Income taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Expense

Income tax expense consists of the following:

	2016		2015		2014
	($000 omitted)
Current:
Federal	4,718		4,774		3,047
State	1,447		709		(224	)
Foreign	5,983		5,967		7,442
Deferred:
Federal	6,262		(3,986	)	3,916
State	(1,347	)	(1,375	)	(694	)
Foreign	2,542		(439	)	16
Income tax expense	19,605		5,650		13,503

Reconciliation of Income Tax Expenses Computed at Federal Statutory Rate with Income Tax Expense (Benefit) Reported

The following reconciles income tax expense (benefit) computed at the federal statutory rate with income tax expense as reported:

	2016		2015		2014
	($000 omitted)
Expected income tax expense (benefit) at 35% (1)	26,279		(194	)	15,140
Return-to-provision and true-up adjustments	(4,127	)	(1,329	)	1,133
Previously unrecognized research and development credits	(3,434	)	—		—
Nondeductible expenses	2,772		2,768		4,060
Intercompany dividends, net of deduction for dividends received	(539	)	(541	)	(319	)
Tax-exempt interest	(458	)	(404	)	(324	)
State income tax benefit – net of Federal impact	(407	)	(914	)	(840	)
Noncontrolling interest	303		251		186
Valuation allowance	294		(668	)	(5,020	)
Foreign tax rate differential	(207	)	(329	)	(693	)
Impairment of goodwill	—		7,099		—
Other – net	(871	)	(89	)	180
Income tax expense	19,605		5,650		13,503
Effective income tax rates (1)	26.1	%	(1,019.4	)%	31.2	%

⁽¹⁾ Calculated using income (loss) before taxes and after noncontrolling interests.

Deferred Income Taxes

Deferred tax assets and liabilities resulting from the same tax jurisdiction are netted and presented as either an asset or liability on the consolidated balance sheets. Deferred tax assets and liabilities resulting from different tax jurisdictions are not netted. Deferred tax assets and liabilities as of December 31 are detailed below.

	2016		2015
	($000 omitted)
Deferred tax assets:
Accrued expenses	26,835		20,190
Net operating loss (NOL) carryforwards	6,275		6,428
Tax credit carryforwards	6,154		20,242
Federal offset to Canadian deferred tax liability (1)	4,335		1,657
Foreign currency translation adjustments	4,238		5,220
Allowance for uncollectible amounts	3,454		3,524
Fixed assets	2,067		2,094
Investments	978		3,369
Other	476		297
Deferred tax assets – gross	54,812		63,021
Valuation allowance	(2,457	)	(2,217	)
Deferred tax assets – net	52,355		60,804
Deferred tax liabilities:
Amortization – goodwill and other intangibles	(26,851	)	(27,991	)
Title loss provisions	(21,433	)	(18,523	)
Unrealized gains on investments	(3,873	)	(4,811	)
Deferred compensation on life insurance policies	(3,345	)	(3,558	)
Other	(849	)	(2,328	)
Deferred tax liabilities – gross	(56,351	)	(57,211	)
Net deferred income tax (liability) asset	(3,996	)	3,593

⁽¹⁾ For U.S. income tax purposes, the Company’s Canada operation is a branch of Guaranty.  As a result, the branch’s Canadian net deferred tax liability is offset in the U.S. as a deferred tax asset but not in an equal amount given differing tax rates in Canada and the U.S.