Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Provision

The income tax provision consists of the following:

	2012			2011			2010
	($000 omitted)
Current:
Federal		(430	)		(678	)		(4,305	)
State		1,674			1,444			1,188
Foreign		9,024			9,221			337
Deferred:
Federal		(35,989	)		4,450			(1,197	)
State		(527	)		397			—
Foreign		(3,391	)		(5,493	)		12,052
Income tax (benefit) expense		(29,639	)		9,341			8,075

Reconcilation of Federal Income Taxes Computed at Statutory Rate with Income Taxes

The following reconciles federal income taxes computed at the statutory rate with income taxes as reported.

	2012			2011			2010
	($000 omitted)
Expected income tax expense (benefit) at 35% (1)		27,842			4,091			(1,577	)
Foreign tax rate differential		(2,688	)		(764	)		613
Taxable income (non-consolidated subsidiaries for tax)		768			946			832
Intercompany dividends		921			572			738
Research and development credit		—			(74	)		(1,223	)
State income tax expense (benefit) – net of taxes		1,147			884			(178	)
Tax-exempt interest		(216	)		(342	)		(561	)
Non-deductible expenses		5,861			2,624			2,261
Loss carrybacks		(1,442	)		(1,829	)		—
Adjustments to deferred tax liabilities		9,371			10,781			8,716
Dividends received deductions on investments		(634	)		(500	)		(656	)
Valuation allowance		(71,106	)		(7,163	)		(1,146	)
Other – net		537			115			256
Income tax (benefit) expense		(29,639	)		9,341			8,075
Effective income tax rates (%) (1)		(37.3	)		79.9			(179.2	)

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

Deferred Income Taxes

Deferred income taxes at December 31, 2012 and 2011 were as follows:

	2012			2011
	($000 omitted)
Deferred tax assets:
Accrued expenses		15,630			12,684
Allowance for uncollectible amounts		4,575			5,784
Fixed assets		4,683			7,502
Investments		—			10,390
Net operating loss carryforwards		3,926			32,122
Tax credit carryforwards		27,072			18,727
Title loss provisions		8,479			11,235
Other		484			4,195
		64,849			102,639
Valuation allowance		(12,136	)		(84,771	)
		52,713			17,868
Deferred tax liabilities:
Amortization – goodwill and other intangibles		(27,528	)		(23,701	)
Unrealized gains on investments		(7,802	)		(4,003	)
Cash surrender value of insurance policies		(2,998	)		(4,431	)
Foreign currency translation adjustments		(5,753	)		(4,999	)
Accrued expenses		(2,781	)		(6,592	)
Investments		(477	)		—
Fixed assets		(345	)		(139	)
Other		(112	)		(1,452	)
		(47,796	)		(45,317	)
Net deferred income taxes		4,917			(27,449	)