Goodwill and other intangibles

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangibles. The summary of changes in goodwill is as follows:



	Title		Ancillary Services and Corporate		Total
	($000 omitted)
Balances at January 1, 2015	202,002		49,866		251,868
Re-allocation of goodwill	3,951		(3,951	)	—
Acquisitions	7,220		—		7,220
Purchase adjustments	—		(5,268	)	(5,268	)
Impairment	(1,569	)	(34,180	)	(35,749	)
Disposals	(349	)	—		(349	)
Balances at December 31, 2015	211,255		6,467		217,722
Acquisitions	300		—		300
Disposals	(190	)	(738	)	(928	)
Balances at December 31, 2016	211,365		5,729		217,094

In connection with the realignment of the Company's reportable segments in 2016 (refer to Note 19), management determined it was appropriate to re-allocate the goodwill attributable to the centralized title services business from the ancillary services and corporate segment to the title segment. For comparability, this adjustment and the 2015 impairment related to the centralized title services business were presented as part of the title segment 2015 activity in the table shown above. The purchase adjustments recorded for 2015 were related to the remeasurement of assumed liabilities related to certain acquisitions from 2014 (refer to Note 20).

The Company evaluates goodwill for impairment annually based on information as of June 30 of the current year or more frequently if circumstances suggest that impairment may exist. In 2016, the Company performed a quantitative assessment for each of its reporting units to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount, including goodwill. Based on the analysis, the Company concluded that the goodwill related to each reporting unit was not impaired.

In 2015, the Company utilized the qualitative assessment for the title reporting units and concluded that the goodwill related to the title reporting units was not impaired. Further, in 2015, based on management's decision to exit the delinquent loan servicing activities included within the ancillary services reporting unit, the Company performed a two-step quantitative assessment of ancillary services' goodwill. Based on the impairment analysis, the Company recorded a $35.7 million impairment of goodwill for 2015, which was presented as impairment of goodwill in the 2015 consolidated statement of operations and comprehensive loss. As discussed above, $1.6 million of the total impairment was related to the centralized title services business and was subsequently included as part of the title segment as a result of the Company's realignment of its reportable segments.

In 2015, the Company also performed an impairment analysis of other intangible assets within the ancillary services and corporate segment. Based on the Company's impairment review using the discounted cash flow technique to estimate fair value, the Company recorded an impairment of $0.9 million on an intangible asset. Further, the Company recognized in 2015 a $0.9 million impairment relating to an intangible asset under the title segment that will not be recoverable in future periods. These impairment losses on other intangible assets were reported within investment and other losses - net in the 2015 consolidated statement of operations and comprehensive loss. During 2016, the Company determined no impairment on other intangible assets was required.

The gross carrying amount and accumulated amortization and impairment of other intangibles was $32.7 million and $21.8 million, respectively, at December 31, 2016 and $43.6 million and $25.5 million, respectively, at December 31, 2015. During 2016, other intangible assets with total gross carrying amounts and accumulated amortization and impairment of $11.2 million and $9.1 million, respectively, were written off as part of the sale of certain businesses within the Company's ancillary services operations (refer to Note 21).

The amortization expense recorded for the Company's other intangible assets was $5.5 million and $7.0 million in 2016 and 2015, respectively. The annual amortization expense expected to be recognized in the next five years is approximately $3.4 million in 2017, $2.8 million in 2018, $2.0 million in 2019, $1.0 million in 2020 and $0.4 million in 2021.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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