Income taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income tax expense (benefit) consists of the following:

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



	2014		2013		2012
	($000 omitted)
Expected income tax expense at 35% ⁽¹⁾	15,140		32,027		27,842
Foreign tax rate differential	(693	)	(422	)	(2,688	)
State income tax (benefit) expense – net of Federal impact	(840	)	1,586		1,147
Non-deductible expenses	4,060		2,321		2,851
Non-deductible bond conversion costs	—		1,900		—
Loss carrybacks	—		—		(1,442	)
Adjustments to deferred tax liabilities	1,016		(2,408	)	12,381
Valuation allowance	(5,020	)	(6,555	)	(71,106	)
Other – net	(160	)	32		1,376
Income tax expense (benefit)	13,503		28,481		(29,639	)
Effective income tax rates (%) ⁽¹⁾	31.2	%	31.1	%	(37.3	)%

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

Deferred income taxes as of December 31 were as follows:



	2014		2013
	($000 omitted)
Deferred tax assets:
Accrued expenses	17,241		17,104
Allowance for uncollectible amounts	3,379		3,521
Investments	1,582		—
Fixed assets	5,860		6,577
Net operating loss carryforwards	4,260		3,261
Tax credit carryforwards	26,792		31,372
Foreign currency translation adjustments	411		—
Other	2,127		1,463
Deferred tax assets – gross	61,652		63,298
Valuation allowance	(2,564	)	(6,971	)
Deferred tax assets – net	59,088		56,327
Deferred tax liabilities:
Amortization – goodwill and other intangibles	(34,740	)	(30,089	)
Unrealized gains on investments	(7,953	)	(3,382	)
Deferred compensation on life insurance policies	(3,239	)	(3,147	)
Foreign currency translation adjustments	—		(2,726	)
Title loss provisions	(23,365	)	(19,449	)
Investments	—		(305	)
Other	(2,476	)	(259	)
Deferred tax liabilities – gross	(71,773	)	(59,357	)
Net deferred income tax liabilities	(12,685	)	(3,030	)