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Income taxes
 12 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
Income taxes
Income taxes. Income tax expense consists of the following:
 
 
2015
 
2014
 
2013
 
($000 omitted)
Current:
 
 
 
 
 
Federal
4,774

 
3,047

 
2,589

State
709

 
(224
)
 
2,757

Foreign
5,967

 
7,442

 
6,753

Deferred:
 
 
 
 
 
Federal
(3,986
)
 
3,916

 
18,361

State
(1,375
)
 
(694
)
 
(206
)
Foreign
(439
)
 
16

 
(1,773
)
Income tax expense
5,650

 
13,503

 
28,481



The following reconciles income tax (benefit) expense computed at the federal statutory rate with income tax expense as reported:
 
 
2015
 
2014
 
2013
 
($000 omitted)
Expected income tax (benefit) expense at 35% (1)
(194
)
 
15,140

 
32,027

Foreign tax rate differential
(329
)
 
(693
)
 
(422
)
State income tax (benefit) expense – net of Federal impact
(914
)
 
(840
)
 
1,586

Impairment of goodwill
7,099

 
—

 
—

Nondeductible expenses
2,768

 
4,060

 
2,321

Return-to-provision adjustments
(1,329
)
 
1,133

 
(2,408
)
Valuation allowance
(668
)
 
(5,020
)
 
(6,555
)
Intercompany dividends and dividends received deductions
(541
)
 
(319
)
 
449

Tax-exempt interest
(404
)
 
(324
)
 
(233
)
Noncontrolling interest
251

 
186

 
529

Life insurance proceeds
(175
)
 
—

 
(797
)
Nondeductible bond conversion costs
—

 
—

 
1,900

Other – net
86

 
180

 
84

Income tax expense
5,650

 
13,503

 
28,481

Effective income tax rates (1)
(1,019.4
)%
 
31.2
%
 
31.1
%
 
(1) Calculated using (loss) income before taxes and after noncontrolling interests.

Deferred income taxes as of December 31 were as follows:
 
 
2015
 
2014
 
($000 omitted)
Deferred tax assets:
 
 
 
Tax credit carryforwards
20,242

 
26,792

Accrued expenses
20,190

 
17,241

Net operating loss (NOL) carryforwards
6,428

 
4,260

Foreign currency translation adjustments
5,220

 
411

Allowance for uncollectible amounts
3,524

 
3,379

Investments
3,369

 
1,582

Fixed assets
2,094

 
5,860

Other
1,954

 
2,127

Deferred tax assets – gross
63,021

 
61,652

Valuation allowance
(2,217
)
 
(2,564
)
Deferred tax assets – net
60,804

 
59,088

Deferred tax liabilities:
 
 
 
Amortization – goodwill and other intangibles
(27,991
)
 
(34,740
)
Title loss provisions
(18,523
)
 
(23,365
)
Unrealized gains on investments
(4,811
)
 
(7,953
)
Deferred compensation on life insurance policies
(3,558
)
 
(3,239
)
Other
(2,328
)
 
(2,476
)
Deferred tax liabilities – gross
(57,211
)
 
(71,773
)
Net deferred income tax assets (liabilities)
3,593

 
(12,685
)

At December 31, 2015 and 2014, net deferred tax assets (liabilities) for U.S. federal tax paying components totaled approximately $3.8 million and $(12.0) million, respectively, and net deferred tax liabilities for foreign tax paying components totaled approximately $0.3 million and $0.7 million, respectively. The net decrease to the valuation allowance during 2015 and 2014 was $0.3 million and $4.4 million, respectively.
During 2008, the Company recorded a valuation allowance against U.S. deferred tax assets, net of definite-lived deferred tax liabilities, for which realization could not be assured based on a more-likely-than-not standard. The Company retained that valuation allowance for all subsequent periods through December 31, 2011 principally due to the Company’s cumulative three-year operating loss history as of the end of each period. The Company routinely evaluates the extent to which the valuation allowance may be reversed. During 2013, the Company utilized the remaining portion of its U.S. federal NOL carryforwards and released a $6.6 million valuation allowance on foreign tax credit carry forwards that it believed will, on a more-likely-than-not-basis, be utilized prior to expiration. During 2014, the Company released the remaining $5.0 million valuation allowance on foreign tax credit carryforwards. The Company believes it is more-likely-than-not it will be able to utilize its net deferred tax assets.
The Company’s $20.2 million of foreign tax credit carryforwards at December 31, 2015 expire in varying amounts from 2020 through 2023. The Company's $6.4 million of deferred tax assets relating to NOL carryforwards include certain state amounts expiring in varying amounts from 2019 through 2035 and foreign amounts expiring in varying amounts from 2020 through 2022 or having unlimited carryforward periods. The future utilization of all NOL and foreign tax credit carryforwards is subject to various limitations. The remaining valuation allowance at December 31, 2015 relates principally to certain state and foreign NOL carryforwards.

The Company’s income tax returns are routinely subject to examinations by U.S. federal, foreign, and state and local tax authorities. During 2014, the Internal Revenue Service (IRS) completed its examination of calendar years 2005 through 2008 and the Company received anticipated refunds from previously-filed carryback claims in the amount of $2.8 million. Also during 2014, the IRS completed its examination of the calendar year 2012 U.S. federal tax return without any IRS-initiated adjustments. The Company also is involved in routine examinations by state and local tax jurisdictions for calendar years 2008 through 2014. The Company expects no material adjustments from any tax return examinations.