Note 15 – Segment Information

The Company consists of the following reportable segments and a corporate function:

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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; provides evidence of title; and provides banking, trust, document custodial 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, South Korea and various other established and emerging markets.

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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 47 states. The majority of policy liability is in the western United States, including approximately 65% in California. 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 certain 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.

Selected financial information about the Company’s operations, by segment, is as follows:

For the three months ended September 30, 2017:

(in thousands)	Revenues			Income (loss) before income taxes			Depreciation and amortization		Capital expenditures
Title Insurance and Services	$	1,397,262		$	181,199		$	34,363	$	33,750
Specialty Insurance		118,481			6,178			1,599		2,015
Corporate		4,108			(169,415	)		38		—
Eliminations		(283	)		—			—		—
	$	1,519,568		$	17,962		$	36,000	$	35,765

For the three months ended September 30, 2016:

(in thousands)	Revenues			Income (loss) before income taxes			Depreciation and amortization		Capital expenditures
Title Insurance and Services	$	1,395,727		$	188,706		$	22,994	$	41,948
Specialty Insurance		109,782			1,781			1,401		844
Corporate		2,855			(23,556	)		96		—
Eliminations		(20	)		—			—		—
	$	1,508,344		$	166,931		$	24,491	$	42,792

For the nine months ended September 30, 2017:

(in thousands)	Revenues			Income (loss) before income taxes			Depreciation and amortization		Capital expenditures
Title Insurance and Services	$	3,937,119		$	476,746		$	91,471	$	100,059
Specialty Insurance		343,908			25,779			4,697		5,797
Corporate		10,872			(216,529	)		124		—
Eliminations		(859	)		—			—		—
	$	4,291,040		$	285,996		$	96,292	$	105,856

For the nine months ended September 30, 2016:

(in thousands)	Revenues			Income (loss) before income taxes			Depreciation and amortization		Capital expenditures
Title Insurance and Services	$	3,750,118		$	448,815		$	66,510	$	99,887
Specialty Insurance		317,246			18,744			4,107		3,928
Corporate		4,265			(71,429	)		288		—
Eliminations		(40	)		—			—		—
	$	4,071,589		$	396,130		$	70,905	$	103,815