Income taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income tax expense consists of the following:

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	)