Income taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income tax expense (benefit) consists of the following:

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


	2013			2012			2011
	($000 omitted)
Expected income tax expense at 35% ⁽¹⁾		32,027			27,842			4,091
Foreign tax rate differential		(422	)		(2,688	)		(764	)
State income tax expense – net of Federal benefit		1,586			1,147			884
Non-deductible expenses		2,321			2,851			2,624
Non-deductible bond conversion costs		1,900			—			—
Loss carrybacks		—			(1,442	)		(1,829	)
Adjustments to deferred tax liabilities		(2,408	)		12,381			10,781
Valuation allowance		(6,555	)		(71,106	)		(7,163	)
Other – net		32			1,376			717

Income tax expense (benefit)		28,481			(29,639	)		9,341

Effective income tax rates (%) ⁽¹⁾		31.1			(37.3	)		79.9

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

Deferred income taxes at December 31, 2013 and 2012 were as follows:


	2013			2012
	($000 omitted)
Deferred tax assets:
Accrued expenses		17,104			15,630
Allowance for uncollectible amounts		3,521			4,575
Fixed assets		6,577			4,683
Net operating loss carryforwards		3,261			3,926
Tax credit carryforwards		31,372			27,072
Title loss provisions		—			8,479
Other		1,463			484

Deferred tax assets – gross		63,298			64,849
Valuation allowance		(6,971	)		(12,136	)

Deferred tax assets – net		56,327			52,713
Deferred tax liabilities:
Amortization – goodwill and other intangibles		(30,089	)		(27,528	)
Unrealized gains on investments		(3,382	)		(7,802	)
Deferred compensation on life insurance policies		(3,147	)		(2,998	)
Foreign currency translation adjustments		(2,726	)		(5,753	)
Title loss provisions Investments		(19,449 (305	) )		(2,781 (477	) )
Fixed assets		—			(345	)
Other		(259	)		(112	)

Deferred tax liabilities – gross		(59,357	)		(47,796	)

Net deferred income tax (liabilities) assets		(3,030	)		4,917