarial loss | — | — | 22,587 | 22,587 | ||||||||||||
Amortization of prior service cost | — | — | (4,153 | ) | (4,153 | ) | ||||||||||
Tax effect | (11,480 | ) | — | 34,994 | 23,514 | |||||||||||
Balance at December 31, 2014 | $ | 10,911 | $ | (20,420 | ) | $ | (189,580 | ) | $ | (199,089 | ) | |||||
Accumulated Other Comprehensive Income (Loss) Allocated to Company and Noncontrolling Interests | Components of accumulated other comprehensive income (loss) allocated to the Company and noncontrolling interests are as follows: | |||||||||||||||
Unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
2014 | ||||||||||||||||
Allocated to the Company | $ | 10,894 | $ | (20,420 | ) | $ | (189,580 | ) | $ | (199,106 | ) | |||||
Allocated to noncontrolling interests | 17 | — | — | 17 | ||||||||||||
Balance at December 31, 2014 | $ | 10,911 | $ | (20,420 | ) | $ | (189,580 | ) | $ | (199,089 | ) | |||||
2013 | ||||||||||||||||
Allocated to the Company | $ | (8,734 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,544 | ) | ||||
Allocated to noncontrolling interests | 7 | — | — | 7 | ||||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||
2012 | ||||||||||||||||
Allocated to the Company | $ | 21,928 | $ | 9,924 | $ | (182,408 | ) | $ | (150,556 | ) | ||||||
Allocated to noncontrolling interests | 10 | — | — | 10 | ||||||||||||
Balance at December 31, 2012 | $ | 21,938 | $ | 9,924 | $ | (182,408 | ) | $ | (150,546 | ) | ||||||
Adjustments for Reclassification of Accumulated Other Comprehensive Income (Loss) | The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||
Unrealized | Foreign | Pension | Total | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Pretax change before reclassifications | $ | 52,693 | $ | (16,694 | ) | $ | (109,924 | ) | $ | (73,925 | ) | |||||
Reclassifications out of AOCI | (21,575 | ) | — | 18,434 | (3,141 | ) | ||||||||||
Tax effect | (11,480 | ) | — | 34,994 | 23,514 | |||||||||||
Total other comprehensive income (loss), net of tax | $ | 19,638 | (16,694 | ) | $ | (56,496 | ) | $ | (53,552 | ) | ||||||
Year ended December 31, 2013 | ||||||||||||||||
Pretax change before reclassifications | $ | (40,396 | ) | $ | (13,650 | ) | $ | 53,080 | $ | (966 | ) | |||||
Reclassifications out of AOCI | (9,795 | ) | — | 27,648 | 17,853 | |||||||||||
Tax effect | 19,526 | — | (31,404 | ) | (11,878 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | $ | (30,665 | ) | $ | (13,650 | ) | $ | 49,324 | $ | 5,009 | ||||||
Year ended December 31, 2012 | ||||||||||||||||
Pretax change before reclassifications | $ | 128,745 | $ | 5,131 | $ | (46,602 | ) | $ | 87,274 | |||||||
Reclassifications out of AOCI | (69,834 | ) | — | 23,983 | (45,851 | ) | ||||||||||
Tax effect | (23,564 | ) | — | 9,048 | (14,516 | ) | ||||||||||
Total other comprehensive income (loss), net of tax | $ | 35,347 | $ | 5,131 | $ | (13,571 | ) | $ | 26,907 | |||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
The following table presents the effect of the reclassifications out of accumulated other comprehensive income (loss) on the respective line items in the consolidated statements of income: | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||
Year ended December 31, | Affected line items in the | |||||||||||||||
(in thousands) | 2014 | 2013 | consolidated statements of income | |||||||||||||
Unrealized gains (losses) on securities: | ||||||||||||||||
Net realized gains (losses) on sales of securities | $ | 23,276 | $ | 9,795 | Net realized investment gains | |||||||||||
Net other-than-temporary impairment losses | (1,701 | ) | — | Net other-than-temporary impairment losses | ||||||||||||
Pretax total | $ | 21,575 | $ | 9,795 | ||||||||||||
Tax effect | $ | (7,959 | ) | $ | (3,811 | ) | ||||||||||
Pension benefit adjustment: | ||||||||||||||||
Amortization of defined benefit pension and supplemental benefit plan items: | ||||||||||||||||
Net actuarial loss | $ | (22,587 | ) | $ | (32,033 | ) | -1 | |||||||||
Prior service credit | 4,153 | 4,385 | -1 | |||||||||||||
Pretax total | $ | (18,434 | ) | $ | (27,648 | ) | ||||||||||
Tax effect | $ | 7,051 | $ | 10,757 | ||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Segment_Financial_Information_
Segment Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Schedule of Selected Financial Information | Selected financial information about the Company’s operations, by segment, for each of the past three years is as follows: | |||||||||||||||||||||||||||
Revenues | Depreciation | Equity in | Income (loss) | Assets | Investments | Capital | ||||||||||||||||||||||
and | earnings of | before | in equity | expenditures | ||||||||||||||||||||||||
amortization | affiliates, net | income taxes | method | |||||||||||||||||||||||||
affiliates | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,304,428 | $ | 77,820 | $ | (16,545 | ) | $ | 373,024 | $ | 6,767,245 | $ | 106,083 | $ | 95,949 | |||||||||||||
Specialty Insurance | 368,666 | 4,978 | — | 52,974 | 506,242 | — | 3,412 | |||||||||||||||||||||
Corporate | 6,415 | 2,799 | — | (75,438 | ) | 464,980 | — | — | ||||||||||||||||||||
Eliminations | (1,560 | ) | — | — | — | (72,367 | ) | — | — | |||||||||||||||||||
$ | 4,677,949 | $ | 85,597 | $ | (16,545 | ) | $ | 350,560 | $ | 7,666,100 | $ | 106,083 | $ | 99,361 | ||||||||||||||
2013 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,606,088 | $ | 66,956 | $ | 7,387 | $ | 350,165 | $ | 5,751,632 | $ | 124,921 | $ | 83,469 | ||||||||||||||
Specialty Insurance | 339,613 | 4,865 | — | 42,132 | 499,788 | — | 3,673 | |||||||||||||||||||||
Corporate | 13,008 | 3,095 | (2,071 | ) | (81,589 | ) | 369,385 | 101 | — | |||||||||||||||||||
Eliminations | (2,632 | ) | — | — | — | (61,622 | ) | — | — | |||||||||||||||||||
$ | 4,956,077 | $ | 74,916 | $ | 5,316 | $ | 310,708 | $ | 6,559,183 | $ | 125,022 | $ | 87,142 | |||||||||||||||
2012 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,200,520 | $ | 67,610 | $ | 7,677 | $ | 473,681 | $ | 5,427,432 | $ | 127,217 | $ | 78,614 | ||||||||||||||
Specialty Insurance | 315,171 | 4,553 | — | 47,459 | 487,780 | — | 5,278 | |||||||||||||||||||||
Corporate | 29,892 | 2,787 | (1,163 | ) | (53,349 | ) | 299,707 | 2,753 | — | |||||||||||||||||||
Eliminations | (3,762 | ) | — | — | (385 | ) | (137,293 | ) | — | — | ||||||||||||||||||
$ | 4,541,821 | $ | 74,950 | $ | 6,514 | $ | 467,406 | $ | 6,077,626 | $ | 129,970 | $ | 83,892 | |||||||||||||||
Schedule Of Revenues From External Customers And Long-Lived Assets | Revenues from external customers allocated between domestic and foreign operations, and by segment, for each of the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,977,498 | $ | 325,393 | $ | 4,283,067 | $ | 320,413 | $ | 3,865,480 | $ | 332,577 | ||||||||||||||||
Specialty Insurance | 368,666 | — | 339,613 | — | 313,889 | — | ||||||||||||||||||||||
$ | 4,346,164 | $ | 325,393 | $ | 4,622,680 | $ | 320,413 | $ | 4,179,369 | $ | 332,577 | |||||||||||||||||
Long-lived assets allocated between domestic and foreign operations, and by segment, as of December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 1,792,387 | $ | 122,045 | $ | 1,610,310 | $ | 135,912 | $ | 1,580,399 | $ | 151,289 | ||||||||||||||||
Specialty Insurance | 105,062 | — | 105,724 | — | 104,698 | — | ||||||||||||||||||||||
$ | 1,897,449 | $ | 122,045 | $ | 1,716,034 | $ | 135,912 | $ | 1,685,097 | $ | 151,289 | |||||||||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data | Quarter Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014 | |||||||||||||||||
Revenues | $ | 1,012,799 | $ | 1,149,969 | $ | 1,259,730 | $ | 1,255,451 | |||||||||
Income before income taxes | $ | 35,253 | $ | 76,458 | $ | 115,952 | $ | 122,897 | |||||||||
Net income | $ | 21,852 | $ | 50,688 | $ | 80,937 | $ | 80,738 | |||||||||
Net income attributable to noncontrolling interests | $ | 128 | $ | 94 | $ | 232 | $ | 227 | |||||||||
Net income attributable to the Company | $ | 21,724 | $ | 50,594 | $ | 80,705 | $ | 80,511 | |||||||||
Net income per share attributable to the Company’s stockholders (1): | |||||||||||||||||
Basic | $ | 0.2 | $ | 0.47 | $ | 0.75 | $ | 0.75 | |||||||||
Diluted | $ | 0.2 | $ | 0.47 | $ | 0.74 | $ | 0.74 | |||||||||
· | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. | ||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 (1) | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 1,146,763 | $ | 1,288,464 | $ | 1,300,978 | $ | 1,219,872 | |||||||||
Income before income taxes | $ | 59,592 | $ | 59,224 | $ | 107,045 | $ | 84,847 | |||||||||
Net income | $ | 36,232 | $ | 34,948 | $ | 64,095 | $ | 51,789 | |||||||||
Net income attributable to noncontrolling interests | $ | 54 | $ | 276 | $ | 205 | $ | 162 | |||||||||
Net income attributable to the Company | $ | 36,178 | $ | 34,672 | $ | 63,890 | $ | 51,627 | |||||||||
Net income per share attributable to the Company’s stockholders (2): | |||||||||||||||||
Basic | $ | 0.34 | $ | 0.32 | $ | 0.6 | $ | 0.49 | |||||||||
Diluted | $ | 0.33 | $ | 0.31 | $ | 0.59 | $ | 0.48 | |||||||||
· | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | ||||||||||||||||
· | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Description_of_the_Company_Nar
Description of the Company (Narrative) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 23, 2015 | |
State | ||||
Segment Reporting Information [Line Items] | ||||
Number of states company issues title insurance policies | 49 | |||
Number of states company licensed to issue property and casualty insurance policies | 50 | |||
Number of states company issues property and casualty policies | 46 | |||
Number of states company issues home warranty contracts | 39 | |||
Income taxes receivable | $5,547,000 | $37,632,000 | ||
Deferred income tax assets | 254,703,000 | 214,167,000 | ||
Deferred income tax liability | 330,119,000 | 280,051,000 | ||
Other operating expenses | 833,681,000 | 885,805,000 | 836,319,000 | |
Fair value of investments in debt securities for funding of statutory premium reserves and state deposits | 120,700,000 | 124,000,000 | ||
Net other-than-temporary impairment losses | 1,701,000 | 3,564,000 | ||
Impairment losses on equity method investments in affiliates | 22,500,000 | 7,800,000 | 7,100,000 | |
Title plants | 514,600,000 | 523,100,000 | ||
Capitalized real estate data | 16,000,000 | 800,000 | ||
Assessment to determine fair value | 50.00% | |||
Goodwill impairment losses | 0 | 0 | 0 | |
Change in basis points to one or more loss rate | 0.50% | |||
Increase (decrease) in IBNR reserve if the expected ultimate losses for each of the last six policy years increase or decrease by 50 basis points | 98,700,000 | |||
Total premiums assumed and ceded in connection with reinsurance percentage less than premium and escrow fees | 1.00% | 1.00% | 1.00% | |
Reinsurance receivable | 25,000,000 | 0 | ||
Reinsurance receivable during the remainder of 2015 | 1,800,000 | |||
Escrow deposits | 6,300,000,000 | 4,700,000,000 | ||
Like-kind exchange funds | 2,400,000,000 | 1,400,000,000 | ||
First American Trust | ||||
Segment Reporting Information [Line Items] | ||||
Escrow deposits | 2,200,000,000 | 1,600,000,000 | ||
Assets held-in-trust | 3,000,000,000 | 3,000,000,000 | ||
Subsequent Event | ||||
Segment Reporting Information [Line Items] | ||||
Proceeds from reinsurance receivable | 23,200,000 | |||
Incentive Compensation Plan | ||||
Segment Reporting Information [Line Items] | ||||
Employee stock purchase plan percentage of purchase price on closing price | 85.00% | |||
Employee stock purchase plan percentage of discount purchase price on closing price | 15.00% | |||
Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Capitalized real estate estimated useful lives, years | 3 years | |||
Other intangible assets estimated useful lives, years | 1 year | |||
Percentage of claim amounts known in the first few years of the policy life | 70.00% | |||
Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Capitalized real estate estimated useful lives, years | 15 years | |||
Other intangible assets estimated useful lives, years | 20 years | |||
Percentage of claim amounts known in the first few years of the policy life | 80.00% | |||
Buildings | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, estimated useful lives, years | 5 years | |||
Buildings | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, estimated useful lives, years | 40 years | |||
Furniture and Equipment | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, estimated useful lives, years | 1 year | |||
Furniture and Equipment | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, estimated useful lives, years | 15 years | |||
Capitalized Software Costs | Minimum | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, estimated useful lives, years | 1 year | |||
Capitalized Software Costs | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, estimated useful lives, years | 15 years | |||
Equity securities | ||||
Segment Reporting Information [Line Items] | ||||
Net other-than-temporary impairment losses | 0 | 0 | 0 | |
Compensating Errors | Restatement Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Income taxes receivable | 11,100,000 | |||
Deferred income tax assets | 27,500,000 | |||
Deferred income tax liability | 38,600,000 | |||
Other operating expenses | $5,000,000 |
Description_of_the_Company_Sum
Description of the Company (Summary of Primary Assumptions used in Estimating Cash Flows Expected to be Collected for Securities) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Weighted Average | |
Schedule Of Expected Cash Flow Collected For Securities [Line Items] | |
Prepayment speeds, Range | 10.00% |
Default rates, Range | 2.50% |
Loss severity, Range | 18.70% |
Minimum | |
Schedule Of Expected Cash Flow Collected For Securities [Line Items] | |
Prepayment speeds, Range | 8.80% |
Default rates, Range | 1.80% |
Loss severity, Range | 3.60% |
Maximum | |
Schedule Of Expected Cash Flow Collected For Securities [Line Items] | |
Prepayment speeds, Range | 14.00% |
Default rates, Range | 3.70% |
Loss severity, Range | 28.50% |
Description_of_the_Company_Cha
Description of the Company (Change in Credit Portion of Other-Than-Temporary Impairments Recognized in Earnings on Debt Securities) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Cumulative credit loss on debt securities held at beginning of period | $16,478 | $33,656 |
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 1,701 | 3,564 |
Accumulated losses on securities that matured or were sold during the year | -20,742 | |
Cumulative credit loss on debt securities held at end of period | $18,179 | $16,478 |
Statutory_Restrictions_On_Inve1
Statutory Restrictions On Investments And Stockholders' Equity (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory Accounting Practices [Line Items] | |||
Deposit invested with state treasurers | $133 | $128.90 | |
Dividends, loans and advances available to parent from subsidiaries | 570 | ||
Statutory capital and surplus | 11.7 | 193.8 | |
FATICO | |||
Statutory Accounting Practices [Line Items] | |||
Statutory surplus maintained by insurance subsidiary | 971.3 | 996 | |
Statutory net income | 393.1 | 199.1 | 301.9 |
Permitted accounting practice | $8.20 |
Debt_and_Equity_Securities_Amo
Debt and Equity Securities (Amortized Cost and Estimated Fair Value of Investments in Debt Securities, Classified as Available-For-Sale) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $3,432,466 | $2,848,594 |
Gross unrealized, gains | 34,076 | 18,371 |
Gross unrealized, losses | -16,290 | -47,148 |
Debt securities, Estimated fair value | 3,450,252 | 2,819,817 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 64,195 | 66,400 |
Gross unrealized, gains | 968 | 669 |
Gross unrealized, losses | -181 | -685 |
Debt securities, Estimated fair value | 64,982 | 66,384 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 577,703 | 491,143 |
Gross unrealized, gains | 10,981 | 5,113 |
Gross unrealized, losses | -1,007 | -10,291 |
Debt securities, Estimated fair value | 587,677 | 485,965 |
Foreign Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 194,749 | 221,298 |
Gross unrealized, gains | 2,009 | 1,836 |
Gross unrealized, losses | -8 | -626 |
Debt securities, Estimated fair value | 196,750 | 222,508 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 198,330 | 267,713 |
Gross unrealized, gains | 1,562 | 233 |
Gross unrealized, losses | -2,018 | -5,401 |
Debt securities, Estimated fair value | 197,874 | 262,545 |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,812,766 | 1,426,489 |
Gross unrealized, gains | 8,491 | 2,074 |
Gross unrealized, losses | -9,095 | -25,254 |
Debt securities, Estimated fair value | 1,812,162 | 1,403,309 |
Non-Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 15,949 | 19,658 |
Gross unrealized, gains | 1,306 | 1,167 |
Gross unrealized, losses | -717 | -1,803 |
Debt securities, Estimated fair value | 16,538 | 19,022 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 568,774 | 355,893 |
Gross unrealized, gains | 8,759 | 7,279 |
Gross unrealized, losses | -3,264 | -3,088 |
Debt securities, Estimated fair value | $574,269 | $360,084 |
Debt_and_Equity_Securities_Cos
Debt and Equity Securities (Cost and Estimated Fair Value of Investments in Equity Securities, Classified as Available-For-Sale) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $393,914 | $334,099 |
Gross unrealized, gains | 17,276 | 26,704 |
Gross unrealized, losses | -8,778 | -2,760 |
Equity securities | 402,412 | 358,043 |
Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 14,976 | 9,915 |
Gross unrealized, gains | 596 | 1,567 |
Gross unrealized, losses | -47 | -397 |
Equity securities | 15,525 | 11,085 |
Common stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 378,938 | 324,184 |
Gross unrealized, gains | 16,680 | 25,137 |
Gross unrealized, losses | -8,731 | -2,363 |
Equity securities | $386,887 | $346,958 |
Debt_and_Equity_Securities_Net
Debt and Equity Securities (Net Unrealized Gains (Losses) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Available-for-sale Securities, Gross unrealized gains (losses) | $26,284 | ($4,833) | $45,356 |
Debt securities for which an other-than-temporary impairment has been recognized | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Available-for-sale Securities, Gross unrealized gains (losses) | 604 | -625 | -4,435 |
Debt securities-all other | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Available-for-sale Securities, Gross unrealized gains (losses) | 17,182 | -28,152 | 43,041 |
Equity securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Available-for-sale Securities, Gross unrealized gains (losses) | $8,498 | $23,944 | $6,750 |
Debt_and_Equity_Securities_Nar
Debt and Equity Securities (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments Debt And Equity Securities [Abstract] | |||
Realized gains on sales of securities | $34.10 | $17.20 | $70.10 |
Realized losses on sales of securities | $9.10 | $15.50 | $0.30 |
Debt_and_Equity_Securities_Gro
Debt and Equity Securities (Gross Unrealized Losses) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $970,289 | $1,580,179 |
Unrealized losses, Less than 12 months | -14,162 | -41,734 |
Estimated fair value, 12 months or longer | 481,237 | 177,875 |
Unrealized losses, 12 months or longer | -10,906 | -8,174 |
Estimated fair value, Total | 1,451,526 | 1,758,054 |
Unrealized losses, Total | -25,068 | -49,908 |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 761,367 | 1,495,067 |
Unrealized losses, Less than 12 months | -5,575 | -39,016 |
Estimated fair value, 12 months or longer | 478,897 | 176,829 |
Unrealized losses, 12 months or longer | -10,715 | -8,132 |
Estimated fair value, Total | 1,240,264 | 1,671,896 |
Unrealized losses, Total | -16,290 | -47,148 |
Debt Securities | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 8,122 | 37,492 |
Unrealized losses, Less than 12 months | -27 | -685 |
Estimated fair value, 12 months or longer | 15,124 | |
Unrealized losses, 12 months or longer | -154 | |
Estimated fair value, Total | 23,246 | 37,492 |
Unrealized losses, Total | -181 | -685 |
Debt Securities | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 137,755 | 230,180 |
Unrealized losses, Less than 12 months | -689 | -8,938 |
Estimated fair value, 12 months or longer | 19,625 | 27,687 |
Unrealized losses, 12 months or longer | -318 | -1,353 |
Estimated fair value, Total | 157,380 | 257,867 |
Unrealized losses, Total | -1,007 | -10,291 |
Debt Securities | Foreign Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 6,215 | 56,579 |
Unrealized losses, Less than 12 months | -8 | -626 |
Estimated fair value, Total | 6,215 | 56,579 |
Unrealized losses, Total | -8 | -626 |
Debt Securities | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 27,479 | 203,011 |
Unrealized losses, Less than 12 months | -88 | -5,375 |
Estimated fair value, 12 months or longer | 127,936 | 131 |
Unrealized losses, 12 months or longer | -1,930 | -26 |
Estimated fair value, Total | 155,415 | 203,142 |
Unrealized losses, Total | -2,018 | -5,401 |
Debt Securities | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 383,717 | 838,411 |
Unrealized losses, Less than 12 months | -1,612 | -20,970 |
Estimated fair value, 12 months or longer | 300,918 | 124,425 |
Unrealized losses, 12 months or longer | -7,483 | -4,284 |
Estimated fair value, Total | 684,635 | 962,836 |
Unrealized losses, Total | -9,095 | -25,254 |
Debt Securities | Non-Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, 12 months or longer | 5,611 | 12,086 |
Unrealized losses, 12 months or longer | -717 | -1,803 |
Estimated fair value, Total | 5,611 | 12,086 |
Unrealized losses, Total | -717 | -1,803 |
Debt Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 198,079 | 129,394 |
Unrealized losses, Less than 12 months | -3,151 | -2,422 |
Estimated fair value, 12 months or longer | 9,683 | 12,500 |
Unrealized losses, 12 months or longer | -113 | -666 |
Estimated fair value, Total | 207,762 | 141,894 |
Unrealized losses, Total | -3,264 | -3,088 |
Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 208,922 | 85,112 |
Unrealized losses, Less than 12 months | -8,587 | -2,718 |
Estimated fair value, 12 months or longer | 2,340 | 1,046 |
Unrealized losses, 12 months or longer | -191 | -42 |
Estimated fair value, Total | 211,262 | 86,158 |
Unrealized losses, Total | ($8,778) | ($2,760) |
Debt_and_Equity_Securities_Com
Debt and Equity Securities (Composition of Company's Non-Agency Mortgage-Backed Securities) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Security | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $3,432,466 | $2,848,594 |
Debt securities, Estimated fair value | 3,450,252 | 2,819,817 |
Non-Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of Securities | 6 | |
Amortized Cost | 15,949 | 19,658 |
Debt securities, Estimated fair value | 16,538 | 19,022 |
Non-Agency Mortgage-Backed Securities | Prime Single Family Residential Two Thousand Seven | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of Securities | 1 | |
Amortized Cost | 2,738 | |
Debt securities, Estimated fair value | 2,394 | |
Non-Agency Mortgage-Backed Securities | Prime Single Family Residential Two Thousand Six | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of Securities | 3 | |
Amortized Cost | 7,433 | |
Debt securities, Estimated fair value | 7,377 | |
Non-Agency Mortgage-Backed Securities | Prime Single Family Residential Two Thousand Five | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of Securities | 1 | |
Amortized Cost | 524 | |
Debt securities, Estimated fair value | 509 | |
Non-Agency Mortgage-Backed Securities | Single Family Residential Two Thousand Seven | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Number of Securities | 1 | |
Amortized Cost | 5,254 | |
Debt securities, Estimated fair value | $6,258 |
Debt_and_Equity_Securities_Amo1
Debt and Equity Securities (Amortized Cost and Estimated Fair Value of Debt Securities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $3,432,466 | $2,848,594 |
Debt securities, Estimated fair value | 3,450,252 | 2,819,817 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 4,909 | |
Amortized cost, Due after one through five years | 40,264 | |
Amortized cost, Due after five through ten years | 17,032 | |
Amortized cost, Due after ten years | 1,990 | |
Amortized Cost | 64,195 | 66,400 |
Estimated fair value, Due in one year or less | 4,969 | |
Estimated fair value, Due after one through five years | 40,312 | |
Estimated fair value, Due after five through ten years | 17,370 | |
Estimated fair value, Due after ten years | 2,331 | |
Debt securities, Estimated fair value | 64,982 | 66,384 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 20,148 | |
Amortized cost, Due after one through five years | 262,901 | |
Amortized cost, Due after five through ten years | 181,812 | |
Amortized cost, Due after ten years | 112,842 | |
Amortized Cost | 577,703 | 491,143 |
Estimated fair value, Due in one year or less | 20,239 | |
Estimated fair value, Due after one through five years | 264,952 | |
Estimated fair value, Due after five through ten years | 186,168 | |
Estimated fair value, Due after ten years | 116,318 | |
Debt securities, Estimated fair value | 587,677 | 485,965 |
Foreign Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 46,403 | |
Amortized cost, Due after one through five years | 131,652 | |
Amortized cost, Due after five through ten years | 13,473 | |
Amortized cost, Due after ten years | 3,221 | |
Amortized Cost | 194,749 | 221,298 |
Estimated fair value, Due in one year or less | 46,585 | |
Estimated fair value, Due after one through five years | 133,103 | |
Estimated fair value, Due after five through ten years | 13,707 | |
Estimated fair value, Due after ten years | 3,355 | |
Debt securities, Estimated fair value | 196,750 | 222,508 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 2,279 | |
Amortized cost, Due after one through five years | 171,686 | |
Amortized cost, Due after five through ten years | 12,402 | |
Amortized cost, Due after ten years | 11,963 | |
Amortized Cost | 198,330 | 267,713 |
Estimated fair value, Due in one year or less | 2,284 | |
Estimated fair value, Due after one through five years | 169,796 | |
Estimated fair value, Due after five through ten years | 12,762 | |
Estimated fair value, Due after ten years | 13,032 | |
Debt securities, Estimated fair value | 197,874 | 262,545 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 18,503 | |
Amortized cost, Due after one through five years | 239,699 | |
Amortized cost, Due after five through ten years | 262,743 | |
Amortized cost, Due after ten years | 47,829 | |
Amortized Cost | 568,774 | 355,893 |
Estimated fair value, Due in one year or less | 18,640 | |
Estimated fair value, Due after one through five years | 242,236 | |
Estimated fair value, Due after five through ten years | 263,623 | |
Estimated fair value, Due after ten years | 49,770 | |
Debt securities, Estimated fair value | 574,269 | 360,084 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 92,242 | |
Amortized cost, Due after one through five years | 846,202 | |
Amortized cost, Due after five through ten years | 487,462 | |
Amortized cost, Due after ten years | 177,845 | |
Amortized Cost | 1,603,751 | |
Estimated fair value, Due in one year or less | 92,717 | |
Estimated fair value, Due after one through five years | 850,399 | |
Estimated fair value, Due after five through ten years | 493,630 | |
Estimated fair value, Due after ten years | 184,806 | |
Debt securities, Estimated fair value | 1,621,552 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 1,828,715 | |
Estimated fair value | $1,828,700 |
Financing_Receivables_Narrativ
Financing Receivables (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Proceeds from sale of loan portfolio | $42,300,000 | $42,284,000 | |
Net of sales from customer deposits | 8,100,000 | ||
Gain on sale of loan portfolio | 500,000 | ||
Loans receivable, net | $73,755,000 |
Financing_Receivables_Summary_
Financing Receivables (Summary of Notes Receivable) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Notes receivable, gross | $8,571 | $13,126 |
Loss reserve | -2,441 | -2,584 |
Notes receivable, net | 6,130 | 10,542 |
Notes Receivable-Secured | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Notes receivable, gross | 5,810 | 10,533 |
Notes Receivable-Unsecured | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Notes receivable, gross | $2,761 | $2,593 |
Financing_Receivables_Aging_An
Financing Receivables (Aging Analysis of Notes Receivable) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Notes Receivable | $8,571 | $13,126 |
Current | 6,050 | 6,555 |
30-59 days past due | 35 | 3,668 |
90 days or more past due | 43 | 231 |
Non-accrual status | 2,443 | 2,672 |
Notes Receivable-Secured | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Notes Receivable | 5,810 | 10,533 |
Current | 4,929 | 5,784 |
30-59 days past due | 28 | 3,668 |
90 days or more past due | 43 | 231 |
Non-accrual status | 810 | 850 |
Notes Receivable-Unsecured | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Notes Receivable | 2,761 | 2,593 |
Current | 1,121 | 771 |
30-59 days past due | 7 | |
Non-accrual status | $1,633 | $1,822 |
Financing_Receivables_Aggregat
Financing Receivables (Aggregate Annual Maturities for Notes Receivable) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
2015 | $2,035 | |
2016 | 1,509 | |
2017 | 719 | |
2018 | 517 | |
2019 | 2,603 | |
2020 and thereafter | 1,188 | |
Total Notes Receivable | $8,571 | $13,126 |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Abstract] | ||
Land | $29,700 | $29,816 |
Buildings | 270,689 | 277,131 |
Furniture and equipment | 186,237 | 182,912 |
Capitalized software | 466,548 | 402,713 |
Property and equipment, Gross | 953,174 | 892,572 |
Accumulated depreciation and amortization | -557,887 | -531,224 |
Property and equipment, Total | $395,287 | $361,348 |
Goodwill_Carrying_Amount_of_Go
Goodwill (Carrying Amount of Goodwill by Operating Segment) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | |||
Beginning balance | $846,026 | $845,857 | |
Acquisitions | 121,252 | 4,456 | |
Foreign currency translation | -5,554 | -4,287 | |
Other adjustments | -1,779 | ||
Ending balance | 959,945 | 846,026 | |
Operating Segments | Title Insurance and Services | |||
Goodwill [Line Items] | |||
Beginning balance | 799,261 | 799,092 | |
Acquisitions | 121,252 | 4,456 | |
Foreign currency translation | -5,554 | -4,287 | |
Other adjustments | -1,779 | ||
Ending balance | 913,180 | 799,261 | |
Operating Segments | Specialty Insurance | |||
Goodwill [Line Items] | |||
Beginning balance | 46,765 | ||
Ending balance | $46,765 | $46,765 | $46,765 |
Goodwill_Narrative_Detail
Goodwill (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment losses | $0 | $0 | $0 |
Accumulated goodwill impairment | $0 | $0 | $0 |
Other_Intangible_Assets_Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $94,850 | $77,382 |
Noncompete agreements | 27,286 | 26,928 |
Trademarks | 11,241 | 10,026 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 136,217 | 117,176 |
Accumulated amortization | -97,282 | -88,624 |
Finite-lived intangible assets, net | 38,935 | 28,552 |
Licenses | 16,877 | 17,795 |
Other intangibles assets, net | $55,812 | $46,347 |
Other_Intangible_Assets_Narrat
Other Intangible Assets (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intangible Assets Net Excluding Goodwill [Abstract] | |||
Amortization expense | $12.60 | $12 | $12 |
Other_Intangible_Assets_Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
2015 | $8,886 |
2016 | 8,423 |
2017 | 6,799 |
2018 | 4,462 |
2019 | $3,690 |
Deposits_Escrow_Savings_and_In
Deposits (Escrow, Savings and Investment Certificate Accounts) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Banking And Thrift [Abstract] | ||||
Interest bearing | $1,962,351 | $1,376,921 | ||
Non-interest bearing | 266,281 | 176,964 | ||
Escrow accounts | 2,228,632 | 1,553,885 | ||
Savings accounts | 22,015 | [1] | ||
Certificate accounts | 26,596 | [1] | ||
Business checking and other deposits | 104,082 | [2] | 90,436 | [2] |
Deposits, Total | $2,332,714 | $1,692,932 | ||
Weighted average interest rate, Escrow accounts | 0.11% | 0.13% | ||
[1] | During the fourth quarter of 2014, the Company completed its multi-year process of winding-down the operations of its industrial bank, First Security Business Bank, which included the sale of the bank’s loan portfolio and transfer of its customer deposits to a third party bank. The Company received proceeds from the sale of $42.3 million, net of $8.1 million related to customer deposits, and recorded a gain of $0.5 million. Customer deposits were transferred at par value. | |||
[2] | Business checking and other deposits primarily reflect non-interest bearing accounts. |
Deposits_Escrow_Savings_and_In1
Deposits (Escrow, Savings and Investment Certificate Accounts) (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2014 | |
Banking And Thrift [Abstract] | ||
Proceeds from sale of loan portfolio | $42,300,000 | $42,284,000 |
Net of sales from customer deposits | 8,100,000 | |
Gain on sale of loan portfolio | $500,000 |
Reserve_for_Known_and_Incurred2
Reserve for Known and Incurred but Not Reported Claims (Activity in Reserve for Known and Incurred but Not Reported Claims) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Balance at beginning of year | $1,018,365 | $976,462 | $1,014,676 |
Provision related to current year | 385,155 | 380,723 | 335,097 |
Provision related to prior years | 64,868 | 149,633 | 62,620 |
Total Provision | 450,023 | 530,356 | 397,717 |
Payments, net of recoveries, related to: Current year | 196,656 | 182,653 | 160,138 |
Payments, net of recoveries, related to: Prior years | 273,094 | 296,657 | 285,848 |
Total Payments, net of recoveries | 469,750 | 479,310 | 445,986 |
Other | 13,142 | -9,143 | 10,055 |
Balance at end of year | $1,011,780 | $1,018,365 | $976,462 |
Reserve_for_Known_and_Incurred3
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) (USD $) | 12 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | |
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Provision related to current year | $385,155,000 | $380,723,000 | $335,097,000 | |
Provision related to prior years | 64,868,000 | 149,633,000 | 62,620,000 | |
Provision for title loss, percentage of title premiums and escrow fees | 7.00% | 8.80% | 6.90% | |
Ultimate loss rate | 5.30% | 5.00% | 5.10% | |
Estimated increase in loss reserve for prior policy years | 62,200,000 | 148,500,000 | 62,100,000 | |
IBNR reserve | 802,069,000 | 840,104,000 | ||
Reasonable estimates of IBNR reserve range limit minimum | 76,000,000 | |||
Reasonable estimates of IBNR reserve range limit maximum | 188,400,000 | |||
Projected ultimate loss ratio percentage | 5.30% | 4.60% | 3.80% | |
Minimum | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
IBNR reserve | 726,100,000 | |||
Maximum | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
IBNR reserve | 990,500,000 | |||
Domestic Commercial Policies | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Estimated increase in loss reserve for prior policy years | 41,400,000 | |||
Domestic Lender | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Estimated increase in loss reserve for prior policy years | 67,400,000 | 25,600,000 | ||
Commercial Policies | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Estimated increase in loss reserve for prior policy years | 38,800,000 | |||
Guaranteed Valuation Product | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Estimated increase in loss reserve for prior policy years | 21,700,000 | 11,800,000 | ||
International Business | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Estimated increase in loss reserve for prior policy years | 15,600,000 | |||
Insurance Segment | ||||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||||
Provision related to current year | 174,400,000 | 167,300,000 | 144,100,000 | |
Provision related to prior years | $23,200,000 | $16,000,000 | $16,700,000 |
Reserve_for_Known_and_Incurred4
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Insurance [Abstract] | ||
Known title claims, amount | $165,330 | $135,478 |
Incurred but not reported claims | 802,069 | 840,104 |
Total title claims, amount | 967,399 | 975,582 |
Non-title claims, amount | 44,381 | 42,783 |
Total loss reserves, amount | $1,011,780 | $1,018,365 |
Known title claims, percent | 16.30% | 13.30% |
Incurred but not reported claims, percent | 79.30% | 82.50% |
Total title claims, percent | 95.60% | 95.80% |
Non-title claims, percent | 4.40% | 4.20% |
Total loss reserves, percent | 100.00% | 100.00% |
Notes_and_Contracts_Payable_Sc
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Notes and contracts payable | $587,337 | $310,285 |
Senior Notes | 4.60% unsecured notes | ||
Debt Instrument [Line Items] | ||
Notes and contracts payable | 299,926 | |
Senior Notes | 4.30% unsecured notes | ||
Debt Instrument [Line Items] | ||
Notes and contracts payable | 249,240 | 249,163 |
Trust Deed Notes | ||
Debt Instrument [Line Items] | ||
Notes and contracts payable | 34,420 | 38,151 |
Other Notes and Contracts Payable | ||
Debt Instrument [Line Items] | ||
Notes and contracts payable | $3,751 | $22,971 |
Notes_and_Contracts_Payable_Sc1
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 10, 2014 |
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 4.52% | 4.34% | |
Senior Notes | 4.60% unsecured notes | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes maturity date | 15-Nov-24 | ||
Debt instrument unamortized discount amount | $74 | ||
Effective interest rate | 4.60% | 4.60% | |
Senior Notes | 4.30% unsecured notes | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes maturity date | 1-Feb-23 | ||
Debt instrument unamortized discount amount | 760 | 837 | |
Effective interest rate | 4.35% | 4.35% | |
Trust Deed Notes | |||
Debt Instrument [Line Items] | |||
Maturity year | 2032 | 2032 | |
Debt collateralized by land and buildings | $52,414 | $55,206 | |
Weighted-average interest rate | 5.39% | 5.42% | |
Other Notes and Contracts Payable | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate | 5.30% | 2.96% | |
Other notes and contracts payable maturities in year | 2020 | 2020 |
Notes_and_Contracts_Payable_Na
Notes and Contracts Payable (Narrative) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Nov. 10, 2014 | Dec. 31, 2013 | 31-May-14 | Mar. 31, 2014 |
Debt Instrument [Line Items] | |||||
Weighted-average interest rate | 4.52% | 4.34% | |||
Outstanding borrowings under credit facility | $0 | ||||
Line of credit facility, maximum increase in revolving credit | 150 | ||||
Revolving loans, interest rate description | At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the agreement). The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. The applicable spread varies depending upon the debt rating assigned by Moody’s Investor Service, Inc. and/or Standard & Poor’s Rating Services. The minimum applicable spread for Alternate Base Rate borrowings is 0.625% and the maximum is 1.00%. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.625% and the maximum is 2.00%. The rate of interest on Incremental Term Loans will be established at or about the time such loans are made and may differ from the rate of interest on revolving loans. | ||||
Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, applicable spread | 0.63% | ||||
Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, applicable spread | 1.00% | ||||
London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, applicable spread | 1.63% | ||||
London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, applicable spread | 2.00% | ||||
Senior Notes | 4.60% unsecured notes | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes issued | 300 | ||||
Senior unsecured notes, percentage | 4.60% | ||||
Senior unsecured notes, term | 10 years | ||||
Debt Instrument, Maturity Date | 15-Nov-24 | ||||
Senior unsecured notes, price percentage | 99.98% | ||||
Effective interest rate | 4.60% | 4.60% | |||
Senior unsecured notes, interest payable terms | Interest is due semi-annually on May 15 and November 15, beginning May 15, 2015 | ||||
Senior unsecured notes, increased unused capacity | 700 | ||||
Unsecured Debt | JPMorgan Chase Bank, N.A | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $700 | $600 | |||
Credit agreement termination date | 14-May-19 |
Notes_and_Contracts_Payable_Ag
Notes and Contracts Payable (Aggregate Annual Maturities of Notes and Contracts Payable) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $4,899 | |
2016 | 4,458 | |
2017 | 5,009 | |
2018 | 3,861 | |
2019 | 3,593 | |
Thereafter | 565,517 | |
Notes and contracts payable, Total | $587,337 | $310,285 |
Net_Investment_Income_Schedule
Net Investment Income (Schedule of Net Investment Income) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments Debt And Equity Securities [Abstract] | ||||
Cash equivalents and deposits with banks | $4,471 | $3,694 | $4,407 | |
Debt securities | 56,373 | 47,226 | 45,112 | |
Other long-term investments | 1,213 | 2,009 | 1,013 | |
Loans receivable | 3,755 | 5,474 | 8,132 | |
Dividends on equity securities | 11,961 | 11,776 | 5,388 | |
Equity in earnings of affiliates, net | -16,545 | 5,316 | 6,514 | |
Other | 10,488 | 14,400 | 10,465 | |
Total investment income | 71,716 | 89,895 | 81,031 | |
Investment expenses | -675 | [1] | ||
Investment income | $71,041 | $89,895 | $81,031 | |
[1] | Investment expenses include fees paid to third party investment managers, which the Company began utilizing in 2014. |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Income Tax Disclosure [Line Items] | |||||||||||||
Income (loss) from continuing operations before noncontrolling interests, Domestic | $301,800,000 | $286,200,000 | $449,600,000 | ||||||||||
Income (loss) from continuing operations before noncontrolling interests, Foreign | 48,800,000 | 24,500,000 | 17,800,000 | ||||||||||
Federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||
Effective income tax rate | 33.20% | 39.80% | 35.40% | ||||||||||
Tax benefits recorded | 6,856,000 | 6,202,000 | 2,372,000 | ||||||||||
Net payable related to spin-off tax liabilities | 35,100,000 | 56,500,000 | 35,100,000 | 56,500,000 | |||||||||
Foreign tax credit carryover | 2,184,000 | 2,184,000 | |||||||||||
Operating loss carryforwards, amount | 122,500,000 | 122,500,000 | |||||||||||
Operating loss carryforwards, indefinite expiration, amount | 41,200,000 | 41,200,000 | |||||||||||
Operating loss carryforwards, remaining expiration, amount | 81,300,000 | 81,300,000 | |||||||||||
Deferred tax asset valuation allowance | 15,706,000 | 18,119,000 | 15,706,000 | 18,119,000 | |||||||||
Valuation allowance credited to tax expense | -5,276,000 | ||||||||||||
Income before income taxes | 122,897,000 | 115,952,000 | 76,458,000 | 35,253,000 | 84,847,000 | [1] | 107,045,000 | 59,224,000 | 59,592,000 | 350,560,000 | 310,708,000 | 467,406,000 | |
Liability for income taxes associated with uncertain tax positions | 24,100,000 | 47,800,000 | 24,100,000 | 47,800,000 | 47,900,000 | 17,300,000 | |||||||
Offsetting tax benefits related to uncertain tax positions | 3,400,000 | 32,600,000 | 32,600,000 | ||||||||||
Uncertain tax positions, net | 20,700,000 | 15,200,000 | 20,700,000 | 15,200,000 | 15,300,000 | ||||||||
Accrued interest and penalties on uncertain tax positions | 8,900,000 | 4,700,000 | 8,900,000 | 4,700,000 | 4,200,000 | ||||||||
Net of tax benefits | 3,700,000 | 1,900,000 | 1,700,000 | ||||||||||
Unrecognized tax positions increase decrease, months | It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may significantly increase or decrease within the next 12 months. These changes may be the result of items such as ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. | ||||||||||||
Foreign Subsidiaries [Member] | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Income before income taxes | 132,800,000 | 121,800,000 | |||||||||||
Deferred Tax Assets Valuation Allowances On Net Operating Loss Carryforwards | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Deferred tax asset valuation allowance | 13,300,000 | 13,300,000 | |||||||||||
Deferred Tax Assets Valuation Allowances On Other Foreign Deferred Tax Assets | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Deferred tax asset valuation allowance | 2,400,000 | 2,400,000 | |||||||||||
Federal | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Operating loss carryforwards, amount | 500,000 | 500,000 | |||||||||||
State | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Operating loss carryforwards, amount | 38,500,000 | 38,500,000 | |||||||||||
Foreign | |||||||||||||
Income Tax Disclosure [Line Items] | |||||||||||||
Operating loss carryforwards, amount | $83,500,000 | $83,500,000 | |||||||||||
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Income_Taxes_Summary_of_Tax_Ex
Income Taxes - Summary of Tax Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current Federal | $87,189 | $86,406 | $82,269 |
Current State | 4,751 | 7,887 | 15,229 |
Current Foreign | 812 | 24,331 | 8,234 |
Current Income Tax Expense (Benefit), Total | 92,752 | 118,624 | 105,732 |
Deferred Federal | 15,594 | 8,937 | 60,242 |
Deferred State | -304 | 9,774 | 111 |
Deferred Foreign | 8,303 | -13,691 | -407 |
Deferred Income Tax Expense (Benefit), Total | 23,593 | 5,020 | 59,946 |
Income tax | $116,345 | $123,644 | $165,678 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Taxes calculated at federal rate | $122,696 | $108,748 | $163,592 |
State taxes, net of federal benefit | 2,891 | 11,480 | 9,525 |
Change in liability for tax positions | 412 | 3,537 | 2,033 |
Change in capital loss valuation allowance | -5,276 | ||
Foreign income taxed at different rates | -6,091 | 8,567 | 2,881 |
Foreign tax credits | -2,184 | -5,640 | -2,921 |
Other items, net | -1,379 | -3,048 | -4,156 |
Income tax | $116,345 | $123,644 | $165,678 |
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 0.80% | 3.70% | 2.00% |
Change in liability for tax positions | 0.10% | 1.10% | 0.40% |
Change in capital loss valuation allowance | -1.10% | ||
Foreign income taxed at different rates | -1.70% | 2.80% | 0.60% |
Foreign tax credits | -0.60% | -1.80% | -0.60% |
Other items, net | -0.40% | -1.00% | -0.90% |
Total | 33.20% | 39.80% | 35.40% |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Liability (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Deferred revenue | $9,887 | $8,360 |
Employee benefits | 74,068 | 73,302 |
Bad debt reserves | 15,253 | 17,588 |
Investments in affiliates | 13,670 | 8,026 |
Loss reserves | 2,507 | 1,728 |
Pension | 120,401 | 86,858 |
Net operating loss carryforward | 23,727 | 27,762 |
Securities | 1,880 | |
Foreign tax credit | 2,184 | |
Other | 8,712 | 6,782 |
Deferred tax assets before valuation allowance | 270,409 | 232,286 |
Valuation allowance | -15,706 | -18,119 |
Deferred tax assets | 254,703 | 214,167 |
Depreciable and amortizable assets | 284,532 | 258,855 |
Claims and related salvage | 36,653 | 21,196 |
Securities | 8,934 | |
Deferred tax liabilities | 330,119 | 280,051 |
Net deferred tax liability | $75,416 | $65,884 |
Income_Taxes_Changes_In_Unreco
Income Taxes - Changes In Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized tax benefits | |||
Unrecognized tax benefits—opening balance | $47,800 | $47,900 | $17,300 |
Gross (decreases) increases—tax positions in prior period | -24,100 | -600 | 200 |
Gross increases—current period tax positions | 400 | 500 | 30,500 |
Expiration of the statute of limitations for the assessment of taxes | -100 | ||
Unrecognized tax benefits—ending balance | $24,100 | $47,800 | $47,900 |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income attributable to the Company | $80,511 | $80,705 | $50,594 | $21,724 | $51,627 | [1] | $63,890 | $34,672 | $36,178 | $233,534 | $186,367 | $301,041 | |||||||
Less: dividends and undistributed earnings allocated to unvested RSUs | 514 | 324 | 682 | ||||||||||||||||
Net income allocated to common stockholders | $233,020 | $186,043 | $300,359 | ||||||||||||||||
Basic weighted-average shares | 106,884 | 106,991 | 106,307 | ||||||||||||||||
Effect of dilutive employee stock options and RSUs | 1,804 | 2,111 | 2,235 | ||||||||||||||||
Diluted weighted-average shares | 108,688 | 109,102 | 108,542 | ||||||||||||||||
Basic | $0.75 | [2] | $0.75 | [2] | $0.47 | [2] | $0.20 | [2] | $0.49 | [1],[2] | $0.60 | [2] | $0.32 | [2] | $0.34 | [2] | $2.18 | $1.74 | $2.83 |
Diluted | $0.74 | [2] | $0.74 | [2] | $0.47 | [2] | $0.20 | [2] | $0.48 | [1],[2] | $0.59 | [2] | $0.31 | [2] | $0.33 | [2] | $2.15 | $1.71 | $2.77 |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | ||||||||||||||||||
[2] | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Detail) (Stock Options ​and​ Restricted​ Stock​ Units​) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options ​and​ Restricted​ Stock​ Units​ | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock options and RSUs excluded from the weighted-average diluted common shares outstanding | 133 | 11 | 700 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred compensation arrangements [Abstract] | ||
Deferred compensation plan, maximum deferral percentage | 100.00% | |
Assets held-in-trust | 78.6 | 73.2 |
Unfunded liabilities | 76.4 | 71.1 |
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Executive and management supplemental benefit plans compensation period | 5 years | |
Unfunded Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Cash contribution to plans during the next 12 months | 14.1 | |
Unfunded Supplemental Benefit Plans | Maximum | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Maximum benefit rate of final average compensation under non qualified plan | 30.00% | |
Unfunded Supplemental Benefit Plans | Minimum | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Maximum benefit rate of final average compensation under non qualified plan | 15.00% | |
Defined Benefit Pension And Supplemental Benefit Plans | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Net actuarial loss expected to be amortized from accumulated comprehensive loss into net periodic loss in next fiscal year | 34 | |
Prior service credit expected to be amortized from accumulated comprehensive loss into net periodic loss in next fiscal year | 4.2 | |
Pension Plan | ||
Defined benefit pension plans and defined benefit postretirement plans disclosure [Abstract] | ||
Cash contribution to plans during the next 12 months | 21.7 | |
Savings Plan | ||
Defined contribution pension and other postretirement plans disclosure [Abstract] | ||
Common stock, outstanding | 3,528,000 | 3,903,000 |
Percentage of plan shares in total shares outstanding | 3.30% | 3.70% |
Employee_Benefit_Plans_Princip
Employee Benefit Plans (Principal Components of Employee Benefit Plan Expenses) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expense | |||
Employee benefit plan expenses | $53,671 | $63,585 | $77,154 |
Other Plans, Net | |||
Expense | |||
Employee benefit plan expenses | 9,259 | 15,479 | 10,166 |
Savings Plan | |||
Expense | |||
Employee benefit plan expenses | 16,333 | 10,458 | 27,778 |
Defined Benefit Pension Plans | |||
Expense | |||
Employee benefit plan expenses | 13,465 | 20,975 | 22,657 |
Unfunded Supplemental Benefit Plans | |||
Expense | |||
Employee benefit plan expenses | $14,614 | $16,673 | $16,553 |
Employee_Benefit_Plans_Company
Employee Benefit Plans (Company's Benefit Obligations, Assets and Funded Status) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in projected benefit obligation: | |||
Service costs | $1,315 | $1,915 | $1,712 |
Interest costs | 29,180 | 26,861 | 29,068 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 313,469 | ||
Fair value of plan assets at end of year | 339,365 | 313,469 | |
Defined Benefit Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 382,035 | 424,462 | |
Interest costs | 18,644 | 17,340 | |
Actuarial losses (gains) | 76,164 | -38,766 | |
Benefits paid | -26,176 | -21,001 | |
Projected benefit obligation at end of year | 450,667 | 382,035 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 313,469 | 294,216 | |
Actual return on plan assets | 24,400 | 10,971 | |
Contributions | 27,672 | 29,283 | |
Benefits paid | -26,176 | -21,001 | |
Fair value of plan assets at end of year | 339,365 | 313,469 | |
Reconciliation of funded status, Unfunded status of the plans | -111,302 | -68,566 | |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | -111,302 | -68,566 | |
Unrecognized net actuarial loss | 219,081 | 162,084 | |
Unrecognized prior service cost (credit) | 15 | 40 | |
Amounts recognized in accumulated other comprehensive income | 219,096 | 162,124 | |
Accumulated benefit obligation at end of year | 450,667 | 382,035 | |
Unfunded Supplemental Benefit Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation at beginning of year | 226,458 | 250,226 | |
Service costs | 1,315 | 1,915 | |
Interest costs | 10,536 | 9,521 | |
Plan amendment | 2,088 | ||
Actuarial losses (gains) | 37,281 | -24,233 | |
Benefits paid | -13,453 | -13,059 | |
Projected benefit obligation at end of year | 262,137 | 226,458 | |
Change in plan assets: | |||
Contributions | 13,453 | 13,059 | |
Benefits paid | -13,453 | -13,059 | |
Reconciliation of funded status, Unfunded status of the plans | -262,137 | -226,458 | |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | -262,137 | -226,458 | |
Unrecognized net actuarial loss | 120,642 | 90,303 | |
Unrecognized prior service cost (credit) | -24,964 | -29,142 | |
Amounts recognized in accumulated other comprehensive income | 95,678 | 61,161 | |
Accumulated benefit obligation at end of year | $262,137 | $226,458 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Cost) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | |||
Service costs | $1,315 | $1,915 | $1,712 |
Interest costs | 29,180 | 26,861 | 29,068 |
Expected return on plan assets | -20,850 | -18,776 | -15,553 |
Amortization of net actuarial loss | 22,587 | 32,033 | 28,368 |
Amortization of prior service credit | -4,153 | -4,385 | -4,385 |
Net periodic cost | $28,079 | $37,648 | $39,210 |
Employee_Benefit_Plans_Weighte
Employee Benefit Plans (Weighted-Average Actuarial Assumptions Used to Determine Costs) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.97% | 4.18% |
Rate of return on plan assets | 6.50% | 6.50% |
Unfunded Supplemental Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.80% | 3.91% |
Employee_Benefit_Plans_Weighte1
Employee Benefit Plans (Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans, Discount rate | 4.07% | 4.97% |
Unfunded Supplemental Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans, Discount rate | 4.00% | 4.80% |
Employee_Benefit_Plans_Target_
Employee Benefit Plans (Target Asset Allocation Based on Funded Status) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 85.00% |
Funded Ratio 100% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 100.00% |
Funded Ratio 97.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 97.50% |
Funded Ratio 95% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 95.00% |
Funded Ratio 92.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 92.50% |
Funded Ratio 90% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 90.00% |
Funded Ratio 87.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 87.50% |
Funded Ratio 85% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Settlement funded status | 85.00% |
Return Seeking Assets | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 85.00% |
Return Seeking Assets | Funded Ratio 100% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 0.00% |
Return Seeking Assets | Funded Ratio 97.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 15.00% |
Return Seeking Assets | Funded Ratio 95% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 30.00% |
Return Seeking Assets | Funded Ratio 92.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 40.00% |
Return Seeking Assets | Funded Ratio 90% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 50.00% |
Return Seeking Assets | Funded Ratio 87.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 60.00% |
Return Seeking Assets | Funded Ratio 85% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 70.00% |
Liability Tracking Assets | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 15.00% |
Liability Tracking Assets | Funded Ratio 100% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 100.00% |
Liability Tracking Assets | Funded Ratio 97.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 85.00% |
Liability Tracking Assets | Funded Ratio 95% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 70.00% |
Liability Tracking Assets | Funded Ratio 92.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 60.00% |
Liability Tracking Assets | Funded Ratio 90% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 50.00% |
Liability Tracking Assets | Funded Ratio 87.5% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 40.00% |
Liability Tracking Assets | Funded Ratio 85% | |
Defined Benefit Plan, Assets, Target Allocations [Abstract] | |
Asset allocation target | 30.00% |
Employee_Benefit_Plans_Defined
Employee Benefit Plans (Defined Benefit Pension Plan Asset Allocation) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and Cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 0.30% | 0.70% |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 45.50% | 48.30% |
Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 32.50% | 29.70% |
Balanced Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 19.40% | 18.90% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets | 2.30% | 2.40% |
Employee_Benefit_Plans_Benefit
Employee Benefit Plans (Benefit Payments, Expected Future Service) (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Estimated Future Benefit Payments [Abstract] | |
2015 | $36,141 |
2016 | 36,100 |
2017 | 38,607 |
2018 | 40,498 |
2019 | 42,110 |
Five years thereafter | $220,002 |
Employee_Benefit_Plans_Defined1
Employee Benefit Plans (Defined Benefit Pension Plan Assets at Fair Value) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | $339,365 | $313,469 | ||
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 161,912 | 147,221 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 169,729 | 158,820 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 7,724 | 7,428 | ||
Cash and Cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 1,101 | 2,080 | ||
Cash and Cash equivalents | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 1,101 | 2,080 | ||
Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 154,279 | [1] | 151,604 | [1] |
Equity securities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 101,304 | [1] | 95,860 | [1] |
Equity securities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 52,975 | [1] | 55,744 | [1] |
Fixed Income Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 110,405 | [2] | 93,210 | [2] |
Fixed Income Funds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 59,507 | [2] | 49,281 | [2] |
Fixed Income Funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 50,898 | [2] | 43,929 | [2] |
Balanced Funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 65,856 | [3] | 59,147 | [3] |
Balanced Funds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 65,856 | [3] | 59,147 | [3] |
Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | 7,724 | [4] | 7,428 | [4] |
Other | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated fair value | $7,724 | [4] | $7,428 | [4] |
[1] | Investments in passively managed index funds, actively managed mutual funds with holdings in domestic and international equities, and investments in domestic equities. These investments are valued at the closing price reported on the major market on which the individual securities are traded or the Net Asset Value (“NAVâ€) provided by the administrator of the fund. | |||
[2] | Investments in passively managed index funds and actively managed mutual funds with holdings in domestic and international corporate bonds, sovereign bonds, mortgage-backed securities, and other fixed income instruments. These investments are valued using matrix pricing models and quoted prices of the securities in active markets. | |||
[3] | Investments in global multi-asset risk parity strategy funds with holdings in domestic and international debt and equity securities, commodities, real estate, and derivative investments. These investments are valued using the NAV provided by the administrator of the fund. | |||
[4] | Investments in a guaranteed deposit fund with holdings in insurance contracts. These investments are valued at contract value of the fund including contributions and earnings, less applicable costs and liabilities, as provided by the administrator of the fund. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | $3,852,664 | $3,177,860 |
Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 3,450,252 | 2,819,817 |
Equity securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 402,412 | 358,043 |
U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 64,982 | 66,384 |
Municipal Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 587,677 | 485,965 |
Foreign Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 196,750 | 222,508 |
Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 197,874 | 262,545 |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 1,812,162 | 1,403,309 |
Non-Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 16,538 | 19,022 |
Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 574,269 | 360,084 |
Preferred stocks | Equity securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 15,525 | 11,085 |
Common Stock | Equity securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 386,887 | 346,958 |
Level 1 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 402,412 | 358,043 |
Level 1 | Equity securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 402,412 | 358,043 |
Level 1 | Preferred stocks | Equity securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 15,525 | 11,085 |
Level 1 | Common Stock | Equity securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 386,887 | 346,958 |
Level 2 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 3,433,714 | 2,800,795 |
Level 2 | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 3,433,714 | 2,800,795 |
Level 2 | U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 64,982 | 66,384 |
Level 2 | Municipal Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 587,677 | 485,965 |
Level 2 | Foreign Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 196,750 | 222,508 |
Level 2 | Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 197,874 | 262,545 |
Level 2 | Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 1,812,162 | 1,403,309 |
Level 2 | Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 574,269 | 360,084 |
Level 3 | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Total assets | 16,538 | 19,022 |
Level 3 | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 16,538 | 19,022 |
Level 3 | Non-Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | $16,538 | $19,022 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair value at beginning of year | $19,022 | $21,846 | |
Net other-than-temporary impairment losses | -1,701 | -3,564 | |
Included in other comprehensive income | 1,225 | 4,174 | |
Settlements | -2,008 | -6,998 | |
Fair value as of December 31 | $16,538 | $19,022 | $21,846 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $1,190,080 | $834,837 |
Deposits with banks | 21,445 | 23,492 |
Notes receivable, net | 6,130 | 10,542 |
Liabilities: | ||
Deposits | 2,332,714 | 1,692,932 |
Notes and contracts payable | 587,337 | 310,285 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 1,190,080 | 834,837 |
Deposits with banks | 21,540 | 23,601 |
Notes receivable, net | 3,930 | 9,953 |
Liabilities: | ||
Deposits | 2,332,714 | 1,693,138 |
Notes and contracts payable | 595,087 | 301,007 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,190,080 | 834,837 |
Deposits with banks | 4,068 | 2,070 |
Liabilities: | ||
Deposits | 2,332,714 | 1,666,336 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Deposits with banks | 17,472 | 21,531 |
Liabilities: | ||
Deposits | 26,802 | |
Notes and contracts payable | 588,542 | 294,221 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Notes receivable, net | 3,930 | 9,953 |
Liabilities: | ||
Notes and contracts payable | $6,545 | $6,786 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs | $19.60 | ||
Total fair value of shares vested and not distributed | 3.2 | 4.3 | 2.3 |
Total intrinsic value of options exercised for years | 7 | 6 | 7.1 |
Unrecognized compensation cost related to unvested stock options | $0.80 | ||
Incentive Compensation Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock that can be awarded under terms of incentive compensation plan, in shares | 6,000,000 | ||
Incentive Compensation Plan, termination period, in years | 10 years | ||
Purchase of common stock under employee stock purchase plan | 85.00% | ||
Shares issued Employee Stock Purchase Plan | 354,000 | 350,000 | |
Shares reserved for future issuances | 3,400,000 | ||
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period, Years | 3 years | ||
unvested stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period, Years | 3 years |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Share-Based Compensation Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Restricted stock units | $17,197 | $20,827 | $13,953 |
Stock options | 271 | 8 | |
Employee stock purchase plan | 1,834 | 1,466 | 886 |
Share-based compensation plans, Total | $19,302 | $22,301 | $14,839 |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans (Summary of RSU Activity) (Detail) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance, Shares | 2,720 |
Granted during 2014, Shares | 740 |
Vested during 2014, Shares | -1,099 |
Forfeited during 2014, Shares | -24 |
Ending Balance, Shares | 2,337 |
Beginning Balance, Weighted-average grant-date fair value | $17.60 |
Granted during 2014, Weighted-average grant-date fair value | $26.76 |
Vested during 2014, Weighted-average grant-date fair value | $16.08 |
Forfeited during 2014, Weighted-average grant-date fair value | $18.45 |
Ending Balance, Weighted-average grant-date fair value | $21.21 |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans (Summary of Stock Option Activity) (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Beginning Balance, Number outstanding | 1,270 |
Exercised during 2014, Number outstanding | -584 |
Ending Balance, Number outstanding | 686 |
Vested and expected to vest at December 31, 2014, Number outstanding | 686 |
Exercisable at December 31, 2014, Number outstanding | 586 |
Beginning Balance, Weighted-average exercise price | $18.03 |
Exercised during 2014, Weighted-average exercise price | $15.51 |
Ending Balance, Weighted-average exercise price | $20.18 |
Vested and expected to vest at December 31, 2014, Weighted-average exercise price | $20.18 |
Exercisable at December 31, 2014, Weighted-average exercise price | $18.92 |
Ending Balance, Weighted-average remaining contractual term, years | 2 years 2 months 12 days |
Vested and expected to vest at December 31, 2014, Weighted-average remaining contractual term, years | 2 years 2 months 12 days |
Exercisable at December 31, 2014, Weighted-average remaining contractual term, years | 1 year 1 month 6 days |
Ending Balance, Aggregate intrinsic value | $9,405 |
Vested and expected to vest at December 31, 2014, Aggregate intrinsic value | 9,405 |
Exercisable at December 31, 2014, Aggregate intrinsic value | $8,786 |
Stockholders_Equity_Detail
Stockholders' Equity (Detail) (USD $) | 12 Months Ended | 39 Months Ended | |
Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2011 |
Stock repurchase program, authorized amount | $250,000,000 | $150,000,000 | |
Remaining authorize amount under stock repurchase program | 182,900,000 | ||
Purchase of Company, value | $64,606,000 | $67,100,000 | |
Common Stock | |||
Common stock repurchased, shares | 2,951 | 3,200 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Future Minimum Rental Payments) (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2015 | $79,243 |
2016 | 71,155 |
2017 | 53,431 |
2018 | 36,296 |
2019 | 23,563 |
Thereafter | 60,273 |
Future minimum rental payments | $323,961 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Disclosure [Abstract] | |||
Total rental expense for all operating leases | $93.50 | $94.60 | $96.80 |
Contingently liable for guarantees of indebtedness owed by affiliates and third parties | 8.9 | 14.7 | |
Maximum potential obligation | $8.90 | $14.70 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | ($145,537) | ($150,546) | ($177,453) |
Change in unrealized gain (losses) on securities | 29,889 | -54,000 | 52,409 |
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 1,229 | 3,809 | 6,502 |
Change in foreign currency translation adjustments | -16,694 | -13,650 | 5,131 |
Net actuarial (loss) gain | -109,924 | 53,080 | -46,602 |
Amortization of net actuarial (loss) gain | 22,587 | 32,033 | 28,368 |
Amortization of prior service cost | -4,153 | -4,385 | -4,385 |
Tax effect | 23,514 | -11,878 | -14,516 |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | -199,089 | -145,537 | -150,546 |
Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | -8,727 | 21,938 | -13,409 |
Change in unrealized gain (losses) on securities | 29,889 | -54,000 | 52,409 |
Change in unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 1,229 | 3,809 | 6,502 |
Tax effect | -11,480 | 19,526 | -23,564 |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 10,911 | -8,727 | 21,938 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | -3,726 | 9,924 | 4,793 |
Change in foreign currency translation adjustments | -16,694 | -13,650 | 5,131 |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | -20,420 | -3,726 | 9,924 |
Pension Benefit Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | -133,084 | -182,408 | -168,837 |
Net actuarial (loss) gain | -109,924 | 53,080 | -46,602 |
Amortization of net actuarial (loss) gain | 22,587 | 32,033 | 28,368 |
Amortization of prior service cost | -4,153 | -4,385 | -4,385 |
Tax effect | 34,994 | -31,404 | 9,048 |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | ($189,580) | ($133,084) | ($182,408) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss) Allocated to Company and Noncontrolling Interests) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Allocated to the Company | ($199,106) | ($145,544) | ($150,556) | |
Accumulated other comprehensive income (loss), Allocated to non-controlling interests | 17 | 7 | 10 | |
Accumulated other comprehensive income (loss) including non-controlling interest | -199,089 | -145,537 | -150,546 | -177,453 |
Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Allocated to the Company | 10,894 | -8,734 | 21,928 | |
Accumulated other comprehensive income (loss), Allocated to non-controlling interests | 17 | 7 | 10 | |
Accumulated other comprehensive income (loss) including non-controlling interest | 10,911 | -8,727 | 21,938 | -13,409 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Allocated to the Company | -20,420 | -3,726 | 9,924 | |
Accumulated other comprehensive income (loss) including non-controlling interest | -20,420 | -3,726 | 9,924 | 4,793 |
Pension Benefit Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Accumulated other comprehensive income (loss), Allocated to the Company | -189,580 | -133,084 | -182,408 | |
Accumulated other comprehensive income (loss) including non-controlling interest | ($189,580) | ($133,084) | ($182,408) | ($168,837) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | ($73,925) | ($966) | $87,274 |
Reclassifications out of AOCI | -3,141 | 17,853 | -45,851 |
Tax effect | 23,514 | -11,878 | -14,516 |
Total other comprehensive income (loss), net of tax | -53,552 | 5,009 | 26,907 |
Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | 52,693 | -40,396 | 128,745 |
Reclassifications out of AOCI | -21,575 | -9,795 | -69,834 |
Tax effect | -11,480 | 19,526 | -23,564 |
Total other comprehensive income (loss), net of tax | 19,638 | -30,665 | 35,347 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | -16,694 | -13,650 | 5,131 |
Total other comprehensive income (loss), net of tax | -16,694 | -13,650 | 5,131 |
Pension Benefit Adjustment | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Pretax change before reclassifications | -109,924 | 53,080 | -46,602 |
Reclassifications out of AOCI | 18,434 | 27,648 | 23,983 |
Tax effect | 34,994 | -31,404 | 9,048 |
Total other comprehensive income (loss), net of tax | ($56,496) | $49,324 | ($13,571) |
Accumulated_Other_Comprehensiv5
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized investment gains (losses) | ($31,768,000) | ($9,211,000) | ($67,686,000) | ||
Net other-than-temporary impairment losses | 1,701,000 | 3,564,000 | |||
Amortization of net actuarial loss | 22,587,000 | 32,033,000 | 28,368,000 | ||
Amortization of prior service credit | -4,153,000 | -4,385,000 | -4,385,000 | ||
Pretax total | 3,141,000 | -17,853,000 | 45,851,000 | ||
Income taxes | 116,345,000 | 123,644,000 | 165,678,000 | ||
Unrealized Gains (Losses) on Securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax total | 21,575,000 | 9,795,000 | 69,834,000 | ||
Pension Benefit Adjustment | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax total | -18,434,000 | -27,648,000 | -23,983,000 | ||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized Gains (Losses) on Securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized investment gains (losses) | 23,276,000 | 9,795,000 | |||
Net other-than-temporary impairment losses | -1,701,000 | ||||
Pretax total | 21,575,000 | 9,795,000 | |||
Income taxes | -7,959,000 | -3,811,000 | |||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Pension Benefit Adjustment | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net actuarial loss | -22,587,000 | [1] | -32,033,000 | [1] | |
Amortization of prior service credit | 4,153,000 | [1] | 4,385,000 | [1] | |
Pretax total | -18,434,000 | -27,648,000 | |||
Income taxes | $7,051,000 | $10,757,000 | |||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 |
Business | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price in cash | $5.30 | ||
Contingent consideration | 1.2 | ||
Number of business acquired | 4 | ||
Loan Quality Analytics | |||
Business Acquisition [Line Items] | |||
Acquisition purchase price | 151.2 | ||
Additional Acquisitions | |||
Business Acquisition [Line Items] | |||
Acquisition purchase price | $11.30 |
Segment_Financial_Information_1
Segment Financial Information (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
State | |
Segment Reporting [Abstract] | |
Number of states issues title insurance policies | 49 |
Number of states licensed to issues property and casualty insurance policies | 50 |
Number of states issues property and casualty policies | 46 |
Number of states issues home warranty contracts | 39 |
Segment_Financial_Information_2
Segment Financial Information (Schedule of Selected Financial Information) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $1,255,451 | $1,259,730 | $1,149,969 | $1,012,799 | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $4,677,949 | $4,956,077 | $4,541,821 |
Depreciation and amortization | 85,597 | 74,916 | 74,950 | |||||||||
Equity in earnings of affiliates, net | -16,545 | 5,316 | 6,514 | |||||||||
Income (loss) before income taxes | 122,897 | 115,952 | 76,458 | 35,253 | 84,847 | [1] | 107,045 | 59,224 | 59,592 | 350,560 | 310,708 | 467,406 |
Assets | 7,666,100 | 6,559,183 | 7,666,100 | 6,559,183 | 6,077,626 | |||||||
Capital expenditures | 99,361 | 87,142 | 83,892 | |||||||||
Investments in equity method affiliates | 106,083 | 125,022 | 106,083 | 125,022 | 129,970 | |||||||
Operating Segments | Title Insurance and Services | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 4,304,428 | 4,606,088 | 4,200,520 | |||||||||
Depreciation and amortization | 77,820 | 66,956 | 67,610 | |||||||||
Equity in earnings of affiliates, net | -16,545 | 7,387 | 7,677 | |||||||||
Income (loss) before income taxes | 373,024 | 350,165 | 473,681 | |||||||||
Assets | 6,767,245 | 5,751,632 | 6,767,245 | 5,751,632 | 5,427,432 | |||||||
Capital expenditures | 95,949 | 83,469 | 78,614 | |||||||||
Investments in equity method affiliates | 106,083 | 124,921 | 106,083 | 124,921 | 127,217 | |||||||
Operating Segments | Specialty Insurance | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 368,666 | 339,613 | 315,171 | |||||||||
Depreciation and amortization | 4,978 | 4,865 | 4,553 | |||||||||
Income (loss) before income taxes | 52,974 | 42,132 | 47,459 | |||||||||
Assets | 506,242 | 499,788 | 506,242 | 499,788 | 487,780 | |||||||
Capital expenditures | 3,412 | 3,673 | 5,278 | |||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 6,415 | 13,008 | 29,892 | |||||||||
Depreciation and amortization | 2,799 | 3,095 | 2,787 | |||||||||
Equity in earnings of affiliates, net | -2,071 | -1,163 | ||||||||||
Income (loss) before income taxes | -75,438 | -81,589 | -53,349 | |||||||||
Assets | 464,980 | 369,385 | 464,980 | 369,385 | 299,707 | |||||||
Investments in equity method affiliates | 101 | 101 | 2,753 | |||||||||
Eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | -1,560 | -2,632 | -3,762 | |||||||||
Income (loss) before income taxes | -385 | |||||||||||
Assets | ($72,367) | ($61,622) | ($72,367) | ($61,622) | ($137,293) | |||||||
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Segment_Financial_Information_3
Segment Financial Information (Schedule of Total Revenues From External Customers And Long-Lived Assets) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ||||||||||||
Revenues from external customers | $1,255,451 | $1,259,730 | $1,149,969 | $1,012,799 | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $4,677,949 | $4,956,077 | $4,541,821 |
Domestic | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues from external customers | 4,346,164 | 4,622,680 | 4,179,369 | |||||||||
Long-lived assets | 1,897,449 | 1,716,034 | 1,897,449 | 1,716,034 | 1,685,097 | |||||||
Foreign | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues from external customers | 325,393 | 320,413 | 332,577 | |||||||||
Long-lived assets | 122,045 | 135,912 | 122,045 | 135,912 | 151,289 | |||||||
Title Insurance and Services | Domestic | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues from external customers | 3,977,498 | 4,283,067 | 3,865,480 | |||||||||
Long-lived assets | 1,792,387 | 1,610,310 | 1,792,387 | 1,610,310 | 1,580,399 | |||||||
Title Insurance and Services | Foreign | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues from external customers | 325,393 | 320,413 | 332,577 | |||||||||
Long-lived assets | 122,045 | 135,912 | 122,045 | 135,912 | 151,289 | |||||||
Specialty Insurance | Domestic | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues from external customers | 368,666 | 339,613 | 313,889 | |||||||||
Long-lived assets | $105,062 | $105,724 | $105,062 | $105,724 | $104,698 | |||||||
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $1,255,451 | $1,259,730 | $1,149,969 | $1,012,799 | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $4,677,949 | $4,956,077 | $4,541,821 | |||||||
Income before income taxes | 122,897 | 115,952 | 76,458 | 35,253 | 84,847 | [1] | 107,045 | 59,224 | 59,592 | 350,560 | 310,708 | 467,406 | |||||||
Net income | 80,738 | 80,937 | 50,688 | 21,852 | 51,789 | [1] | 64,095 | 34,948 | 36,232 | 234,215 | 187,064 | 301,728 | |||||||
Net income attributable to noncontrolling interests | 227 | 232 | 94 | 128 | 162 | [1] | 205 | 276 | 54 | 681 | 697 | 687 | |||||||
Net income attributable to the Company | $80,511 | $80,705 | $50,594 | $21,724 | $51,627 | [1] | $63,890 | $34,672 | $36,178 | $233,534 | $186,367 | $301,041 | |||||||
Basic | $0.75 | [2] | $0.75 | [2] | $0.47 | [2] | $0.20 | [2] | $0.49 | [1],[2] | $0.60 | [2] | $0.32 | [2] | $0.34 | [2] | $2.18 | $1.74 | $2.83 |
Diluted | $0.74 | [2] | $0.74 | [2] | $0.47 | [2] | $0.20 | [2] | $0.48 | [1],[2] | $0.59 | [2] | $0.31 | [2] | $0.33 | [2] | $2.15 | $1.71 | $2.77 |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | ||||||||||||||||||
[2] | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Quarterly_Financial_Data_Paren
Quarterly Financial Data (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |
Reduction in net income | $4.40 |
Decreases in diluted net income per share attributable to the Company’s stockholders | $0.04 |
Schedule_I_Summary_Of_Investme
Schedule I - Summary Of Investments-Other Than Investments In Related Parties (Detail) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | $4,007,608 | |
Market value | 4,031,787 | |
Amount at which shown in the balance sheet | 4,033,892 | |
Deposits with Banks | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 21,445 | |
Market value | 21,540 | |
Amount at which shown in the balance sheet | 21,445 | |
U.S. Treasury Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 64,195 | |
Market value | 64,982 | |
Amount at which shown in the balance sheet | 64,982 | |
Municipal Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 577,703 | |
Market value | 587,677 | |
Amount at which shown in the balance sheet | 587,677 | |
Foreign Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 194,749 | |
Market value | 196,750 | |
Amount at which shown in the balance sheet | 196,750 | |
Governmental Agency Bonds | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 198,330 | |
Market value | 197,874 | |
Amount at which shown in the balance sheet | 197,874 | |
Governmental Agency Mortgage-Backed Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 1,812,766 | |
Market value | 1,812,162 | |
Amount at which shown in the balance sheet | 1,812,162 | |
Non-Agency Mortgage-Backed Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 15,949 | |
Market value | 16,538 | |
Amount at which shown in the balance sheet | 16,538 | |
Corporate Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 568,774 | |
Market value | 574,269 | |
Amount at which shown in the balance sheet | 574,269 | |
Total Debt Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 3,432,466 | |
Market value | 3,450,252 | |
Amount at which shown in the balance sheet | 3,450,252 | |
Equity Securities | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 393,914 | |
Market value | 402,412 | |
Amount at which shown in the balance sheet | 402,412 | |
Notes Receivable, Net | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 6,130 | |
Market value | 3,930 | |
Amount at which shown in the balance sheet | 6,130 | |
Other Long-term Investments | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||
Cost | 153,653 | |
Market value | 153,653 | [1] |
Amount at which shown in the balance sheet | $153,653 | |
[1] | As other long-term investments are not publicly traded, reasonable estimate of the fair values could not be made without incurring excessive costs. |
Schedule_II_Condensed_Balance_
Schedule II - Condensed Balance Sheets Parent Company (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and cash equivalents | $1,190,080 | $834,837 | $670,529 | $444,693 |
Income taxes receivable | 5,547 | 37,632 | ||
Deferred income taxes | 254,703 | 214,167 | ||
Other assets | 198,626 | 185,658 | ||
Total assets | 7,666,100 | 6,559,183 | 6,077,626 | |
LIABILITIES AND EQUITY | ||||
Accounts payable and other accrued liabilities | 854,105 | 795,812 | ||
Income taxes payable | 6,228 | |||
Deferred income taxes | 95,128 | 93,362 | ||
Notes and contracts payable | 587,337 | 310,285 | ||
Total liabilities | 5,090,056 | 4,102,940 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.00001 par value; Authorized—500 shares;Outstanding—none | ||||
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—107,541 shares and 105,900 shares | 1 | 1 | ||
Additional paid-in capital | 2,109,712 | 2,077,828 | ||
Retained earnings | 662,310 | 520,764 | ||
Accumulated other comprehensive loss | -199,106 | -145,544 | -150,556 | |
Total stockholders’ equity | 2,572,917 | 2,453,049 | ||
Noncontrolling interests | 3,127 | 3,194 | ||
Total equity | 2,576,044 | 2,456,243 | 2,351,769 | 2,034,939 |
Total liabilities and equity | 7,666,100 | 6,559,183 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 328,949 | 221,666 | 163,488 | 147,339 |
Income taxes receivable | 5,547 | 37,632 | ||
Investment in subsidiaries | 3,333,613 | 2,944,803 | ||
Deferred income taxes | 19,712 | 27,478 | ||
Other assets | 105,344 | 88,752 | ||
Total assets | 3,793,165 | 3,320,331 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable and other accrued liabilities | 55,021 | 75,656 | ||
Pension costs and other retirement plans | 451,501 | 371,671 | ||
Income taxes payable | 6,228 | |||
Due to subsidiaries, net | 77 | 14,236 | ||
Deferred income taxes | 95,128 | 93,362 | ||
Notes and contracts payable | 549,166 | 249,163 | ||
Notes and contracts payable to subsidiaries | 60,000 | 60,000 | ||
Total liabilities | 1,217,121 | 864,088 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.00001 par value; Authorized—500 shares;Outstanding—none | ||||
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—107,541 shares and 105,900 shares | 1 | 1 | ||
Additional paid-in capital | 2,109,712 | 2,077,828 | ||
Retained earnings | 662,310 | 520,764 | ||
Accumulated other comprehensive loss | -199,106 | -145,544 | ||
Total stockholders’ equity | 2,572,917 | 2,453,049 | ||
Noncontrolling interests | 3,127 | 3,194 | ||
Total equity | 2,576,044 | 2,456,243 | ||
Total liabilities and equity | $3,793,165 | $3,320,331 |
Schedule_II_Condensed_Balance_1
Schedule II - Condensed Balance Sheets Parent Company (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 107,541,000 | 105,900,000 |
Parent Company | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 107,541,000 | 105,900,000 |
Schedule_II_Condensed_Statemen
Schedule II - Condensed Statements Of Income Parent Company (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues: | ||||||||||||
Total revenues | $1,255,451 | $1,259,730 | $1,149,969 | $1,012,799 | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $4,677,949 | $4,956,077 | $4,541,821 |
Expenses: | ||||||||||||
Income taxes | 116,345 | 123,644 | 165,678 | |||||||||
Net income | 80,738 | 80,937 | 50,688 | 21,852 | 51,789 | [1] | 64,095 | 34,948 | 36,232 | 234,215 | 187,064 | 301,728 |
Less: Net income attributable to noncontrolling interests | 227 | 232 | 94 | 128 | 162 | [1] | 205 | 276 | 54 | 681 | 697 | 687 |
Net income attributable to the Company | 80,511 | 80,705 | 50,594 | 21,724 | 51,627 | [1] | 63,890 | 34,672 | 36,178 | 233,534 | 186,367 | 301,041 |
Parent Company | ||||||||||||
Revenues: | ||||||||||||
Dividends from subsidiaries | 342,488 | 372,996 | 285,141 | |||||||||
Other income | 6,412 | 12,804 | 29,839 | |||||||||
Total revenues | 348,900 | 385,800 | 314,980 | |||||||||
Expenses: | ||||||||||||
Other expenses | 33,959 | 36,184 | 24,569 | |||||||||
Income before income taxes and equity in undistributed earnings (losses) of subsidiaries | 314,941 | 349,616 | 290,411 | |||||||||
Income taxes | 104,523 | 139,127 | 102,940 | |||||||||
Equity in undistributed earnings (losses) of subsidiaries | 23,797 | -23,425 | 114,257 | |||||||||
Net income | 234,215 | 187,064 | 301,728 | |||||||||
Less: Net income attributable to noncontrolling interests | 681 | 697 | 687 | |||||||||
Net income attributable to the Company | $233,534 | $186,367 | $301,041 | |||||||||
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Schedule_II_Condensed_Statemen1
Schedule II - Condensed Statements Of Comprehensive Income Parent Company (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Statement Of Income Captions [Line Items] | ||||||||||||
Net income | $80,738 | $80,937 | $50,688 | $21,852 | $51,789 | [1] | $64,095 | $34,948 | $36,232 | $234,215 | $187,064 | $301,728 |
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized gain (loss) on securities | 18,862 | -32,992 | 31,445 | |||||||||
Unrealized gain on securities for which credit losses have been recognized in earnings | 776 | 2,327 | 3,902 | |||||||||
Foreign currency translation adjustment | -16,694 | -13,650 | 5,131 | |||||||||
Pension benefit adjustment | -56,496 | 49,324 | -13,571 | |||||||||
Total other comprehensive income (loss), net of tax | -53,552 | 5,009 | 26,907 | |||||||||
Comprehensive income | 180,663 | 192,073 | 328,635 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | 691 | 694 | 691 | |||||||||
Comprehensive income attributable to the Company | 179,972 | 191,379 | 327,944 | |||||||||
Parent Company | ||||||||||||
Condensed Statement Of Income Captions [Line Items] | ||||||||||||
Net income | 234,215 | 187,064 | 301,728 | |||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized gain (loss) on securities | 18,862 | -32,992 | 31,445 | |||||||||
Unrealized gain on securities for which credit losses have been recognized in earnings | 776 | 2,327 | 3,902 | |||||||||
Foreign currency translation adjustment | -16,694 | -13,650 | 5,131 | |||||||||
Pension benefit adjustment | -56,496 | 49,324 | -13,571 | |||||||||
Total other comprehensive income (loss), net of tax | -53,552 | 5,009 | 26,907 | |||||||||
Comprehensive income | 180,663 | 192,073 | 328,635 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | 691 | 694 | 691 | |||||||||
Comprehensive income attributable to the Company | $179,972 | $191,379 | $327,944 | |||||||||
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Schedule_II_Condensed_Statemen2
Schedule II - Condensed Statements Of Cash Flows Parent Company (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from investing activities: | |||
Net cash effect of acquisitions/dispositions | ($163,320) | ($5,837) | ($32,476) |
Proceeds from sales of equity securities | 928,386 | 621,255 | 954,626 |
Net change in other long-term investments | 8,025 | 6,443 | 6,591 |
Cash flows from financing activities: | |||
Net proceeds from issuance of debt | 594,477 | 249,144 | 440,065 |
Repayment of debt | -325,110 | -168,205 | -510,544 |
Excess tax benefits from share-based compensation | 6,856 | 6,202 | 2,372 |
Net proceeds in connection with share-based compensation plans | 3,601 | 1,736 | 12,668 |
Purchase of Company shares | -64,606 | ||
Cash dividends | -89,939 | -51,324 | -44,705 |
Net increase in cash and cash equivalents | 355,243 | 164,308 | 225,836 |
Cash and cash equivalents—Beginning of year | 834,837 | 670,529 | 444,693 |
Cash and cash equivalents—End of year | 1,190,080 | 834,837 | 670,529 |
Parent Company | |||
Cash flows from operating activities: | |||
Cash provided by (used for) operating activities | 54,298 | 71,326 | -38,703 |
Cash flows from investing activities: | |||
Net cash effect of acquisitions/dispositions | -151,570 | ||
Proceeds from sales of equity securities | 137,823 | ||
Contributions to subsidiaries | -11,396 | -800 | -10,999 |
Net change in other long-term investments | 1,490 | 6,549 | 595 |
Cash (used for) provided by investing activities | -161,476 | 5,749 | 127,419 |
Cash flows from financing activities: | |||
Net proceeds from issuance of debt | 593,943 | 249,095 | 440,000 |
Repayment of debt | -300,000 | -160,000 | -480,000 |
Repayment of debt to subsidiaries | -2,902 | ||
Excess tax benefits from share-based compensation | 6,856 | 6,202 | 2,372 |
Net proceeds in connection with share-based compensation plans | 3,601 | 1,736 | 12,668 |
Purchase of Company shares | -64,606 | ||
Cash dividends | -89,939 | -51,324 | -44,705 |
Cash provided by (used for) financing activities | 214,461 | -18,897 | -72,567 |
Net increase in cash and cash equivalents | 107,283 | 58,178 | 16,149 |
Cash and cash equivalents—Beginning of year | 221,666 | 163,488 | 147,339 |
Cash and cash equivalents—End of year | $328,949 | $221,666 | $163,488 |
Schedule_II_Notes_to_Condensed
Schedule II - Notes to Condensed Financial Statements Parent Company (Detail) (Parent Company, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Parent Company | |||
Condensed Financial Statements Captions [Line Items] | |||
Tax receivable due from subsidiaries | $23.90 | ||
Cash dividends received from subsidiaries | $79.10 | $125.10 | $11.80 |
Schedule_III_Balance_Sheet_Cap
Schedule III - Balance Sheet Captions (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | $27,495 | $26,812 |
Claims reserves | 1,011,780 | 1,018,365 |
Deferred revenues | 202,764 | 192,184 |
Title Insurance and Services | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 2,179 | 2,375 |
Claims reserves | 969,008 | 977,355 |
Deferred revenues | 14,265 | 14,544 |
Specialty Insurance | ||
Supplementary Insurance Information By Segment [Line Items] | ||
Deferred policy acquisition costs | 25,316 | 24,437 |
Claims reserves | 42,772 | 41,010 |
Deferred revenues | $188,499 | $177,640 |
Schedule_III_Income_Statement_
Schedule III - Income Statement Captions (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Supplementary Insurance Information By Segment [Line Items] | ||||||
Premiums and escrow fees | $3,956,892 | $4,229,326 | $3,751,645 | |||
Net investment income | 101,108 | [1] | 99,106 | [1] | 145,153 | [1] |
Loss provision | 450,023 | 530,356 | 397,717 | |||
Amortization of deferred policy acquisition costs | 1,868 | -1,268 | 1,066 | |||
Other operating expenses | 833,681 | 885,805 | 836,319 | |||
Premiums written | 364,782 | 344,433 | 312,696 | |||
Operating Segments | Title Insurance and Services | ||||||
Supplementary Insurance Information By Segment [Line Items] | ||||||
Premiums and escrow fees | 3,603,080 | 3,900,132 | 3,455,592 | |||
Net investment income | 83,635 | [1] | 79,940 | [1] | 101,495 | [1] |
Loss provision | 253,122 | 343,461 | 237,427 | |||
Amortization of deferred policy acquisition costs | 2,746 | 1,261 | 1,174 | |||
Other operating expenses | 761,584 | 816,870 | 769,477 | |||
Operating Segments | Specialty Insurance | ||||||
Supplementary Insurance Information By Segment [Line Items] | ||||||
Premiums and escrow fees | 353,812 | 329,194 | 296,053 | |||
Net investment income | 12,594 | [1] | 8,767 | [1] | 17,513 | [1] |
Loss provision | 196,901 | 186,895 | 160,290 | |||
Amortization of deferred policy acquisition costs | -878 | -2,529 | -108 | |||
Other operating expenses | 45,599 | 41,725 | 42,395 | |||
Premiums written | 364,782 | 344,433 | 312,696 | |||
Corporate | ||||||
Supplementary Insurance Information By Segment [Line Items] | ||||||
Net investment income | 6,415 | [1] | 13,008 | [1] | 29,892 | [1] |
Other operating expenses | 26,528 | 27,264 | 24,462 | |||
Eliminations | ||||||
Supplementary Insurance Information By Segment [Line Items] | ||||||
Net investment income | -1,536 | [1] | -2,609 | [1] | -3,747 | [1] |
Other operating expenses | ($30) | ($54) | ($15) | |||
[1] | Net investment income includes net investment income, net realized investment gains and net other-than-temporary impairment losses. |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Title Insurance and Services | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | $3,627,921 | $3,923,117 | $3,472,675 |
Ceded to other companies | 28,727 | 27,483 | 19,884 |
Assumed from other companies | 3,886 | 4,498 | 2,801 |
Premiums and escrow fees | 3,603,080 | 3,900,132 | 3,455,592 |
Percentage of amount assumed to premiums and escrow fees | 0.10% | 0.10% | 0.10% |
Specialty Insurance | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Premiums and escrow fees before reinsurance | 363,044 | 338,204 | 305,073 |
Ceded to other companies | 9,232 | 9,010 | 9,020 |
Premiums and escrow fees | $353,812 | $329,194 | $296,053 |
Percentage of amount assumed to premiums and escrow fees | 0.00% | 0.00% | 0.00% |
Schedule_V_Valuation_And_Quali
Schedule V - Valuation And Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reserve Deducted From Accounts Receivable | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | $31,831 | $30,917 | $30,504 | |||
Additions Charged to costs and expenses | 12,352 | 7,478 | 4,927 | |||
Deductions from reserve | 9,521 | [1] | 6,564 | [1] | 4,514 | [1] |
Balance at end of period | 34,662 | 31,831 | 30,917 | |||
Reserve For Known And Incurred But Not Reported Claims | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | 1,018,365 | 976,462 | 1,014,676 | |||
Additions Charged to costs and expenses | 450,023 | 530,356 | 397,717 | |||
Additions Charged to other accounts | 13,142 | -9,143 | 10,055 | |||
Deductions from reserve | 469,750 | [2] | 479,310 | [2] | 445,986 | [2] |
Balance at end of period | 1,011,780 | 1,018,365 | 976,462 | |||
Reserve Deducted From Notes Receivable | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | 2,584 | 2,902 | 4,183 | |||
Additions Charged to costs and expenses | 128 | -132 | 462 | |||
Deductions from reserve | 271 | 186 | 1,743 | |||
Balance at end of period | 2,441 | 2,584 | 2,902 | |||
Reserve Deducted From Deferred Income Taxes | ||||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | 18,119 | 14,172 | 21,426 | |||
Additions Charged to costs and expenses | -1,032 | 3,578 | ||||
Additions Charged to other accounts | 369 | 15 | ||||
Deductions from reserve | 2,413 | 7,269 | ||||
Balance at end of period | $15,706 | $18,119 | $14,172 | |||
[1] | Amount represents accounts written off, net of recoveries. | |||||
[2] | Amount represents claim payments, net of recoveries. |