Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 18, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'FAF | ' | ' |
Entity Registrant Name | 'First American Financial Corp | ' | ' |
Entity Central Index Key | '0001472787 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 106,143,775 | ' |
Entity Public Float | ' | ' | $2,335,324,033 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $834,837 | $670,529 |
Accounts and accrued income receivable, less allowances of $31,831 and $30,917 | 236,895 | 259,779 |
Income taxes receivable | 26,527 | 14,093 |
Investments: | ' | ' |
Deposits with banks | 23,492 | 27,875 |
Debt securities, includes pledged securities of $123,956 and $105,849 | 2,819,817 | 2,651,881 |
Equity securities | 358,043 | 197,920 |
Other long-term investments | 183,976 | 192,563 |
Investments, Total | 3,385,328 | 3,070,239 |
Loans receivable, net | 73,755 | 107,352 |
Property and equipment, net | 361,348 | 343,450 |
Title plants and other indexes | 523,879 | 521,741 |
Goodwill | 846,026 | 845,857 |
Other intangible assets, net | 46,347 | 57,095 |
Other assets | 185,658 | 160,712 |
Total assets | 6,520,600 | 6,050,847 |
LIABILITIES AND EQUITY | ' | ' |
Deposits | 1,692,932 | 1,411,193 |
Accounts payable and accrued liabilities: | ' | ' |
Accounts payable | 26,378 | 27,854 |
Personnel costs | 183,344 | 176,478 |
Pension costs and other retirement plans | 388,993 | 483,272 |
Other | 197,097 | 186,409 |
Accounts payable and accrued liabilities | 795,812 | 874,013 |
Deferred revenue | 192,184 | 170,663 |
Reserve for known and incurred but not reported claims | 1,018,365 | 976,462 |
Deferred income taxes | 54,779 | 36,987 |
Notes and contracts payable | 310,285 | 229,760 |
Total liabilities | 4,064,357 | 3,699,078 |
Commitments and contingencies (Note 18) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.00001 par value, Authorized—500 shares; Outstanding—none | ' | ' |
Common stock, $0.00001 par value: Authorized-300,000 shares; Outstanding-105,900 shares and 107,239 shares as of December 31, 2013 and 2012, respectively | 1 | 1 |
Additional paid-in capital | 2,077,828 | 2,111,605 |
Retained earnings | 520,764 | 387,015 |
Accumulated other comprehensive loss | -145,537 | -150,546 |
Total stockholders’ equity | 2,453,049 | 2,348,065 |
Noncontrolling interests | 3,194 | 3,704 |
Total equity | 2,456,243 | 2,351,769 |
Total liabilities and equity | 6,520,600 | 6,050,847 |
Parent | ' | ' |
Stockholders’ equity: | ' | ' |
Accumulated other comprehensive loss | -145,544 | -150,556 |
Total equity | $2,453,049 | $2,348,065 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Accounts and accrued income receivable, allowances | $31,831 | $30,917 |
Pledged securities included in debt securities | $123,956 | $105,849 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares outstanding | 105,900 | 107,239 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Direct premiums and escrow fees | $2,184,464 | $2,041,740 | $1,634,177 |
Agent premiums | 2,044,862 | 1,709,905 | 1,491,943 |
Information and other | 627,645 | 645,023 | 621,483 |
Investment income | 89,895 | 81,031 | 76,771 |
Net realized investment gains | 9,211 | 67,686 | 5,268 |
Net other-than-temporary impairment (“OTTIâ€) losses recognized in earnings: | ' | ' | ' |
Net OTTI losses recognized in earnings | ' | -3,564 | -9,068 |
Total revenues | 4,956,077 | 4,541,821 | 3,820,574 |
Expenses: | ' | ' | ' |
Personnel costs | 1,445,582 | 1,334,866 | 1,178,368 |
Premiums retained by agents | 1,636,694 | 1,370,193 | 1,195,282 |
Other operating expenses | 885,805 | 836,319 | 761,878 |
Provision for policy losses and other claims | 530,356 | 397,717 | 420,136 |
Depreciation and amortization | 74,916 | 74,950 | 76,889 |
Premium taxes | 56,715 | 51,304 | 45,663 |
Interest | 15,301 | 9,066 | 12,065 |
Total expenses | 4,645,369 | 4,074,415 | 3,690,281 |
Income before income taxes | 310,708 | 467,406 | 130,293 |
Income taxes | 123,644 | 165,678 | 51,714 |
Net income | 187,064 | 301,728 | 78,579 |
Less: Net income attributable to noncontrolling interests | 697 | 687 | 303 |
Net income attributable to the Company | 186,367 | 301,041 | 78,276 |
Net income per share attributable to the Company’s stockholders: | ' | ' | ' |
Basic | $1.74 | $2.83 | $0.74 |
Diluted | $1.71 | $2.77 | $0.73 |
Cash dividends declared per share | $0.48 | $0.36 | $0.24 |
Weighted-average common shares outstanding: | ' | ' | ' |
Basic | 106,991 | 106,307 | 105,197 |
Diluted | 109,102 | 108,542 | 106,914 |
Debt Securities | ' | ' | ' |
Net other-than-temporary impairment (“OTTIâ€) losses recognized in earnings: | ' | ' | ' |
Total OTTI losses on debt securities | ' | -1,757 | -12,748 |
Portion of OTTI losses on debt securities recognized in other comprehensive loss | ' | ($1,807) | $3,680 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income | $51,789 | [1] | $64,095 | $34,948 | $36,232 | $93,202 | $103,900 | $73,517 | $31,109 | $187,064 | $301,728 | $78,579 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrealized (loss) gain on securities | ' | ' | ' | ' | ' | ' | ' | ' | -32,992 | 31,445 | -12,316 | |
Unrealized gain on securities for which credit-related portion was recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | 2,327 | 3,902 | 2,144 | |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -13,650 | 5,131 | -6,167 | |
Pension benefit adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 49,324 | -13,571 | -12,034 | |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 5,009 | 26,907 | -28,373 | |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 192,073 | 328,635 | 50,206 | |
Less: Comprehensive income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 694 | 691 | 233 | |
Comprehensive income attributable to the Company | ' | ' | ' | ' | ' | ' | ' | ' | $191,379 | $327,944 | $49,973 | |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Consolidated_Statements_Of_Equ
Consolidated Statements Of Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total stockholders' equity | Noncontrolling Interests |
In Thousands | |||||||
Balance, value at Dec. 31, 2010 | $1,993,721 | $1 | $2,057,098 | $72,074 | ($149,156) | $1,980,017 | $13,704 |
Balance, shares at Dec. 31, 2010 | ' | 104,457 | ' | ' | ' | ' | ' |
Net income | 78,579 | ' | ' | 78,276 | ' | 78,276 | 303 |
Contribution from TFAC as a result of Separation | 5,164 | ' | 5,164 | ' | ' | 5,164 | ' |
Dividends on common shares | -24,784 | ' | ' | -24,784 | ' | -24,784 | ' |
Purchase of Company shares, value | -2,502 | ' | -2,502 | ' | ' | -2,502 | ' |
Purchase of Company shares, shares | ' | -204 | ' | ' | ' | ' | ' |
Shares issued in connection with share-based compensation plans, value | 2,208 | ' | 2,958 | -750 | ' | 2,208 | ' |
Shares issued in connection with share-based compensation plans, shares | ' | 1,157 | ' | ' | ' | ' | ' |
Share-based compensation expense | 14,981 | ' | 14,981 | ' | ' | 14,981 | ' |
Net activity related to noncontrolling interests | -4,055 | ' | 3,543 | ' | ' | 3,543 | -7,598 |
Other comprehensive income (Note19) | -28,373 | ' | ' | ' | -28,303 | -28,303 | -70 |
Balance, value at Dec. 31, 2011 | 2,034,939 | 1 | 2,081,242 | 124,816 | -177,459 | 2,028,600 | 6,339 |
Balance, shares at Dec. 31, 2011 | ' | 105,410 | ' | ' | ' | ' | ' |
Balance, value at Sep. 30, 2011 | ' | ' | ' | ' | ' | ' | ' |
Purchase of Company shares, value | -67,100 | ' | ' | ' | ' | ' | ' |
Purchase of Company shares, shares | ' | -3,200 | ' | ' | ' | ' | ' |
Balance, value at Dec. 31, 2013 | 2,456,243 | 1 | ' | ' | ' | ' | ' |
Balance, shares at Dec. 31, 2013 | ' | 105,900 | ' | ' | ' | ' | ' |
Balance, value at Dec. 31, 2011 | 2,034,939 | 1 | 2,081,242 | 124,816 | -177,459 | 2,028,600 | 6,339 |
Balance, shares at Dec. 31, 2011 | ' | 105,410 | ' | ' | ' | ' | ' |
Net income | 301,728 | ' | ' | 301,041 | ' | 301,041 | 687 |
Dividends on common shares | -37,612 | ' | ' | -37,612 | ' | -37,612 | ' |
Shares issued in connection with share-based compensation plans, value | 15,040 | ' | 16,270 | -1,230 | ' | 15,040 | ' |
Shares issued in connection with share-based compensation plans, shares | ' | 1,829 | ' | ' | ' | ' | ' |
Share-based compensation expense | 14,839 | ' | 14,839 | ' | ' | 14,839 | ' |
Net activity related to noncontrolling interests | -4,072 | ' | -746 | ' | ' | -746 | -3,326 |
Other comprehensive income (Note19) | 26,907 | ' | ' | ' | 26,903 | 26,903 | 4 |
Balance, value at Dec. 31, 2012 | 2,351,769 | 1 | 2,111,605 | 387,015 | -150,556 | 2,348,065 | 3,704 |
Balance, shares at Dec. 31, 2012 | ' | 107,239 | ' | ' | ' | ' | ' |
Net income | 187,064 | ' | ' | 186,367 | ' | 186,367 | 697 |
Dividends on common shares | -51,324 | ' | ' | -51,324 | ' | -51,324 | ' |
Purchase of Company shares, value | -64,606 | ' | -64,606 | ' | ' | -64,606 | ' |
Purchase of Company shares, shares | ' | -2,951 | ' | ' | ' | ' | ' |
Shares issued in connection with share-based compensation plans, value | 7,938 | ' | 9,232 | -1,294 | ' | 7,938 | ' |
Shares issued in connection with share-based compensation plans, shares | ' | 1,612 | ' | ' | ' | ' | ' |
Share-based compensation expense | 22,301 | ' | 22,301 | ' | ' | 22,301 | ' |
Net activity related to noncontrolling interests | -1,908 | ' | -704 | ' | ' | -704 | -1,204 |
Other comprehensive income (Note19) | 5,009 | ' | ' | ' | 5,012 | 5,012 | -3 |
Balance, value at Dec. 31, 2013 | $2,456,243 | $1 | $2,077,828 | $520,764 | ($145,544) | $2,453,049 | $3,194 |
Balance, shares at Dec. 31, 2013 | ' | 105,900 | ' | ' | ' | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $187,064 | $301,728 | $78,579 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' | ' |
Provision for policy losses and other claims | 530,356 | 397,717 | 420,136 |
Depreciation and amortization | 74,916 | 74,950 | 76,889 |
Excess tax benefits from share-based compensation | -6,202 | -2,372 | -1,145 |
Net realized investment gains | -9,211 | -67,686 | -5,268 |
Net OTTI losses recognized in earnings | ' | 3,564 | 9,068 |
Share-based compensation | 22,301 | 14,839 | 14,981 |
Equity in earnings of affiliates, net | -5,316 | -6,514 | -2,717 |
Dividends from equity method investments | 11,552 | 11,585 | 11,991 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | ' | ' | ' |
Claims paid, including assets acquired, net of recoveries | -479,310 | -445,986 | -503,434 |
Net change in income tax accounts | 2,589 | 64,486 | 21,856 |
Decrease (increase) in accounts and accrued income receivable | 23,645 | -29,398 | 5,367 |
Increase (decrease) in accounts payable and accrued liabilities | 5,318 | 83,979 | -13,478 |
Increase in deferred revenue | 20,102 | 14,844 | 10,907 |
Other, net | -26,114 | -3,325 | 1,925 |
Cash provided by operating activities | 378,472 | 429,675 | 136,674 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Net cash effect of acquisitions/dispositions | -5,837 | -32,476 | -2,706 |
Net decrease in deposits with banks | 4,747 | 2,522 | 16,223 |
Purchases of debt and equity securities | -1,532,710 | -1,796,314 | -1,005,804 |
Proceeds from sales of debt and equity securities | 621,255 | 954,626 | 672,095 |
Proceeds from maturities of debt securities | 488,684 | 491,674 | 322,009 |
Net change in other long-term investments | 6,443 | 6,591 | 3,860 |
Origination and purchases of loans and participations | ' | ' | -13,534 |
Net decrease in loans receivable | 33,597 | 31,839 | 35,869 |
Capital expenditures | -87,142 | -83,892 | -69,797 |
Proceeds from sale of property and equipment | 5,807 | 7,767 | 9,345 |
Cash used for investing activities | -465,156 | -417,663 | -13,653 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Net change in deposits | 281,739 | 317,957 | -389,320 |
Proceeds from issuance of debt | 249,144 | 440,065 | 24,185 |
Repayment of debt | -168,205 | -510,544 | -23,117 |
Net activity related to noncontrolling interests | -1,894 | -4,094 | -4,491 |
Excess tax benefits from share-based compensation | 6,202 | 2,372 | 1,145 |
Net proceeds in connection with share-based compensation plans | 1,736 | 12,668 | 1,152 |
Purchase of Company shares | -64,606 | ' | -2,502 |
Cash dividends | -51,324 | -44,705 | -25,216 |
Cash provided by (used for) financing activities | 252,792 | 213,719 | -418,164 |
Effect of exchange rate changes on cash | -1,800 | 105 | -2,854 |
Net increase (decrease) in cash and cash equivalents | 164,308 | 225,836 | -297,997 |
Cash and cash equivalents—Beginning of year | 670,529 | 444,693 | 742,690 |
Cash and cash equivalents—End of year | 834,837 | 670,529 | 444,693 |
SUPPLEMENTAL INFORMATION: | ' | ' | ' |
Interest | 10,827 | 8,909 | 12,631 |
Premium taxes | 54,629 | 45,375 | 38,136 |
Income taxes, less refunds of $1,329, $32,269 and $4,059 | 120,313 | 87,324 | 23,862 |
Noncash investing and financing activities: | ' | ' | ' |
Net noncash contribution from TFAC as a result of Separation | ' | ' | 5,164 |
CoreLogic | ' | ' | ' |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Proceeds from notes receivable from CoreLogic | ' | ' | $18,787 |
Consolidated_Statements_Of_Cas1
Consolidated Statements Of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income taxes, refunds | $1,329 | $32,269 | $4,059 |
Description_of_the_Company
Description of the Company | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Description of the Company | ' | ||||||||||||
NOTE 1. | Description of the Company: | ||||||||||||
First American Financial Corporation (the “Company”), through its subsidiaries, is engaged in the business of providing financial services. The Company consists of the following reportable segments and a corporate function: | |||||||||||||
· | The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions involving the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant records and images; and provides banking, trust and investment advisory services. The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies and the District of Columbia. The Company also offers title insurance and other insurance and guarantee products, as well as related settlement services in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. | ||||||||||||
· | The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 46 states. In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 39 states and the District of Columbia. | ||||||||||||
The corporate division consists of certain financing facilities as well as the corporate services that support the Company’s business operations. | |||||||||||||
Spin-off | |||||||||||||
The Company became a publicly traded company following its spin-off from its prior parent, The First American Corporation (“TFAC”) on June 1, 2010 (the “Separation”). On that date, TFAC distributed all of the Company’s outstanding shares to the record date shareholders of TFAC on a one-for-one basis (the “Distribution”). After the Distribution, the Company owns TFAC’s financial services businesses and TFAC, which reincorporated and assumed the name CoreLogic, Inc. (“CoreLogic”), continued to own its information solutions businesses. | |||||||||||||
Significant Accounting Policies: | |||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method. Investments in which the Company does not exercise significant influence over the investee are accounted for under the cost method. | |||||||||||||
Reclassifications and revisions | |||||||||||||
Certain 2011 and 2012 amounts have been reclassified to conform to the 2013 presentation. | |||||||||||||
The Company has revised its December 31, 2012 consolidated balance sheet and consolidated statements of cash flows for the years ended December 31, 2012 and 2011, for an error which resulted in an adjustment between cash and cash equivalents and deposits with banks. These adjustments are not considered material, individually or in the aggregate, to the previously issued consolidated financial statements. The table below illustrates the effects of these adjustments on the Company's consolidated financial statements for those line items affected. | |||||||||||||
As previously filed | As revised | Difference | |||||||||||
(in thousands) | |||||||||||||
Year Ended December 31, 2012 | |||||||||||||
Consolidated Balance Sheet | |||||||||||||
Cash and cash equivalents | $ | 627,208 | $ | 670,529 | $ | 43,321 | |||||||
Deposits with banks | $ | 71,196 | $ | 27,875 | $ | (43,321 | ) | ||||||
Consolidated Statement of Cash Flows | |||||||||||||
Net (increase) decrease in deposits with banks | $ | (14,405 | ) | $ | 2,522 | $ | 16,927 | ||||||
Cash used for investing activities | $ | (434,590 | ) | $ | (417,663 | ) | $ | 16,927 | |||||
Year Ended December 31, 2011 | |||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||
Net decrease in deposits with banks | $ | 3,773 | $ | 16,223 | $ | 12,450 | |||||||
Cash used for investing activities | $ | (26,103 | ) | $ | (13,653 | ) | $ | 12,450 | |||||
Use of estimates | |||||||||||||
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. | |||||||||||||
Cash and cash equivalents | |||||||||||||
The Company considers cash equivalents to be all short-term investments that have an initial maturity of 90 days or less and are not restricted for statutory deposit or premium reserve requirements. | |||||||||||||
Accounts and accrued income receivable | |||||||||||||
Accounts and accrued income receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Amounts are charged off in the period they are deemed to be uncollectible. | |||||||||||||
Investments | |||||||||||||
Deposits with banks are short-term investments with initial maturities of generally more than 90 days. | |||||||||||||
Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, various corporations, certain state and political subdivisions and mortgage-backed securities. | |||||||||||||
The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2013 and 2012, the fair value of such investments totaled $124.0 million and $105.8 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity to the consolidated financial statements for additional discussion of the Company’s statutory restrictions. | |||||||||||||
Equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and marketable common and preferred stocks of corporate entities. | |||||||||||||
The Company classifies its publicly traded debt and equity securities as available-for-sale with unrealized gains or losses classified as a component of accumulated other comprehensive loss. See Note 3 Debt and Equity Securities to the consolidated financial statements for additional discussion of the Company’s accounting policies pertaining to its debt and equity securities, including other-than-temporary impairment and fair value measurement. | |||||||||||||
Other long-term investments consist primarily of investments in affiliates, which are accounted for under either the equity method or the cost method of accounting, investments in real estate and notes receivable. For each of the years ended December 31, 2013 and 2012, the Company recognized $7.8 million of impairment losses on investments in affiliates. For the year ended December 31, 2011, the Company recognized $8.6 million of impairment losses on other long-term investments, including $6.3 million related to investments in affiliates and $2.3 million related to notes receivable. In making the determination as to whether an individual investment in affiliate was impaired, the Company assessed the then-current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to us), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity was operating. | |||||||||||||
Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. | |||||||||||||
Loans receivable | |||||||||||||
The performance of the Company’s loan portfolio is evaluated on an ongoing basis by management. Loans receivable are impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans receivable are measured at the present value of expected future cash flows discounted at the loan’s effective interest rate. As a practical expedient, the loan may be valued based on its observable market price or the fair value of the collateral, if the loan is collateral-dependent. No indications of material impairment to loans receivable were identified during the three-year period ended December 31, 2013. | |||||||||||||
Loans, including impaired loans, are generally classified as non-accrual if they miss more than three contractual payments, which usually represent past due between 60 to 90 days or more. The Company’s general policy is to reverse from income previously accrued but unpaid interest. While a loan is classified under non-accrual status and the future collectability of the recorded loan balance is doubtful, collections of interest and principal are generally applied as a reduction to principal outstanding. Income on such loans is subsequently recognized only to the extent that cash is received and future collection of principal is probable. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within an acceptable period of time. Interest income on non-accrual loans that would have been recognized during the years ended December 31, 2013, 2012 and 2011, if all of such loans had been current in accordance with their original terms, totaled $134 thousand, $138 thousand and $163 thousand, respectively. | |||||||||||||
The allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. Loan losses are charged to, and recoveries are credited to, the allowance for loan losses. The provision for loan losses is determined after considering various factors, such as loan loss experience, maturity of the portfolio, size of the portfolio, borrower credit history, the existing allowance for loan losses, current charges and recoveries to the allowance for loan losses, the overall quality of the loan portfolio, and current economic conditions, as determined by management, regulatory agencies and independent credit review specialists. While many of these factors are essentially a matter of judgment and may not be reduced to a mathematical formula, the Company believes that, in light of the collateral securing its loan portfolio, the current allowance for loan losses is an adequate allowance against probable losses incurred as of December 31, 2013. | |||||||||||||
The adequacy of the allowance for loan losses is based on formula allocations and specific allocations. Formula allocations are made on a percentage basis, which is dependent on the underlying collateral, the type of loan and general economic conditions. Specific allocations are made as problem or potential problem loans are identified and are based upon an evaluation by management of the status of such loans. Specific allocations may be revised from time to time as the status of problem or potential problem loans changes. | |||||||||||||
Property and equipment | |||||||||||||
Property and equipment includes computer software acquired or developed for internal use and for use with the Company’s products. Software development costs, which include capitalized interest costs and certain payroll-related costs of employees directly associated with developing software, in addition to incremental payments to third parties, are capitalized from the time technological feasibility is established until the software is ready for use. | |||||||||||||
Depreciation on buildings and on furniture and equipment is computed using the straight-line method over estimated useful lives of 5 to 40 years and 1 to 15 years, respectively. Capitalized software costs are amortized using the straight-line method over estimated useful lives of 1 to 15 years. Leasehold improvements are amortized over useful lives that are consistent with the lease term. | |||||||||||||
Title plants and other indexes | |||||||||||||
Title plants and other indexes includes title plants of $523.1 million and capitalized real estate data, net of $0.8 million at December 31, 2013 and title plants of $520.7 million and capitalized real estate data, net of $1.0 million at December 31, 2012. Title plants are carried at original cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is amortized using the straight-line method over estimated useful lives of 3 to 15 years. | |||||||||||||
Goodwill | |||||||||||||
The Company is required to perform an annual goodwill impairment assessment for each reporting unit. The Company’s four reporting units are title insurance, home warranty, property and casualty insurance and trust and other services. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on current guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e. a likelihood of greater than 50%) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego the qualitative assessment and perform the quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of the qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform the quantitative impairment test. If, however, the more likely than not threshold is met, the Company performs the quantitative test as required and discussed below. | |||||||||||||
Management’s quantitative impairment testing process includes two steps. The first step (“Step 1”) compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, a second step (“Step 2”) must be completed to determine if the fair value of the goodwill exceeds the carrying amount of goodwill. | |||||||||||||
Step 2 involves calculating an implied fair value of goodwill for each reporting unit for which Step 1 indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | |||||||||||||
The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes multiple cash flow scenarios that reflect a range of possible outcomes and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. The Company also uses certain of these valuation techniques in accounting for business combinations, primarily in the determination of the fair value of acquired assets and liabilities. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the equity or asset. | |||||||||||||
The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. | |||||||||||||
Other intangible assets | |||||||||||||
The Company’s intangible assets consist of covenants not to compete, customer lists, trademarks, patents and licenses. Each of these intangible assets, excluding licenses, is amortized on a straight-line basis over its useful life ranging from 1 to 20 years and is subject to impairment assessments when there is an indication of a triggering event or abandonment. Licenses are an intangible asset with an indefinite life and are therefore not amortized but rather assessed for impairment by comparing the fair value of the license with its carrying value at least annually and when an indicator of potential impairment has occurred. | |||||||||||||
Long-lived assets | |||||||||||||
Long-lived assets held and used include property and equipment, capitalized software and other intangible assets with a finite life. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of long-lived assets held and used whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. If the undiscounted cash flow analysis indicates a long-lived asset is not recoverable, an impairment loss is recorded for the excess of the carrying amount of the asset over its fair value. | |||||||||||||
In addition, the Company carries long-lived assets held for sale at the lower of cost or market as of the date that certain criteria have been met. As of December 31, 2013 and 2012 the Company had no material long-lived assets classified as held for sale. | |||||||||||||
Reserve for known and incurred but not reported claims | |||||||||||||
The Company provides for title insurance losses by a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. | |||||||||||||
The process of assessing the loss provision rate and the resulting IBNR reserve involves evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also reviewed and used in the reserve analysis. These include real estate and mortgage markets conditions, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. | |||||||||||||
For recent policy years at early stages of development (generally the last three years), IBNR is estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees, and adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. | |||||||||||||
The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information it may have concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. | |||||||||||||
Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 75 to 85% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. Based on historical experience, management believes a 50 basis point change to the loss rates for the most recent policy years, positive or negative, is reasonably likely given the long duration nature of a title insurance policy. For example, if the expected ultimate losses for each of the last six policy years increased or decreased by 50 basis points, the resulting impact on the Company’s IBNR reserve would be an increase or decrease, as the case may be, of $105.8 million. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss ratios exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. | |||||||||||||
The Company provides for property and casualty insurance losses when the insured event occurs. The Company provides for claims losses relating to its home warranty business based on the average cost per claim as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience. | |||||||||||||
Revenues | |||||||||||||
Title premiums on policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by independent agents are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Revenues earned by the Company’s title plant management business are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | |||||||||||||
Direct premiums of the Company’s specialty insurance segment include revenues from home warranty contracts which are generally recognized ratably over the 12-month duration of the contracts, and revenues from property and casualty insurance policies which are also recognized ratably over the 12-month duration of the policies. | |||||||||||||
Revenues earned by the Company’s trust operations are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | |||||||||||||
Premium taxes | |||||||||||||
Title insurance, property and casualty insurance and home warranty companies, like other types of insurers, are generally not subject to state income or franchise taxes. However, in lieu thereof, most states impose a tax based primarily on insurance premiums written. This premium tax is reported as a separate line item in the consolidated statements of income in order to provide a more meaningful disclosure of the taxation of the Company. | |||||||||||||
Legal fees | |||||||||||||
The Company records legal fees in other operating expenses in the period incurred. | |||||||||||||
Income taxes | |||||||||||||
The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is considered more likely than not that some or all of the deferred tax assets will not be realized. | |||||||||||||
The Company recognizes the effect of income tax positions only if sustaining those positions is considered more likely than not. Changes in recognition or measurement of uncertain tax positions are reflected in the period in which a change in judgment occurs. The Company recognizes interest and penalties, if any, related to uncertain tax positions in tax expense. | |||||||||||||
Share-based compensation | |||||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized in the Company’s financial statements over the requisite service period of the award using the straight-line method for awards that contain only a service condition and the graded vesting method for awards that contain a performance or market condition. The share-based compensation expense recognized is based on the number of shares ultimately expected to vest, net of forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
The Company’s primary means of providing share-based compensation is through the granting of restricted stock units (“RSUs”). RSUs granted generally have graded vesting and include a service condition; and for certain key employees and executives, may also include either a performance or market condition. RSUs receive dividend equivalents in the form of RSUs having the same vesting requirements as the RSUs initially granted. | |||||||||||||
In addition, the Company has an employee stock purchase plan that allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each offering period. The offering periods are three-month periods beginning on January 1, April 1, July 1 and October 1 of each fiscal year. The Company recognizes an expense in the amount equal to the value of the 15% discount and look-back feature over the three-month offering period. | |||||||||||||
Earnings per share | |||||||||||||
Basic earnings per share is computed by dividing net income available to the Company’s stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if dilutive stock options had been exercised and RSUs were vested. The dilutive effect of stock options and unvested RSUs is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options and vesting of RSUs would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the hypothetical windfall tax benefit that the Company receives upon assumed exercise or vesting and the hypothetical average unrecognized compensation expense for the period. The Company calculates the assumed proceeds from excess tax benefits based on the “as-if” deferred tax assets calculated under share based compensation standards. | |||||||||||||
Certain unvested RSUs contain nonforfeitable rights to dividends as they are eligible to participate in undistributed earnings without meeting service condition requirements. These awards are considered participating securities under the guidance which requires the use of the two-class method when computing basic and diluted earnings per share. The two-class method reduces earnings allocated to common stockholders by dividends and undistributed earnings allocated to participating securities. | |||||||||||||
Employee benefit plans | |||||||||||||
The Company recognizes the overfunded or underfunded status of defined benefit postretirement plans as an asset or liability on its consolidated balance sheets and recognizes changes in the funded status in the year in which changes occur, through accumulated other comprehensive loss. The funded status is measured as the difference between the fair value of plan assets and benefit obligation (the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for the other postretirement plans). Actuarial gains and losses and prior service costs and credits that have not been recognized as a component of net periodic benefit cost previously are recorded as a component of accumulated other comprehensive loss. Plan assets and obligations are measured as of December 31. | |||||||||||||
The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income earned on the Company’s deferred compensation plan assets is included as a component of investment income and the income earned by the deferred compensation plan participants is included as a component of personnel costs on the consolidated statements of income. | |||||||||||||
Foreign currency | |||||||||||||
The Company operates in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. The functional currencies of the Company’s foreign subsidiaries are generally their respective local currencies. The financial statements of the foreign subsidiaries are translated into U.S. dollars as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at average rates prevailing throughout the period. Translation adjustments resulting from the translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included within other operating expenses. | |||||||||||||
Reinsurance | |||||||||||||
The Company assumes and cedes large title insurance risks through reinsurance. Additionally, the Company’s property and casualty insurance business uses reinsurance to limit risk associated with natural disasters such as windstorms, winter storms, wildfires and earthquakes. In reinsurance arrangements, the primary insurer retains a certain amount of risk under a policy and cedes the remainder of the risk under the policy to the reinsurer. The primary insurer pays the reinsurer a premium in exchange for accepting this risk of loss. The primary insurer generally remains liable to its insured for the total risk, but is reinsured under the terms of the reinsurance agreement. The amount of premiums assumed and ceded is recorded as a component of direct premiums and escrow fees on the Company’s income statement. The total amount of premiums assumed and ceded in connection with reinsurance was less than 1.0% of consolidated premium and escrow fees for each of the three years ended December 31, 2013. Payments and recoveries on reinsured losses for the Company’s title insurance and property and casualty businesses were immaterial during the three years ended December 31, 2013. | |||||||||||||
Escrow deposits and trust assets | |||||||||||||
The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $4.7 billion and $4.2 billion at December 31, 2013 and 2012, respectively, of which $1.6 billion and $1.2 billion, respectively, were held at the Company’s federal savings bank subsidiary, First American Trust, FSB. The escrow deposits held at First American Trust, FSB, are included in the accompanying consolidated balance sheets in cash and cash equivalents and debt and equity securities, with offsetting liabilities included in deposits. The remaining escrow deposits were held at third-party financial institutions. | |||||||||||||
Trust assets totaled $3.0 billion and $2.8 billion at December 31, 2013 and 2012, respectively, and were held or managed by First American Trust, FSB. Escrow deposits held at third-party financial institutions and trust assets are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. However, the Company could be held contingently liable for the disposition of these assets. | |||||||||||||
In conducting its operations, the Company often holds customers’ assets in escrow, pending completion of real estate transactions. As a result of holding these customers’ assets in escrow, the Company has ongoing programs for realizing economic benefits, including investment programs, borrowing agreements, and vendor services arrangements with various financial institutions. The effects of these programs are included in the consolidated financial statements as income or a reduction in expense, as appropriate, based on the nature of the arrangement and benefit received. | |||||||||||||
Like-kind exchanges | |||||||||||||
The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds held by the Company totaled $1.4 billion at December 31, 2013 and 2012. The like-kind exchange deposits were held at third-party financial institutions and, due to the structure utilized to facilitate these transactions, the proceeds and property are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the return on the proceeds. | |||||||||||||
Recently Adopted Accounting Pronouncements: | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued updated guidance requiring entities to present, either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If the component is not required to be reclassified to net income in its entirety, entities should instead cross reference to the related footnote for additional information. The updated guidance was effective prospectively for interim and annual reporting periods beginning after December 15, 2012, with early adoption permitted. Except for the disclosure requirements, the adoption of the guidance had no impact on the Company’s consolidated financial statements. | |||||||||||||
In July 2012, the FASB issued updated guidance that is intended to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets, other than goodwill, by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. The updated guidance permits entities to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with current guidance. The updated guidance was effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of the guidance had no impact on the Company’s consolidated financial statements. | |||||||||||||
In December 2011, the FASB issued updated guidance requiring entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The updated guidance was effective for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of the guidance had no impact on the Company’s consolidated financial statements. | |||||||||||||
Pending Accounting Pronouncements: | |||||||||||||
In July 2013, the FASB issued updated guidance intended to eliminate the diversity in practice regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. Management expects the adoption of this guidance to have no impact on the Company’s consolidated financial statements. |
Statutory_Restrictions_On_Inve
Statutory Restrictions On Investments And Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Statutory Restrictions on Investments and Stockholders' Equity | ' |
NOTE 2. Statutory Restrictions on Investments and Stockholders’ Equity: | |
Investments totaling $128.9 million and $111.9 million were on deposit with state treasurers in accordance with statutory requirements for the protection of policyholders at December 31, 2013 and 2012, respectively. | |
Pursuant to insurance and other regulations under which the Company’s insurance subsidiaries operate, the amount of dividends, loans and advances available to the Company is limited, principally for the protection of policyholders. As of December 31, 2013, under such regulations, the maximum amount of dividends, loans and advances available to the Company from its insurance subsidiaries in 2014, without prior approval from applicable regulators, was $314.9 million. | |
The Company’s principal title insurance subsidiary, First American Title Insurance Company (“FATICO”), maintained total statutory capital and surplus of $996.0 million and $956.4 million as of December 31, 2013 and 2012, respectively. Statutory net income for the years ended December 31, 2013, 2012 and 2011 was $199.1 million, $301.9 million and $92.3 million, respectively. FATICO was in compliance with the minimum statutory capital and surplus requirements as of December 31, 2013. | |
FATICO is domiciled in California and its statutory-basis financial statements are prepared in accordance with accounting practices prescribed or permitted by the California Department of Insurance. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the state of California. The state of California has adopted certain prescribed accounting practices that differ from those found in NAIC SAP. Specifically, 1) the timing of amounts released from the statutory premium reserve under California’s required practice differs from NAIC SAP resulting in total statutory capital and surplus that was lower by $193.8 million and $204.1 million at December 31, 2013 and 2012, respectively, than if reported in accordance with NAIC SAP and 2) the amount of title plant assets admitted under California’s required practice differs from NAIC SAP resulting in no impact to total statutory capital and surplus at December 31, 2013 and total statutory capital and surplus that was lower by $19.0 million at December 31, 2012 than if reported in accordance with NAIC SAP. Additionally, for the year ended December 31, 2012 the state of California granted a permitted accounting practice to FATICO that differs from NAIC SAP; specifically, the determination to not record a bulk reserve within the known claims reserve differs from NAIC SAP resulting in total statutory capital and surplus that was higher by $101.4 million at December 31, 2012 than if reported in accordance with NAIC SAP. During 2013, a non-substantive change was adopted by the NAIC whereby bulk reserves were no longer required under NAIC SAP; accordingly, no permitted accounting practice was requested by FATICO as of December 31, 2013. | |
Statutory accounting principles differ in some respects from generally accepted accounting principles, and these differences include, but are not limited to, non-admission of certain assets (principally limitations on deferred tax assets, capitalized furniture and other equipment, premiums and other receivables 90 days past due, assets acquired in connection with claim settlements other than real estate or mortgage loans secured by real estate and limitations on goodwill), reporting of bonds at amortized cost, deferral of premiums received as statutory premium reserve, supplemental reserve (if applicable) and exclusion of the incurred but not reported claims reserve. |
Debt_and_Equity_Securities
Debt and Equity Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Debt and Equity Securities | ' | ||||||||||||||||||||||||
NOTE 3. Debt and Equity Securities: | |||||||||||||||||||||||||
The amortized cost and estimated fair value of investments in debt securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Other-than- | |||||||||||||||||||||||||
temporary | |||||||||||||||||||||||||
Amortized | Gross unrealized | Estimated | impairments | ||||||||||||||||||||||
(in thousands) | cost | gains | losses | fair value | in AOCI | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 66,400 | $ | 669 | $ | (685 | ) | $ | 66,384 | $ | — | ||||||||||||||
Municipal bonds | 491,143 | 5,113 | (10,291 | ) | 485,965 | — | |||||||||||||||||||
Foreign bonds | 221,298 | 1,836 | (626 | ) | 222,508 | — | |||||||||||||||||||
Governmental agency bonds | 267,713 | 233 | (5,401 | ) | 262,545 | — | |||||||||||||||||||
Governmental agency mortgage-backed securities | 1,426,489 | 2,074 | (25,254 | ) | 1,403,309 | — | |||||||||||||||||||
Non-agency mortgage-backed securities (1) | 19,658 | 1,167 | (1,803 | ) | 19,022 | 20,743 | |||||||||||||||||||
Corporate debt securities | 355,893 | 7,279 | (3,088 | ) | 360,084 | — | |||||||||||||||||||
$ | 2,848,594 | $ | 18,371 | $ | (47,148 | ) | $ | 2,819,817 | $ | 20,743 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 80,651 | $ | 1,574 | $ | (50 | ) | $ | 82,175 | $ | — | ||||||||||||||
Municipal bonds | 361,912 | 14,516 | (606 | ) | 375,822 | — | |||||||||||||||||||
Foreign bonds | 236,630 | 2,312 | (197 | ) | 238,745 | — | |||||||||||||||||||
Governmental agency bonds | 324,323 | 1,445 | (318 | ) | 325,450 | — | |||||||||||||||||||
Governmental agency mortgage-backed securities | 1,271,408 | 11,259 | (1,135 | ) | 1,281,532 | — | |||||||||||||||||||
Non-agency mortgage-backed securities (1) | 26,656 | — | (4,810 | ) | 21,846 | 20,743 | |||||||||||||||||||
Corporate debt securities | 311,695 | 14,941 | (325 | ) | 326,311 | — | |||||||||||||||||||
$ | 2,613,275 | $ | 46,047 | $ | (7,441 | ) | $ | 2,651,881 | $ | 20,743 | |||||||||||||||
-1 | At December 31, 2012, the $26.7 million amortized cost is net of $3.6 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the year ended December 31, 2012. At December 31, 2013, the $1.8 million gross unrealized losses related to securities determined to be other-than-temporarily impaired. At December 31, 2012, the $4.8 million gross unrealized losses include $4.4 million of unrealized losses for securities determined to be other-than-temporarily impaired and $0.4 million of unrealized losses for securities for which an other-than-temporary impairment has not been recognized. The $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCI”) at December 31, 2013 and 2012, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings due to the fact that the losses were not considered to be credit related. Other-than-temporary impairments were recognized in AOCI for non-agency mortgage-backed securities only. | ||||||||||||||||||||||||
The cost and estimated fair value of investments in equity securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Gross unrealized | Estimated | ||||||||||||||||||||||||
(in thousands) | Cost | gains | losses | fair value | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Preferred stocks | $ | 9,915 | $ | 1,567 | $ | (397 | ) | $ | 11,085 | ||||||||||||||||
Common stocks | 324,184 | 25,137 | (2,363 | ) | 346,958 | ||||||||||||||||||||
$ | 334,099 | $ | 26,704 | $ | (2,760 | ) | $ | 358,043 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Preferred stocks | $ | 13,326 | $ | 752 | $ | (41 | ) | $ | 14,037 | ||||||||||||||||
Common stocks | 177,844 | 6,447 | (408 | ) | 183,883 | ||||||||||||||||||||
$ | 191,170 | $ | 7,199 | $ | (449 | ) | $ | 197,920 | |||||||||||||||||
In connection with the Separation, TFAC issued to the Company and FATICO a number of shares of its common stock that resulted in the Company and FATICO collectively owning 12.9 million shares of CoreLogic’s common stock immediately following the Separation. During 2011 the Company sold 4.0 million shares for an aggregate cash price of $75.8 million and during 2012 the Company and FATICO sold the remaining 8.9 million shares for an aggregate cash price of $207.9 million. At December 31, 2012, the Company no longer owned any CoreLogic common stock. | |||||||||||||||||||||||||
The Company had the following net unrealized gains (losses) as of December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Debt securities for which an OTTI has been recognized | $ | (625 | ) | $ | (4,435 | ) | $ | (10,937 | ) | ||||||||||||||||
Debt securities—all other | (28,152 | ) | 43,041 | 45,268 | |||||||||||||||||||||
Equity securities | 23,944 | 6,750 | (47,887 | ) | |||||||||||||||||||||
$ | (4,833 | ) | $ | 45,356 | $ | (13,556 | ) | ||||||||||||||||||
Sales of debt and equity securities resulted in realized gains of $17.2 million, $70.1 million and $12.4 million and realized losses of $15.5 million, $0.3 million and $1.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The Company had the following gross unrealized losses as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
(in thousands) | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 37,492 | $ | (685 | ) | $ | — | $ | — | $ | 37,492 | $ | (685 | ) | |||||||||||
Municipal bonds | 230,180 | (8,938 | ) | 27,687 | (1,353 | ) | 257,867 | (10,291 | ) | ||||||||||||||||
Foreign bonds | 56,579 | (626 | ) | — | — | 56,579 | (626 | ) | |||||||||||||||||
Governmental agency bonds | 203,011 | (5,375 | ) | 131 | (26 | ) | 203,142 | (5,401 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 838,411 | (20,970 | ) | 124,425 | (4,284 | ) | 962,836 | (25,254 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | — | — | 12,086 | (1,803 | ) | 12,086 | (1,803 | ) | |||||||||||||||||
Corporate debt securities | 129,394 | (2,422 | ) | 12,500 | (666 | ) | 141,894 | (3,088 | ) | ||||||||||||||||
Total debt securities | 1,495,067 | (39,016 | ) | 176,829 | (8,132 | ) | 1,671,896 | (47,148 | ) | ||||||||||||||||
Equity securities | 85,112 | (2,718 | ) | 1,046 | (42 | ) | 86,158 | (2,760 | ) | ||||||||||||||||
Total | $ | 1,580,179 | $ | (41,734 | ) | $ | 177,875 | $ | (8,174 | ) | $ | 1,758,054 | $ | (49,908 | ) | ||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 27,219 | $ | (50 | ) | $ | — | $ | — | $ | 27,219 | $ | (50 | ) | |||||||||||
Municipal bonds | 60,229 | (557 | ) | 451 | (49 | ) | 60,680 | (606 | ) | ||||||||||||||||
Foreign bonds | 58,262 | (183 | ) | 1,031 | (14 | ) | 59,293 | (197 | ) | ||||||||||||||||
Governmental agency bonds | 60,882 | (318 | ) | — | — | 60,882 | (318 | ) | |||||||||||||||||
Governmental agency mortgage-backed securities | 135,354 | (889 | ) | 22,112 | (246 | ) | 157,466 | (1,135 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | 6,544 | (1,498 | ) | 15,302 | (3,312 | ) | 21,846 | (4,810 | ) | ||||||||||||||||
Corporate debt securities | 35,537 | (227 | ) | 996 | (98 | ) | 36,533 | (325 | ) | ||||||||||||||||
Total debt securities | 384,027 | (3,722 | ) | 39,892 | (3,719 | ) | 423,919 | (7,441 | ) | ||||||||||||||||
Equity securities | 34,258 | (447 | ) | 98 | (2 | ) | 34,356 | (449 | ) | ||||||||||||||||
Total | $ | 418,285 | $ | (4,169 | ) | $ | 39,990 | $ | (3,721 | ) | $ | 458,275 | $ | (7,890 | ) | ||||||||||
Substantially all securities in the Company’s non-agency mortgage-backed portfolio are senior tranches and all were investment grade at the time of purchase, however, all have been downgraded to below investment grade since initial purchase. The table below summarizes the composition of the Company’s non-agency mortgage-backed securities by collateral type and year of issuance. All amounts are as of December 31, 2013. | |||||||||||||||||||||||||
(in thousands, except number of securities) | Number | Amortized | Estimated | ||||||||||||||||||||||
of | Cost | Fair | |||||||||||||||||||||||
Securities | Value | ||||||||||||||||||||||||
Non-agency mortgage- backed securities: | |||||||||||||||||||||||||
Prime single family residential: | |||||||||||||||||||||||||
2007 | 1 | $ | 3,552 | $ | 2,873 | ||||||||||||||||||||
2006 | 3 | 9,389 | 8,275 | ||||||||||||||||||||||
2005 | 1 | 948 | 938 | ||||||||||||||||||||||
Alt-A single family residential: | |||||||||||||||||||||||||
2007 | 1 | 5,769 | 6,936 | ||||||||||||||||||||||
6 | $ | 19,658 | $ | 19,022 | |||||||||||||||||||||
The amortized cost and estimated fair value of debt securities at December 31, 2013, by contractual maturities, are as follows: | |||||||||||||||||||||||||
(in thousands) | Due in one | Due after | Due after | Due after | Total | ||||||||||||||||||||
year or less | one | five | ten years | ||||||||||||||||||||||
through | through | ||||||||||||||||||||||||
five years | ten years | ||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||
Amortized cost | $ | 10,583 | $ | 40,674 | $ | 11,053 | $ | 4,090 | $ | 66,400 | |||||||||||||||
Estimated fair value | $ | 10,705 | $ | 40,811 | $ | 10,873 | $ | 3,995 | $ | 66,384 | |||||||||||||||
Municipal bonds | |||||||||||||||||||||||||
Amortized cost | $ | 9,578 | $ | 187,176 | $ | 170,951 | $ | 123,438 | $ | 491,143 | |||||||||||||||
Estimated fair value | $ | 9,612 | $ | 188,656 | $ | 169,512 | $ | 118,185 | $ | 485,965 | |||||||||||||||
Foreign bonds | |||||||||||||||||||||||||
Amortized cost | $ | 30,636 | $ | 176,969 | $ | 12,426 | $ | 1,267 | $ | 221,298 | |||||||||||||||
Estimated fair value | $ | 30,788 | $ | 178,332 | $ | 12,105 | $ | 1,283 | $ | 222,508 | |||||||||||||||
Governmental agency bonds | |||||||||||||||||||||||||
Amortized cost | $ | 7,119 | $ | 167,881 | $ | 83,566 | $ | 9,147 | $ | 267,713 | |||||||||||||||
Estimated fair value | $ | 7,129 | $ | 166,043 | $ | 80,511 | $ | 8,862 | $ | 262,545 | |||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 21,352 | $ | 235,461 | $ | 93,937 | $ | 5,143 | $ | 355,893 | |||||||||||||||
Estimated fair value | $ | 21,546 | $ | 238,638 | $ | 94,512 | $ | 5,388 | $ | 360,084 | |||||||||||||||
Total debt securities excluding mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 79,268 | $ | 808,161 | $ | 371,933 | $ | 143,085 | $ | 1,402,447 | |||||||||||||||
Estimated fair value | $ | 79,780 | $ | 812,480 | $ | 367,513 | $ | 137,713 | $ | 1,397,486 | |||||||||||||||
Total mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 1,446,147 | |||||||||||||||||||||||
Estimated fair value | $ | 1,422,331 | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 2,848,594 | |||||||||||||||||||||||
Estimated fair value | $ | 2,819,817 | |||||||||||||||||||||||
Mortgage-backed securities, which include contractual terms to maturity, are not categorized by contractual maturity because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Other-than-temporary impairment—debt securities | |||||||||||||||||||||||||
If the Company intends to sell a debt security in an unrealized loss position or determines that it is more likely than not that the Company will be required to sell a debt security before it recovers its amortized cost basis, the debt security is other-than-temporarily impaired and it is written down to fair value with all losses recognized in earnings. As of December 31, 2013, the Company did not intend to sell any debt securities in an unrealized loss position and it is not more likely than not that the Company will be required to sell debt securities before recovery of their amortized cost basis. | |||||||||||||||||||||||||
If the Company does not expect to recover the amortized cost basis of a debt security with declines in fair value (even if the Company does not intend to sell the debt security and it is not more likely than not that the Company will be required to sell the debt security), the losses the Company considers to be the credit portion of the other-than-temporary impairment loss (“credit loss”) is recognized in earnings and the non-credit portion is recognized in other comprehensive income. The credit loss is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. The cash flows expected to be collected are discounted at the rate implicit in the security immediately prior to the recognition of the other-than-temporary impairment. | |||||||||||||||||||||||||
Expected future cash flows for debt securities are based on qualitative and quantitative factors specific to each security, including the probability of default and the estimated timing and amount of recovery. The detailed inputs used to project expected future cash flows may be different depending on the nature of the individual debt security. | |||||||||||||||||||||||||
The Company determines if a non-agency mortgage-backed security in a loss position is other-than-temporarily impaired by comparing the present value of the cash flows expected to be collected from the security to its amortized cost basis. If the present value of the cash flows expected to be collected exceed the amortized cost of the security, the Company concludes that the security is not other-than-temporarily impaired. The Company performs this analysis on all non-agency mortgage-backed securities in its portfolio that are in an unrealized loss position. For the securities that were determined not to be other-than-temporarily impaired at December 31, 2013, the present value of the cash flows expected to be collected exceeded the amortized cost of each security. | |||||||||||||||||||||||||
Cash flows expected to be collected for each non-agency mortgage-backed security are estimated by analyzing loan-level detail to estimate future cash flows from the underlying assets, which are then applied to the security based on the underlying contractual provisions of the securitization trust that issued the security (e.g. subordination levels, remaining payment terms, etc.). The Company uses third-party software to determine how the underlying collateral cash flows will be distributed to each security issued from the securitization trust. The primary assumptions used in estimating future collateral cash flows are prepayment speeds, default rates and loss severity. In developing these assumptions, the Company considers the financial condition of the borrower, loan to value ratio, loan type and geographical location of the underlying property. The Company utilizes publicly available information related to specific assets, generally available market data such as forward interest rate curves and securities, loans and property data and market analytics tools provided through a third party. | |||||||||||||||||||||||||
The table below summarizes the primary assumptions used at December 31, 2013 in estimating the cash flows expected to be collected for these securities. | |||||||||||||||||||||||||
Weighted | Range | ||||||||||||||||||||||||
average | |||||||||||||||||||||||||
Prepayment speeds | 7.9 | % | 6.7%–9.8 | % | |||||||||||||||||||||
Default rates | 2.6 | % | 1.7%–3.7 | % | |||||||||||||||||||||
Loss severity | 19.4 | % | 4.4%–25.7 | % | |||||||||||||||||||||
As a result of the Company’s security-level review, it did not recognize any other-than-temporary impairments considered to be credit related for the year ended December 31, 2013, and recognized $3.6 million and $9.1 million in earnings for the years ended December 31, 2012 and 2011, respectively. It is possible that the Company could recognize additional other-than-temporary impairment losses on some securities it owns at December 31, 2013 if future events or information cause it to determine that a decline in value is other-than-temporary. | |||||||||||||||||||||||||
The following table presents the change in the credit portion of the other-than-temporary impairments recognized in earnings on debt securities for which a portion of the other-than-temporary impairments related to other factors was recognized in other comprehensive income (loss) for the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,478 | $ | 33,656 | $ | 24,590 | |||||||||||||||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | — | 3,564 | 7,667 | ||||||||||||||||||||||
Addition to credit loss for which an other-than-temporary impairment was not previously recognized | — | — | 1,401 | ||||||||||||||||||||||
Accumulated losses on securities that matured or were sold during the year | — | (20,742 | ) | (2 | ) | ||||||||||||||||||||
Cumulative credit loss on debt securities held as of end of period | $ | 16,478 | $ | 16,478 | $ | 33,656 | |||||||||||||||||||
Other-than-temporary impairment—equity securities | |||||||||||||||||||||||||
When a decline in the fair value of an equity security, including common and preferred stock, is considered to be other-than-temporary, such equity security is written down to its fair value. When assessing if a decline in value is other-than-temporary, the factors considered include the length of time and extent to which fair value has been below cost, the probability that the Company will be unable to collect all amounts due under the contractual terms of the security, the seniority of the securities, issuer-specific news and other developments, the financial condition and prospects of the issuer (including credit ratings), macro-economic changes (including the outlook for industry sectors, which includes government policy initiatives) and the Company’s ability and intent to hold the security for a period of time sufficient to allow for any anticipated recovery. | |||||||||||||||||||||||||
When an equity security has been in an unrealized loss position for greater than twelve months, the Company’s review of the security includes the above noted factors as well as other evidence that might exist supporting the view that the security will recover its value in the foreseeable future, typically within the next twelve months. If objective, substantial evidence does not indicate a likely recovery during that timeframe, the Company’s policy is that such losses are considered other-than-temporary and therefore an impairment loss is recorded. For the years ended December 31, 2013, 2012 and 2011, the Company did not record other-than-temporary impairment losses related to its equity securities. | |||||||||||||||||||||||||
Fair value measurement | |||||||||||||||||||||||||
The Company classifies the fair value of its debt and equity securities using a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy level assigned to each security in the Company’s available-for-sale portfolio is based on management’s assessment of the transparency and reliability of the inputs used in the valuation of such instrument at the measurement date. The three hierarchy levels are defined as follows: | |||||||||||||||||||||||||
Level 1—Valuations based on unadjusted quoted market prices in active markets for identical securities. | |||||||||||||||||||||||||
Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. | |||||||||||||||||||||||||
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment. | |||||||||||||||||||||||||
If the inputs used to measure fair value fall into different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement. The valuation techniques and inputs used to estimate the fair value of the Company’s debt and equity securities are summarized as follows: | |||||||||||||||||||||||||
Debt Securities | |||||||||||||||||||||||||
The fair value of debt securities was based on the market values obtained from independent pricing services that were evaluated using pricing models that vary by asset class and incorporate available trade, bid and other market information and price quotes from well-established independent broker-dealers. The independent pricing services monitor market indicators, industry and economic events, and for broker-quoted only securities, obtain quotes from market makers or broker-dealers that they recognize to be market participants. The pricing services utilize the market approach in determining the fair value of the debt securities held by the Company. The Company obtains an understanding of the valuation models and assumptions utilized by the services and has controls in place to determine that the values provided represent fair value. The Company’s validation procedures include comparing prices received from the pricing services to quotes received from other third party sources for certain securities with market prices that are readily verifiable. If the price comparison results in differences over a predefined threshold, the Company will assess the reasonableness of the changes relative to prior periods given the prevailing market conditions and assess changes in the issuers’ credit worthiness, performance of any underlying collateral and prices of the instrument relative to similar issuances. To date, the Company has not made any material adjustments to the fair value measurements provided by the pricing services. | |||||||||||||||||||||||||
Typical inputs and assumptions to pricing models used to value the Company’s U.S. Treasury bonds, municipal bonds, foreign bonds, governmental agency bonds, governmental agency mortgage-backed securities and corporate debt securities include, but are not limited to, benchmark yields, reported trades, broker-dealer quotes, credit spreads, credit ratings, bond insurance (if applicable), benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include the structure of issuance, characteristics of the issuer, collateral attributes and prepayment speeds. The fair value of non-agency mortgage-backed securities was obtained from the independent pricing services referenced above and subject to the Company’s validation procedures discussed above. However, since these securities were not actively traded, there were fewer observable inputs available requiring the pricing services to use more judgment in determining the fair value of the securities, therefore the Company classified non-agency mortgage-backed securities as Level 3. | |||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s non-agency mortgage-backed securities include prepayment rates, default rates and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for default rates is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. | |||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||
The fair value of equity securities, including preferred and common stocks, were based on quoted market prices for identical assets that are readily and regularly available in an active market. | |||||||||||||||||||||||||
The following table presents the Company’s available-for-sale investments measured at fair value on a recurring basis as of December 31, 2013 and 2012, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||||||||||
(in thousands) | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 66,384 | $ | — | $ | 66,384 | $ | — | |||||||||||||||||
Municipal bonds | 485,965 | — | 485,965 | — | |||||||||||||||||||||
Foreign bonds | 222,508 | — | 222,508 | — | |||||||||||||||||||||
Governmental agency bonds | 262,545 | — | 262,545 | — | |||||||||||||||||||||
Governmental agency mortgage- backed securities | 1,403,309 | — | 1,403,309 | — | |||||||||||||||||||||
Non-agency mortgage-backed securities | 19,022 | — | — | 19,022 | |||||||||||||||||||||
Corporate debt securities | 360,084 | — | 360,084 | — | |||||||||||||||||||||
2,819,817 | — | 2,800,795 | 19,022 | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Preferred stocks | 11,085 | 11,085 | — | — | |||||||||||||||||||||
Common stocks | 346,958 | 346,958 | — | — | |||||||||||||||||||||
358,043 | 358,043 | — | — | ||||||||||||||||||||||
$ | 3,177,860 | $ | 358,043 | $ | 2,800,795 | $ | 19,022 | ||||||||||||||||||
(in thousands) | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 82,175 | $ | — | $ | 82,175 | $ | — | |||||||||||||||||
Municipal bonds | 375,822 | — | 375,822 | — | |||||||||||||||||||||
Foreign bonds | 238,745 | — | 238,745 | — | |||||||||||||||||||||
Governmental agency bonds | 325,450 | — | 325,450 | — | |||||||||||||||||||||
Governmental agency mortgage- backed securities | 1,281,532 | — | 1,281,532 | — | |||||||||||||||||||||
Non-agency mortgage-backed securities | 21,846 | — | — | 21,846 | |||||||||||||||||||||
Corporate debt securities | 326,311 | — | 326,311 | — | |||||||||||||||||||||
2,651,881 | — | 2,630,035 | 21,846 | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Preferred stocks | 14,037 | 14,037 | — | — | |||||||||||||||||||||
Common stocks | 183,883 | 183,883 | — | — | |||||||||||||||||||||
197,920 | 197,920 | — | — | ||||||||||||||||||||||
$ | 2,849,801 | $ | 197,920 | $ | 2,630,035 | $ | 21,846 | ||||||||||||||||||
The Company did not have any transfers in and out of Level 1, Level 2 and Level 3 measurements during the years ended December 31, 2013 and 2012. The Company’s policy is to recognize transfers between levels in the fair value hierarchy at the end of the reporting period. | |||||||||||||||||||||||||
The following table presents a summary of the changes in fair value of Level 3 available-for-sale investments for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Fair value at beginning of year | $ | 21,846 | $ | 30,634 | |||||||||||||||||||||
Total gains/(losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | — | (3,564 | ) | ||||||||||||||||||||||
Included in other comprehensive loss | 4,174 | 6,645 | |||||||||||||||||||||||
Settlements | (6,998 | ) | (5,553 | ) | |||||||||||||||||||||
Sales | — | (6,316 | ) | ||||||||||||||||||||||
Fair value as of December 31 | $ | 19,022 | $ | 21,846 | |||||||||||||||||||||
Unrealized gains (losses) included in earnings for the period relating to Level 3 available-for-sale investments that were still held at the end of the period: | |||||||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | $ | — | $ | (3,564 | ) | ||||||||||||||||||||
The Company did not purchase any non-agency mortgage-backed securities during the years ended December 31, 2013 and 2012. |
Financing_Receivables
Financing Receivables | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Financing Receivables | ' | |||||||||||||||||||||||
NOTE 4. Financing Receivables: | ||||||||||||||||||||||||
Financing receivables are summarized as follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans receivable, net: | ||||||||||||||||||||||||
Real estate–mortgage | ||||||||||||||||||||||||
Multi-family residential | $ | 7,455 | $ | 8,768 | ||||||||||||||||||||
Commercial | 69,865 | 102,626 | ||||||||||||||||||||||
Other | 712 | 598 | ||||||||||||||||||||||
78,032 | 111,992 | |||||||||||||||||||||||
Allowance for loan losses | (3,626 | ) | (3,893 | ) | ||||||||||||||||||||
Participations sold | (633 | ) | (761 | ) | ||||||||||||||||||||
Deferred loan fees, net | (18 | ) | 14 | |||||||||||||||||||||
Loans receivable, net | 73,755 | 107,352 | ||||||||||||||||||||||
Other long-term investments: | ||||||||||||||||||||||||
Notes receivable—secured | 10,533 | 11,358 | ||||||||||||||||||||||
Notes receivable—unsecured | 2,593 | 2,710 | ||||||||||||||||||||||
13,126 | 14,068 | |||||||||||||||||||||||
Loss reserve | (2,584 | ) | (2,902 | ) | ||||||||||||||||||||
Notes receivable, net | 10,542 | 11,166 | ||||||||||||||||||||||
Total financing receivables, net | $ | 84,297 | $ | 118,518 | ||||||||||||||||||||
Real estate loans are collateralized by properties located primarily in Southern California. The average yield on the loan portfolio was 6.04% and 6.31% for the years ended December 31, 2013 and 2012, respectively. Average yields are affected by prepayment penalties recorded as income, prepayment speeds, loan fees amortized to income and the market interest rates. | ||||||||||||||||||||||||
During the third quarter of 2011, the Company began the multi-year process of winding-down the operations of its industrial bank, First Security Business Bank (“FSBB”). Prior to initiating the wind-down, FSBB accepted deposits and used these deposits to purchase or originate loans secured by commercial properties primarily in Southern California. Currently, FSBB continues to accept and service deposits and to service its existing loan portfolio, but is generally no longer originating or purchasing new loans. | ||||||||||||||||||||||||
Aging analysis of loans and notes receivable at December 31, 2013, is as follows: | ||||||||||||||||||||||||
Total | Current | 30-59 days | 60-89 days | 90 days or | Non-accrual | |||||||||||||||||||
past due | past due | more | status | |||||||||||||||||||||
past due | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans Receivable: | ||||||||||||||||||||||||
Multi-family residential | $ | 7,455 | $ | 7,455 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial | 69,865 | 67,807 | — | — | — | 2,058 | ||||||||||||||||||
Other | 712 | 712 | — | — | — | — | ||||||||||||||||||
$ | 78,032 | $ | 75,974 | $ | — | $ | — | $ | — | $ | 2,058 | |||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 10,533 | $ | 5,784 | $ | 3,668 | $ | — | $ | 231 | $ | 850 | ||||||||||||
Unsecured | 2,593 | 771 | — | — | — | 1,822 | ||||||||||||||||||
$ | 13,126 | $ | 6,555 | $ | 3,668 | $ | — | $ | 231 | $ | 2,672 | |||||||||||||
Aging analysis of loans and notes receivables at December 31, 2012, is as follows: | ||||||||||||||||||||||||
Total | Current | 30-59 days | 60-89 days | 90 days or | Non-accrual | |||||||||||||||||||
past due | past due | more | status | |||||||||||||||||||||
past due | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans Receivable: | ||||||||||||||||||||||||
Multi-family residential | $ | 8,768 | $ | 8,768 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial | 102,626 | 99,911 | — | 160 | — | 2,555 | ||||||||||||||||||
Other | 598 | 556 | — | — | — | 42 | ||||||||||||||||||
$ | 111,992 | $ | 109,235 | $ | — | $ | 160 | $ | — | $ | 2,597 | |||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 11,358 | $ | 6,517 | $ | 3,912 | $ | 72 | $ | 16 | $ | 841 | ||||||||||||
Unsecured | 2,710 | 319 | — | — | 811 | 1,580 | ||||||||||||||||||
$ | 14,068 | $ | 6,836 | $ | 3,912 | $ | 72 | $ | 827 | $ | 2,421 | |||||||||||||
The aggregate annual maturities for loans and notes receivable at December 31, 2013, are as follows: | ||||||||||||||||||||||||
Year | Loans | Notes | ||||||||||||||||||||||
Receivable | Receivable | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2014 | $ | 1,005 | $ | 5,315 | ||||||||||||||||||||
2015 | 4,524 | 1,235 | ||||||||||||||||||||||
2016 | 1,592 | 1,553 | ||||||||||||||||||||||
2017 | 6,017 | 741 | ||||||||||||||||||||||
2018 | 9,297 | 527 | ||||||||||||||||||||||
2019 and thereafter | 55,597 | 3,755 | ||||||||||||||||||||||
$ | 78,032 | $ | 13,126 | |||||||||||||||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property and Equipment | ' | |||||||
NOTE 5. Property and Equipment: | ||||||||
Property and equipment consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land | $ | 29,816 | $ | 30,111 | ||||
Buildings | 277,131 | 274,352 | ||||||
Furniture and equipment | 182,912 | 169,412 | ||||||
Capitalized software | 402,713 | 379,151 | ||||||
892,572 | 853,026 | |||||||
Accumulated depreciation and amortization | (531,224 | ) | (509,576 | ) | ||||
$ | 361,348 | $ | 343,450 | |||||
Goodwill
Goodwill | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill | ' | |||||||||||
NOTE 6. Goodwill: | ||||||||||||
A summary of the changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2013 and 2012, is as follows: | ||||||||||||
Title | Specialty | Total | ||||||||||
Insurance | Insurance | |||||||||||
and Services | ||||||||||||
(in thousands) | ||||||||||||
Balance as of December 31, 2011 | $ | 771,655 | $ | 46,765 | $ | 818,420 | ||||||
Acquisitions | 25,648 | — | 25,648 | |||||||||
Foreign currency exchange | 1,789 | — | 1,789 | |||||||||
Balance as of December 31, 2012 | 799,092 | 46,765 | 845,857 | |||||||||
Acquisitions | 4,456 | — | 4,456 | |||||||||
Foreign currency exchange | (4,287 | ) | — | (4,287 | ) | |||||||
Balance as of December 31, 2013 | $ | 799,261 | $ | 46,765 | $ | 846,026 | ||||||
The Company’s goodwill impairment assessments for 2013, 2012 and 2011 did not indicate impairment to any of its reporting units. There is no accumulated impairment for goodwill as the Company has never recognized impairment to any of its reporting units. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Intangible Assets | ' | |||||||
NOTE 7. Other Intangible Assets: | ||||||||
Other intangible assets consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Finite-lived intangible assets: | ||||||||
Customer lists | $ | 77,382 | $ | 77,981 | ||||
Covenants not to compete | 26,928 | 26,842 | ||||||
Trademarks | 10,026 | 10,070 | ||||||
Patents | 2,840 | 2,840 | ||||||
117,176 | 117,733 | |||||||
Accumulated amortization | (88,624 | ) | (78,495 | ) | ||||
28,552 | 39,238 | |||||||
Indefinite-lived intangible assets: | ||||||||
Licenses | 17,795 | 17,857 | ||||||
$ | 46,347 | $ | 57,095 | |||||
Amortization expense for finite-lived intangible assets was $12.0 million for the years ended December 31, 2013 and 2012 and $13.9 million for the year ended December 31, 2011. | ||||||||
Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: | ||||||||
Year | (in thousands) | |||||||
2014 | $ | 8,243 | ||||||
2015 | $ | 4,726 | ||||||
2016 | $ | 3,819 | ||||||
2017 | $ | 2,215 | ||||||
2018 | $ | 2,116 | ||||||
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits | ' | |||||||
NOTE 8. Deposits: | ||||||||
Deposit accounts are summarized as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except | ||||||||
percentages) | ||||||||
Escrow accounts: | ||||||||
Interest bearing | $ | 1,376,921 | $ | 904,919 | ||||
Non-interest bearing | 176,964 | 323,568 | ||||||
1,553,885 | 1,228,487 | |||||||
Savings accounts | 22,015 | 25,067 | ||||||
Certificate accounts: | ||||||||
Less than one year | 19,813 | 20,315 | ||||||
One to five years | 6,783 | 16,900 | ||||||
26,596 | 37,215 | |||||||
Business checking and other deposits (1) | 90,436 | 120,424 | ||||||
$ | 1,692,932 | $ | 1,411,193 | |||||
Annualized interest rates: | ||||||||
Escrow accounts | 0.13 | % | 0.17 | % | ||||
Savings accounts | 0.5 | % | 0.6 | % | ||||
Certificate accounts | 1.28 | % | 1.46 | % | ||||
-1 | Business checking and other deposits primarily reflect non-interest bearing accounts. |
Reserve_for_Known_And_Incurred
Reserve for Known And Incurred But Not Reported Claims | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Reserve for Known and Incurred But Not Reported Claims | ' | ||||||||||||||||
NOTE 9. Reserve for Known and Incurred But Not Reported Claims: | |||||||||||||||||
Activity in the reserve for known and incurred but not reported claims is summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 976,462 | $ | 1,014,676 | $ | 1,108,238 | |||||||||||
Provision related to: | |||||||||||||||||
Current year | 380,723 | 335,097 | 308,425 | ||||||||||||||
Prior years | 149,633 | 62,620 | 111,711 | ||||||||||||||
530,356 | 397,717 | 420,136 | |||||||||||||||
Payments, net of recoveries, related to: | |||||||||||||||||
Current year | 182,653 | 160,138 | 149,004 | ||||||||||||||
Prior years | 296,657 | 285,848 | 354,430 | ||||||||||||||
479,310 | 445,986 | 503,434 | |||||||||||||||
Other | (9,143 | ) | 10,055 | (10,264 | ) | ||||||||||||
Balance at end of year | $ | 1,018,365 | $ | 976,462 | $ | 1,014,676 | |||||||||||
“Other” primarily represents reclassifications to the reserve for foreign currency gains/losses and assets acquired in connection with claim settlements. Claims activity associated with reinsurance is not material and, therefore, not presented separately. Current year payments include $167.3 million, $144.1 million and $135.1 million in 2013, 2012 and 2011, respectively, that primarily relate to the Company’s specialty insurance segment. Prior year payments include $16.0 million, $16.7 million and $20.5 million in 2013, 2012 and 2011, respectively, that relate to the Company’s specialty insurance segment. | |||||||||||||||||
The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 8.8%, 6.9% and 9.5% for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
The current year rate of 8.8% reflected an ultimate loss rate of 5.0% for the current policy year and a net increase in the loss reserve estimates for prior policy years of $148.5 million. The increase in loss reserve estimates for prior policy years reflected claims development above expected levels during 2013, primarily from domestic lenders policies, commercial policies and the Company’s guaranteed valuation product offered in Canada. The reserve strengthening associated with domestic lenders policies was $67.4 million and was primarily attributable to increased claims frequency for policy years 2004 through 2008. The increased claims frequency was primarily due to mortgage lenders and servicers processing a large volume of foreclosures during 2013. As foreclosure processing increases, lenders claims generally increase, because lenders claims typically come from foreclosures in which the lender suffers a loss. The Company expects the high level of foreclosure processing to continue in the near term as mortgage lenders and servicers work through their foreclosure inventory. The reserve strengthening associated with domestic lenders policies reflects these expectations. The reserve strengthening associated with commercial policies was $38.8 million and was primarily attributable to several large commercial claims, mainly from mechanics liens, and primarily related to policy years 2007 and 2008. The reserve strengthening associated with the guaranteed valuation product offered in Canada was $21.7 million and was primarily attributable to claims frequency exceeding the Company’s expectations during 2013. The increase in frequency primarily related to policy years 2007 and 2010. There is substantial uncertainty as to the ultimate loss emergence for the guaranteed valuation product due to the following factors, among others, (i) claims associated with this product are generally made only after a foreclosure on the related property and foreclosure rates in Canada are difficult to predict and (ii) limited historical loss data exists as a result of the relatively recent introduction of this product in 2003. While the Company believes its claims reserve attributable to the guaranteed valuation product is adequate, this uncertainty increases the potential for adverse loss development relative to this product. | |||||||||||||||||
As of December 31, 2013, the title insurance and services segment’s IBNR reserve was $840.1 million, which reflected management’s best estimate. The Company’s internal actuary determined a range of reasonable estimates of $729.7 million to $1.0 billion. The range limits are $110.4 million below and $201.0 million above management’s best estimate, respectively, and represent an estimate of the range of variation among reasonable estimates of the IBNR reserve. Actuarial estimates are sensitive to assumptions used in models, as well as the structures of the models themselves, and to changes in claims payment and incurral patterns, which can vary materially due to economic conditions, among other factors. | |||||||||||||||||
The prior year rate of 6.9% reflected an ultimate loss rate of 5.1% for policy year 2012 and a net increase in the loss reserve estimates for prior policy years of $62.1 million. The increase in loss reserve estimates for prior policy years reflected claims development above expected levels during 2012, primarily from domestic lenders policies and international business, including the guaranteed valuation product offered in Canada. The reserve strengthening associated with domestic lenders policies was $25.6 million and was primarily attributable to policy years 2005 through 2007. This strengthening was primarily due to an increase in claims frequency experienced during 2012, partially offset by a slight decrease in severity. The reserve strengthening associated with the international business, excluding the guaranteed valuation product, was $15.6 million and was primarily related to increased severity experienced during 2012 for policy years 2003 through 2011. The reserve strengthening associated with the guaranteed valuation product was $11.8 million and reflected an increase in claims frequency experienced during the first half of 2012. The increase in frequency primarily related to policy years 2008 and 2009. | |||||||||||||||||
The 2011 rate of 9.5% reflected an ultimate loss rate of 5.6% for policy year 2011 and included a $45.3 million reserve strengthening adjustment related to the Company’s guaranteed valuation product offered in Canada, a $32.2 million charge in connection with the settlement of Bank of America’s lawsuit against the Company and $34.2 million in unfavorable development for certain prior policy years, primarily 2007. The reserve strengthening adjustment related to the guaranteed valuation product reflected a significant increase in claim frequency experienced in the first quarter of 2011. More specifically, the number of claims reported in the first quarter of 2011, when annualized, increased approximately 150% when compared with the number of claims reported in 2010. The increase in frequency primarily related to policy years 2005 through 2009 (reflecting the relatively long claims development lag for the guaranteed valuation product). These policy years began showing evidence of higher claims frequencies than prior policy years during the first quarter of 2011. In addition, adverse loss development in 2011 included higher-than-expected claims emergence for commercial and lenders policies, particularly for policy years 2005 through 2007. Management believes that these policy years have higher ultimate loss ratios than historical averages, and that they also have experienced accelerated reporting and payment of claims, particularly on lenders policies. Reasons for higher loss levels and acceleration of claims reporting and payment include adverse underwriting conditions in real estate markets during 2005 through 2007, declines in real estate prices, increased levels of foreclosures and increased mechanics lien exposure due to failures of development projects. For additional discussion regarding the Bank of America lawsuit see Note 20 Litigation and Regulatory Contingencies to the consolidated financial statements. | |||||||||||||||||
The current economic environment continues to show potential for volatility over the short term, which may affect title claims. Relevant contributing factors include continuing elevated foreclosure inventory and foreclosure processing, general economic uncertainty and government actions that may mitigate or exacerbate recent trends. Other factors, including factors not yet identified, may also influence claims development. At this point, real estate and financial market conditions appear to be improving, particularly increasing real estate prices and declining mortgage defaults, yet significant uncertainty remains, particularly in regard to governmental regulatory changes and fiscal policies which affect economic conditions broadly. The current environment continues to create an increased potential for actual claims experience to vary significantly from projections, in either direction, which would directly affect the claims provision. If actual claims vary significantly from expected, reserves may be adjusted to reflect updated estimates of future claims. | |||||||||||||||||
The volume and timing of title insurance claims are subject to cyclical influences from real estate and mortgage markets. Title policies issued to lenders constitute a large portion of the Company’s title insurance volume. These policies insure lenders against losses on mortgage loans due to title defects in the collateral property. Even if an underlying title defect exists that could result in a claim, often the lender must realize an actual loss, or at least be likely to realize an actual loss, for title insurance liability to exist. As a result, title insurance claims exposure is sensitive to lenders’ losses on mortgage loans, and is affected in turn by external factors that affect mortgage loan losses, particularly macroeconomic factors. | |||||||||||||||||
A general decline in real estate prices can expose lenders to greater risk of losses on mortgage loans, as loan-to-value ratios increase and defaults and foreclosures increase. The current environment is expected to have increased potential for claims on lenders title policies as foreclosure processing volumes are expected to remain elevated in the near term. Title insurance claims exposure for a given policy year is also affected by the quality of mortgage loan underwriting during the corresponding origination year. The Company believes that sensitivity of claims to external conditions in real estate and mortgage markets is an inherent feature of title insurance’s business economics that applies broadly to the title insurance industry. Lenders have experienced high losses on mortgage loans from prior years, including loans that were originated during the years 2005 through 2008. These losses have led to higher title insurance claims on lenders policies, and also have accelerated the reporting of claims that would have been realized later under more normal conditions. | |||||||||||||||||
Loss ratios (projected to ultimate value) for policy years 2005 through 2008 are higher than loss ratios for policy years 1992 through 2004. The major causes of the higher loss ratios for those four policy years are believed to be confined mostly to that underwriting period. These causes included: rapidly increasing residential real estate prices which led to an increase in the incidences of fraud, lower mortgage loan underwriting standards and a higher concentration than usual of subprime mortgage loan originations. | |||||||||||||||||
The projected ultimate loss ratios, as of December 31, 2013, for policy years 2013, 2012 and 2011 were 5.0%, 4.1% and 5.0%, respectively, which are lower than the ratios for 2005 through 2008. These projections were based in part on an assumption that more favorable underwriting conditions existed in 2009 through 2013 than in 2005 through 2008, including, but not limited to, tighter loan underwriting standards. Current claims data from policy years 2009 through 2013, while still at an early stage of development, supports this assumption. | |||||||||||||||||
A summary of the Company’s loss reserves, broken down into its components of known title claims, incurred but not reported claims and non-title claims, follows: | |||||||||||||||||
(in thousands, except percentages) | December 31, 2013 | December 31, 2012 | |||||||||||||||
Known title claims | $ | 135,478 | 13.3 | % | $ | 133,070 | 13.6 | % | |||||||||
IBNR | 840,104 | 82.5 | % | 805,430 | 82.5 | % | |||||||||||
Total title claims | 975,582 | 95.8 | % | 938,500 | 96.1 | % | |||||||||||
Non-title claims | 42,783 | 4.2 | % | 37,962 | 3.9 | % | |||||||||||
Total loss reserves | $ | 1,018,365 | 100 | % | $ | 976,462 | 100 | % | |||||||||
Notes_and_Contracts_Payable
Notes and Contracts Payable | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes and Contracts Payable | ' | |||||||
NOTE 10. Notes and Contracts Payable: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except percentages) | ||||||||
4.3% senior unsecured notes due February 1, 2023, net of unamortized discount of $837 at December 31, 2013, effective interest rate of 4.35% | $ | 249,163 | $ | — | ||||
Line of credit borrowings due April 17, 2016, weighted-average interest rate 2.21% at December 31, 2012 | — | 160,000 | ||||||
Trust deed notes with maturities through 2032, collateralized by land and buildings with a net book value of $55,206 and $58,244 at December 31, 2013 and 2012, respectively, weighted-average interest rate of 5.42% and 5.44%, at December 31, 2013 and 2012, respectively | 38,151 | 41,749 | ||||||
Other notes and contracts payable with maturities through 2020, weighted-average interest rate of 2.96% and 2.84% at December 31, 2013 and 2012, respectively | 22,971 | 28,011 | ||||||
$ | 310,285 | $ | 229,760 | |||||
The weighted-average interest rate for the Company’s notes and contracts payable was 4.34% and 2.87% at December 31, 2013 and 2012, respectively. | ||||||||
The Company maintains a credit agreement with JPMorgan Chase Bank, N.A. (“JPMorgan”) as administrative agent, and a syndicate of lenders. The credit agreement is comprised of a $600.0 million revolving credit facility, which will terminate on April 17, 2016, unless terminated earlier. Proceeds under the credit agreement may be used for general corporate purposes. At December 31, 2013, the Company had no outstanding borrowings under the facility. | ||||||||
In the event that the rating by Standard & Poor’s Ratings Services (“S&P”) is below BBB- (or there is no rating from S&P) and, in addition, such rating by Moody’s Investor Services, Inc. (“Moody’s”) is lower than Baa3 (or there is no rating from Moody’s), then the loan commitments are subject to mandatory reduction from (a) 50 percent of the net proceeds of certain equity issuances by any of the Company or certain subsidiaries of the Company (collectively, the “Designated Parties”), and (b) 50 percent of the net proceeds of certain debt incurred or issued by any of the Designated Parties, provided that the commitment reductions described above are only required to the extent necessary to reduce the total loan commitments to $300.0 million. The Company is only required to prepay loans to the extent that, after giving effect to any mandatory commitment reduction, the aggregate principal amount of all outstanding loans exceeds the remaining total loan commitments. | ||||||||
At the Company’s election, borrowings under the credit agreement bear interest at (a) a base rate plus an applicable spread or (b) an adjusted LIBOR rate plus an applicable spread. The base rate is generally the greatest of (x) 0.50 percent in excess of the federal funds rate, (y) JPMorgan’s prime rate, and (z) one-month LIBOR plus one percent. The adjusted LIBOR rate is generally LIBOR times JPMorgan’s statutory reserve rate for Eurocurrency funding. The applicable spread varies depending upon the rating assigned by Moody’s and S&P. The minimum applicable spread for base rate borrowings is 0.75 percent and the maximum is 1.50 percent. The minimum applicable spread for adjusted LIBOR rate borrowings is 1.75 percent and the maximum is 2.50 percent. The Company may select interest periods of one, two, three or six months or (if agreed to by all lenders) such other number of months for Eurodollar borrowings of loans. | ||||||||
The credit agreement includes representations and warranties, reporting covenants, affirmative covenants, negative covenants, financial covenants and events of default customary for financings of this type. Upon the occurrence of certain insolvency and bankruptcy events of default the loans automatically accelerate. As of December 31, 2013, the Company was in compliance with the financial covenants under the credit agreement. | ||||||||
On January 29, 2013, the Company issued $250.0 million of 4.30% 10-year senior unsecured notes due in 2023. The notes were priced at 99.638% to yield 4.345%. Interest is due semi-annually on February 1 and August 1, beginning August 1, 2013. The Company used a portion of the net proceeds from the sale to repay all borrowings outstanding under its credit facility, increasing the available capacity thereunder to the full $600.0 million size of the facility. | ||||||||
The aggregate annual maturities for notes and contracts payable in each of the five years after December 31, 2013, are as follows: | ||||||||
Year | Notes and | |||||||
contracts | ||||||||
payable | ||||||||
(in thousands) | ||||||||
2014 | $ | 13,667 | ||||||
2015 | 15,020 | |||||||
2016 | 3,982 | |||||||
2017 | 5,190 | |||||||
2018 | 3,429 | |||||||
Thereafter | 268,997 | |||||||
$ | 310,285 | |||||||
Investment_Income
Investment Income | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Investment Income | ' | |||||||||||
NOTE 11. Investment Income: | ||||||||||||
The components of investment income are as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Interest: | ||||||||||||
Cash equivalents and deposits with banks | $ | 3,694 | $ | 4,407 | $ | 6,602 | ||||||
Debt securities | 47,226 | 45,112 | 47,337 | |||||||||
Other long-term investments | 2,009 | 1,013 | 1,693 | |||||||||
Loans receivable | 5,474 | 8,132 | 10,172 | |||||||||
Dividends on equity securities | 11,776 | 5,388 | 2,896 | |||||||||
Equity in earnings of affiliates, net | 5,316 | 6,514 | 2,717 | |||||||||
Other | 14,400 | 10,465 | 5,354 | |||||||||
$ | 89,895 | $ | 81,031 | $ | 76,771 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Taxes | ' | |||||||||||
NOTE 12. Income Taxes: | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, domestic and foreign pretax income from continuing operations before noncontrolling interests was $286.2 million and $24.5 million, $449.6 million and $17.8 million, and $128.2 million and $2.1 million, respectively. | ||||||||||||
Income taxes are summarized as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 86,406 | $ | 82,269 | $ | (23,095 | ) | |||||
State | 7,887 | 15,229 | (1,267 | ) | ||||||||
Foreign | 24,331 | 8,234 | 13,926 | |||||||||
118,624 | 105,732 | (10,436 | ) | |||||||||
Deferred: | ||||||||||||
Federal | 8,937 | 60,242 | 69,302 | |||||||||
State | 9,774 | 111 | 4,585 | |||||||||
Foreign | (13,691 | ) | (407 | ) | (11,737 | ) | ||||||
5,020 | 59,946 | 62,150 | ||||||||||
$ | 123,644 | $ | 165,678 | $ | 51,714 | |||||||
Income taxes differ from the amounts computed by applying the federal income tax rate of 35.0%. A reconciliation of this difference is as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Taxes calculated at federal rate | $ | 108,748 | $ | 163,592 | $ | 45,603 | ||||||
State taxes, net of federal benefit | 11,480 | 9,525 | 2,499 | |||||||||
Change in liability for tax positions | 3,537 | 2,033 | 2,548 | |||||||||
Change in capital loss valuation allowance | — | (5,276 | ) | — | ||||||||
Foreign income taxed at different rates | 8,567 | 2,881 | 1,805 | |||||||||
Foreign tax credit | (5,640 | ) | (2,921 | ) | — | |||||||
Other items, net | (3,048 | ) | (4,156 | ) | (741 | ) | ||||||
$ | 123,644 | $ | 165,678 | $ | 51,714 | |||||||
The Company’s effective income tax rate (income tax expense as a percentage of income before income taxes) was 39.8% for 2013, 35.4% for 2012 and 39.7% for 2011. The differences in the effective tax rates were primarily due to changes in the ratio of permanent differences to income before income taxes, changes in state and foreign income taxes resulting from fluctuations in the Company’s noninsurance and foreign subsidiaries’ contribution to pretax profits, and changes in the liability related to tax positions reported on the Company’s tax returns. The effective tax rate for 2012 included the release of a valuation allowance recorded against capital losses. In addition, the effective tax rates for 2013 and 2012 reflected the generation of foreign tax credits. | ||||||||||||
The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | $ | 8,360 | $ | 8,110 | ||||||||
Employee benefits | 73,302 | 82,421 | ||||||||||
Bad debt reserves | 17,588 | 13,423 | ||||||||||
Investment in affiliates | 8,026 | 9,096 | ||||||||||
Loss reserves | 1,728 | 3,044 | ||||||||||
Pension | 86,858 | 121,605 | ||||||||||
Net operating loss carryforward | 38,867 | 23,749 | ||||||||||
Securities | 1,880 | — | ||||||||||
Other | 6,782 | 8,874 | ||||||||||
243,391 | 270,322 | |||||||||||
Valuation allowance | (18,119 | ) | (14,172 | ) | ||||||||
225,272 | 256,150 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciable and amortizable assets | 258,855 | 238,688 | ||||||||||
Claims and related salvage | 21,196 | 36,307 | ||||||||||
Securities | — | 18,142 | ||||||||||
280,051 | 293,137 | |||||||||||
Net deferred tax liability | $ | 54,779 | $ | 36,987 | ||||||||
The exercise of stock options and vesting of restricted stock units represent a tax benefit that has been reflected as a reduction of taxes payable and an increase to equity. The benefits recorded were $6.2 million and $2.4 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||
In connection with the Separation, the Company and TFAC entered into a tax sharing agreement which governs the Company’s and CoreLogic’s respective rights, responsibilities and obligations for certain tax related matters. At December 31, 2013 and 2012, the Company had a net payable to CoreLogic of $56.5 million and $52.5 million, respectively, related to tax matters prior to the Separation. This amount is included in the Company’s consolidated balance sheet in other accounts payable and accrued liabilities. The increase during the current year results from an additional accrual for tax matters prior to the Separation. | ||||||||||||
At December 31, 2013, the Company had available net operating loss carryforwards for income tax purposes totaling $152.0 million, consisting of federal, state and foreign losses of $1.1 million, $11.2 million and $139.7 million, respectively. Of the aggregate net operating losses, $40.9 million has an indefinite expiration and the remaining $111.1 million expire at various times beginning in 2014. The Company carries a valuation allowance of $18.1 million against its deferred tax assets. Of this amount, $14.2 million relates to net operating losses; the remaining $3.9 million relates to other foreign deferred tax assets. The year-over-year increase in the overall valuation allowance relates to current year foreign losses and other foreign deferred tax assets for which no future tax benefit is expected to be realized. | ||||||||||||
The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and adjusting the amount of such allowance, if necessary. The factors used to assess the likelihood of realization are the Company’s forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve the forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company’s effective tax rate on future earnings. | ||||||||||||
During 2012, the Company released a valuation allowance of $5.3 million previously recorded against certain of its deferred tax assets. Specifically, management determined that it was more likely than not that all of its tax capital loss items will be realized prior to expiration as the result of realized gains from sales of securities and favorable market value activity in its securities portfolio. Application of the accounting guidance related to intraperiod tax allocations resulted in the valuation allowance being credited to tax expense in the amount of $5.3 million during the year ended December 31, 2012. As of December 31, 2013, no significant capital loss carryover remains in the Company’s deferred tax inventory. | ||||||||||||
As of December 31, 2013, United States taxes were not provided for on the earnings of the Company’s foreign subsidiaries of $121.8 million, as the Company has invested or expects to invest the undistributed earnings indefinitely. If in the future these earnings are repatriated to the United States, or if the Company determines that the earnings will be remitted in the foreseeable future, additional tax provisions may be required. It is not practicable to calculate the deferred taxes associated with these earnings because of the variability of multiple factors that would need to be assessed at the time of any assumed repatriation; however, foreign tax credits may be available to reduce federal income taxes in the event of distribution. | ||||||||||||
As of December 31, 2013, 2012 and 2011, the liability for income taxes associated with uncertain tax positions was $47.8 million, $47.9 million and $17.3 million, respectively. The decrease in the liability during 2013 was primarily attributable to the Company’s effective settlement of a prior year tax return position. The increase in the liability during 2012 was primarily attributable to the Company’s claim for a timing adjustment in a prior year tax return. As of December 31, 2013, 2012 and 2011, the liabilities could be reduced by $32.6 million, $32.6 million and $2.9 million, respectively, of offsetting tax benefits associated with the correlative effects of potential adjustments including timing adjustments and state income taxes. The net amounts of $15.2 million, $15.3 million and $14.4 million as of December 31, 2013, 2012 and 2011, respectively, if recognized, would favorably affect the Company’s effective tax rate. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Unrecognized tax benefits—opening balance | $ | 47,900 | $ | 17,300 | $ | 11,100 | ||||||
Gross increases (decreases)—tax positions in prior period | (600 | ) | 200 | — | ||||||||
Gross increases—current period tax positions | 500 | 30,500 | 6,200 | |||||||||
Expiration of the statute of limitations for the assessment of taxes | — | (100 | ) | — | ||||||||
Unrecognized tax benefits—ending balance | $ | 47,800 | $ | 47,900 | $ | 17,300 | ||||||
The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in tax expense. As of December 31, 2013, 2012 and 2011, the Company had accrued $4.7 million, $4.2 million and $3.6 million, respectively, of interest and penalties (net of tax benefits of $1.9 million, $1.7 million and $1.4 million, respectively) related to uncertain tax positions. | ||||||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various non-U.S. jurisdictions. The primary non-federal jurisdictions are California, Canada, India, and the United Kingdom. The Company is no longer subject to U.S. federal, state and non-U.S. income tax examinations by taxing authorities for years prior to 2005. | ||||||||||||
It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may significantly increase or decrease within the next 12 months. These changes may be the result of items such as ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. | ||||||||||||
The Company records a liability for potential tax assessments based on its estimate of the potential exposure. New tax laws and new interpretations of laws and rulings by tax authorities may affect the liability for potential tax assessments. Due to the subjectivity and complex nature of the underlying issues, actual payments or assessments may differ from estimates. To the extent the Company’s estimates differ from actual payments or assessments, income tax expense is adjusted. The Company’s income tax returns in several jurisdictions are being examined by various tax authorities. The Company believes that adequate amounts of tax and related interest, if any, have been provided for any adjustments that may result from these examinations. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share | ' | |||||||||||
NOTE 13. Earnings Per Share: | ||||||||||||
The Company’s potential dilutive securities are stock options and RSUs. Stock options and RSUs are reflected in diluted net income per share attributable to the Company’s stockholders by application of the treasury-stock method. | ||||||||||||
The computation of basic and diluted earnings per share is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Numerator | ||||||||||||
Net income attributable to the Company | $ | 186,367 | $ | 301,041 | $ | 78,276 | ||||||
Less: dividends and undistributed earnings allocated to unvested RSUs | 324 | 682 | 172 | |||||||||
Net income allocated to common stockholders | $ | 186,043 | $ | 300,359 | $ | 78,104 | ||||||
Denominator | ||||||||||||
Basic weighted-average shares | 106,991 | 106,307 | 105,197 | |||||||||
Effect of dilutive employee stock options and RSUs | 2,111 | 2,235 | 1,717 | |||||||||
Diluted weighted-average shares | 109,102 | 108,542 | 106,914 | |||||||||
Net income per share attributable to the Company’s stockholders | ||||||||||||
Basic | $ | 1.74 | $ | 2.83 | $ | 0.74 | ||||||
Diluted | $ | 1.71 | $ | 2.77 | $ | 0.73 | ||||||
For the years ended December 31, 2013, 2012 and 2011, 11 thousand, 0.7 million and 1.4 million, respectively, of stock options and RSUs were excluded from the weighted-average diluted common shares outstanding due to their antidilutive effect. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||
NOTE 14. Employee Benefit Plans: | ||||||||||||||||
The First American Financial Corporation 401(k) Savings Plan (the “Savings Plan”) allows for employee-elective contributions up to the maximum amount as determined by the Internal Revenue Code. The Company makes discretionary contributions to the Savings Plan based on profitability, as well as contributions of the participants. The Company’s expense related to the Savings Plan amounted to $10.5 million, $27.8 million and $8.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. This expense represents the discretionary contribution made by the Company to employees’ accounts. Participants are allowed to purchase the Company’s common stock as one of the investment options, subject to certain limitations. The Savings Plan held 3,903,000 shares and 4,144,000 shares of the Company’s common stock, representing 3.7% and 3.9% of the total shares outstanding at December 31, 2013 and 2012, respectively. | ||||||||||||||||
The Company’s deferred compensation plan allows participants to defer up to 100% of their salary, commissions and bonus. Participants allocate their deferrals among a variety of investment crediting options (known as “deemed investments”). The term deemed investments means that the participant has no ownership interest in the funds they select; the funds are only used to measure the gains or losses that will be attributed to their deferral account over time. Participants can elect to have their deferral balance paid out in a future year while they are still employed or after their employment ends. The deferred compensation plan is exempt from most provisions of the Employee Retirement Income Security Act (“ERISA”) because it is only available to a select group of management and highly compensated employees and is not a qualified employee benefit plan. To preserve the tax-deferred savings advantages of a nonqualified deferred compensation plan, federal law requires that it be unfunded or informally funded. The participants’ deferrals and any earnings on those deferrals are general unsecured obligations of the Company. The Company is informally funding the deferred compensation plan through a tax-advantaged investment known as variable universal life insurance. Deferred compensation plan assets are held as an asset of the Company within a special trust, called a “Rabbi Trust.” At December 31, 2013 and 2012, the value of the assets in the Rabbi Trust of $73.2 million and $64.4 million, respectively, and the unfunded liabilities of $71.1 million and $61.6 million, respectively, were included in the consolidated balance sheets in other assets and pension costs and other retirement plans, respectively. | ||||||||||||||||
The Company’s defined benefit pension plan is a noncontributory, qualified plan with benefits based on the employee’s compensation and years of service. The defined benefit pension plan was closed to new entrants effective December 31, 2001 and amended to “freeze” all benefit accruals as of April 30, 2008. | ||||||||||||||||
The Company also has nonqualified, unfunded supplemental benefit plans covering certain management personnel. Benefits under the Executive and Management Supplemental Benefit Plans are, subject to the limitations described below, based on a participant’s final average compensation, which is computed as the average compensation of the last five full calendar years preceding retirement. Maximum benefits under the Executive and Management Supplemental Benefit Plans are 30% and 15% of final average compensation, respectively. The Company’s compensation committee amended and restated the Executive and Management Supplemental Benefit Plans effective as of January 1, 2011. The plans were amended to make the following changes, among others: (i) close the plans to new participants; (ii) fix the period over which the final average compensation that is used to calculate a participant’s benefit is determined as the one-year average of the five-year period ended on December 31, 2010, irrespective of the participant’s actual retirement date; and (iii) cap the maximum annual benefit at $500,000 for the Company’s chief executive officer, at $350,000 for all other Executive Supplemental Benefit Plan participants and at $250,000 for all Management Supplemental Benefit Plan participants. The amendments to the Executive and Management Supplemental Benefit Plans were accounted for as negative plan amendments with the resulting decrease in the projected benefit obligations being recorded to accumulated other comprehensive loss as a prior service credit. | ||||||||||||||||
Certain of the Company’s subsidiaries have separate savings plans and the Company’s international subsidiaries have other employee benefit plans that are included in the other plans, net expense line item shown below. | ||||||||||||||||
The following table provides the principal components of employee benefit plan expenses related to the Company’s benefit plans: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Savings plan | $ | 10,458 | $ | 27,778 | $ | 8,697 | ||||||||||
Defined benefit pension plans | 20,975 | 22,657 | 22,386 | |||||||||||||
Unfunded supplemental benefit plans | 16,673 | 16,553 | 17,279 | |||||||||||||
Other plans, net | 15,479 | 10,166 | 6,628 | |||||||||||||
$ | 63,585 | $ | 77,154 | $ | 54,990 | |||||||||||
The following table summarizes the balance sheet impact, including benefit obligations, assets and funded status associated with the Company’s defined benefit pension and supplemental benefit plans: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Defined | Unfunded | Defined | Unfunded | |||||||||||||
benefit | supplemental | benefit | supplemental | |||||||||||||
pension | benefit plans | pension | benefit plans | |||||||||||||
plans | plans | |||||||||||||||
(in thousands) | ||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 424,462 | $ | 250,226 | $ | 385,756 | $ | 223,516 | ||||||||
Service costs | — | 1,915 | — | 1,712 | ||||||||||||
Interest costs | 17,340 | 9,521 | 18,445 | 10,623 | ||||||||||||
Plan amendment | — | 2,088 | — | — | ||||||||||||
Actuarial (gains) losses | (38,766 | ) | (24,233 | ) | 37,030 | 27,226 | ||||||||||
Benefits paid | (21,001 | ) | (13,059 | ) | (16,769 | ) | (12,851 | ) | ||||||||
Projected benefit obligation at end of year | 382,035 | 226,458 | 424,462 | 250,226 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Plan assets at fair value at beginning of year | 294,216 | — | 257,078 | — | ||||||||||||
Actual return on plan assets | 10,971 | — | 33,236 | — | ||||||||||||
Contributions | 29,283 | 13,059 | 20,671 | 12,851 | ||||||||||||
Benefits paid | (21,001 | ) | (13,059 | ) | (16,769 | ) | (12,851 | ) | ||||||||
Plan assets at fair value at end of year | 313,469 | — | 294,216 | — | ||||||||||||
Reconciliation of funded status: | ||||||||||||||||
Unfunded status of the plans | $ | (68,566 | ) | $ | (226,458 | ) | $ | (130,246 | ) | $ | (250,226 | ) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||||||||||||
Accrued benefit liability | $ | (68,566 | ) | $ | (226,458 | ) | $ | (130,246 | ) | $ | (250,226 | ) | ||||
Amounts recognized in accumulated other comprehensive loss: | ||||||||||||||||
Unrecognized net actuarial loss | $ | 162,084 | $ | 90,303 | $ | 215,405 | $ | 124,183 | ||||||||
Unrecognized prior service cost (credit) | 40 | (29,142 | ) | 65 | (35,639 | ) | ||||||||||
$ | 162,124 | $ | 61,161 | $ | 215,470 | $ | 88,544 | |||||||||
Accumulated benefit obligation at end of year | $ | 382,035 | $ | 226,458 | $ | 424,462 | $ | 250,226 | ||||||||
Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans includes the following components: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Service costs | $ | 1,915 | $ | 1,712 | $ | 2,167 | ||||||||||
Interest costs | 26,861 | 29,068 | 30,152 | |||||||||||||
Expected return on plan assets | (18,776 | ) | (15,553 | ) | (15,316 | ) | ||||||||||
Amortization of net actuarial loss | 32,033 | 28,368 | 27,047 | |||||||||||||
Amortization of prior service credit | (4,385 | ) | (4,385 | ) | (4,385 | ) | ||||||||||
$ | 37,648 | $ | 39,210 | $ | 39,665 | |||||||||||
The Company’s net actuarial loss and prior service credit for defined benefit pension and supplemental benefit plans that will be amortized from accumulated other comprehensive loss into net periodic cost over the next fiscal year are expected to be an expense of $22.4 million and a credit of $4.2 million, respectively. | ||||||||||||||||
Weighted-average actuarial assumptions used to determine costs for the plans were as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.18 | % | 4.9 | % | ||||||||||||
Rate of return on plan assets | 6.5 | % | 5.75 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 3.91 | % | 4.9 | % | ||||||||||||
Weighted-average actuarial assumptions used to determine benefit obligations for the plans were as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.97 | % | 4.18 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 4.8 | % | 3.91 | % | ||||||||||||
The discount rate assumption used for benefit plan accounting reflects the yield available on high-quality, fixed-income debt securities that match the expected timing of the benefit obligation payments. | ||||||||||||||||
Assumptions for the expected long-term rate of return on plan assets are based on future expectations for returns for each asset class based on the calculated market-related value of plan assets and the effect of periodic target asset allocation rebalancing, adjusted for the payment of reasonable expenses of the plan from plan assets. The expected long-term rate of return on assets was selected from within a reasonable range of rates determined by (1) historical real and expected returns for the asset classes covered by the investment policy and (2) projections of inflation over the long-term period during which benefits are payable to plan participants. The Company believes the assumptions are appropriate based on the investment mix and long-term nature of the plan’s investments. The use of expected long-term returns on plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term returns are designed to approximate the actual long-term returns, and therefore result in a pattern of income and cost recognition that more closely matches the pattern of the services provided by the employees. | ||||||||||||||||
The Company has a pension investment policy designed to meet or exceed the expected rate of return on plan asset assumptions. The policy’s investment objective is to increase the pension plan’s funding status such that the plan becomes fully funded on a plan termination basis by taking progressively less risk through aligning a greater percentage of plan assets with plan liabilities as the plan becomes more fully funded. | ||||||||||||||||
Under the investment policy, asset allocation targets are segmented into liability tracking assets and return seeking assets. The objective of this allocation strategy is to increase the percentage of assets in liability tracking investments as settlement funded status improves. Return seeking assets generally include pooled investment vehicles, foreign and domestic equities, fixed income securities, cash, REITs, and commodities. Liability tracking assets generally include fixed income securities and pooled investment vehicles. The plan maintains a level of cash and cash equivalents appropriate for the timely disbursement of benefits and payment of expenses. | ||||||||||||||||
Subject to the requirements of the investment policy, the investment manager may use commingled investment vehicles including but not limited to mutual funds, common trust funds, commingled trusts, and exchange traded funds. The investment policy prohibits certain investment transactions, including derivatives and other illiquid investments (e.g. private equity and real estate), subject to certain exceptions. | ||||||||||||||||
The investment manager tracks the estimated settlement funded status of the plan on a regular basis. When the funded status is equal to or greater than the next trigger point, the investment manager will rebalance to the allocation associated with that trigger point. The objective of liability tracking assets is to achieve performance related to changes in the value of the plan’s settlement liabilities, which is consistent with the objective of plan termination. | ||||||||||||||||
The pension plan’s asset allocation targets based on settlement funded status are as follows: | ||||||||||||||||
Settlement funded status | Return seeking assets | Liability tracking assets | ||||||||||||||
100 | % | 0 | % | 100 | % | |||||||||||
97.5 | % | 15 | % | 85 | % | |||||||||||
95 | % | 30 | % | 70 | % | |||||||||||
92.5 | % | 40 | % | 60 | % | |||||||||||
90 | % | 50 | % | 50 | % | |||||||||||
87.5 | % | 60 | % | 40 | % | |||||||||||
85 | % | 70 | % | 30 | % | |||||||||||
Below 85.0% | 85 | % | 15 | % | ||||||||||||
A summary of the asset allocations as of December 31, 2013 and 2012 are as follows: | ||||||||||||||||
Percentage of | ||||||||||||||||
plan assets at | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Asset category | ||||||||||||||||
Cash and cash equivalents | 0.7 | % | 0.6 | % | ||||||||||||
Equities | 48.3 | % | 34.1 | % | ||||||||||||
Fixed income funds | 29.7 | % | 38.6 | % | ||||||||||||
Balanced funds | 18.9 | % | 24.3 | % | ||||||||||||
Other | 2.4 | % | 2.4 | % | ||||||||||||
The Company expects to make cash contributions to its defined benefit and unfunded supplemental benefit plans of $27.7 million and $14.0 million, respectively, during 2014. | ||||||||||||||||
Benefit payments for all plans, which reflect expected future service, as appropriate, are expected to be made as follows: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
2014 | $ | 33,726 | ||||||||||||||
2015 | $ | 34,835 | ||||||||||||||
2016 | $ | 35,303 | ||||||||||||||
2017 | $ | 36,962 | ||||||||||||||
2018 | $ | 38,070 | ||||||||||||||
Five years thereafter | $ | 202,341 | ||||||||||||||
The Company determines the fair value of its defined benefit pension plan assets with a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy level assigned to each security within the Company’s defined benefit pension plan assets is based on management’s assessment of the transparency and reliability of the inputs used in the valuation of such instrument at the measurement date. See Note 3 Debt and Equity Securities to the consolidated financial statements for a more in-depth discussion on the fair value hierarchy and a description for each level. | ||||||||||||||||
The following table presents the Company’s defined benefit pension plan assets at fair value as of December 31, 2013 and 2012, classified using the fair value hierarchy: | ||||||||||||||||
December 31, 2013 | Estimated fair | Level 1 | Level 2 | Level 3 | ||||||||||||
value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 2,080 | $ | 2,080 | $ | — | $ | — | ||||||||
Equities (a) | 151,604 | 95,860 | 55,744 | — | ||||||||||||
Fixed income funds (b) | 93,210 | 49,281 | 43,929 | — | ||||||||||||
Balanced funds (c) | 59,147 | — | 59,147 | — | ||||||||||||
Other (d) | 7,428 | — | — | 7,428 | ||||||||||||
$ | 313,469 | $ | 147,221 | $ | 158,820 | $ | 7,428 | |||||||||
Estimated fair | Level 1 | Level 2 | Level 3 | |||||||||||||
value | ||||||||||||||||
December 31, 2012 | (in thousands) | |||||||||||||||
Cash and cash equivalents | $ | 1,922 | $ | 1,922 | $ | — | $ | — | ||||||||
Equities (a) | 100,283 | 100,283 | — | — | ||||||||||||
Fixed income funds (b) | 113,525 | 71,525 | 42,000 | — | ||||||||||||
Balanced funds (c) | 71,400 | — | 71,400 | — | ||||||||||||
Other (d) | 7,086 | — | — | 7,086 | ||||||||||||
$ | 294,216 | $ | 173,730 | $ | 113,400 | $ | 7,086 | |||||||||
(a) Investments in passively managed index funds, actively managed mutual funds with holdings in domestic and international equities and investments in domestic equities. These investments are valued at the closing price reported on the major market on which the individual securities are traded or the Net Asset Value (“NAV”) provided by the administrator of the fund. | ||||||||||||||||
(b) Investments in passively managed index funds and actively managed mutual funds with holdings in domestic and international corporate bonds, sovereign bonds, mortgage-backed securities, and other fixed income instruments. These investments are valued using matrix pricing models and quoted prices of the securities in active markets. | ||||||||||||||||
(c) Investments in global multi-asset risk parity strategy funds with holdings in domestic and international debt and equity securities, commodities, real estate, and derivative investments. These investments are valued using the NAV provided by the administrator of the fund. | ||||||||||||||||
(d) Investments in a guaranteed deposit fund with holdings in insurance contracts. These investments are valued at contract value of the fund including contributions and earnings, less applicable costs and liabilities, as provided by the administrator of the fund. | ||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
NOTE 15. Fair Value of Financial Instruments: | |||||||||||||||||
Accounting guidance requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the balance sheet, for which it is practical to estimate that value. In the measurement of the fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, the guidance excludes certain financial instruments including those related to insurance contracts, pension and other postretirement benefits, and equity method investments. | |||||||||||||||||
In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions: | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments. | |||||||||||||||||
Accounts and accrued income receivable, net | |||||||||||||||||
The carrying amount for accounts and accrued income receivable, net is a reasonable estimate of fair value due to the short-term maturity of these assets. | |||||||||||||||||
Loans receivable, net | |||||||||||||||||
The fair value of loans receivable, net is estimated based on the discounted value of the future cash flows using current rates being offered for loans with similar terms to borrowers of similar credit quality. | |||||||||||||||||
Investments | |||||||||||||||||
The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. | |||||||||||||||||
The methodology for determining the fair value of debt and equity securities is discussed in Note 3 Debt and Equity Securities to the consolidated financial statements. | |||||||||||||||||
The fair value of notes receivable, net is estimated based on the discounted value of the future cash flows using approximate current market rates being offered for notes with similar maturities and similar credit quality. | |||||||||||||||||
Deposits | |||||||||||||||||
The carrying value of escrow and other deposit accounts approximates fair value due to the short-term nature of this liability. The fair value of investment certificate accounts is estimated based on the discounted value of future cash flows using a discount rate approximating current market rates for similar liabilities. | |||||||||||||||||
Accounts payable and accrued liabilities | |||||||||||||||||
The carrying amount for accounts payable and accrued liabilities is a reasonable estimate of fair value due to the short-term maturity of these liabilities. The Company does not include the carrying amounts and fair values of pension costs and other retirement plans as the guidance excludes them from disclosure. | |||||||||||||||||
Notes and contracts payable | |||||||||||||||||
The fair value of notes and contracts payable are estimated based on current rates offered to the Company for debt of the same remaining maturities. | |||||||||||||||||
The carrying amounts and fair values of the Company’s financial instruments as of December 31, 2013 and 2012 are presented in the following table. | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair Value | ||||||||||||||
Amount | Value | Amount | |||||||||||||||
(in thousands) | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 834,837 | $ | 834,837 | $ | 670,529 | $ | 670,529 | |||||||||
Accounts and accrued income receivable, net | $ | 236,895 | $ | 236,895 | $ | 259,779 | $ | 259,779 | |||||||||
Loans receivable, net | $ | 73,755 | $ | 73,397 | $ | 107,352 | $ | 111,925 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 23,492 | $ | 23,601 | $ | 27,875 | $ | 28,079 | |||||||||
Debt securities | $ | 2,819,817 | $ | 2,819,817 | $ | 2,651,881 | $ | 2,651,881 | |||||||||
Equity securities | $ | 358,043 | $ | 358,043 | $ | 197,920 | $ | 197,920 | |||||||||
Notes receivable, net | $ | 10,542 | $ | 9,953 | $ | 11,166 | $ | 11,376 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,692,932 | $ | 1,693,138 | $ | 1,411,193 | $ | 1,411,575 | |||||||||
Accounts payable and accrued liabilities | $ | 406,819 | $ | 406,819 | $ | 390,741 | $ | 390,741 | |||||||||
Notes and contracts payable | $ | 310,285 | $ | 301,007 | $ | 229,760 | $ | 233,071 | |||||||||
The following table presents the fair value of the Company’s financial instruments as of December 31, 2013 and 2012, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-13 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 834,837 | $ | 834,837 | $ | — | $ | — | |||||||||
Accounts and accrued income receivable, net | $ | 236,895 | $ | 236,895 | $ | — | $ | — | |||||||||
Loans receivable, net | $ | 73,397 | $ | — | $ | — | $ | 73,397 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 23,601 | $ | 2,070 | $ | 21,531 | $ | — | |||||||||
Debt securities | $ | 2,819,817 | $ | — | $ | 2,800,795 | $ | 19,022 | |||||||||
Equity securities | $ | 358,043 | $ | 358,043 | $ | — | $ | — | |||||||||
Notes receivable, net | $ | 9,953 | $ | — | $ | — | $ | 9,953 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,693,138 | $ | 1,666,336 | $ | 26,802 | $ | — | |||||||||
Accounts payable and accrued liabilities | $ | 406,819 | $ | 406,819 | $ | — | $ | — | |||||||||
Notes and contracts payable | $ | 301,007 | $ | — | $ | 294,221 | $ | 6,786 | |||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-12 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 670,529 | $ | 670,529 | $ | — | $ | — | |||||||||
Accounts and accrued income receivable, net | $ | 259,779 | $ | 259,779 | $ | — | $ | — | |||||||||
Loans receivable, net | $ | 111,925 | $ | — | $ | — | $ | 111,925 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 28,079 | $ | 6,110 | $ | 21,969 | $ | — | |||||||||
Debt securities | $ | 2,651,881 | $ | — | $ | 2,630,035 | $ | 21,846 | |||||||||
Equity securities | $ | 197,920 | $ | 197,920 | $ | — | $ | — | |||||||||
Notes receivable, net | $ | 11,376 | $ | — | $ | — | $ | 11,376 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,411,575 | $ | 1,373,978 | $ | 37,597 | $ | — | |||||||||
Accounts payable and accrued liabilities | $ | 390,741 | $ | 390,741 | $ | — | $ | — | |||||||||
Notes and contracts payable | $ | 233,071 | $ | — | $ | 223,218 | $ | 9,853 | |||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||||||
NOTE 16. Share-Based Compensation Plans: | |||||||||||||||||
The First American Financial Corporation 2010 Incentive Compensation Plan (the “Incentive Compensation Plan”), effective May 28, 2010, permits the granting of stock options, stock appreciation rights, restricted stock, RSUs, performance units, performance shares and other stock-based awards. Eligible participants in the Incentive Compensation Plan include the Company’s directors and officers, as well as other employees. At December 31, 2013, 6.7 million shares of common stock remain available to be issued from either authorized and unissued shares or previously issued shares acquired by the Company, subject to certain annual limits based on the type of award granted. The Incentive Compensation Plan terminates 10 years from the effective date unless cancelled prior to that date by the Company’s board of directors. | |||||||||||||||||
The First American Financial Corporation 2010 Employee Stock Purchase Plan (the “ESPP”) allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each quarterly offering period. There were 350,000 and 323,000 shares issued in connection with this plan for the years ended December 31, 2013 and 2012, respectively. At December 31, 2013, there were 3.8 million shares reserved for future issuances. | |||||||||||||||||
The following table presents compensation expense associated with the Company’s share-based compensation plans: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Expense: | |||||||||||||||||
Restricted stock units | $ | 20,827 | $ | 13,953 | $ | 14,203 | |||||||||||
Stock options | 8 | — | 9 | ||||||||||||||
Employee stock purchase plan | 1,466 | 886 | 769 | ||||||||||||||
$ | 22,301 | $ | 14,839 | $ | 14,981 | ||||||||||||
The following table summarizes RSU activity for the year ended December 31, 2013: | |||||||||||||||||
(in thousands, except weighted-average grant-date fair value) | Shares | Weighted-average | |||||||||||||||
grant-date | |||||||||||||||||
fair value | |||||||||||||||||
RSUs unvested at December 31, 2012 | 2,962 | $ | 13.36 | ||||||||||||||
Granted during 2013 | 1,109 | $ | 24.61 | ||||||||||||||
Vested during 2013 | (1,260 | ) | $ | 13.85 | |||||||||||||
Forfeited during 2013 | (91 | ) | $ | 17.05 | |||||||||||||
RSUs unvested at December 31, 2013 | 2,720 | $ | 17.6 | ||||||||||||||
As of December 31, 2013, there was $19.0 million of total unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period of 3.3 years. The fair value of RSUs is generally based on the market value of the Company’s shares on the date of grant. The total fair value of shares vested and not distributed for the years ended December 31, 2013, 2012 and 2011 was $4.3 million, $2.3 million and $2.2 million, respectively. | |||||||||||||||||
The following table summarizes stock option activity for the year ended December 31, 2013: | |||||||||||||||||
(in thousands, except weighted-average | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
exercise price and contractual term) | outstanding | average | average | intrinsic | |||||||||||||
exercise price | remaining | value | |||||||||||||||
contractual term | |||||||||||||||||
Balance at December 31, 2012 | 1,670 | $ | 15.7 | ||||||||||||||
Granted during 2013 | 132 | $ | 27.66 | ||||||||||||||
Exercised during 2013 | (532 | ) | $ | 13.1 | |||||||||||||
Balance at December 31, 2013 | 1,270 | $ | 18.03 | 2.2 years | $ | 12,911 | |||||||||||
Vested and expected to vest at December 31, 2013 | 1,270 | $ | 18.03 | 2.2 years | $ | 12,911 | |||||||||||
Exercisable at December 31, 2013 | 1,137 | $ | 16.91 | 1.3 years | $ | 12,839 | |||||||||||
As of December 31, 2013, there was $1.1 million of total unrecognized compensation cost related to unvested stock options of the Company that is expected to be recognized over a weighted-average period of 4.0 years. | |||||||||||||||||
Total intrinsic value of options exercised for the years ended December 31, 2013, 2012 and 2011 was $6.0 million, $7.1 million and $645 thousand, respectively. This intrinsic value represents the difference between the fair market value of the Company’s common stock on the date of exercise and the exercise price of each option. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity | ' |
NOTE 17. Stockholders’ Equity: | |
In March 2011, the Company’s board of directors approved a stock repurchase plan which authorizes the repurchase of up to $150.0 million of the Company’s common stock, of which $82.9 million remained as of December 31, 2013. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. During the year ended December 31, 2013, the Company repurchased and retired 3.0 million shares of its common stock for a total purchase price of $64.6 million, and as of December 31, 2013, had repurchased and retired 3.2 million shares of its common stock under the current authorization for a total purchase price of $67.1 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies | ' | ||||
NOTE 18. Commitments and Contingencies: | |||||
Lease commitments | |||||
The Company leases certain office facilities, automobiles and equipment under operating leases, which, for the most part, are renewable. The majority of these leases also provide that the Company pay insurance and taxes. | |||||
Future minimum rental payments under operating leases that have initial noncancelable lease terms in excess of one year as of December 31, 2013 are as follows: | |||||
(in thousands) | |||||
Year | |||||
2014 | $ | 79,250 | |||
2015 | 67,150 | ||||
2016 | 51,627 | ||||
2017 | 34,967 | ||||
2018 | 21,435 | ||||
Thereafter | 37,129 | ||||
$ | 291,558 | ||||
Total rental expense for all operating leases and month-to-month rentals was $94.6 million, $96.8 million and $102.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Other commitments and guarantees | |||||
At December 31, 2013 and 2012, the Company was contingently liable for guarantees of indebtedness owed by affiliates and third parties to banks and others totaling $14.7 million and $23.2 million, respectively. The guarantee arrangements relate to promissory notes and other contracts, and contingently require the Company to make payments to the guaranteed party based on the failure of debtors to make scheduled payments according to the terms of the notes and contracts. The Company’s maximum potential amount of future payments under these guarantees totaled $14.7 million and $23.2 million at December 31, 2013 and 2012, respectively, and is limited in duration to the terms of the underlying indebtedness. The Company has not incurred any costs as a result of these guarantees and has not recorded a liability on its consolidated balance sheets related to these guarantees at December 31, 2013 and 2012. | |||||
The Company also guarantees the obligations of certain of its subsidiaries. These obligations are included in the Company’s consolidated balance sheets as of December 31, 2013 and 2012. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
NOTE 19. Accumulated Other Comprehensive Income (Loss): | ||||||||||||||||
Components of accumulated other comprehensive income (loss) are as follows: | ||||||||||||||||
Net unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2010 | $ | (3,237 | ) | $ | 10,960 | $ | (156,803 | ) | $ | (149,080 | ) | |||||
Pretax change before reclassifications | (746 | ) | (6,167 | ) | (42,721 | ) | (49,634 | ) | ||||||||
Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 3,573 | — | — | 3,573 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (10,987 | ) | — | 22,662 | 11,675 | |||||||||||
Tax effect | (2,012 | ) | — | 8,025 | 6,013 | |||||||||||
Balance at December 31, 2011 | (13,409 | ) | 4,793 | (168,837 | ) | (177,453 | ) | |||||||||
Pretax change before reclassifications | 122,243 | 5,131 | (46,602 | ) | 80,772 | |||||||||||
Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 6,502 | — | — | 6,502 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (69,834 | ) | — | 23,983 | (45,851 | ) | ||||||||||
Tax effect | (23,564 | ) | — | 9,048 | (14,516 | ) | ||||||||||
Balance at December 31, 2012 | 21,938 | 9,924 | (182,408 | ) | (150,546 | ) | ||||||||||
Pretax change before reclassifications | (44,205 | ) | (13,650 | ) | 53,080 | (4,775 | ) | |||||||||
Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 3,809 | — | — | 3,809 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (9,795 | ) | — | 27,648 | 17,853 | |||||||||||
Tax effect | 19,526 | — | (31,404 | ) | (11,878 | ) | ||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||
Components of accumulated other comprehensive income (loss) allocated to the Company and noncontrolling interests are as follows: | ||||||||||||||||
Net unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
2013 | ||||||||||||||||
Allocated to the Company | $ | (8,734 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,544 | ) | ||||
Allocated to noncontrolling interests | 7 | — | — | 7 | ||||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||
2012 | ||||||||||||||||
Allocated to the Company | $ | 21,928 | $ | 9,924 | $ | (182,408 | ) | $ | (150,556 | ) | ||||||
Allocated to noncontrolling interests | 10 | — | — | 10 | ||||||||||||
Balance at December 31, 2012 | $ | 21,938 | $ | 9,924 | $ | (182,408 | ) | $ | (150,546 | ) | ||||||
2011 | ||||||||||||||||
Allocated to the Company | $ | (13,415 | ) | $ | 4,793 | $ | (168,837 | ) | $ | (177,459 | ) | |||||
Allocated to noncontrolling interests | 6 | — | — | 6 | ||||||||||||
Balance at December 31, 2011 | $ | (13,409 | ) | $ | 4,793 | $ | (168,837 | ) | $ | (177,453 | ) | |||||
The reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013 are as follows: | ||||||||||||||||
(in thousands) | Amounts reclassified | Affected line items in the | ||||||||||||||
from accumulated | consolidated statements of income | |||||||||||||||
other | ||||||||||||||||
comprehensive | ||||||||||||||||
income | ||||||||||||||||
Net unrealized gains on securities: | ||||||||||||||||
Net realized gains on sales of securities | $ | 9,795 | Net realized investment gains | |||||||||||||
Tax effect | $ | (3,811 | ) | |||||||||||||
Pension benefit adjustment: | ||||||||||||||||
Amortization of defined benefit pension and supplemental benefit plan items: | ||||||||||||||||
Net actuarial loss | $ | (32,033 | ) | (1 | ) | |||||||||||
Prior service credit | 4,385 | (1 | ) | |||||||||||||
Pretax total | $ | (27,648 | ) | |||||||||||||
Tax effect | $ | 10,757 | ||||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 14 Employee Benefit Plans for additional details. | |||||||||||||||
Litigation_and_Regulatory_Cont
Litigation and Regulatory Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Litigation and Regulatory Contingencies | ' | |
NOTE 20. Litigation and Regulatory Contingencies: | ||
The Company and its subsidiaries are parties to a number of non-ordinary course lawsuits. Frequently these lawsuits are similar in nature to other lawsuits pending against the Company’s competitors. | ||
For those non-ordinary course lawsuits where the Company has determined that a loss is both probable and reasonably estimable, a liability representing the best estimate of the Company’s financial exposure based on known facts has been recorded. Actual losses may materially differ from the amounts recorded. | ||
For a substantial majority of these lawsuits, however, it is not possible to assess the probability of loss. Most of these lawsuits are putative class actions which require a plaintiff to satisfy a number of procedural requirements before proceeding to trial. These requirements include, among others, demonstration to a court that the law proscribes in some manner the Company’s activities, the making of factual allegations sufficient to suggest that the Company’s activities exceeded the limits of the law and a determination by the court—known as class certification—that the law permits a group of individuals to pursue the case together as a class. In certain instances the Company may also be able to compel the plaintiff to arbitrate its claim on an individual basis. If these procedural requirements are not met, either the lawsuit cannot proceed or, as is the case with class certification or compelled arbitration, the plaintiffs lose the financial incentive to proceed with the case (or the amount at issue effectively becomes de minimus). Frequently, a court’s determination as to these procedural requirements is subject to appeal to a higher court. As a result of, among other factors, ambiguities and inconsistencies in the myriad laws applicable to the Company’s business and the uniqueness of the factual issues presented in any given lawsuit, the Company often cannot determine the probability of loss until a court has finally determined that a plaintiff has satisfied applicable procedural requirements. | ||
Furthermore, because most of these lawsuits are putative class actions, it is often impossible to estimate the possible loss or a range of loss amounts, even where the Company has determined that a loss is reasonably possible. Generally class actions involve a large number of people and the effort to determine which people satisfy the requirements to become plaintiffs—or class members—is often time consuming and burdensome. Moreover, these lawsuits raise complex factual issues which result in uncertainty as to their outcome and, ultimately, make it difficult for the Company to estimate the amount of damages which a plaintiff might successfully prove. In addition, many of the Company’s businesses are regulated by various federal, state, local and foreign governmental agencies and are subject to numerous statutory guidelines. These regulations and statutory guidelines often are complex, inconsistent or ambiguous, which results in additional uncertainty as to the outcome of a given lawsuit—including the amount of damages a plaintiff might be afforded—or makes it difficult to analogize experience in one case or jurisdiction to another case or jurisdiction. | ||
Most of the non-ordinary course lawsuits to which the Company and its subsidiaries are parties challenge practices in the Company’s title insurance business, though a limited number of cases also pertain to the Company’s other businesses. These lawsuits include, among others, cases alleging, among other assertions, that the Company, one of its subsidiaries and/or one of its agents: | ||
· | charged an improper rate for title insurance in a refinance transaction, including | |
· | Haskins v. First American Title Insurance Company, filed on September 29, 2010 and pending in the United States District Court of New Jersey, | |
· | Levine v. First American Title Insurance Company, filed on February 26, 2009 and pending in the United States District Court of Pennsylvania, | |
· | Lewis v. First American Title Insurance Company, filed on November 28, 2006 and pending in the United States District Court for the District of Idaho, | |
· | Raffone v. First American Title Insurance Company, filed on February 14, 2004 and pending in the Circuit Court, Nassau County, Florida, and | |
· | Slapikas v. First American Title Insurance Company, filed on December 19, 2005 and pending in the United States District Court for the Western District of Pennsylvania. | |
All of these lawsuits are putative class actions. A court has only granted class certification in Lewis, Raffone and Slapikas. For the reasons stated above, the Company has been unable to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is immaterial to the consolidated financial statements as a whole. | ||
· | purchased minority interests in title insurance agents as an inducement to refer title insurance underwriting business to the Company or gave items of value to title insurance agents and others for referrals of business, in each case in violation of the Real Estate Settlement Procedures Act, including | |
· | Edwards v. First American Financial Corporation, filed on June 12, 2007 and pending in the United States District Court for the Central District of California. | |
In Edwards a narrow class has been certified. For the reasons stated above, the Company has been unable to estimate the possible loss or the range of loss. | ||
· | engaged in the unauthorized practice of law, including | |
· | Gale v. First American Title Insurance Company, et al., filed on October 16, 2006 and pending in the United States District Court of Connecticut, and | |
· | Hamilton v. First American Title Insurance Company, et al., filed on August 25, 2008 and pending in the Superior Court of the State of North Carolina, Wake County. | |
The class in Hamilton was certified. The class originally certified in Gale was subsequently decertified. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss. | ||
· | overcharged or improperly charged fees for products and services provided in connection with the closing of real estate transactions, denied home warranty claims, recorded telephone calls, and gave items of value to developers, builders and others as inducements to refer business in violation of certain other laws, such as consumer protection laws and laws generally prohibiting unfair business practices, and certain obligations, including | |
· | Bushman v. First American Title Insurance Company, et al., filed on November 21, 2013 and pending in the Circuit Court of the State of Michigan, County of Washtenaw, | |
· | Carrera v. First American Home Buyers Protection Corporation, filed on September 23, 2009 and pending in the United States District Court for the Southern District of California, | |
· | Chassen v. First American Financial Corporation, et al., filed on January 22, 2009 and pending in the United States District Court of New Jersey, | |
· | Coleman v. First American Home Buyers Protection Corporation, et al., filed on August 24, 2009 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Diaz v. First American Home Buyers Protection Corporation, filed on March 10, 2009 and pending in the United States District Court for the Southern District of California, | |
· | Gunning v. First American Title Insurance Company, filed on July 14, 2008 and pending in the United States District Court for the Eastern District of Kentucky, | |
· | Kaufman v. First American Financial Corporation, et al., filed on December 21, 2007 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Kirk v. First American Financial Corporation, filed on June 15, 2006 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Muehling v. First American Title Company, filed on December 11, 2012 and pending in the Superior Court of the State of California, County of Alameda, | |
· | Sjobring v. First American Financial Corporation, et al., filed on February 25, 2005 and pending in the Superior Court of the State of California, County of Los Angeles, | |
· | Smith v. First American Title Insurance Company, filed on November 23, 2011 and pending in the United States District Court for the Western District of Washington, | |
· | Tavenner v. Talon Group, filed on August 18, 2009 and pending in the United States District Court for the Western District of Washington, and | |
· | Wilmot v. First American Financial Corporation, et al., filed on April 20, 2007 and pending in the Superior Court of the State of California, County of Los Angeles. | |
All of these lawsuits, except Kirk, Kaufman, and Tavenner, are putative class actions for which a class has not been certified. In Kaufman a class was certified but that certification was subsequently vacated. A trial of the Kirk matter, subject to the outcome of an outstanding evidentiary matter, has concluded and the determination of the court is pending. For the reasons described above, the Company has not yet been able to assess the probability of loss or estimate the possible loss or the range of loss or, where the Company has been able to make an estimate, the Company believes the amount is immaterial to the consolidated financial statements as a whole. | ||
While some of the lawsuits described above may be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that any of these lawsuits will have a material adverse effect on the Company’s overall financial condition or liquidity. | ||
On March 5, 2010, Bank of America, N.A. filed a complaint in the North Carolina General Court of Justice, Superior Court Division against United General Title Insurance Company and First American Title Insurance Company alleging that the defendants failed to pay or failed to timely respond to certain claims made on title insurance policies issued in connection with home equity loans or lines of credit that are now in default. On April 1, 2010, the Company filed a third party complaint within the same litigation against Fiserv Solutions, Inc. for other matters relating to the plaintiff’s allegations. During the fourth quarter of 2011, the Company, Bank of America and Fiserv settled the lawsuit through mediation. In connection with the case, the Company recorded a charge of $19.2 million in the fourth quarter of 2011 and $13.0 million in the third quarter of 2011, which is net of all recoveries. These charges were recorded to provision for policy losses and other claims on the accompanying consolidated statements of income. The settlement extinguished all Company liability in connection with policies issued to Bank of America of the type that are the subject of the lawsuit, whether or not Bank of America submitted a claim with respect to such policies. The court approved of the settlement on December 8, 2011 and dismissed the case with prejudice. | ||
The Company also is a party to non-ordinary course lawsuits other than those described above. With respect to these lawsuits, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the consolidated financial statements as a whole. | ||
The Company’s title insurance, property and casualty insurance, home warranty, banking, thrift, trust and investment advisory businesses are regulated by various federal, state and local governmental agencies. Many of the Company’s other businesses operate within statutory guidelines. Consequently, the Company may from time to time be subject to examination or investigation by such governmental agencies. Currently, governmental agencies are examining or investigating certain of the Company’s operations. These exams or investigations include inquiries into, among other matters, pricing and rate setting practices in the title insurance industry, competition in the title insurance industry, real estate settlement service customer acquisition and retention practices and agency relationships. With respect to matters where the Company has determined that a loss is both probable and reasonably estimable, the Company has recorded a liability representing its best estimate of the financial exposure based on known facts. While the ultimate disposition of each such exam or investigation is not yet determinable, the Company does not believe that individually or in the aggregate they will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. These exams or investigations could, however, result in changes to the Company’s business practices which could ultimately have a material adverse impact on the Company’s financial condition, results of operations or cash flows. | ||
The Company and its subsidiaries also are involved in numerous ongoing routine legal and regulatory proceedings related to their operations. With respect to each of these proceedings, the Company has determined either that a loss is not reasonably possible or that the estimated loss or range of loss, if any, is not material to the consolidated financial statements as a whole. | ||
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations | ' |
NOTE 21. Business Combinations: | |
During the year ended December 31, 2013, the Company completed four acquisitions for an aggregate purchase price of $5.3 million in cash and accrued contingent consideration of $1.2 million. The purchase price of each acquisition was allocated to the assets acquired and liabilities assumed using a variety of valuation techniques including discounted cash flow analysis. These four acquisitions have been included in the Company’s title insurance and services segment. | |
In addition to the acquisitions discussed above, during the year ended December 31, 2013, the Company purchased additional noncontrolling interests in companies already included in the Company’s consolidated financial statements for a total purchase price of $1.0 million in cash. |
Segment_Financial_Information
Segment Financial Information | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Segment Financial Information | ' | |||||||||||||||||||||||||||
NOTE 22. Segment Financial Information: | ||||||||||||||||||||||||||||
The Company consists of the following reportable segments and a corporate function: | ||||||||||||||||||||||||||||
· | The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions involving the use of real property related data designed to mitigate risk or otherwise facilitate real estate transactions; maintains, manages and provides access to title plant records and images; and provides banking, trust and investment advisory services. The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents. Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies and the District of Columbia. The Company also offers title insurance and other insurance and guarantee products, as well as related settlement services in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. | |||||||||||||||||||||||||||
· | The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 46 states. In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. This business currently operates in 39 states and the District of Columbia. | |||||||||||||||||||||||||||
The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Eliminations consist of inter-segment revenues and related expenses included in the results of the operating segments. | ||||||||||||||||||||||||||||
Selected financial information about the Company’s operations, by segment, for each of the past three years is as follows: | ||||||||||||||||||||||||||||
Revenues | Depreciation | Equity in | Income (loss) | Assets | Investment | Capital | ||||||||||||||||||||||
and | earnings of | before | in equity | expenditures | ||||||||||||||||||||||||
amortization | income taxes | |||||||||||||||||||||||||||
affiliates, net | method | |||||||||||||||||||||||||||
affiliates | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,606,088 | $ | 66,956 | $ | 7,387 | $ | 350,165 | $ | 5,751,632 | $ | 124,921 | $ | 83,469 | ||||||||||||||
Specialty Insurance | 339,613 | 4,865 | — | 42,132 | 499,788 | — | 3,673 | |||||||||||||||||||||
Corporate | 13,008 | 3,095 | (2,071 | ) | (81,589 | ) | 330,802 | 101 | — | |||||||||||||||||||
Eliminations | (2,632 | ) | — | — | — | (61,622 | ) | — | — | |||||||||||||||||||
$ | 4,956,077 | $ | 74,916 | $ | 5,316 | $ | 310,708 | $ | 6,520,600 | $ | 125,022 | $ | 87,142 | |||||||||||||||
2012 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,200,520 | $ | 67,610 | $ | 7,677 | $ | 473,681 | $ | 5,427,432 | $ | 127,217 | $ | 78,614 | ||||||||||||||
Specialty Insurance | 315,171 | 4,553 | — | 47,459 | 487,780 | — | 5,278 | |||||||||||||||||||||
Corporate | 29,892 | 2,787 | (1,163 | ) | (53,349 | ) | 272,928 | 2,753 | — | |||||||||||||||||||
Eliminations | (3,762 | ) | — | — | (385 | ) | (137,293 | ) | — | — | ||||||||||||||||||
$ | 4,541,821 | $ | 74,950 | $ | 6,514 | $ | 467,406 | $ | 6,050,847 | $ | 129,970 | $ | 83,892 | |||||||||||||||
2011 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,541,119 | $ | 69,259 | $ | 4,493 | $ | 173,581 | $ | 4,947,903 | $ | 132,628 | $ | 68,098 | ||||||||||||||
Specialty Insurance | 286,982 | 4,197 | — | 39,852 | 490,620 | — | 7,024 | |||||||||||||||||||||
Corporate | (3,652 | ) | 3,433 | (1,776 | ) | (83,525 | ) | 40,479 | 4,099 | 251 | ||||||||||||||||||
Eliminations | (3,875 | ) | — | — | 385 | (116,792 | ) | — | — | |||||||||||||||||||
$ | 3,820,574 | $ | 76,889 | $ | 2,717 | $ | 130,293 | $ | 5,362,210 | $ | 136,727 | $ | 75,373 | |||||||||||||||
Total revenues from external customers separated between domestic and foreign operations, and by segment, for each of the three years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,283,067 | $ | 320,413 | $ | 3,865,480 | $ | 332,577 | $ | 3,188,989 | $ | 350,239 | ||||||||||||||||
Specialty Insurance | 339,613 | — | 313,889 | — | 284,997 | — | ||||||||||||||||||||||
$ | 4,622,680 | $ | 320,413 | $ | 4,179,369 | $ | 332,577 | $ | 3,473,986 | $ | 350,239 | |||||||||||||||||
Long-lived assets separated between domestic and foreign operations, and by segment, as of December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 1,610,310 | $ | 135,912 | $ | 1,580,399 | $ | 151,289 | $ | 1,553,839 | $ | 136,188 | ||||||||||||||||
Specialty Insurance | 105,724 | — | 104,698 | — | 104,371 | — | ||||||||||||||||||||||
$ | 1,716,034 | $ | 135,912 | $ | 1,685,097 | $ | 151,289 | $ | 1,658,210 | $ | 136,188 | |||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
NOTE 23. Subsequent Events: | |
On February 5, 2014, the Company entered into a definitive agreement to acquire a company that provides loan quality analytics, decision support tools and loan review services for the mortgage industry for a purchase price of $155 million. The transaction is expected to close by March 31, 2014, subject to customary closing conditions, including certain regulatory reviews. The Company expects to draw $150 million on its credit facility to fund the acquisition. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||||
QUARTERLY FINANCIAL DATA | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Quarter Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 (1) | |||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
2013 | ||||||||||||||||||
Revenues | $ | 1,146,763 | $ | 1,288,464 | $ | 1,300,978 | $ | 1,219,872 | ||||||||||
Income before income taxes | $ | 59,592 | $ | 59,224 | $ | 107,045 | $ | 84,847 | ||||||||||
Net income | $ | 36,232 | $ | 34,948 | $ | 64,095 | $ | 51,789 | ||||||||||
Net income attributable to noncontrolling interests | $ | 54 | $ | 276 | $ | 205 | $ | 162 | ||||||||||
Net income attributable to the Company | $ | 36,178 | $ | 34,672 | $ | 63,890 | $ | 51,627 | ||||||||||
Net income per share attributable to the Company’s stockholders (2): | ||||||||||||||||||
Basic | $ | 0.34 | $ | 0.32 | $ | 0.6 | $ | 0.49 | ||||||||||
Diluted | $ | 0.33 | $ | 0.31 | $ | 0.59 | $ | 0.48 | ||||||||||
-1 | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | |||||||||||||||||
-2 | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. | |||||||||||||||||
Quarter Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
2012 | ||||||||||||||||||
Revenues | $ | 966,763 | $ | 1,089,833 | $ | 1,208,402 | $ | 1,276,823 | ||||||||||
Income before income taxes | $ | 51,550 | $ | 112,290 | $ | 155,882 | $ | 147,684 | ||||||||||
Net income | $ | 31,109 | $ | 73,517 | $ | 103,900 | $ | 93,202 | ||||||||||
Net (loss) income attributable to noncontrolling interests | $ | (184 | ) | $ | 516 | $ | 430 | $ | (75 | ) | ||||||||
Net income attributable to the Company | $ | 31,293 | $ | 73,001 | $ | 103,470 | $ | 93,277 | ||||||||||
Net income per share attributable to the Company’s stockholders (1): | ||||||||||||||||||
Basic | $ | 0.3 | $ | 0.69 | $ | 0.97 | $ | 0.87 | ||||||||||
Diluted | $ | 0.29 | $ | 0.68 | $ | 0.95 | $ | 0.85 | ||||||||||
-1 | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Summary_Of_InvestmentsOther_Th
Summary Of Investments-Other Than Investments In Related Parties | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Summary of Investments-Other Than Investments in Related Parties | ' | |||||||||||||
SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES | ||||||||||||||
(in thousands) | ||||||||||||||
December 31, 2013 | ||||||||||||||
Column A | Column B | Column C | Column D | |||||||||||
Type of investment | Cost | Market value | Amount at which | |||||||||||
shown in the | ||||||||||||||
balance sheet | ||||||||||||||
Deposits with banks: | ||||||||||||||
Consolidated | $ | 23,492 | $ | 23,601 | $ | 23,492 | ||||||||
Debt securities: | ||||||||||||||
U.S. Treasury bonds | ||||||||||||||
Consolidated | $ | 66,400 | $ | 66,384 | $ | 66,384 | ||||||||
Municipal bonds | ||||||||||||||
Consolidated | $ | 491,143 | $ | 485,965 | $ | 485,965 | ||||||||
Foreign bonds | ||||||||||||||
Consolidated | $ | 221,298 | $ | 222,508 | $ | 222,508 | ||||||||
Governmental agency bonds | ||||||||||||||
Consolidated | $ | 267,713 | $ | 262,545 | $ | 262,545 | ||||||||
Governmental agency mortgage-backed securities | ||||||||||||||
Consolidated | $ | 1,426,489 | $ | 1,403,309 | $ | 1,403,309 | ||||||||
Non-agency mortgage-backed securities | ||||||||||||||
Consolidated | $ | 19,658 | $ | 19,022 | $ | 19,022 | ||||||||
Corporate debt securities | ||||||||||||||
Consolidated | $ | 355,893 | $ | 360,084 | $ | 360,084 | ||||||||
Total debt securities: | ||||||||||||||
Consolidated | $ | 2,848,594 | $ | 2,819,817 | $ | 2,819,817 | ||||||||
Equity securities: | ||||||||||||||
Consolidated | $ | 334,099 | $ | 358,043 | $ | 358,043 | ||||||||
Notes receivable, net: | ||||||||||||||
Consolidated | $ | 10,542 | $ | 9,953 | $ | 10,542 | ||||||||
Other long-term investments: | ||||||||||||||
Consolidated | $ | 173,434 | $ | 173,434 | -1 | $ | 173,434 | |||||||
Total investments: | ||||||||||||||
Consolidated | $ | 3,390,161 | $ | 3,384,848 | $ | 3,385,328 | ||||||||
-1 | As other long-term investments are not publicly traded, reasonable estimate of the fair values could not be made without incurring excessive costs. |
Condensed_Financial_Statements
Condensed Financial Statements (Parent Company) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | |||||||||||
SCHEDULE II | ||||||||||||
1 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED BALANCE SHEETS | ||||||||||||
(in thousands, except par values) | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 221,666 | $ | 163,488 | ||||||||
Income taxes receivable | 26,527 | 14,093 | ||||||||||
Investment in subsidiaries | 2,944,803 | 2,908,476 | ||||||||||
Other assets | 88,752 | 86,509 | ||||||||||
$ | 3,281,748 | $ | 3,172,566 | |||||||||
Liabilities and Equity | ||||||||||||
Accounts payable and other accrued liabilities | $ | 75,656 | $ | 64,760 | ||||||||
Pension costs and other retirement plans | 371,671 | 445,246 | ||||||||||
Due to subsidiaries, net | 14,236 | 29,926 | ||||||||||
Deferred income taxes | 54,779 | 36,987 | ||||||||||
Notes and contracts payable | 249,163 | 160,000 | ||||||||||
Notes and contracts payable to subsidiaries | 60,000 | 83,878 | ||||||||||
825,505 | 820,797 | |||||||||||
Commitments and contingencies | ||||||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock, $0.00001 par value, Authorized-500 shares; Outstanding-none | — | — | ||||||||||
Common stock, $0.00001 par value: | ||||||||||||
Authorized—300,000 shares; Outstanding—105,900 shares and 107,239 shares as of December 31, 2013 and 2012, respectively | 1 | 1 | ||||||||||
Additional paid-in capital | 2,077,828 | 2,111,605 | ||||||||||
Retained earnings | 520,764 | 387,015 | ||||||||||
Accumulated other comprehensive loss | (145,544 | ) | (150,556 | ) | ||||||||
Total stockholders’ equity | 2,453,049 | 2,348,065 | ||||||||||
Noncontrolling interests | 3,194 | 3,704 | ||||||||||
Total equity | 2,456,243 | 2,351,769 | ||||||||||
$ | 3,281,748 | $ | 3,172,566 | |||||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
2 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED STATEMENTS OF INCOME | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues | ||||||||||||
Dividends from subsidiaries | $ | 372,996 | $ | 285,141 | $ | 60,600 | ||||||
Other income (loss) | 12,804 | 29,839 | (3,604 | ) | ||||||||
385,800 | 314,980 | 56,996 | ||||||||||
Expenses | ||||||||||||
Other expenses | 36,184 | 24,569 | 26,010 | |||||||||
Income before income taxes and equity in undistributed (losses) earnings of subsidiaries | 349,616 | 290,411 | 30,986 | |||||||||
Income taxes | 139,127 | 102,940 | 12,298 | |||||||||
Equity in undistributed (losses) earnings of subsidiaries | (23,425 | ) | 114,257 | 59,891 | ||||||||
Net income | 187,064 | 301,728 | 78,579 | |||||||||
Less: Net income attributable to noncontrolling interests | 697 | 687 | 303 | |||||||||
Net income attributable to the Company | $ | 186,367 | $ | 301,041 | $ | 78,276 | ||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
3 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income | $ | 187,064 | $ | 301,728 | $ | 78,579 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized (loss) gain on securities | (32,992 | ) | 31,445 | (12,316 | ) | |||||||
Unrealized gain on securities for which credit-related portion was recognized in earnings | 2,327 | 3,902 | 2,144 | |||||||||
Foreign currency translation adjustment | (13,650 | ) | 5,131 | (6,167 | ) | |||||||
Pension benefit adjustment | 49,324 | (13,571 | ) | (12,034 | ) | |||||||
Total other comprehensive income (loss), net of tax | 5,009 | 26,907 | (28,373 | ) | ||||||||
Comprehensive income | 192,073 | 328,635 | 50,206 | |||||||||
Less: Comprehensive income attributable to noncontrolling interests | 694 | 691 | 233 | |||||||||
Comprehensive income attributable to the Company | $ | 191,379 | $ | 327,944 | $ | 49,973 | ||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
4 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Cash provided by (used for) operating activities | $ | 71,326 | $ | (38,703 | ) | $ | 73,816 | |||||
Cash flows from investing activities: | ||||||||||||
Proceeds from sales of equity securities | — | 137,823 | — | |||||||||
Proceeds from note receivable from CoreLogic | — | — | 18,787 | |||||||||
Proceeds from sale of property and equipment | — | — | 1,056 | |||||||||
Contributions to subsidiaries | (800 | ) | (10,999 | ) | — | |||||||
Net change in other long-term investments | 6,549 | 595 | (935 | ) | ||||||||
Capital expenditures | — | — | (29 | ) | ||||||||
Cash provided by investing activities | 5,749 | 127,419 | 18,879 | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of debt | 249,095 | 440,000 | — | |||||||||
Repayment of debt | (160,000 | ) | (480,000 | ) | (1,083 | ) | ||||||
Repayment of debt to subsidiaries | — | (2,902 | ) | (5,269 | ) | |||||||
Excess tax benefits from share-based compensation | 6,202 | 2,372 | 1,145 | |||||||||
Net proceeds in connection with share-based compensation plans | 1,736 | 12,668 | 1,152 | |||||||||
Purchase of Company shares | (64,606 | ) | — | (2,502 | ) | |||||||
Cash dividends | (51,324 | ) | (44,705 | ) | (25,216 | ) | ||||||
Cash used for financing activities | (18,897 | ) | (72,567 | ) | (31,773 | ) | ||||||
Net increase in cash and cash equivalents | 58,178 | 16,149 | 60,922 | |||||||||
Cash and cash equivalents—Beginning of period | 163,488 | 147,339 | 86,417 | |||||||||
Cash and cash equivalents—End of period | $ | 221,666 | $ | 163,488 | $ | 147,339 | ||||||
See notes to condensed financial statements | ||||||||||||
SCHEDULE II | ||||||||||||
5 OF 5 | ||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||
(Parent Company) | ||||||||||||
NOTES TO CONDENSED FINANCIAL STATEMENTS | ||||||||||||
NOTE 1. Description of the Company: | ||||||||||||
First American Financial Corporation became a publicly traded company following its spin-off from its prior parent, The First American Corporation (“TFAC”) on June 1, 2010. On that date, TFAC distributed all of First American Financial Corporation’s outstanding shares to the record date shareholders of TFAC on a one-for-one basis. After the distribution, First American Financial Corporation owns TFAC’s financial services businesses and TFAC, which reincorporated and assumed the name CoreLogic, Inc., continued to own its information solutions businesses. | ||||||||||||
First American Financial Corporation is a holding company that conducts all of its operations through its subsidiaries. The Parent Company Financial Statements should be read in connection with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. | ||||||||||||
Reclassifications and revisions | ||||||||||||
Certain 2012 amounts have been reclassified to conform to the 2013 presentation. | ||||||||||||
The Company has revised its condensed statements of cash flows for the years ended December 31, 2012 and 2011 for errors which resulted in adjustments between cash provided by operating activities, the effect of exchange rate changes on cash and net activity related to noncontrolling interests, which was previously classified as financing activities. In addition, the Company revised the condensed statement of cash flows for the year ended December 31, 2012 for an error to correct the classification of contributions to subsidiaries as investing activities versus the previous classification as financing activities. These adjustments are not considered material, individually or in the aggregate, to the previously issued condensed statements of cash flows. The table below illustrates the effects of these adjustments on the condensed statements of cash flows for those line items affected. | ||||||||||||
As previously filed | As revised | Difference | ||||||||||
(in thousands) | ||||||||||||
Year Ended December 31, 2012 | ||||||||||||
Condensed Statement of Cash Flows | ||||||||||||
Effect of exchange rate changes on cash | $ | 4,974 | $ | — | $ | (4,974 | ) | |||||
Net activity related to noncontrolling interests | $ | (4,094 | ) | $ | — | $ | 4,094 | |||||
Cash used for operating activities | $ | (39,583 | ) | $ | (38,703 | ) | $ | 880 | ||||
Cash provided by investing activities | $ | 138,418 | $ | 127,419 | $ | (10,999 | ) | |||||
Cash used for financing activities | $ | (87,660 | ) | $ | (72,567 | ) | $ | 15,093 | ||||
Year Ended December 31, 2011 | ||||||||||||
Condensed Statement of Cash Flows | ||||||||||||
Effect of exchange rate changes on cash | $ | (5,731 | ) | $ | — | $ | 5,731 | |||||
Net activity related to noncontrolling interests | $ | (4,491 | ) | $ | — | $ | 4,491 | |||||
Cash provided by operating activities | $ | 84,038 | $ | 73,816 | $ | (10,222 | ) | |||||
Cash used for financing activities | $ | (36,264 | ) | $ | (31,773 | ) | $ | 4,491 | ||||
Supplemental information about non-cash financing activity | ||||||||||||
In 2013, $23.9 million in tax receivables due from subsidiaries were reduced with a corresponding reduction in notes payable to subsidiaries in noncash transactions. | ||||||||||||
NOTE 2. Dividends Received: | ||||||||||||
The Company received cash dividends from subsidiaries of $125.1 million, $11.8 million and $75.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Supplementary_Insurance_Inform
Supplementary Insurance Information | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Supplementary Insurance Information | ' | ||||||||||||||||||||||||||
SCHEDULE III | |||||||||||||||||||||||||||
1 OF 2 | |||||||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | |||||||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
BALANCE SHEET CAPTIONS | |||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | ||||||||||||||||||||||||
Segment | Deferred | Claims | Deferred | ||||||||||||||||||||||||
policy | reserves | revenues | |||||||||||||||||||||||||
acquisition | |||||||||||||||||||||||||||
costs | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 2,375 | $ | 977,355 | $ | 14,544 | |||||||||||||||||||||
Specialty Insurance | 24,437 | 41,010 | 177,640 | ||||||||||||||||||||||||
Total | $ | 26,812 | $ | 1,018,365 | $ | 192,184 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 681 | $ | 941,748 | $ | 8,533 | |||||||||||||||||||||
Specialty Insurance | 21,908 | 34,714 | 162,130 | ||||||||||||||||||||||||
Total | $ | 22,589 | $ | 976,462 | $ | 170,663 | |||||||||||||||||||||
SCHEDULE III | |||||||||||||||||||||||||||
2 OF 2 | |||||||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | |||||||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
INCOME STATEMENT CAPTIONS | |||||||||||||||||||||||||||
Column A | Column F | Column G | Column H | Column I | Column J | Column K | |||||||||||||||||||||
Segment | Premiums | Net | Loss | Amortization | Other | Premiums | |||||||||||||||||||||
and escrow | investment | provision | of deferred | operating | written | ||||||||||||||||||||||
fees | income | policy | expenses | ||||||||||||||||||||||||
acquisition | |||||||||||||||||||||||||||
costs | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,900,132 | $ | 79,940 | $ | 343,461 | $ | 1,261 | $ | 816,870 | $ | — | |||||||||||||||
Specialty Insurance | 329,194 | 8,767 | 186,895 | (2,529 | ) | 41,725 | 344,433 | ||||||||||||||||||||
Corporate | — | 13,008 | — | — | 27,264 | — | |||||||||||||||||||||
Eliminations | — | (2,609 | ) | — | — | (54 | ) | — | |||||||||||||||||||
Total | $ | 4,229,326 | $ | 99,106 | $ | 530,356 | $ | (1,268 | ) | $ | 885,805 | $ | 344,433 | ||||||||||||||
2012 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,455,592 | $ | 101,495 | $ | 237,427 | $ | 1,174 | $ | 769,477 | $ | — | |||||||||||||||
Specialty Insurance | 296,053 | 17,513 | 160,290 | (108 | ) | 42,395 | 312,696 | ||||||||||||||||||||
Corporate | — | 29,892 | — | — | 24,462 | — | |||||||||||||||||||||
Eliminations | — | (3,747 | ) | — | — | (15 | ) | — | |||||||||||||||||||
Total | $ | 3,751,645 | $ | 145,153 | $ | 397,717 | $ | 1,066 | $ | 836,319 | $ | 312,696 | |||||||||||||||
2011 | |||||||||||||||||||||||||||
Title Insurance and Services | $ | 2,852,455 | $ | 68,713 | $ | 270,697 | $ | — | $ | 702,508 | $ | — | |||||||||||||||
Specialty Insurance | 273,665 | 11,786 | 149,439 | (1,161 | ) | 38,066 | 280,424 | ||||||||||||||||||||
Corporate | — | (3,652 | ) | — | — | 21,303 | — | ||||||||||||||||||||
Eliminations | — | (3,876 | ) | — | — | 1 | — | ||||||||||||||||||||
Total | $ | 3,126,120 | $ | 72,971 | $ | 420,136 | $ | (1,161 | ) | $ | 761,878 | $ | 280,424 | ||||||||||||||
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Reinsurance | ' | ||||||||||||||||||||
SCHEDULE IV | |||||||||||||||||||||
1 OF 1 | |||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | |||||||||||||||||||||
AND SUBSIDIARY COMPANIES | |||||||||||||||||||||
REINSURANCE | |||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||
Segment | Premiums | Ceded to | Assumed | Premiums | Percentage of | ||||||||||||||||
and escrow | other | from | and escrow | amount | |||||||||||||||||
fees before | companies | other | fees | assumed to | |||||||||||||||||
reinsurance | companies | premiums | |||||||||||||||||||
and escrow | |||||||||||||||||||||
fees | |||||||||||||||||||||
Title Insurance and Services | |||||||||||||||||||||
2013 | $ | 3,923,117 | $ | 27,483 | $ | 4,498 | $ | 3,900,132 | 0.1 | % | |||||||||||
2012 | $ | 3,472,675 | $ | 19,884 | $ | 2,801 | $ | 3,455,592 | 0.1 | % | |||||||||||
2011 | $ | 2,861,418 | $ | 13,744 | $ | 4,781 | $ | 2,852,455 | 0.2 | % | |||||||||||
Specialty Insurance | |||||||||||||||||||||
2013 | $ | 338,204 | $ | 9,010 | $ | — | $ | 329,194 | 0 | % | |||||||||||
2012 | $ | 305,073 | $ | 9,020 | $ | — | $ | 296,053 | 0 | % | |||||||||||
2011 | $ | 283,885 | $ | 10,220 | $ | — | $ | 273,665 | 0 | % | |||||||||||
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||||||||
SCHEDULE V | ||||||||||||||||||||||
1 OF 3 | ||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | |||||||||||||||||
beginning | costs and | to other | from | at end | ||||||||||||||||||
of period | expenses | accounts | reserve | of period | ||||||||||||||||||
Reserve deducted from accounts receivable: | ||||||||||||||||||||||
Consolidated | $ | 30,917 | $ | 7,478 | $ | 6,564 | (A) | $ | 31,831 | |||||||||||||
Reserve for known and incurred but not reported claims: | ||||||||||||||||||||||
Consolidated | $ | 976,462 | $ | 530,356 | $ | (9,143 | ) | $ | 479,310 | (B) | $ | 1,018,365 | ||||||||||
Reserve deducted from loans receivable: | ||||||||||||||||||||||
Consolidated | $ | 3,893 | $ | (215 | ) | $ | 52 | (A) | $ | 3,626 | ||||||||||||
Reserve deducted from notes receivable: | ||||||||||||||||||||||
Consolidated | $ | 2,902 | $ | (132 | ) | $ | 186 | $ | 2,584 | |||||||||||||
Reserve deducted from deferred income taxes: | ||||||||||||||||||||||
Consolidated | $ | 14,172 | $ | 3,578 | $ | 369 | $ | 18,119 | ||||||||||||||
Note A—Amount represents accounts written off, net of recoveries. | ||||||||||||||||||||||
Note B—Amount represents claim payments, net of recoveries. | ||||||||||||||||||||||
SCHEDULE V | ||||||||||||||||||||||
2 OF 3 | ||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | |||||||||||||||||
beginning | costs and | to other | from | at end | ||||||||||||||||||
of period | expenses | accounts | reserve | of period | ||||||||||||||||||
Reserve deducted from accounts receivable: | ||||||||||||||||||||||
Consolidated | $ | 30,504 | $ | 4,927 | $ | 4,514 | (A) | $ | 30,917 | |||||||||||||
Reserve for known and incurred but not reported claims: | ||||||||||||||||||||||
Consolidated | $ | 1,014,676 | $ | 397,717 | $ | 10,055 | $ | 445,986 | (B) | $ | 976,462 | |||||||||||
Reserve deducted from loans receivable: | ||||||||||||||||||||||
Consolidated | $ | 4,171 | $ | 278 | (A) | $ | 3,893 | |||||||||||||||
Reserve deducted from notes receivable: | ||||||||||||||||||||||
Consolidated | $ | 4,183 | $ | 462 | $ | 1,743 | $ | 2,902 | ||||||||||||||
Reserve deducted from deferred income taxes: | ||||||||||||||||||||||
Consolidated | $ | 21,426 | $ | 15 | $ | 7,269 | $ | 14,172 | ||||||||||||||
Note A—Amount represents accounts written off, net of recoveries. | ||||||||||||||||||||||
Note B—Amount represents claim payments, net of recoveries. | ||||||||||||||||||||||
SCHEDULE V | ||||||||||||||||||||||
3 OF 3 | ||||||||||||||||||||||
FIRST AMERICAN FINANCIAL CORPORATION | ||||||||||||||||||||||
AND SUBSIDIARY COMPANIES | ||||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||||
Additions | ||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | |||||||||||||||||
beginning | costs and | to other | from | at end | ||||||||||||||||||
of period | expenses | accounts | reserve | of period | ||||||||||||||||||
Reserve deducted from accounts receivable: | ||||||||||||||||||||||
Consolidated | $ | 39,904 | $ | 1,723 | $ | 11,123 | (A) | $ | 30,504 | |||||||||||||
Reserve for known and incurred but not reported claims: | ||||||||||||||||||||||
Consolidated | $ | 1,108,238 | $ | 420,136 | $ | (10,264 | ) | $ | 503,434 | (B) | $ | 1,014,676 | ||||||||||
Reserve deducted from loans receivable: | ||||||||||||||||||||||
Consolidated | $ | 3,271 | $ | 900 | $ | 4,171 | ||||||||||||||||
Reserve deducted from notes receivable: | ||||||||||||||||||||||
Consolidated | $ | 5,905 | $ | 1,026 | $ | 2,748 | $ | 4,183 | ||||||||||||||
Reserve deducted from deferred income taxes: | ||||||||||||||||||||||
Consolidated | $ | 19,126 | $ | 5,276 | $ | 2,976 | $ | 21,426 | ||||||||||||||
Note A—Amount represents accounts written off, net of recoveries. | ||||||||||||||||||||||
Note B—Amount represents claim payments, net of recoveries. |
Description_of_the_Company_Pol
Description of the Company (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles and reflect the consolidated operations of the Company. The consolidated financial statements include the accounts of First American Financial Corporation and all controlled subsidiaries. All significant intercompany transactions and balances have been eliminated. Investments in which the Company exercises significant influence, but does not control and is not the primary beneficiary, are accounted for using the equity method. Investments in which the Company does not exercise significant influence over the investee are accounted for under the cost method. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications and revisions | |||||||||||||
Certain 2011 and 2012 amounts have been reclassified to conform to the 2013 presentation. | |||||||||||||
The Company has revised its December 31, 2012 consolidated balance sheet and consolidated statements of cash flows for the years ended December 31, 2012 and 2011, for an error which resulted in an adjustment between cash and cash equivalents and deposits with banks. These adjustments are not considered material, individually or in the aggregate, to the previously issued consolidated financial statements. The table below illustrates the effects of these adjustments on the Company's consolidated financial statements for those line items affected. | |||||||||||||
As previously filed | As revised | Difference | |||||||||||
(in thousands) | |||||||||||||
Year Ended December 31, 2012 | |||||||||||||
Consolidated Balance Sheet | |||||||||||||
Cash and cash equivalents | $ | 627,208 | $ | 670,529 | $ | 43,321 | |||||||
Deposits with banks | $ | 71,196 | $ | 27,875 | $ | (43,321 | ) | ||||||
Consolidated Statement of Cash Flows | |||||||||||||
Net (increase) decrease in deposits with banks | $ | (14,405 | ) | $ | 2,522 | $ | 16,927 | ||||||
Cash used for investing activities | $ | (434,590 | ) | $ | (417,663 | ) | $ | 16,927 | |||||
Year Ended December 31, 2011 | |||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||
Net decrease in deposits with banks | $ | 3,773 | $ | 16,223 | $ | 12,450 | |||||||
Cash used for investing activities | $ | (26,103 | ) | $ | (13,653 | ) | $ | 12,450 | |||||
Use of Estimates | ' | ||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the statements. Actual results could differ from the estimates and assumptions used. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and cash equivalents | |||||||||||||
The Company considers cash equivalents to be all short-term investments that have an initial maturity of 90 days or less and are not restricted for statutory deposit or premium reserve requirements. | |||||||||||||
Accounts and Accrued Income Receivable | ' | ||||||||||||
Accounts and accrued income receivable | |||||||||||||
Accounts and accrued income receivable are generally due within thirty days and are recorded net of an allowance for doubtful accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole. Amounts are charged off in the period they are deemed to be uncollectible. | |||||||||||||
Investments | ' | ||||||||||||
Investments | |||||||||||||
Deposits with banks are short-term investments with initial maturities of generally more than 90 days. | |||||||||||||
Debt securities are carried at fair value and consist primarily of investments in obligations of the United States Treasury, various corporations, certain state and political subdivisions and mortgage-backed securities. | |||||||||||||
The Company maintains investments in debt securities in accordance with certain statutory requirements for the funding of statutory premium reserves and state deposits. At December 31, 2013 and 2012, the fair value of such investments totaled $124.0 million and $105.8 million, respectively. See Note 2 Statutory Restrictions on Investments and Stockholders’ Equity to the consolidated financial statements for additional discussion of the Company’s statutory restrictions. | |||||||||||||
Equity securities are carried at fair value and consist primarily of investments in exchange traded funds, mutual funds and marketable common and preferred stocks of corporate entities. | |||||||||||||
The Company classifies its publicly traded debt and equity securities as available-for-sale with unrealized gains or losses classified as a component of accumulated other comprehensive loss. See Note 3 Debt and Equity Securities to the consolidated financial statements for additional discussion of the Company’s accounting policies pertaining to its debt and equity securities, including other-than-temporary impairment and fair value measurement. | |||||||||||||
Other long-term investments consist primarily of investments in affiliates, which are accounted for under either the equity method or the cost method of accounting, investments in real estate and notes receivable. For each of the years ended December 31, 2013 and 2012, the Company recognized $7.8 million of impairment losses on investments in affiliates. For the year ended December 31, 2011, the Company recognized $8.6 million of impairment losses on other long-term investments, including $6.3 million related to investments in affiliates and $2.3 million related to notes receivable. In making the determination as to whether an individual investment in affiliate was impaired, the Company assessed the then-current and expected financial condition of each relevant entity, including, but not limited to, the anticipated ability of the entity to make its contractually required payments to the Company (with respect to debt obligations to us), the results of valuation work performed with respect to the entity, the entity’s anticipated ability to generate sufficient cash flows and the market conditions in the industry in which the entity was operating. | |||||||||||||
Loss reserves are established for notes receivable based upon an estimate of probable losses for the individual notes. A loss reserve is established on an individual note when it is deemed probable that the Company will be unable to collect all amounts due in accordance with the contractual terms of the note. The loss reserve is based upon the Company’s assessment of the borrower’s overall financial condition, resources and payment record; and, if appropriate, the realizable value of any collateral. These estimates consider all available evidence including the expected future cash flows, estimated fair value of collateral on secured notes, general economic conditions and trends, and other relevant factors, as appropriate. Notes are placed on non-accrual status when management determines that the collectibility of contractual amounts is not reasonably assured. | |||||||||||||
Loans Receivable | ' | ||||||||||||
Loans receivable | |||||||||||||
The performance of the Company’s loan portfolio is evaluated on an ongoing basis by management. Loans receivable are impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans receivable are measured at the present value of expected future cash flows discounted at the loan’s effective interest rate. As a practical expedient, the loan may be valued based on its observable market price or the fair value of the collateral, if the loan is collateral-dependent. No indications of material impairment to loans receivable were identified during the three-year period ended December 31, 2013. | |||||||||||||
Loans, including impaired loans, are generally classified as non-accrual if they miss more than three contractual payments, which usually represent past due between 60 to 90 days or more. The Company’s general policy is to reverse from income previously accrued but unpaid interest. While a loan is classified under non-accrual status and the future collectability of the recorded loan balance is doubtful, collections of interest and principal are generally applied as a reduction to principal outstanding. Income on such loans is subsequently recognized only to the extent that cash is received and future collection of principal is probable. Loans may be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within an acceptable period of time. Interest income on non-accrual loans that would have been recognized during the years ended December 31, 2013, 2012 and 2011, if all of such loans had been current in accordance with their original terms, totaled $134 thousand, $138 thousand and $163 thousand, respectively. | |||||||||||||
The allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. Loan losses are charged to, and recoveries are credited to, the allowance for loan losses. The provision for loan losses is determined after considering various factors, such as loan loss experience, maturity of the portfolio, size of the portfolio, borrower credit history, the existing allowance for loan losses, current charges and recoveries to the allowance for loan losses, the overall quality of the loan portfolio, and current economic conditions, as determined by management, regulatory agencies and independent credit review specialists. While many of these factors are essentially a matter of judgment and may not be reduced to a mathematical formula, the Company believes that, in light of the collateral securing its loan portfolio, the current allowance for loan losses is an adequate allowance against probable losses incurred as of December 31, 2013. | |||||||||||||
The adequacy of the allowance for loan losses is based on formula allocations and specific allocations. Formula allocations are made on a percentage basis, which is dependent on the underlying collateral, the type of loan and general economic conditions. Specific allocations are made as problem or potential problem loans are identified and are based upon an evaluation by management of the status of such loans. Specific allocations may be revised from time to time as the status of problem or potential problem loans changes. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and equipment | |||||||||||||
Property and equipment includes computer software acquired or developed for internal use and for use with the Company’s products. Software development costs, which include capitalized interest costs and certain payroll-related costs of employees directly associated with developing software, in addition to incremental payments to third parties, are capitalized from the time technological feasibility is established until the software is ready for use. | |||||||||||||
Depreciation on buildings and on furniture and equipment is computed using the straight-line method over estimated useful lives of 5 to 40 years and 1 to 15 years, respectively. Capitalized software costs are amortized using the straight-line method over estimated useful lives of 1 to 15 years. Leasehold improvements are amortized over useful lives that are consistent with the lease term. | |||||||||||||
Title Plants and Other Indexes | ' | ||||||||||||
Title plants and other indexes | |||||||||||||
Title plants and other indexes includes title plants of $523.1 million and capitalized real estate data, net of $0.8 million at December 31, 2013 and title plants of $520.7 million and capitalized real estate data, net of $1.0 million at December 31, 2012. Title plants are carried at original cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is amortized using the straight-line method over estimated useful lives of 3 to 15 years. | |||||||||||||
Goodwill | ' | ||||||||||||
Goodwill | |||||||||||||
The Company is required to perform an annual goodwill impairment assessment for each reporting unit. The Company’s four reporting units are title insurance, home warranty, property and casualty insurance and trust and other services. The Company has elected to perform this annual assessment in the fourth quarter of each fiscal year or sooner if circumstances indicate possible impairment. Based on current guidance, the Company has the option to perform a qualitative assessment to determine if the fair value is more likely than not (i.e. a likelihood of greater than 50%) less than the carrying amount as a basis for determining whether it is necessary to perform a quantitative impairment test, or may choose to forego the qualitative assessment and perform the quantitative impairment test. The qualitative factors considered in this assessment may include macroeconomic conditions, industry and market considerations, overall financial performance as well as other relevant events and circumstances as determined by the Company. The Company evaluates the weight of each factor to determine whether it is more likely than not that impairment may exist. If the results of the qualitative assessment indicate the more likely than not threshold was not met, the Company may choose not to perform the quantitative impairment test. If, however, the more likely than not threshold is met, the Company performs the quantitative test as required and discussed below. | |||||||||||||
Management’s quantitative impairment testing process includes two steps. The first step (“Step 1”) compares the fair value of each reporting unit to its carrying amount. The fair value of each reporting unit is determined by using discounted cash flow analysis and market approach valuations. If the fair value of the reporting unit exceeds its carrying amount, the goodwill is not considered impaired and no additional analysis is required. However, if the carrying amount is greater than the fair value, a second step (“Step 2”) must be completed to determine if the fair value of the goodwill exceeds the carrying amount of goodwill. | |||||||||||||
Step 2 involves calculating an implied fair value of goodwill for each reporting unit for which Step 1 indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in Step 1, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment loss is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. | |||||||||||||
The quantitative impairment test for goodwill utilizes a variety of valuation techniques, all of which require the Company to make estimates and judgments. Fair value is determined by employing an expected present value technique, which utilizes multiple cash flow scenarios that reflect a range of possible outcomes and an appropriate discount rate. The use of comparative market multiples (the “market approach”) compares the reporting unit to other comparable companies (if such comparables are present in the marketplace) based on valuation multiples to arrive at a fair value. The Company also uses certain of these valuation techniques in accounting for business combinations, primarily in the determination of the fair value of acquired assets and liabilities. In assessing the fair value, the Company utilizes the results of the valuations (including the market approach to the extent comparables are available) and considers the range of fair values determined under all methods and the extent to which the fair value exceeds the carrying amount of the equity or asset. | |||||||||||||
The valuation of each reporting unit includes the use of assumptions and estimates of many critical factors, including revenue growth rates and operating margins, discount rates and future market conditions, determination of market multiples and the establishment of a control premium, among others. Forecasts of future operations are based, in part, on operating results and the Company’s expectations as to future market conditions. These types of analyses contain uncertainties because they require the Company to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. However, if actual results are not consistent with the Company’s estimates and assumptions, the Company may be exposed to future impairment losses that could be material. | |||||||||||||
Other Intangible Assets | ' | ||||||||||||
Other intangible assets | |||||||||||||
The Company’s intangible assets consist of covenants not to compete, customer lists, trademarks, patents and licenses. Each of these intangible assets, excluding licenses, is amortized on a straight-line basis over its useful life ranging from 1 to 20 years and is subject to impairment assessments when there is an indication of a triggering event or abandonment. Licenses are an intangible asset with an indefinite life and are therefore not amortized but rather assessed for impairment by comparing the fair value of the license with its carrying value at least annually and when an indicator of potential impairment has occurred. | |||||||||||||
Long-Lived Assets | ' | ||||||||||||
Long-lived assets | |||||||||||||
Long-lived assets held and used include property and equipment, capitalized software and other intangible assets with a finite life. Management uses estimated future cash flows (undiscounted and excluding interest) to measure the recoverability of long-lived assets held and used whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable. If the undiscounted cash flow analysis indicates a long-lived asset is not recoverable, an impairment loss is recorded for the excess of the carrying amount of the asset over its fair value. | |||||||||||||
In addition, the Company carries long-lived assets held for sale at the lower of cost or market as of the date that certain criteria have been met. As of December 31, 2013 and 2012 the Company had no material long-lived assets classified as held for sale. | |||||||||||||
Reserve for Known and Incurred but Not Reported Claims | ' | ||||||||||||
Reserve for known and incurred but not reported claims | |||||||||||||
The Company provides for title insurance losses by a charge to expense when the related premium revenue is recognized. The amount charged to expense is generally determined by applying a rate (the loss provision rate) to total title insurance premiums and escrow fees. The Company’s management estimates the loss provision rate at the beginning of each year and reassesses the rate quarterly to ensure that the resulting incurred but not reported (“IBNR”) loss reserve and known claims reserve included in the Company’s consolidated balance sheets together reflect management’s best estimate of the total costs required to settle all IBNR and known claims. If the ending IBNR reserve is not considered adequate, an adjustment is recorded. | |||||||||||||
The process of assessing the loss provision rate and the resulting IBNR reserve involves evaluation of the results of an in-house actuarial review. The Company’s in-house actuary performs a reserve analysis utilizing generally accepted actuarial methods that incorporate cumulative historical claims experience and information provided by in-house claims and operations personnel. Current economic and business trends are also reviewed and used in the reserve analysis. These include real estate and mortgage markets conditions, changes in residential and commercial real estate values, and changes in the levels of defaults and foreclosures that may affect claims levels and patterns of emergence, as well as any company-specific factors that may be relevant to past and future claims experience. Results from the analysis include, but are not limited to, a range of IBNR reserve estimates and a single point estimate for IBNR as of the balance sheet date. | |||||||||||||
For recent policy years at early stages of development (generally the last three years), IBNR is estimated using a combination of expected loss rate and multiplicative loss development factor calculations. For more mature policy years, IBNR generally is estimated using multiplicative loss development factor calculations. The expected loss rate method estimates IBNR by applying an expected loss rate to total title insurance premiums and escrow fees, and adjusting for policy year maturity using estimated loss development patterns. Multiplicative loss development factor calculations estimate IBNR by applying factors derived from loss development patterns to losses realized to date. The expected loss rate and loss development patterns are based on historical experience and the relationship of the history to the applicable policy years. | |||||||||||||
The Company’s management uses the IBNR point estimate from the in-house actuary’s analysis and other relevant information it may have concerning claims to determine what it considers to be the best estimate of the total amount required for the IBNR reserve. | |||||||||||||
Title insurance policies are long-duration contracts with the majority of the claims reported to the Company within the first few years following the issuance of the policy. Generally, 75 to 85% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. Based on historical experience, management believes a 50 basis point change to the loss rates for the most recent policy years, positive or negative, is reasonably likely given the long duration nature of a title insurance policy. For example, if the expected ultimate losses for each of the last six policy years increased or decreased by 50 basis points, the resulting impact on the Company’s IBNR reserve would be an increase or decrease, as the case may be, of $105.8 million. A material change in expected ultimate losses and corresponding loss rates for older policy years is also possible, particularly for policy years with loss ratios exceeding historical norms. The estimates made by management in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience. | |||||||||||||
The Company provides for property and casualty insurance losses when the insured event occurs. The Company provides for claims losses relating to its home warranty business based on the average cost per claim as applied to the total of new claims incurred. The average cost per home warranty claim is calculated using the average of the most recent 12 months of claims experience. | |||||||||||||
Revenues | ' | ||||||||||||
Revenues | |||||||||||||
Title premiums on policies issued directly by the Company are recognized on the effective date of the title policy and escrow fees are recorded upon close of the escrow. Revenues from title policies issued by independent agents are recorded when notice of issuance is received from the agent, which is generally when cash payment is received by the Company. Revenues earned by the Company’s title plant management business are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | |||||||||||||
Direct premiums of the Company’s specialty insurance segment include revenues from home warranty contracts which are generally recognized ratably over the 12-month duration of the contracts, and revenues from property and casualty insurance policies which are also recognized ratably over the 12-month duration of the policies. | |||||||||||||
Revenues earned by the Company’s trust operations are recognized at the time of delivery, as the Company has no significant ongoing obligation after delivery. | |||||||||||||
Premium Taxes | ' | ||||||||||||
Premium taxes | |||||||||||||
Title insurance, property and casualty insurance and home warranty companies, like other types of insurers, are generally not subject to state income or franchise taxes. However, in lieu thereof, most states impose a tax based primarily on insurance premiums written. This premium tax is reported as a separate line item in the consolidated statements of income in order to provide a more meaningful disclosure of the taxation of the Company. | |||||||||||||
Legal Fees | ' | ||||||||||||
Legal fees | |||||||||||||
The Company records legal fees in other operating expenses in the period incurred. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income taxes | |||||||||||||
The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is considered more likely than not that some or all of the deferred tax assets will not be realized. | |||||||||||||
The Company recognizes the effect of income tax positions only if sustaining those positions is considered more likely than not. Changes in recognition or measurement of uncertain tax positions are reflected in the period in which a change in judgment occurs. The Company recognizes interest and penalties, if any, related to uncertain tax positions in tax expense. | |||||||||||||
Share-Based Compensation | ' | ||||||||||||
Share-based compensation | |||||||||||||
The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The cost is recognized in the Company’s financial statements over the requisite service period of the award using the straight-line method for awards that contain only a service condition and the graded vesting method for awards that contain a performance or market condition. The share-based compensation expense recognized is based on the number of shares ultimately expected to vest, net of forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
The Company’s primary means of providing share-based compensation is through the granting of restricted stock units (“RSUs”). RSUs granted generally have graded vesting and include a service condition; and for certain key employees and executives, may also include either a performance or market condition. RSUs receive dividend equivalents in the form of RSUs having the same vesting requirements as the RSUs initially granted. | |||||||||||||
In addition, the Company has an employee stock purchase plan that allows eligible employees the option to purchase common stock of the Company at 85% of the lower of the closing price on either the first or last day of each offering period. The offering periods are three-month periods beginning on January 1, April 1, July 1 and October 1 of each fiscal year. The Company recognizes an expense in the amount equal to the value of the 15% discount and look-back feature over the three-month offering period. | |||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings per share | |||||||||||||
Basic earnings per share is computed by dividing net income available to the Company’s stockholders by the weighted-average number of common shares outstanding. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if dilutive stock options had been exercised and RSUs were vested. The dilutive effect of stock options and unvested RSUs is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options and vesting of RSUs would be used to purchase common shares at the average market price for the period. The assumed proceeds include the purchase price the grantee pays, the hypothetical windfall tax benefit that the Company receives upon assumed exercise or vesting and the hypothetical average unrecognized compensation expense for the period. The Company calculates the assumed proceeds from excess tax benefits based on the “as-if” deferred tax assets calculated under share based compensation standards. | |||||||||||||
Certain unvested RSUs contain nonforfeitable rights to dividends as they are eligible to participate in undistributed earnings without meeting service condition requirements. These awards are considered participating securities under the guidance which requires the use of the two-class method when computing basic and diluted earnings per share. The two-class method reduces earnings allocated to common stockholders by dividends and undistributed earnings allocated to participating securities. | |||||||||||||
Employee Benefit Plans | ' | ||||||||||||
Employee benefit plans | |||||||||||||
The Company recognizes the overfunded or underfunded status of defined benefit postretirement plans as an asset or liability on its consolidated balance sheets and recognizes changes in the funded status in the year in which changes occur, through accumulated other comprehensive loss. The funded status is measured as the difference between the fair value of plan assets and benefit obligation (the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for the other postretirement plans). Actuarial gains and losses and prior service costs and credits that have not been recognized as a component of net periodic benefit cost previously are recorded as a component of accumulated other comprehensive loss. Plan assets and obligations are measured as of December 31. | |||||||||||||
The Company informally funds its nonqualified deferred compensation plan through tax-advantaged investments known as variable universal life insurance. The Company’s deferred compensation plan assets are included as a component of other assets and the Company’s deferred compensation plan liability is included as a component of pension costs and other retirement plans on the consolidated balance sheets. The income earned on the Company’s deferred compensation plan assets is included as a component of investment income and the income earned by the deferred compensation plan participants is included as a component of personnel costs on the consolidated statements of income. | |||||||||||||
Foreign Currency | ' | ||||||||||||
Foreign currency | |||||||||||||
The Company operates in foreign countries, including Canada, the United Kingdom, Australia and various other established and emerging markets. The functional currencies of the Company’s foreign subsidiaries are generally their respective local currencies. The financial statements of the foreign subsidiaries are translated into U.S. dollars as follows: assets and liabilities at the exchange rate as of the balance sheet date, equity at the historical rates of exchange, and income and expense amounts at average rates prevailing throughout the period. Translation adjustments resulting from the translation of the subsidiaries’ accounts are included in accumulated other comprehensive loss as a separate component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included within other operating expenses. | |||||||||||||
Reinsurance | ' | ||||||||||||
Reinsurance | |||||||||||||
The Company assumes and cedes large title insurance risks through reinsurance. Additionally, the Company’s property and casualty insurance business uses reinsurance to limit risk associated with natural disasters such as windstorms, winter storms, wildfires and earthquakes. In reinsurance arrangements, the primary insurer retains a certain amount of risk under a policy and cedes the remainder of the risk under the policy to the reinsurer. The primary insurer pays the reinsurer a premium in exchange for accepting this risk of loss. The primary insurer generally remains liable to its insured for the total risk, but is reinsured under the terms of the reinsurance agreement. The amount of premiums assumed and ceded is recorded as a component of direct premiums and escrow fees on the Company’s income statement. The total amount of premiums assumed and ceded in connection with reinsurance was less than 1.0% of consolidated premium and escrow fees for each of the three years ended December 31, 2013. Payments and recoveries on reinsured losses for the Company’s title insurance and property and casualty businesses were immaterial during the three years ended December 31, 2013. | |||||||||||||
Escrow Deposits and Trust Assets | ' | ||||||||||||
Escrow deposits and trust assets | |||||||||||||
The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $4.7 billion and $4.2 billion at December 31, 2013 and 2012, respectively, of which $1.6 billion and $1.2 billion, respectively, were held at the Company’s federal savings bank subsidiary, First American Trust, FSB. The escrow deposits held at First American Trust, FSB, are included in the accompanying consolidated balance sheets in cash and cash equivalents and debt and equity securities, with offsetting liabilities included in deposits. The remaining escrow deposits were held at third-party financial institutions. | |||||||||||||
Trust assets totaled $3.0 billion and $2.8 billion at December 31, 2013 and 2012, respectively, and were held or managed by First American Trust, FSB. Escrow deposits held at third-party financial institutions and trust assets are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. However, the Company could be held contingently liable for the disposition of these assets. | |||||||||||||
In conducting its operations, the Company often holds customers’ assets in escrow, pending completion of real estate transactions. As a result of holding these customers’ assets in escrow, the Company has ongoing programs for realizing economic benefits, including investment programs, borrowing agreements, and vendor services arrangements with various financial institutions. The effects of these programs are included in the consolidated financial statements as income or a reduction in expense, as appropriate, based on the nature of the arrangement and benefit received. | |||||||||||||
Like-Kind Exchanges | ' | ||||||||||||
Like-kind exchanges | |||||||||||||
The Company facilitates tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code and tax-deferred reverse exchanges pursuant to Revenue Procedure 2000-37. As a facilitator and intermediary, the Company holds the proceeds from sales transactions and takes temporary title to property identified by the customer to be acquired with such proceeds. Upon the completion of such exchange, the identified property is transferred to the customer or, if the exchange does not take place, an amount equal to the sales proceeds or, in the case of a reverse exchange, title to the property held by the Company is transferred to the customer. Like-kind exchange funds held by the Company totaled $1.4 billion at December 31, 2013 and 2012. The like-kind exchange deposits were held at third-party financial institutions and, due to the structure utilized to facilitate these transactions, the proceeds and property are not considered assets of the Company and, therefore, are not included in the accompanying consolidated balance sheets. All such amounts are placed in deposit accounts insured, up to applicable limits, by the Federal Deposit Insurance Corporation. The Company could be held contingently liable to the customer for the transfers of property, disbursements of proceeds and the return on the proceeds. |
Description_of_the_Company_Tab
Description of the Company (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Reclassification on the Company's Consolidated Financial Statements | ' | ||||||||||||
The Company has revised its December 31, 2012 consolidated balance sheet and consolidated statements of cash flows for the years ended December 31, 2012 and 2011, for an error which resulted in an adjustment between cash and cash equivalents and deposits with banks. These adjustments are not considered material, individually or in the aggregate, to the previously issued consolidated financial statements. The table below illustrates the effects of these adjustments on the Company's consolidated financial statements for those line items affected. | |||||||||||||
As previously filed | As revised | Difference | |||||||||||
(in thousands) | |||||||||||||
Year Ended December 31, 2012 | |||||||||||||
Consolidated Balance Sheet | |||||||||||||
Cash and cash equivalents | $ | 627,208 | $ | 670,529 | $ | 43,321 | |||||||
Deposits with banks | $ | 71,196 | $ | 27,875 | $ | (43,321 | ) | ||||||
Consolidated Statement of Cash Flows | |||||||||||||
Net (increase) decrease in deposits with banks | $ | (14,405 | ) | $ | 2,522 | $ | 16,927 | ||||||
Cash used for investing activities | $ | (434,590 | ) | $ | (417,663 | ) | $ | 16,927 | |||||
Year Ended December 31, 2011 | |||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||
Net decrease in deposits with banks | $ | 3,773 | $ | 16,223 | $ | 12,450 | |||||||
Cash used for investing activities | $ | (26,103 | ) | $ | (13,653 | ) | $ | 12,450 | |||||
Debt_and_Equity_Securities_Tab
Debt and Equity Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Investments in Debt Securities, Classified as Available-For-Sale | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investments in debt securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Other-than- | |||||||||||||||||||||||||
temporary | |||||||||||||||||||||||||
Amortized | Gross unrealized | Estimated | impairments | ||||||||||||||||||||||
(in thousands) | cost | gains | losses | fair value | in AOCI | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 66,400 | $ | 669 | $ | (685 | ) | $ | 66,384 | $ | — | ||||||||||||||
Municipal bonds | 491,143 | 5,113 | (10,291 | ) | 485,965 | — | |||||||||||||||||||
Foreign bonds | 221,298 | 1,836 | (626 | ) | 222,508 | — | |||||||||||||||||||
Governmental agency bonds | 267,713 | 233 | (5,401 | ) | 262,545 | — | |||||||||||||||||||
Governmental agency mortgage-backed securities | 1,426,489 | 2,074 | (25,254 | ) | 1,403,309 | — | |||||||||||||||||||
Non-agency mortgage-backed securities (1) | 19,658 | 1,167 | (1,803 | ) | 19,022 | 20,743 | |||||||||||||||||||
Corporate debt securities | 355,893 | 7,279 | (3,088 | ) | 360,084 | — | |||||||||||||||||||
$ | 2,848,594 | $ | 18,371 | $ | (47,148 | ) | $ | 2,819,817 | $ | 20,743 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 80,651 | $ | 1,574 | $ | (50 | ) | $ | 82,175 | $ | — | ||||||||||||||
Municipal bonds | 361,912 | 14,516 | (606 | ) | 375,822 | — | |||||||||||||||||||
Foreign bonds | 236,630 | 2,312 | (197 | ) | 238,745 | — | |||||||||||||||||||
Governmental agency bonds | 324,323 | 1,445 | (318 | ) | 325,450 | — | |||||||||||||||||||
Governmental agency mortgage-backed securities | 1,271,408 | 11,259 | (1,135 | ) | 1,281,532 | — | |||||||||||||||||||
Non-agency mortgage-backed securities (1) | 26,656 | — | (4,810 | ) | 21,846 | 20,743 | |||||||||||||||||||
Corporate debt securities | 311,695 | 14,941 | (325 | ) | 326,311 | — | |||||||||||||||||||
$ | 2,613,275 | $ | 46,047 | $ | (7,441 | ) | $ | 2,651,881 | $ | 20,743 | |||||||||||||||
-1 | At December 31, 2012, the $26.7 million amortized cost is net of $3.6 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the year ended December 31, 2012. At December 31, 2013, the $1.8 million gross unrealized losses related to securities determined to be other-than-temporarily impaired. At December 31, 2012, the $4.8 million gross unrealized losses include $4.4 million of unrealized losses for securities determined to be other-than-temporarily impaired and $0.4 million of unrealized losses for securities for which an other-than-temporary impairment has not been recognized. The $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCI”) at December 31, 2013 and 2012, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings due to the fact that the losses were not considered to be credit related. Other-than-temporary impairments were recognized in AOCI for non-agency mortgage-backed securities only. | ||||||||||||||||||||||||
Cost and Estimated Fair Value of Investments in Equity Securities, Classified as Available-For-Sale | ' | ||||||||||||||||||||||||
The cost and estimated fair value of investments in equity securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Gross unrealized | Estimated | ||||||||||||||||||||||||
(in thousands) | Cost | gains | losses | fair value | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Preferred stocks | $ | 9,915 | $ | 1,567 | $ | (397 | ) | $ | 11,085 | ||||||||||||||||
Common stocks | 324,184 | 25,137 | (2,363 | ) | 346,958 | ||||||||||||||||||||
$ | 334,099 | $ | 26,704 | $ | (2,760 | ) | $ | 358,043 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Preferred stocks | $ | 13,326 | $ | 752 | $ | (41 | ) | $ | 14,037 | ||||||||||||||||
Common stocks | 177,844 | 6,447 | (408 | ) | 183,883 | ||||||||||||||||||||
$ | 191,170 | $ | 7,199 | $ | (449 | ) | $ | 197,920 | |||||||||||||||||
Net Unrealized Gains (Losses) | ' | ||||||||||||||||||||||||
In connection with the Separation, TFAC issued to the Company and FATICO a number of shares of its common stock that resulted in the Company and FATICO collectively owning 12.9 million shares of CoreLogic’s common stock immediately following the Separation. During 2011 the Company sold 4.0 million shares for an aggregate cash price of $75.8 million and during 2012 the Company and FATICO sold the remaining 8.9 million shares for an aggregate cash price of $207.9 million. At December 31, 2012, the Company no longer owned any CoreLogic common stock. | |||||||||||||||||||||||||
The Company had the following net unrealized gains (losses) as of December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Debt securities for which an OTTI has been recognized | $ | (625 | ) | $ | (4,435 | ) | $ | (10,937 | ) | ||||||||||||||||
Debt securities—all other | (28,152 | ) | 43,041 | 45,268 | |||||||||||||||||||||
Equity securities | 23,944 | 6,750 | (47,887 | ) | |||||||||||||||||||||
$ | (4,833 | ) | $ | 45,356 | $ | (13,556 | ) | ||||||||||||||||||
Gross Unrealized Losses | ' | ||||||||||||||||||||||||
The Company had the following gross unrealized losses as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||
(in thousands) | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
fair value | losses | fair value | losses | fair value | losses | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 37,492 | $ | (685 | ) | $ | — | $ | — | $ | 37,492 | $ | (685 | ) | |||||||||||
Municipal bonds | 230,180 | (8,938 | ) | 27,687 | (1,353 | ) | 257,867 | (10,291 | ) | ||||||||||||||||
Foreign bonds | 56,579 | (626 | ) | — | — | 56,579 | (626 | ) | |||||||||||||||||
Governmental agency bonds | 203,011 | (5,375 | ) | 131 | (26 | ) | 203,142 | (5,401 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 838,411 | (20,970 | ) | 124,425 | (4,284 | ) | 962,836 | (25,254 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | — | — | 12,086 | (1,803 | ) | 12,086 | (1,803 | ) | |||||||||||||||||
Corporate debt securities | 129,394 | (2,422 | ) | 12,500 | (666 | ) | 141,894 | (3,088 | ) | ||||||||||||||||
Total debt securities | 1,495,067 | (39,016 | ) | 176,829 | (8,132 | ) | 1,671,896 | (47,148 | ) | ||||||||||||||||
Equity securities | 85,112 | (2,718 | ) | 1,046 | (42 | ) | 86,158 | (2,760 | ) | ||||||||||||||||
Total | $ | 1,580,179 | $ | (41,734 | ) | $ | 177,875 | $ | (8,174 | ) | $ | 1,758,054 | $ | (49,908 | ) | ||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 27,219 | $ | (50 | ) | $ | — | $ | — | $ | 27,219 | $ | (50 | ) | |||||||||||
Municipal bonds | 60,229 | (557 | ) | 451 | (49 | ) | 60,680 | (606 | ) | ||||||||||||||||
Foreign bonds | 58,262 | (183 | ) | 1,031 | (14 | ) | 59,293 | (197 | ) | ||||||||||||||||
Governmental agency bonds | 60,882 | (318 | ) | — | — | 60,882 | (318 | ) | |||||||||||||||||
Governmental agency mortgage-backed securities | 135,354 | (889 | ) | 22,112 | (246 | ) | 157,466 | (1,135 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | 6,544 | (1,498 | ) | 15,302 | (3,312 | ) | 21,846 | (4,810 | ) | ||||||||||||||||
Corporate debt securities | 35,537 | (227 | ) | 996 | (98 | ) | 36,533 | (325 | ) | ||||||||||||||||
Total debt securities | 384,027 | (3,722 | ) | 39,892 | (3,719 | ) | 423,919 | (7,441 | ) | ||||||||||||||||
Equity securities | 34,258 | (447 | ) | 98 | (2 | ) | 34,356 | (449 | ) | ||||||||||||||||
Total | $ | 418,285 | $ | (4,169 | ) | $ | 39,990 | $ | (3,721 | ) | $ | 458,275 | $ | (7,890 | ) | ||||||||||
Composition of Company's Non-Agency Mortgage-Backed Securities | ' | ||||||||||||||||||||||||
Substantially all securities in the Company’s non-agency mortgage-backed portfolio are senior tranches and all were investment grade at the time of purchase, however, all have been downgraded to below investment grade since initial purchase. The table below summarizes the composition of the Company’s non-agency mortgage-backed securities by collateral type and year of issuance. All amounts are as of December 31, 2013. | |||||||||||||||||||||||||
(in thousands, except number of securities) | Number | Amortized | Estimated | ||||||||||||||||||||||
of | Cost | Fair | |||||||||||||||||||||||
Securities | Value | ||||||||||||||||||||||||
Non-agency mortgage- backed securities: | |||||||||||||||||||||||||
Prime single family residential: | |||||||||||||||||||||||||
2007 | 1 | $ | 3,552 | $ | 2,873 | ||||||||||||||||||||
2006 | 3 | 9,389 | 8,275 | ||||||||||||||||||||||
2005 | 1 | 948 | 938 | ||||||||||||||||||||||
Alt-A single family residential: | |||||||||||||||||||||||||
2007 | 1 | 5,769 | 6,936 | ||||||||||||||||||||||
6 | $ | 19,658 | $ | 19,022 | |||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Debt Securities | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of debt securities at December 31, 2013, by contractual maturities, are as follows: | |||||||||||||||||||||||||
(in thousands) | Due in one | Due after | Due after | Due after | Total | ||||||||||||||||||||
year or less | one | five | ten years | ||||||||||||||||||||||
through | through | ||||||||||||||||||||||||
five years | ten years | ||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||
Amortized cost | $ | 10,583 | $ | 40,674 | $ | 11,053 | $ | 4,090 | $ | 66,400 | |||||||||||||||
Estimated fair value | $ | 10,705 | $ | 40,811 | $ | 10,873 | $ | 3,995 | $ | 66,384 | |||||||||||||||
Municipal bonds | |||||||||||||||||||||||||
Amortized cost | $ | 9,578 | $ | 187,176 | $ | 170,951 | $ | 123,438 | $ | 491,143 | |||||||||||||||
Estimated fair value | $ | 9,612 | $ | 188,656 | $ | 169,512 | $ | 118,185 | $ | 485,965 | |||||||||||||||
Foreign bonds | |||||||||||||||||||||||||
Amortized cost | $ | 30,636 | $ | 176,969 | $ | 12,426 | $ | 1,267 | $ | 221,298 | |||||||||||||||
Estimated fair value | $ | 30,788 | $ | 178,332 | $ | 12,105 | $ | 1,283 | $ | 222,508 | |||||||||||||||
Governmental agency bonds | |||||||||||||||||||||||||
Amortized cost | $ | 7,119 | $ | 167,881 | $ | 83,566 | $ | 9,147 | $ | 267,713 | |||||||||||||||
Estimated fair value | $ | 7,129 | $ | 166,043 | $ | 80,511 | $ | 8,862 | $ | 262,545 | |||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 21,352 | $ | 235,461 | $ | 93,937 | $ | 5,143 | $ | 355,893 | |||||||||||||||
Estimated fair value | $ | 21,546 | $ | 238,638 | $ | 94,512 | $ | 5,388 | $ | 360,084 | |||||||||||||||
Total debt securities excluding mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 79,268 | $ | 808,161 | $ | 371,933 | $ | 143,085 | $ | 1,402,447 | |||||||||||||||
Estimated fair value | $ | 79,780 | $ | 812,480 | $ | 367,513 | $ | 137,713 | $ | 1,397,486 | |||||||||||||||
Total mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 1,446,147 | |||||||||||||||||||||||
Estimated fair value | $ | 1,422,331 | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 2,848,594 | |||||||||||||||||||||||
Estimated fair value | $ | 2,819,817 | |||||||||||||||||||||||
Summary of Primary Assumptions used in Estimating Cash Flows Expected to be Collected for Securities | ' | ||||||||||||||||||||||||
The table below summarizes the primary assumptions used at December 31, 2013 in estimating the cash flows expected to be collected for these securities. | |||||||||||||||||||||||||
Weighted | Range | ||||||||||||||||||||||||
average | |||||||||||||||||||||||||
Prepayment speeds | 7.9 | % | 6.7%–9.8 | % | |||||||||||||||||||||
Default rates | 2.6 | % | 1.7%–3.7 | % | |||||||||||||||||||||
Loss severity | 19.4 | % | 4.4%–25.7 | % | |||||||||||||||||||||
Change in Credit Portion of Other-Than-Temporary Impairments Recognized in Earnings on Debt Securities | ' | ||||||||||||||||||||||||
The following table presents the change in the credit portion of the other-than-temporary impairments recognized in earnings on debt securities for which a portion of the other-than-temporary impairments related to other factors was recognized in other comprehensive income (loss) for the years ended December 31, 2013, 2012, and 2011. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,478 | $ | 33,656 | $ | 24,590 | |||||||||||||||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | — | 3,564 | 7,667 | ||||||||||||||||||||||
Addition to credit loss for which an other-than-temporary impairment was not previously recognized | — | — | 1,401 | ||||||||||||||||||||||
Accumulated losses on securities that matured or were sold during the year | — | (20,742 | ) | (2 | ) | ||||||||||||||||||||
Cumulative credit loss on debt securities held as of end of period | $ | 16,478 | $ | 16,478 | $ | 33,656 | |||||||||||||||||||
Available-For-Sale Investments Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The following table presents the Company’s available-for-sale investments measured at fair value on a recurring basis as of December 31, 2013 and 2012, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||||||||||
(in thousands) | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 66,384 | $ | — | $ | 66,384 | $ | — | |||||||||||||||||
Municipal bonds | 485,965 | — | 485,965 | — | |||||||||||||||||||||
Foreign bonds | 222,508 | — | 222,508 | — | |||||||||||||||||||||
Governmental agency bonds | 262,545 | — | 262,545 | — | |||||||||||||||||||||
Governmental agency mortgage- backed securities | 1,403,309 | — | 1,403,309 | — | |||||||||||||||||||||
Non-agency mortgage-backed securities | 19,022 | — | — | 19,022 | |||||||||||||||||||||
Corporate debt securities | 360,084 | — | 360,084 | — | |||||||||||||||||||||
2,819,817 | — | 2,800,795 | 19,022 | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Preferred stocks | 11,085 | 11,085 | — | — | |||||||||||||||||||||
Common stocks | 346,958 | 346,958 | — | — | |||||||||||||||||||||
358,043 | 358,043 | — | — | ||||||||||||||||||||||
$ | 3,177,860 | $ | 358,043 | $ | 2,800,795 | $ | 19,022 | ||||||||||||||||||
(in thousands) | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 82,175 | $ | — | $ | 82,175 | $ | — | |||||||||||||||||
Municipal bonds | 375,822 | — | 375,822 | — | |||||||||||||||||||||
Foreign bonds | 238,745 | — | 238,745 | — | |||||||||||||||||||||
Governmental agency bonds | 325,450 | — | 325,450 | — | |||||||||||||||||||||
Governmental agency mortgage- backed securities | 1,281,532 | — | 1,281,532 | — | |||||||||||||||||||||
Non-agency mortgage-backed securities | 21,846 | — | — | 21,846 | |||||||||||||||||||||
Corporate debt securities | 326,311 | — | 326,311 | — | |||||||||||||||||||||
2,651,881 | — | 2,630,035 | 21,846 | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Preferred stocks | 14,037 | 14,037 | — | — | |||||||||||||||||||||
Common stocks | 183,883 | 183,883 | — | — | |||||||||||||||||||||
197,920 | 197,920 | — | — | ||||||||||||||||||||||
$ | 2,849,801 | $ | 197,920 | $ | 2,630,035 | $ | 21,846 | ||||||||||||||||||
Summary of Changes in Fair Value of Level 3 Available-For-Sale Investments | ' | ||||||||||||||||||||||||
The following table presents a summary of the changes in fair value of Level 3 available-for-sale investments for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Fair value at beginning of year | $ | 21,846 | $ | 30,634 | |||||||||||||||||||||
Total gains/(losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | — | (3,564 | ) | ||||||||||||||||||||||
Included in other comprehensive loss | 4,174 | 6,645 | |||||||||||||||||||||||
Settlements | (6,998 | ) | (5,553 | ) | |||||||||||||||||||||
Sales | — | (6,316 | ) | ||||||||||||||||||||||
Fair value as of December 31 | $ | 19,022 | $ | 21,846 | |||||||||||||||||||||
Unrealized gains (losses) included in earnings for the period relating to Level 3 available-for-sale investments that were still held at the end of the period: | |||||||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | $ | — | $ | (3,564 | ) | ||||||||||||||||||||
Financing_Receivables_Tables
Financing Receivables (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Summary of Financing Receivables | ' | |||||||||||||||||||||||
Financing receivables are summarized as follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans receivable, net: | ||||||||||||||||||||||||
Real estate–mortgage | ||||||||||||||||||||||||
Multi-family residential | $ | 7,455 | $ | 8,768 | ||||||||||||||||||||
Commercial | 69,865 | 102,626 | ||||||||||||||||||||||
Other | 712 | 598 | ||||||||||||||||||||||
78,032 | 111,992 | |||||||||||||||||||||||
Allowance for loan losses | (3,626 | ) | (3,893 | ) | ||||||||||||||||||||
Participations sold | (633 | ) | (761 | ) | ||||||||||||||||||||
Deferred loan fees, net | (18 | ) | 14 | |||||||||||||||||||||
Loans receivable, net | 73,755 | 107,352 | ||||||||||||||||||||||
Other long-term investments: | ||||||||||||||||||||||||
Notes receivable—secured | 10,533 | 11,358 | ||||||||||||||||||||||
Notes receivable—unsecured | 2,593 | 2,710 | ||||||||||||||||||||||
13,126 | 14,068 | |||||||||||||||||||||||
Loss reserve | (2,584 | ) | (2,902 | ) | ||||||||||||||||||||
Notes receivable, net | 10,542 | 11,166 | ||||||||||||||||||||||
Total financing receivables, net | $ | 84,297 | $ | 118,518 | ||||||||||||||||||||
Aging Analysis of Loans and Notes Receivable | ' | |||||||||||||||||||||||
Aging analysis of loans and notes receivable at December 31, 2013, is as follows: | ||||||||||||||||||||||||
Total | Current | 30-59 days | 60-89 days | 90 days or | Non-accrual | |||||||||||||||||||
past due | past due | more | status | |||||||||||||||||||||
past due | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans Receivable: | ||||||||||||||||||||||||
Multi-family residential | $ | 7,455 | $ | 7,455 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial | 69,865 | 67,807 | — | — | — | 2,058 | ||||||||||||||||||
Other | 712 | 712 | — | — | — | — | ||||||||||||||||||
$ | 78,032 | $ | 75,974 | $ | — | $ | — | $ | — | $ | 2,058 | |||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 10,533 | $ | 5,784 | $ | 3,668 | $ | — | $ | 231 | $ | 850 | ||||||||||||
Unsecured | 2,593 | 771 | — | — | — | 1,822 | ||||||||||||||||||
$ | 13,126 | $ | 6,555 | $ | 3,668 | $ | — | $ | 231 | $ | 2,672 | |||||||||||||
Aging analysis of loans and notes receivables at December 31, 2012, is as follows: | ||||||||||||||||||||||||
Total | Current | 30-59 days | 60-89 days | 90 days or | Non-accrual | |||||||||||||||||||
past due | past due | more | status | |||||||||||||||||||||
past due | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans Receivable: | ||||||||||||||||||||||||
Multi-family residential | $ | 8,768 | $ | 8,768 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial | 102,626 | 99,911 | — | 160 | — | 2,555 | ||||||||||||||||||
Other | 598 | 556 | — | — | — | 42 | ||||||||||||||||||
$ | 111,992 | $ | 109,235 | $ | — | $ | 160 | $ | — | $ | 2,597 | |||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 11,358 | $ | 6,517 | $ | 3,912 | $ | 72 | $ | 16 | $ | 841 | ||||||||||||
Unsecured | 2,710 | 319 | — | — | 811 | 1,580 | ||||||||||||||||||
$ | 14,068 | $ | 6,836 | $ | 3,912 | $ | 72 | $ | 827 | $ | 2,421 | |||||||||||||
Aggregate Annual Maturities for Loans and Notes Receivable | ' | |||||||||||||||||||||||
The aggregate annual maturities for loans and notes receivable at December 31, 2013, are as follows: | ||||||||||||||||||||||||
Year | Loans | Notes | ||||||||||||||||||||||
Receivable | Receivable | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
2014 | $ | 1,005 | $ | 5,315 | ||||||||||||||||||||
2015 | 4,524 | 1,235 | ||||||||||||||||||||||
2016 | 1,592 | 1,553 | ||||||||||||||||||||||
2017 | 6,017 | 741 | ||||||||||||||||||||||
2018 | 9,297 | 527 | ||||||||||||||||||||||
2019 and thereafter | 55,597 | 3,755 | ||||||||||||||||||||||
$ | 78,032 | $ | 13,126 | |||||||||||||||||||||
Property_And_Equipment_Tables
Property And Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule of Property and Equipment | ' | |||||||
Property and equipment consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land | $ | 29,816 | $ | 30,111 | ||||
Buildings | 277,131 | 274,352 | ||||||
Furniture and equipment | 182,912 | 169,412 | ||||||
Capitalized software | 402,713 | 379,151 | ||||||
892,572 | 853,026 | |||||||
Accumulated depreciation and amortization | (531,224 | ) | (509,576 | ) | ||||
$ | 361,348 | $ | 343,450 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Carrying Amount of Goodwill by Operating Segment | ' | |||||||||||
A summary of the changes in the carrying amount of goodwill, by operating segment, for the years ended December 31, 2013 and 2012, is as follows: | ||||||||||||
Title | Specialty | Total | ||||||||||
Insurance | Insurance | |||||||||||
and Services | ||||||||||||
(in thousands) | ||||||||||||
Balance as of December 31, 2011 | $ | 771,655 | $ | 46,765 | $ | 818,420 | ||||||
Acquisitions | 25,648 | — | 25,648 | |||||||||
Foreign currency exchange | 1,789 | — | 1,789 | |||||||||
Balance as of December 31, 2012 | 799,092 | 46,765 | 845,857 | |||||||||
Acquisitions | 4,456 | — | 4,456 | |||||||||
Foreign currency exchange | (4,287 | ) | — | (4,287 | ) | |||||||
Balance as of December 31, 2013 | $ | 799,261 | $ | 46,765 | $ | 846,026 | ||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule of Other Intangible Assets | ' | |||||||
Other intangible assets consist of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Finite-lived intangible assets: | ||||||||
Customer lists | $ | 77,382 | $ | 77,981 | ||||
Covenants not to compete | 26,928 | 26,842 | ||||||
Trademarks | 10,026 | 10,070 | ||||||
Patents | 2,840 | 2,840 | ||||||
117,176 | 117,733 | |||||||
Accumulated amortization | (88,624 | ) | (78,495 | ) | ||||
28,552 | 39,238 | |||||||
Indefinite-lived intangible assets: | ||||||||
Licenses | 17,795 | 17,857 | ||||||
$ | 46,347 | $ | 57,095 | |||||
Estimated Amortization Expense for Finite-Lived Intangible Assets | ' | |||||||
Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: | ||||||||
Year | (in thousands) | |||||||
2014 | $ | 8,243 | ||||||
2015 | $ | 4,726 | ||||||
2016 | $ | 3,819 | ||||||
2017 | $ | 2,215 | ||||||
2018 | $ | 2,116 | ||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Escrow, Savings and Investment Certificate Accounts | ' | |||||||
Deposit accounts are summarized as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except | ||||||||
percentages) | ||||||||
Escrow accounts: | ||||||||
Interest bearing | $ | 1,376,921 | $ | 904,919 | ||||
Non-interest bearing | 176,964 | 323,568 | ||||||
1,553,885 | 1,228,487 | |||||||
Savings accounts | 22,015 | 25,067 | ||||||
Certificate accounts: | ||||||||
Less than one year | 19,813 | 20,315 | ||||||
One to five years | 6,783 | 16,900 | ||||||
26,596 | 37,215 | |||||||
Business checking and other deposits (1) | 90,436 | 120,424 | ||||||
$ | 1,692,932 | $ | 1,411,193 | |||||
Annualized interest rates: | ||||||||
Escrow accounts | 0.13 | % | 0.17 | % | ||||
Savings accounts | 0.5 | % | 0.6 | % | ||||
Certificate accounts | 1.28 | % | 1.46 | % | ||||
-1 | Business checking and other deposits primarily reflect non-interest bearing accounts. |
Recovered_Sheet1
Reserve for Known and Incurred but Not Reported Claims (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Activity In Reserve for Known And Incurred But Not Reported Claims | ' | ||||||||||||||||
Activity in the reserve for known and incurred but not reported claims is summarized as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 976,462 | $ | 1,014,676 | $ | 1,108,238 | |||||||||||
Provision related to: | |||||||||||||||||
Current year | 380,723 | 335,097 | 308,425 | ||||||||||||||
Prior years | 149,633 | 62,620 | 111,711 | ||||||||||||||
530,356 | 397,717 | 420,136 | |||||||||||||||
Payments, net of recoveries, related to: | |||||||||||||||||
Current year | 182,653 | 160,138 | 149,004 | ||||||||||||||
Prior years | 296,657 | 285,848 | 354,430 | ||||||||||||||
479,310 | 445,986 | 503,434 | |||||||||||||||
Other | (9,143 | ) | 10,055 | (10,264 | ) | ||||||||||||
Balance at end of year | $ | 1,018,365 | $ | 976,462 | $ | 1,014,676 | |||||||||||
Summary Of Loss Reserves | ' | ||||||||||||||||
A summary of the Company’s loss reserves, broken down into its components of known title claims, incurred but not reported claims and non-title claims, follows: | |||||||||||||||||
(in thousands, except percentages) | December 31, 2013 | December 31, 2012 | |||||||||||||||
Known title claims | $ | 135,478 | 13.3 | % | $ | 133,070 | 13.6 | % | |||||||||
IBNR | 840,104 | 82.5 | % | 805,430 | 82.5 | % | |||||||||||
Total title claims | 975,582 | 95.8 | % | 938,500 | 96.1 | % | |||||||||||
Non-title claims | 42,783 | 4.2 | % | 37,962 | 3.9 | % | |||||||||||
Total loss reserves | $ | 1,018,365 | 100 | % | $ | 976,462 | 100 | % | |||||||||
Notes_and_Contracts_Payable_Ta
Notes and Contracts Payable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule of Notes and Contracts Payable | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands, except percentages) | ||||||||
4.3% senior unsecured notes due February 1, 2023, net of unamortized discount of $837 at December 31, 2013, effective interest rate of 4.35% | $ | 249,163 | $ | — | ||||
Line of credit borrowings due April 17, 2016, weighted-average interest rate 2.21% at December 31, 2012 | — | 160,000 | ||||||
Trust deed notes with maturities through 2032, collateralized by land and buildings with a net book value of $55,206 and $58,244 at December 31, 2013 and 2012, respectively, weighted-average interest rate of 5.42% and 5.44%, at December 31, 2013 and 2012, respectively | 38,151 | 41,749 | ||||||
Other notes and contracts payable with maturities through 2020, weighted-average interest rate of 2.96% and 2.84% at December 31, 2013 and 2012, respectively | 22,971 | 28,011 | ||||||
$ | 310,285 | $ | 229,760 | |||||
Aggregate Annual Maturities of Notes and Contracts Payable | ' | |||||||
The aggregate annual maturities for notes and contracts payable in each of the five years after December 31, 2013, are as follows: | ||||||||
Year | Notes and | |||||||
contracts | ||||||||
payable | ||||||||
(in thousands) | ||||||||
2014 | $ | 13,667 | ||||||
2015 | 15,020 | |||||||
2016 | 3,982 | |||||||
2017 | 5,190 | |||||||
2018 | 3,429 | |||||||
Thereafter | 268,997 | |||||||
$ | 310,285 | |||||||
Investment_Income_Tables
Investment Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Schedule of Investment Income | ' | |||||||||||
The components of investment income are as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Interest: | ||||||||||||
Cash equivalents and deposits with banks | $ | 3,694 | $ | 4,407 | $ | 6,602 | ||||||
Debt securities | 47,226 | 45,112 | 47,337 | |||||||||
Other long-term investments | 2,009 | 1,013 | 1,693 | |||||||||
Loans receivable | 5,474 | 8,132 | 10,172 | |||||||||
Dividends on equity securities | 11,776 | 5,388 | 2,896 | |||||||||
Equity in earnings of affiliates, net | 5,316 | 6,514 | 2,717 | |||||||||
Other | 14,400 | 10,465 | 5,354 | |||||||||
$ | 89,895 | $ | 81,031 | $ | 76,771 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Summary of Tax Expenses | ' | |||||||||||
Income taxes are summarized as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 86,406 | $ | 82,269 | $ | (23,095 | ) | |||||
State | 7,887 | 15,229 | (1,267 | ) | ||||||||
Foreign | 24,331 | 8,234 | 13,926 | |||||||||
118,624 | 105,732 | (10,436 | ) | |||||||||
Deferred: | ||||||||||||
Federal | 8,937 | 60,242 | 69,302 | |||||||||
State | 9,774 | 111 | 4,585 | |||||||||
Foreign | (13,691 | ) | (407 | ) | (11,737 | ) | ||||||
5,020 | 59,946 | 62,150 | ||||||||||
$ | 123,644 | $ | 165,678 | $ | 51,714 | |||||||
Computed by Applying Federal Income Tax Rate | ' | |||||||||||
Income taxes differ from the amounts computed by applying the federal income tax rate of 35.0%. A reconciliation of this difference is as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Taxes calculated at federal rate | $ | 108,748 | $ | 163,592 | $ | 45,603 | ||||||
State taxes, net of federal benefit | 11,480 | 9,525 | 2,499 | |||||||||
Change in liability for tax positions | 3,537 | 2,033 | 2,548 | |||||||||
Change in capital loss valuation allowance | — | (5,276 | ) | — | ||||||||
Foreign income taxed at different rates | 8,567 | 2,881 | 1,805 | |||||||||
Foreign tax credit | (5,640 | ) | (2,921 | ) | — | |||||||
Other items, net | (3,048 | ) | (4,156 | ) | (741 | ) | ||||||
$ | 123,644 | $ | 165,678 | $ | 51,714 | |||||||
Net Deferred Tax (Liability) Assets | ' | |||||||||||
The primary components of temporary differences that give rise to the Company’s net deferred tax liability are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
Deferred revenue | $ | 8,360 | $ | 8,110 | ||||||||
Employee benefits | 73,302 | 82,421 | ||||||||||
Bad debt reserves | 17,588 | 13,423 | ||||||||||
Investment in affiliates | 8,026 | 9,096 | ||||||||||
Loss reserves | 1,728 | 3,044 | ||||||||||
Pension | 86,858 | 121,605 | ||||||||||
Net operating loss carryforward | 38,867 | 23,749 | ||||||||||
Securities | 1,880 | — | ||||||||||
Other | 6,782 | 8,874 | ||||||||||
243,391 | 270,322 | |||||||||||
Valuation allowance | (18,119 | ) | (14,172 | ) | ||||||||
225,272 | 256,150 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciable and amortizable assets | 258,855 | 238,688 | ||||||||||
Claims and related salvage | 21,196 | 36,307 | ||||||||||
Securities | — | 18,142 | ||||||||||
280,051 | 293,137 | |||||||||||
Net deferred tax liability | $ | 54,779 | $ | 36,987 | ||||||||
Changes in Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Unrecognized tax benefits—opening balance | $ | 47,900 | $ | 17,300 | $ | 11,100 | ||||||
Gross increases (decreases)—tax positions in prior period | (600 | ) | 200 | — | ||||||||
Gross increases—current period tax positions | 500 | 30,500 | 6,200 | |||||||||
Expiration of the statute of limitations for the assessment of taxes | — | (100 | ) | — | ||||||||
Unrecognized tax benefits—ending balance | $ | 47,800 | $ | 47,900 | $ | 17,300 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Schedule of Earnings Per Share | ' | |||||||||||
The computation of basic and diluted earnings per share is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands, except per share data) | ||||||||||||
Numerator | ||||||||||||
Net income attributable to the Company | $ | 186,367 | $ | 301,041 | $ | 78,276 | ||||||
Less: dividends and undistributed earnings allocated to unvested RSUs | 324 | 682 | 172 | |||||||||
Net income allocated to common stockholders | $ | 186,043 | $ | 300,359 | $ | 78,104 | ||||||
Denominator | ||||||||||||
Basic weighted-average shares | 106,991 | 106,307 | 105,197 | |||||||||
Effect of dilutive employee stock options and RSUs | 2,111 | 2,235 | 1,717 | |||||||||
Diluted weighted-average shares | 109,102 | 108,542 | 106,914 | |||||||||
Net income per share attributable to the Company’s stockholders | ||||||||||||
Basic | $ | 1.74 | $ | 2.83 | $ | 0.74 | ||||||
Diluted | $ | 1.71 | $ | 2.77 | $ | 0.73 | ||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Principal Components of Employee Benefit Plan Expenses | ' | |||||||||||||||
The following table provides the principal components of employee benefit plan expenses related to the Company’s benefit plans: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Savings plan | $ | 10,458 | $ | 27,778 | $ | 8,697 | ||||||||||
Defined benefit pension plans | 20,975 | 22,657 | 22,386 | |||||||||||||
Unfunded supplemental benefit plans | 16,673 | 16,553 | 17,279 | |||||||||||||
Other plans, net | 15,479 | 10,166 | 6,628 | |||||||||||||
$ | 63,585 | $ | 77,154 | $ | 54,990 | |||||||||||
Balance Sheet Impact, Including Benefit Obligations, Assets and Funded Status | ' | |||||||||||||||
The following table summarizes the balance sheet impact, including benefit obligations, assets and funded status associated with the Company’s defined benefit pension and supplemental benefit plans: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Defined | Unfunded | Defined | Unfunded | |||||||||||||
benefit | supplemental | benefit | supplemental | |||||||||||||
pension | benefit plans | pension | benefit plans | |||||||||||||
plans | plans | |||||||||||||||
(in thousands) | ||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 424,462 | $ | 250,226 | $ | 385,756 | $ | 223,516 | ||||||||
Service costs | — | 1,915 | — | 1,712 | ||||||||||||
Interest costs | 17,340 | 9,521 | 18,445 | 10,623 | ||||||||||||
Plan amendment | — | 2,088 | — | — | ||||||||||||
Actuarial (gains) losses | (38,766 | ) | (24,233 | ) | 37,030 | 27,226 | ||||||||||
Benefits paid | (21,001 | ) | (13,059 | ) | (16,769 | ) | (12,851 | ) | ||||||||
Projected benefit obligation at end of year | 382,035 | 226,458 | 424,462 | 250,226 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Plan assets at fair value at beginning of year | 294,216 | — | 257,078 | — | ||||||||||||
Actual return on plan assets | 10,971 | — | 33,236 | — | ||||||||||||
Contributions | 29,283 | 13,059 | 20,671 | 12,851 | ||||||||||||
Benefits paid | (21,001 | ) | (13,059 | ) | (16,769 | ) | (12,851 | ) | ||||||||
Plan assets at fair value at end of year | 313,469 | — | 294,216 | — | ||||||||||||
Reconciliation of funded status: | ||||||||||||||||
Unfunded status of the plans | $ | (68,566 | ) | $ | (226,458 | ) | $ | (130,246 | ) | $ | (250,226 | ) | ||||
Amounts recognized in the consolidated balance sheet: | ||||||||||||||||
Accrued benefit liability | $ | (68,566 | ) | $ | (226,458 | ) | $ | (130,246 | ) | $ | (250,226 | ) | ||||
Amounts recognized in accumulated other comprehensive loss: | ||||||||||||||||
Unrecognized net actuarial loss | $ | 162,084 | $ | 90,303 | $ | 215,405 | $ | 124,183 | ||||||||
Unrecognized prior service cost (credit) | 40 | (29,142 | ) | 65 | (35,639 | ) | ||||||||||
$ | 162,124 | $ | 61,161 | $ | 215,470 | $ | 88,544 | |||||||||
Accumulated benefit obligation at end of year | $ | 382,035 | $ | 226,458 | $ | 424,462 | $ | 250,226 | ||||||||
Net Periodic Cost | ' | |||||||||||||||
Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans includes the following components: | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in thousands) | ||||||||||||||||
Expense: | ||||||||||||||||
Service costs | $ | 1,915 | $ | 1,712 | $ | 2,167 | ||||||||||
Interest costs | 26,861 | 29,068 | 30,152 | |||||||||||||
Expected return on plan assets | (18,776 | ) | (15,553 | ) | (15,316 | ) | ||||||||||
Amortization of net actuarial loss | 32,033 | 28,368 | 27,047 | |||||||||||||
Amortization of prior service credit | (4,385 | ) | (4,385 | ) | (4,385 | ) | ||||||||||
$ | 37,648 | $ | 39,210 | $ | 39,665 | |||||||||||
Weighted-Average Actuarial Assumptions Used to Determine Costs | ' | |||||||||||||||
Weighted-average actuarial assumptions used to determine costs for the plans were as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.18 | % | 4.9 | % | ||||||||||||
Rate of return on plan assets | 6.5 | % | 5.75 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 3.91 | % | 4.9 | % | ||||||||||||
Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations | ' | |||||||||||||||
Weighted-average actuarial assumptions used to determine benefit obligations for the plans were as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Defined benefit pension plans | ||||||||||||||||
Discount rate | 4.97 | % | 4.18 | % | ||||||||||||
Unfunded supplemental benefit plans | ||||||||||||||||
Discount rate | 4.8 | % | 3.91 | % | ||||||||||||
Target Asset Allocation Based On Funded Status | ' | |||||||||||||||
The pension plan’s asset allocation targets based on settlement funded status are as follows: | ||||||||||||||||
Settlement funded status | Return seeking assets | Liability tracking assets | ||||||||||||||
100 | % | 0 | % | 100 | % | |||||||||||
97.5 | % | 15 | % | 85 | % | |||||||||||
95 | % | 30 | % | 70 | % | |||||||||||
92.5 | % | 40 | % | 60 | % | |||||||||||
90 | % | 50 | % | 50 | % | |||||||||||
87.5 | % | 60 | % | 40 | % | |||||||||||
85 | % | 70 | % | 30 | % | |||||||||||
Below 85.0% | 85 | % | 15 | % | ||||||||||||
Asset Allocation | ' | |||||||||||||||
A summary of the asset allocations as of December 31, 2013 and 2012 are as follows: | ||||||||||||||||
Percentage of | ||||||||||||||||
plan assets at | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Asset category | ||||||||||||||||
Cash and cash equivalents | 0.7 | % | 0.6 | % | ||||||||||||
Equities | 48.3 | % | 34.1 | % | ||||||||||||
Fixed income funds | 29.7 | % | 38.6 | % | ||||||||||||
Balanced funds | 18.9 | % | 24.3 | % | ||||||||||||
Other | 2.4 | % | 2.4 | % | ||||||||||||
Benefit Payments, Expected Future Service | ' | |||||||||||||||
Benefit payments for all plans, which reflect expected future service, as appropriate, are expected to be made as follows: | ||||||||||||||||
Year | (in thousands) | |||||||||||||||
2014 | $ | 33,726 | ||||||||||||||
2015 | $ | 34,835 | ||||||||||||||
2016 | $ | 35,303 | ||||||||||||||
2017 | $ | 36,962 | ||||||||||||||
2018 | $ | 38,070 | ||||||||||||||
Five years thereafter | $ | 202,341 | ||||||||||||||
Defined Benefit Pension Plan Assets at Fair Value | ' | |||||||||||||||
The following table presents the Company’s defined benefit pension plan assets at fair value as of December 31, 2013 and 2012, classified using the fair value hierarchy: | ||||||||||||||||
December 31, 2013 | Estimated fair | Level 1 | Level 2 | Level 3 | ||||||||||||
value | ||||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents | $ | 2,080 | $ | 2,080 | $ | — | $ | — | ||||||||
Equities (a) | 151,604 | 95,860 | 55,744 | — | ||||||||||||
Fixed income funds (b) | 93,210 | 49,281 | 43,929 | — | ||||||||||||
Balanced funds (c) | 59,147 | — | 59,147 | — | ||||||||||||
Other (d) | 7,428 | — | — | 7,428 | ||||||||||||
$ | 313,469 | $ | 147,221 | $ | 158,820 | $ | 7,428 | |||||||||
Estimated fair | Level 1 | Level 2 | Level 3 | |||||||||||||
value | ||||||||||||||||
December 31, 2012 | (in thousands) | |||||||||||||||
Cash and cash equivalents | $ | 1,922 | $ | 1,922 | $ | — | $ | — | ||||||||
Equities (a) | 100,283 | 100,283 | — | — | ||||||||||||
Fixed income funds (b) | 113,525 | 71,525 | 42,000 | — | ||||||||||||
Balanced funds (c) | 71,400 | — | 71,400 | — | ||||||||||||
Other (d) | 7,086 | — | — | 7,086 | ||||||||||||
$ | 294,216 | $ | 173,730 | $ | 113,400 | $ | 7,086 | |||||||||
(a) Investments in passively managed index funds, actively managed mutual funds with holdings in domestic and international equities and investments in domestic equities. These investments are valued at the closing price reported on the major market on which the individual securities are traded or the Net Asset Value (“NAV”) provided by the administrator of the fund. | ||||||||||||||||
(b) Investments in passively managed index funds and actively managed mutual funds with holdings in domestic and international corporate bonds, sovereign bonds, mortgage-backed securities, and other fixed income instruments. These investments are valued using matrix pricing models and quoted prices of the securities in active markets. | ||||||||||||||||
(c) Investments in global multi-asset risk parity strategy funds with holdings in domestic and international debt and equity securities, commodities, real estate, and derivative investments. These investments are valued using the NAV provided by the administrator of the fund. | ||||||||||||||||
(d) Investments in a guaranteed deposit fund with holdings in insurance contracts. These investments are valued at contract value of the fund including contributions and earnings, less applicable costs and liabilities, as provided by the administrator of the fund. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | ' | ||||||||||||||||
The carrying amounts and fair values of the Company’s financial instruments as of December 31, 2013 and 2012 are presented in the following table. | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Fair | Carrying | Fair Value | ||||||||||||||
Amount | Value | Amount | |||||||||||||||
(in thousands) | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 834,837 | $ | 834,837 | $ | 670,529 | $ | 670,529 | |||||||||
Accounts and accrued income receivable, net | $ | 236,895 | $ | 236,895 | $ | 259,779 | $ | 259,779 | |||||||||
Loans receivable, net | $ | 73,755 | $ | 73,397 | $ | 107,352 | $ | 111,925 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 23,492 | $ | 23,601 | $ | 27,875 | $ | 28,079 | |||||||||
Debt securities | $ | 2,819,817 | $ | 2,819,817 | $ | 2,651,881 | $ | 2,651,881 | |||||||||
Equity securities | $ | 358,043 | $ | 358,043 | $ | 197,920 | $ | 197,920 | |||||||||
Notes receivable, net | $ | 10,542 | $ | 9,953 | $ | 11,166 | $ | 11,376 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,692,932 | $ | 1,693,138 | $ | 1,411,193 | $ | 1,411,575 | |||||||||
Accounts payable and accrued liabilities | $ | 406,819 | $ | 406,819 | $ | 390,741 | $ | 390,741 | |||||||||
Notes and contracts payable | $ | 310,285 | $ | 301,007 | $ | 229,760 | $ | 233,071 | |||||||||
Fair Value of Financial Instruments, Classified Using Three-Level Hierarchy | ' | ||||||||||||||||
The following table presents the fair value of the Company’s financial instruments as of December 31, 2013 and 2012, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-13 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 834,837 | $ | 834,837 | $ | — | $ | — | |||||||||
Accounts and accrued income receivable, net | $ | 236,895 | $ | 236,895 | $ | — | $ | — | |||||||||
Loans receivable, net | $ | 73,397 | $ | — | $ | — | $ | 73,397 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 23,601 | $ | 2,070 | $ | 21,531 | $ | — | |||||||||
Debt securities | $ | 2,819,817 | $ | — | $ | 2,800,795 | $ | 19,022 | |||||||||
Equity securities | $ | 358,043 | $ | 358,043 | $ | — | $ | — | |||||||||
Notes receivable, net | $ | 9,953 | $ | — | $ | — | $ | 9,953 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,693,138 | $ | 1,666,336 | $ | 26,802 | $ | — | |||||||||
Accounts payable and accrued liabilities | $ | 406,819 | $ | 406,819 | $ | — | $ | — | |||||||||
Notes and contracts payable | $ | 301,007 | $ | — | $ | 294,221 | $ | 6,786 | |||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-12 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 670,529 | $ | 670,529 | $ | — | $ | — | |||||||||
Accounts and accrued income receivable, net | $ | 259,779 | $ | 259,779 | $ | — | $ | — | |||||||||
Loans receivable, net | $ | 111,925 | $ | — | $ | — | $ | 111,925 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 28,079 | $ | 6,110 | $ | 21,969 | $ | — | |||||||||
Debt securities | $ | 2,651,881 | $ | — | $ | 2,630,035 | $ | 21,846 | |||||||||
Equity securities | $ | 197,920 | $ | 197,920 | $ | — | $ | — | |||||||||
Notes receivable, net | $ | 11,376 | $ | — | $ | — | $ | 11,376 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,411,575 | $ | 1,373,978 | $ | 37,597 | $ | — | |||||||||
Accounts payable and accrued liabilities | $ | 390,741 | $ | 390,741 | $ | — | $ | — | |||||||||
Notes and contracts payable | $ | 233,071 | $ | — | $ | 223,218 | $ | 9,853 | |||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-Based Compensation Expense | ' | ||||||||||||||||
The following table presents compensation expense associated with the Company’s share-based compensation plans: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(in thousands) | |||||||||||||||||
Expense: | |||||||||||||||||
Restricted stock units | $ | 20,827 | $ | 13,953 | $ | 14,203 | |||||||||||
Stock options | 8 | — | 9 | ||||||||||||||
Employee stock purchase plan | 1,466 | 886 | 769 | ||||||||||||||
$ | 22,301 | $ | 14,839 | $ | 14,981 | ||||||||||||
Summary of RSU Activity | ' | ||||||||||||||||
The following table summarizes RSU activity for the year ended December 31, 2013: | |||||||||||||||||
(in thousands, except weighted-average grant-date fair value) | Shares | Weighted-average | |||||||||||||||
grant-date | |||||||||||||||||
fair value | |||||||||||||||||
RSUs unvested at December 31, 2012 | 2,962 | $ | 13.36 | ||||||||||||||
Granted during 2013 | 1,109 | $ | 24.61 | ||||||||||||||
Vested during 2013 | (1,260 | ) | $ | 13.85 | |||||||||||||
Forfeited during 2013 | (91 | ) | $ | 17.05 | |||||||||||||
RSUs unvested at December 31, 2013 | 2,720 | $ | 17.6 | ||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes stock option activity for the year ended December 31, 2013: | |||||||||||||||||
(in thousands, except weighted-average | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
exercise price and contractual term) | outstanding | average | average | intrinsic | |||||||||||||
exercise price | remaining | value | |||||||||||||||
contractual term | |||||||||||||||||
Balance at December 31, 2012 | 1,670 | $ | 15.7 | ||||||||||||||
Granted during 2013 | 132 | $ | 27.66 | ||||||||||||||
Exercised during 2013 | (532 | ) | $ | 13.1 | |||||||||||||
Balance at December 31, 2013 | 1,270 | $ | 18.03 | 2.2 years | $ | 12,911 | |||||||||||
Vested and expected to vest at December 31, 2013 | 1,270 | $ | 18.03 | 2.2 years | $ | 12,911 | |||||||||||
Exercisable at December 31, 2013 | 1,137 | $ | 16.91 | 1.3 years | $ | 12,839 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Future Minimum Rental Payments | ' | ||||
Future minimum rental payments under operating leases that have initial noncancelable lease terms in excess of one year as of December 31, 2013 are as follows: | |||||
(in thousands) | |||||
Year | |||||
2014 | $ | 79,250 | |||
2015 | 67,150 | ||||
2016 | 51,627 | ||||
2017 | 34,967 | ||||
2018 | 21,435 | ||||
Thereafter | 37,129 | ||||
$ | 291,558 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Components of accumulated other comprehensive income (loss) are as follows: | ||||||||||||||||
Net unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2010 | $ | (3,237 | ) | $ | 10,960 | $ | (156,803 | ) | $ | (149,080 | ) | |||||
Pretax change before reclassifications | (746 | ) | (6,167 | ) | (42,721 | ) | (49,634 | ) | ||||||||
Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 3,573 | — | — | 3,573 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (10,987 | ) | — | 22,662 | 11,675 | |||||||||||
Tax effect | (2,012 | ) | — | 8,025 | 6,013 | |||||||||||
Balance at December 31, 2011 | (13,409 | ) | 4,793 | (168,837 | ) | (177,453 | ) | |||||||||
Pretax change before reclassifications | 122,243 | 5,131 | (46,602 | ) | 80,772 | |||||||||||
Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 6,502 | — | — | 6,502 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (69,834 | ) | — | 23,983 | (45,851 | ) | ||||||||||
Tax effect | (23,564 | ) | — | 9,048 | (14,516 | ) | ||||||||||
Balance at December 31, 2012 | 21,938 | 9,924 | (182,408 | ) | (150,546 | ) | ||||||||||
Pretax change before reclassifications | (44,205 | ) | (13,650 | ) | 53,080 | (4,775 | ) | |||||||||
Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 3,809 | — | — | 3,809 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | (9,795 | ) | — | 27,648 | 17,853 | |||||||||||
Tax effect | 19,526 | — | (31,404 | ) | (11,878 | ) | ||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||
Accumulated Other Comprehensive Income (Loss) Allocated to Company and Noncontrolling Interests | ' | |||||||||||||||
Components of accumulated other comprehensive income (loss) allocated to the Company and noncontrolling interests are as follows: | ||||||||||||||||
Net unrealized | Foreign | Pension | Accumulated | |||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||
adjustment | income (loss) | |||||||||||||||
(in thousands) | ||||||||||||||||
2013 | ||||||||||||||||
Allocated to the Company | $ | (8,734 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,544 | ) | ||||
Allocated to noncontrolling interests | 7 | — | — | 7 | ||||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||
2012 | ||||||||||||||||
Allocated to the Company | $ | 21,928 | $ | 9,924 | $ | (182,408 | ) | $ | (150,556 | ) | ||||||
Allocated to noncontrolling interests | 10 | — | — | 10 | ||||||||||||
Balance at December 31, 2012 | $ | 21,938 | $ | 9,924 | $ | (182,408 | ) | $ | (150,546 | ) | ||||||
2011 | ||||||||||||||||
Allocated to the Company | $ | (13,415 | ) | $ | 4,793 | $ | (168,837 | ) | $ | (177,459 | ) | |||||
Allocated to noncontrolling interests | 6 | — | — | 6 | ||||||||||||
Balance at December 31, 2011 | $ | (13,409 | ) | $ | 4,793 | $ | (168,837 | ) | $ | (177,453 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||
The reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013 are as follows: | ||||||||||||||||
(in thousands) | Amounts reclassified | Affected line items in the | ||||||||||||||
from accumulated | consolidated statements of income | |||||||||||||||
other | ||||||||||||||||
comprehensive | ||||||||||||||||
income | ||||||||||||||||
Net unrealized gains on securities: | ||||||||||||||||
Net realized gains on sales of securities | $ | 9,795 | Net realized investment gains | |||||||||||||
Tax effect | $ | (3,811 | ) | |||||||||||||
Pension benefit adjustment: | ||||||||||||||||
Amortization of defined benefit pension and supplemental benefit plan items: | ||||||||||||||||
Net actuarial loss | $ | (32,033 | ) | (1 | ) | |||||||||||
Prior service credit | 4,385 | (1 | ) | |||||||||||||
Pretax total | $ | (27,648 | ) | |||||||||||||
Tax effect | $ | 10,757 | ||||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 14 Employee Benefit Plans for additional details. | |||||||||||||||
Segment_Financial_Information_
Segment Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Schedule Of Selected Financial Information | ' | |||||||||||||||||||||||||||
Selected financial information about the Company’s operations, by segment, for each of the past three years is as follows: | ||||||||||||||||||||||||||||
Revenues | Depreciation | Equity in | Income (loss) | Assets | Investment | Capital | ||||||||||||||||||||||
and | earnings of | before | in equity | expenditures | ||||||||||||||||||||||||
amortization | income taxes | |||||||||||||||||||||||||||
affiliates, net | method | |||||||||||||||||||||||||||
affiliates | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,606,088 | $ | 66,956 | $ | 7,387 | $ | 350,165 | $ | 5,751,632 | $ | 124,921 | $ | 83,469 | ||||||||||||||
Specialty Insurance | 339,613 | 4,865 | — | 42,132 | 499,788 | — | 3,673 | |||||||||||||||||||||
Corporate | 13,008 | 3,095 | (2,071 | ) | (81,589 | ) | 330,802 | 101 | — | |||||||||||||||||||
Eliminations | (2,632 | ) | — | — | — | (61,622 | ) | — | — | |||||||||||||||||||
$ | 4,956,077 | $ | 74,916 | $ | 5,316 | $ | 310,708 | $ | 6,520,600 | $ | 125,022 | $ | 87,142 | |||||||||||||||
2012 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,200,520 | $ | 67,610 | $ | 7,677 | $ | 473,681 | $ | 5,427,432 | $ | 127,217 | $ | 78,614 | ||||||||||||||
Specialty Insurance | 315,171 | 4,553 | — | 47,459 | 487,780 | — | 5,278 | |||||||||||||||||||||
Corporate | 29,892 | 2,787 | (1,163 | ) | (53,349 | ) | 272,928 | 2,753 | — | |||||||||||||||||||
Eliminations | (3,762 | ) | — | — | (385 | ) | (137,293 | ) | — | — | ||||||||||||||||||
$ | 4,541,821 | $ | 74,950 | $ | 6,514 | $ | 467,406 | $ | 6,050,847 | $ | 129,970 | $ | 83,892 | |||||||||||||||
2011 | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 3,541,119 | $ | 69,259 | $ | 4,493 | $ | 173,581 | $ | 4,947,903 | $ | 132,628 | $ | 68,098 | ||||||||||||||
Specialty Insurance | 286,982 | 4,197 | — | 39,852 | 490,620 | — | 7,024 | |||||||||||||||||||||
Corporate | (3,652 | ) | 3,433 | (1,776 | ) | (83,525 | ) | 40,479 | 4,099 | 251 | ||||||||||||||||||
Eliminations | (3,875 | ) | — | — | 385 | (116,792 | ) | — | — | |||||||||||||||||||
$ | 3,820,574 | $ | 76,889 | $ | 2,717 | $ | 130,293 | $ | 5,362,210 | $ | 136,727 | $ | 75,373 | |||||||||||||||
Schedule Of Total Revenues From External Customers And Long-Lived Assets | ' | |||||||||||||||||||||||||||
Total revenues from external customers separated between domestic and foreign operations, and by segment, for each of the three years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 4,283,067 | $ | 320,413 | $ | 3,865,480 | $ | 332,577 | $ | 3,188,989 | $ | 350,239 | ||||||||||||||||
Specialty Insurance | 339,613 | — | 313,889 | — | 284,997 | — | ||||||||||||||||||||||
$ | 4,622,680 | $ | 320,413 | $ | 4,179,369 | $ | 332,577 | $ | 3,473,986 | $ | 350,239 | |||||||||||||||||
Long-lived assets separated between domestic and foreign operations, and by segment, as of December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Domestic | Foreign | Domestic | Foreign | Domestic | Foreign | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Title Insurance and Services | $ | 1,610,310 | $ | 135,912 | $ | 1,580,399 | $ | 151,289 | $ | 1,553,839 | $ | 136,188 | ||||||||||||||||
Specialty Insurance | 105,724 | — | 104,698 | — | 104,371 | — | ||||||||||||||||||||||
$ | 1,716,034 | $ | 135,912 | $ | 1,685,097 | $ | 151,289 | $ | 1,658,210 | $ | 136,188 | |||||||||||||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||||
Quarter Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 (1) | |||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
2013 | ||||||||||||||||||
Revenues | $ | 1,146,763 | $ | 1,288,464 | $ | 1,300,978 | $ | 1,219,872 | ||||||||||
Income before income taxes | $ | 59,592 | $ | 59,224 | $ | 107,045 | $ | 84,847 | ||||||||||
Net income | $ | 36,232 | $ | 34,948 | $ | 64,095 | $ | 51,789 | ||||||||||
Net income attributable to noncontrolling interests | $ | 54 | $ | 276 | $ | 205 | $ | 162 | ||||||||||
Net income attributable to the Company | $ | 36,178 | $ | 34,672 | $ | 63,890 | $ | 51,627 | ||||||||||
Net income per share attributable to the Company’s stockholders (2): | ||||||||||||||||||
Basic | $ | 0.34 | $ | 0.32 | $ | 0.6 | $ | 0.49 | ||||||||||
Diluted | $ | 0.33 | $ | 0.31 | $ | 0.59 | $ | 0.48 | ||||||||||
· | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | |||||||||||||||||
· | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. | |||||||||||||||||
Quarter Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
2012 | ||||||||||||||||||
Revenues | $ | 966,763 | $ | 1,089,833 | $ | 1,208,402 | $ | 1,276,823 | ||||||||||
Income before income taxes | $ | 51,550 | $ | 112,290 | $ | 155,882 | $ | 147,684 | ||||||||||
Net income | $ | 31,109 | $ | 73,517 | $ | 103,900 | $ | 93,202 | ||||||||||
Net (loss) income attributable to noncontrolling interests | $ | (184 | ) | $ | 516 | $ | 430 | $ | (75 | ) | ||||||||
Net income attributable to the Company | $ | 31,293 | $ | 73,001 | $ | 103,470 | $ | 93,277 | ||||||||||
Net income per share attributable to the Company’s stockholders (1): | ||||||||||||||||||
Basic | $ | 0.3 | $ | 0.69 | $ | 0.97 | $ | 0.87 | ||||||||||
Diluted | $ | 0.29 | $ | 0.68 | $ | 0.95 | $ | 0.85 | ||||||||||
· | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Description_of_the_Company_Nar
Description of the Company (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
State | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of states company issues title insurance policies | 49 | ' | ' |
Number of states company licensed to issue property and casualty insurance policies | 50 | ' | ' |
Number of states company issues property and casualty policies | 46 | ' | ' |
Number of states company issues home warranty contracts | 39 | ' | ' |
Fair value of investments in debt securities for funding of statutory premium reserves and state deposits | $124,000,000 | $105,800,000 | ' |
Impairment losses on other long-term investments | 7,800,000 | 7,800,000 | 8,600,000 |
Related to notes receivable | ' | ' | 2,300,000 |
Interest income on non-accrual loans that would have been recognized, if all of such loans had been current in accordance with their original terms | 134,000 | 138,000 | 163,000 |
Title plants | 523,100,000 | 520,700,000 | ' |
Capitalized real estate data | 800,000 | 1,000,000 | ' |
Assessment to determine fair value | 50.00% | ' | ' |
Long-lived assets, held for sale | 0 | 0 | ' |
Change in basis points to one or more loss rate | '50 | ' | ' |
Increase (decrease) in IBNR reserve if the expected ultimate losses for each of the last six policy years increase or decrease by 50 basis points | 105,800,000 | ' | ' |
Employee stock purchase plan percentage of purchase price on closing price | 85.00% | ' | ' |
Employee stock purchase plan percentage of discount purchase price on closing price | 15.00% | ' | ' |
Total premiums assumed and ceded in connection with reinsurance percentage less than premium and escrow fees | 1.00% | 1.00% | 1.00% |
Escrow deposits | 4,700,000,000 | 4,200,000,000 | ' |
Escrow deposits held at federal savings bank subsidiary | 1,600,000,000 | 1,200,000,000 | ' |
Like-kind exchange funds | 1,400,000,000 | 1,400,000,000 | ' |
Minimum | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capitalized real estate estimated useful lives, years | '3 years | ' | ' |
Other intangible assets estimated useful lives, years | '1 year | ' | ' |
Percentage of claim amounts known in the first few years of the policy life | 75.00% | ' | ' |
Minimum | Buildings | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives, years | '5 years | ' | ' |
Minimum | Furniture and Equipment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives, years | '1 year | ' | ' |
Minimum | Capitalized Software Costs | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives, years | '1 year | ' | ' |
Maximum | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capitalized real estate estimated useful lives, years | '15 years | ' | ' |
Other intangible assets estimated useful lives, years | '20 years | ' | ' |
Percentage of claim amounts known in the first few years of the policy life | 85.00% | ' | ' |
Maximum | Buildings | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives, years | '40 years | ' | ' |
Maximum | Furniture and Equipment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives, years | '15 years | ' | ' |
Maximum | Capitalized Software Costs | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property, plant and equipment, estimated useful lives, years | '15 years | ' | ' |
Notes Receivable Net | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Impairment losses on other long-term investments | ' | ' | 6,300,000 |
First American Trust | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets held-in-trust | $3,000,000,000 | $2,800,000,000 | ' |
Description_of_the_Company_Sch
Description of the Company (Schedule of Reclassification on the Company's Consolidated Financial Statements) (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash and cash equivalents | $834,837 | ' | $670,529 | $444,693 | $742,690 |
Deposits with banks | 23,492 | ' | 27,875 | ' | ' |
Net (increase) decrease in deposits with banks | 4,747 | 2,522 | 2,522 | 16,223 | ' |
Cash used for investing activities | -465,156 | -417,663 | -417,663 | -13,653 | ' |
As previously filed | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | 627,208 | ' | ' |
Deposits with banks | ' | ' | 71,196 | ' | ' |
Net (increase) decrease in deposits with banks | ' | -14,405 | ' | 3,773 | ' |
Cash used for investing activities | ' | -434,590 | ' | -26,103 | ' |
Difference | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | 43,321 | ' | ' |
Deposits with banks | ' | ' | -43,321 | ' | ' |
Net (increase) decrease in deposits with banks | ' | 16,927 | ' | 12,450 | ' |
Cash used for investing activities | ' | $16,927 | ' | $12,450 | ' |
Statutory_Restrictions_On_Inve1
Statutory Restrictions On Investments And Stockholders' Equity (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Statutory Restrictions On Investments And Stockholders Equity [Line Items] | ' | ' | ' |
Deposit invested with state treasurers | $128.90 | $111.90 | ' |
Dividends, loans and advances available to parent from subsidiaries | 314.9 | ' | ' |
Statutory net income | 199.1 | 301.9 | 92.3 |
Statutory capital and surplus | 193.8 | 204.1 | ' |
Required practice differs from NAIC SAP | ' | 19 | ' |
FATICO | ' | ' | ' |
Schedule Of Statutory Restrictions On Investments And Stockholders Equity [Line Items] | ' | ' | ' |
Statutory surplus maintained by insurance subsidiary | 996 | 956.4 | ' |
Permitted accounting practice | ' | $101.40 | ' |
Debt_and_Equity_Securities_Amo
Debt and Equity Securities (Amortized Cost and Estimated Fair Value of Investments in Debt Securities, Classified as Available-For-Sale) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | $19,658 | ' | ||
Debt securities, Estimated fair value | 2,819,817 | 2,651,881 | ||
Other-than-temporary impairments in AOCI | 20,700 | 20,700 | ||
Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 2,848,594 | 2,613,275 | ||
Gross unrealized, gains | 18,371 | 46,047 | ||
Gross unrealized, losses | -47,148 | -7,441 | ||
Debt securities, Estimated fair value | 2,819,817 | 2,651,881 | ||
Other-than-temporary impairments in AOCI | 20,743 | 20,743 | ||
U.S. Treasury Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 66,400 | 80,651 | ||
Gross unrealized, gains | 669 | 1,574 | ||
Gross unrealized, losses | -685 | -50 | ||
Debt securities, Estimated fair value | 66,384 | 82,175 | ||
Municipal Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 491,143 | 361,912 | ||
Gross unrealized, gains | 5,113 | 14,516 | ||
Gross unrealized, losses | -10,291 | -606 | ||
Debt securities, Estimated fair value | 485,965 | 375,822 | ||
Foreign Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 221,298 | 236,630 | ||
Gross unrealized, gains | 1,836 | 2,312 | ||
Gross unrealized, losses | -626 | -197 | ||
Debt securities, Estimated fair value | 222,508 | 238,745 | ||
Governmental Agency Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 267,713 | 324,323 | ||
Gross unrealized, gains | 233 | 1,445 | ||
Gross unrealized, losses | -5,401 | -318 | ||
Debt securities, Estimated fair value | 262,545 | 325,450 | ||
Governmental Agency Mortgage-Backed Securities | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 1,426,489 | 1,271,408 | ||
Gross unrealized, gains | 2,074 | 11,259 | ||
Gross unrealized, losses | -25,254 | -1,135 | ||
Debt securities, Estimated fair value | 1,403,309 | 1,281,532 | ||
Non-Agency Mortgage-Backed Securities | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 19,658 | [1] | 26,656 | [1] |
Gross unrealized, gains | 1,167 | [1] | ' | |
Gross unrealized, losses | -1,803 | [1] | -4,810 | [1] |
Debt securities, Estimated fair value | 19,022 | [1] | 21,846 | [1] |
Other-than-temporary impairments in AOCI | 20,743 | [1] | 20,743 | [1] |
Corporate Debt Securities | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 355,893 | 311,695 | ||
Gross unrealized, gains | 7,279 | 14,941 | ||
Gross unrealized, losses | -3,088 | -325 | ||
Debt securities, Estimated fair value | $360,084 | $326,311 | ||
[1] | At December 31, 2012, the $26.7 million amortized cost is net of $3.6 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the year ended December 31, 2012. At December 31, 2013, the $1.8 million gross unrealized losses related to securities determined to be other-than-temporarily impaired. At December 31, 2012, the $4.8 million gross unrealized losses include $4.4 million of unrealized losses for securities determined to be other-than-temporarily impaired and $0.4 million of unrealized losses for securities for which an other-than-temporary impairment has not been recognized. The $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCIâ€) at December 31, 2013 and 2012, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings due to the fact that the losses were not considered to be credit related. Other-than-temporary impairments were recognized in AOCI for non-agency mortgage-backed securities only. |
Debt_and_Equity_Securities_Amo1
Debt and Equity Securities (Amortized Cost and Estimated Fair Value of Investments in Debt Securities, Classified as Available-For-Sale) (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | $19,658,000 | ' | ' | ' |
Other-than-temporary impairments | 16,478,000 | 16,478,000 | 33,656,000 | 24,590,000 |
Other-than-temporary impairments in AOCI | 20,700,000 | 20,700,000 | ' | ' |
Gross unrealized, losses | 1,800,000 | 4,800,000 | ' | ' |
Unrealized losses for securities determined to be other-than-temporarily impaired | ' | 4,400,000 | ' | ' |
Unrealized losses for securities for which other-than-temporary impairment not recognized | ' | 400,000 | ' | ' |
Credit Related | ' | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | ' | 26,700,000 | ' | ' |
Other-than-temporary impairments | ' | $3,600,000 | ' | ' |
Debt_and_Equity_Securities_Cos
Debt and Equity Securities (Cost and Estimated Fair Value of Investments in Equity Securities, Classified as Available-For-Sale) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | $19,658 | ' |
Equity securities | 358,043 | 197,920 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 334,099 | 191,170 |
Gross unrealized, gains | 26,704 | 7,199 |
Gross unrealized, losses | -2,760 | -449 |
Equity securities | 358,043 | 197,920 |
Equity Securities | Preferred stocks | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 9,915 | 13,326 |
Gross unrealized, gains | 1,567 | 752 |
Gross unrealized, losses | -397 | -41 |
Equity securities | 11,085 | 14,037 |
Equity Securities | Common Stock | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 324,184 | 177,844 |
Gross unrealized, gains | 25,137 | 6,447 |
Gross unrealized, losses | -2,363 | -408 |
Equity securities | $346,958 | $183,883 |
Debt_and_Equity_Securities_Net
Debt and Equity Securities (Net Unrealized Gains (Losses) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Debt securities for which an OTTI has been recognized | ($625) | ($4,435) | ($10,937) |
Available-for-sale Securities, Gross unrealized gains (losses) | -4,833 | 45,356 | -13,556 |
Debt Securities-All Other | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Available-for-sale Securities, Gross unrealized gains (losses) | -28,152 | 43,041 | 45,268 |
Equity Securities | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Available-for-sale Securities, Gross unrealized gains (losses) | $23,944 | $6,750 | ($47,887) |
Debt_and_Equity_Securities_Gro
Debt and Equity Securities (Gross Unrealized Losses) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | $1,580,179 | $418,285 |
Unrealized losses, Less than 12 months | -41,734 | -4,169 |
Estimated fair value, 12 months or longer | 177,875 | 39,990 |
Unrealized losses, 12 months or longer | -8,174 | -3,721 |
Estimated fair value, Total | 1,758,054 | 458,275 |
Unrealized losses, Total | -49,908 | -7,890 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 85,112 | 34,258 |
Unrealized losses, Less than 12 months | -2,718 | -447 |
Estimated fair value, 12 months or longer | 1,046 | 98 |
Unrealized losses, 12 months or longer | -42 | -2 |
Estimated fair value, Total | 86,158 | 34,356 |
Unrealized losses, Total | -2,760 | -449 |
Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 1,495,067 | 384,027 |
Unrealized losses, Less than 12 months | -39,016 | -3,722 |
Estimated fair value, 12 months or longer | 176,829 | 39,892 |
Unrealized losses, 12 months or longer | -8,132 | -3,719 |
Estimated fair value, Total | 1,671,896 | 423,919 |
Unrealized losses, Total | -47,148 | -7,441 |
Debt Securities | U.S. Treasury Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 37,492 | 27,219 |
Unrealized losses, Less than 12 months | -685 | -50 |
Estimated fair value, 12 months or longer | ' | ' |
Unrealized losses, 12 months or longer | ' | ' |
Estimated fair value, Total | 37,492 | 27,219 |
Unrealized losses, Total | -685 | -50 |
Debt Securities | Municipal Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 230,180 | 60,229 |
Unrealized losses, Less than 12 months | -8,938 | -557 |
Estimated fair value, 12 months or longer | 27,687 | 451 |
Unrealized losses, 12 months or longer | -1,353 | -49 |
Estimated fair value, Total | 257,867 | 60,680 |
Unrealized losses, Total | -10,291 | -606 |
Debt Securities | Foreign Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 56,579 | 58,262 |
Unrealized losses, Less than 12 months | -626 | -183 |
Estimated fair value, 12 months or longer | ' | 1,031 |
Unrealized losses, 12 months or longer | ' | -14 |
Estimated fair value, Total | 56,579 | 59,293 |
Unrealized losses, Total | -626 | -197 |
Debt Securities | Governmental Agency Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 203,011 | 60,882 |
Unrealized losses, Less than 12 months | -5,375 | -318 |
Estimated fair value, 12 months or longer | 131 | ' |
Unrealized losses, 12 months or longer | -26 | ' |
Estimated fair value, Total | 203,142 | 60,882 |
Unrealized losses, Total | -5,401 | -318 |
Debt Securities | Governmental Agency Mortgage-Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 838,411 | 135,354 |
Unrealized losses, Less than 12 months | -20,970 | -889 |
Estimated fair value, 12 months or longer | 124,425 | 22,112 |
Unrealized losses, 12 months or longer | -4,284 | -246 |
Estimated fair value, Total | 962,836 | 157,466 |
Unrealized losses, Total | -25,254 | -1,135 |
Debt Securities | Non-Agency Mortgage-Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | ' | 6,544 |
Unrealized losses, Less than 12 months | ' | -1,498 |
Estimated fair value, 12 months or longer | 12,086 | 15,302 |
Unrealized losses, 12 months or longer | -1,803 | -3,312 |
Estimated fair value, Total | 12,086 | 21,846 |
Unrealized losses, Total | -1,803 | -4,810 |
Debt Securities | Corporate Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 129,394 | 35,537 |
Unrealized losses, Less than 12 months | -2,422 | -227 |
Estimated fair value, 12 months or longer | 12,500 | 996 |
Unrealized losses, 12 months or longer | -666 | -98 |
Estimated fair value, Total | 141,894 | 36,533 |
Unrealized losses, Total | ($3,088) | ($325) |
Debt_and_Equity_Securities_Com
Debt and Equity Securities (Composition of Company's Non-Agency Mortgage-Backed Securities) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Security | |
Schedule Of Available For Sale Securities [Line Items] | ' |
Number of Securities | 6 |
Amortized Cost | $19,658 |
Estimated Fair Value | 19,022 |
Prime Single Family Residential Two Thousand Seven | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Number of Securities | 1 |
Amortized Cost | 3,552 |
Estimated Fair Value | 2,873 |
Prime Single Family Residential Two Thousand Six | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Number of Securities | 3 |
Amortized Cost | 9,389 |
Estimated Fair Value | 8,275 |
Prime Single Family Residential Two Thousand Five | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Number of Securities | 1 |
Amortized Cost | 948 |
Estimated Fair Value | 938 |
Single Family Residential Two Thousand Seven | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Number of Securities | 1 |
Amortized Cost | 5,769 |
Estimated Fair Value | $6,936 |
Debt_and_Equity_Securities_Amo2
Debt and Equity Securities (Amortized Cost and Estimated Fair Value of Debt Securities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | $19,658 | ' |
Debt securities, Estimated fair value | 2,819,817 | 2,651,881 |
Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,848,594 | 2,613,275 |
Debt securities, Estimated fair value | 2,819,817 | 2,651,881 |
U.S. Treasury Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 10,583 | ' |
Amortized cost, Due after one through five years | 40,674 | ' |
Amortized cost, Due after five through ten years | 11,053 | ' |
Amortized cost, Due after ten years | 4,090 | ' |
Estimated fair value, Due in one year or less | 10,705 | ' |
Estimated fair value, Due after one through five years | 40,811 | ' |
Estimated fair value, Due after five through ten years | 10,873 | ' |
Estimated fair value, Due after ten years | 3,995 | ' |
U.S. Treasury Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 66,400 | 80,651 |
Debt securities, Estimated fair value | 66,384 | 82,175 |
Municipal Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 9,578 | ' |
Amortized cost, Due after one through five years | 187,176 | ' |
Amortized cost, Due after five through ten years | 170,951 | ' |
Amortized cost, Due after ten years | 123,438 | ' |
Estimated fair value, Due in one year or less | 9,612 | ' |
Estimated fair value, Due after one through five years | 188,656 | ' |
Estimated fair value, Due after five through ten years | 169,512 | ' |
Estimated fair value, Due after ten years | 118,185 | ' |
Municipal Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 491,143 | 361,912 |
Debt securities, Estimated fair value | 485,965 | 375,822 |
Foreign Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 30,636 | ' |
Amortized cost, Due after one through five years | 176,969 | ' |
Amortized cost, Due after five through ten years | 12,426 | ' |
Amortized cost, Due after ten years | 1,267 | ' |
Estimated fair value, Due in one year or less | 30,788 | ' |
Estimated fair value, Due after one through five years | 178,332 | ' |
Estimated fair value, Due after five through ten years | 12,105 | ' |
Estimated fair value, Due after ten years | 1,283 | ' |
Foreign Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 221,298 | 236,630 |
Debt securities, Estimated fair value | 222,508 | 238,745 |
Governmental Agency Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 7,119 | ' |
Amortized cost, Due after one through five years | 167,881 | ' |
Amortized cost, Due after five through ten years | 83,566 | ' |
Amortized cost, Due after ten years | 9,147 | ' |
Estimated fair value, Due in one year or less | 7,129 | ' |
Estimated fair value, Due after one through five years | 166,043 | ' |
Estimated fair value, Due after five through ten years | 80,511 | ' |
Estimated fair value, Due after ten years | 8,862 | ' |
Governmental Agency Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 267,713 | 324,323 |
Debt securities, Estimated fair value | 262,545 | 325,450 |
Corporate Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 21,352 | ' |
Amortized cost, Due after one through five years | 235,461 | ' |
Amortized cost, Due after five through ten years | 93,937 | ' |
Amortized cost, Due after ten years | 5,143 | ' |
Estimated fair value, Due in one year or less | 21,546 | ' |
Estimated fair value, Due after one through five years | 238,638 | ' |
Estimated fair value, Due after five through ten years | 94,512 | ' |
Estimated fair value, Due after ten years | 5,388 | ' |
Corporate Debt Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 355,893 | 311,695 |
Debt securities, Estimated fair value | 360,084 | 326,311 |
Total Debt Securities Excluding Mortgage Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 79,268 | ' |
Amortized cost, Due after one through five years | 808,161 | ' |
Amortized cost, Due after five through ten years | 371,933 | ' |
Amortized cost, Due after ten years | 143,085 | ' |
Estimated fair value, Due in one year or less | 79,780 | ' |
Estimated fair value, Due after one through five years | 812,480 | ' |
Estimated fair value, Due after five through ten years | 367,513 | ' |
Estimated fair value, Due after ten years | 137,713 | ' |
Total Debt Securities Excluding Mortgage Backed Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,402,447 | ' |
Debt securities, Estimated fair value | 1,397,486 | ' |
Total Mortgage-Backed Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,446,147 | ' |
Debt securities, Estimated fair value | $1,422,331 | ' |
Debt_and_Equity_Securities_Sum
Debt and Equity Securities (Summary of Primary Assumptions used in Estimating Cash Flows Expected to be Collected for Securities) (Detail) | Dec. 31, 2013 |
Schedule Of Available For Sale Securities [Line Items] | ' |
Prepayment speeds, Range | 7.90% |
Default rates, Range | 2.60% |
Loss severity, Range | 19.40% |
Minimum | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Prepayment speeds, Range | 6.70% |
Default rates, Range | 1.70% |
Loss severity, Range | 4.40% |
Maximum | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Prepayment speeds, Range | 9.80% |
Default rates, Range | 3.70% |
Loss severity, Range | 25.70% |
Debt_and_Equity_Securities_Cha
Debt and Equity Securities (Change in Credit Portion of Other-Than-Temporary Impairments Recognized in Earnings on Debt Securities) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ' | ' | ' |
Cumulative credit loss on debt securities held at beginning of period | $16,478 | $33,656 | $24,590 |
Addition to credit loss for which an other-than-temporary impairment was previously recognized | ' | 3,564 | 7,667 |
Addition to credit loss for which an other-than-temporary impairment was not previously recognized | ' | ' | 1,401 |
Accumulated losses on securities that matured or were sold during the year | ' | -20,742 | -2 |
Cumulative credit loss on debt securities held as of end of period | $16,478 | $16,478 | $33,656 |
Debt_and_Equity_Securities_Ava
Debt and Equity Securities (Available-For-Sale Investments Measured at Fair Value on Recurring Basis) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | $3,177,860 | $2,849,801 |
Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,819,817 | 2,651,881 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Level 1 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Level 1 | Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Level 2 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,800,795 | 2,630,035 |
Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,800,795 | 2,630,035 |
Level 3 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 19,022 | 21,846 |
Level 3 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 19,022 | 21,846 |
U.S. Treasury Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 66,384 | 82,175 |
U.S. Treasury Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 66,384 | 82,175 |
Municipal Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 485,965 | 375,822 |
Municipal Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 485,965 | 375,822 |
Foreign Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 222,508 | 238,745 |
Foreign Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 222,508 | 238,745 |
Governmental Agency Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 262,545 | 325,450 |
Governmental Agency Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 262,545 | 325,450 |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 1,403,309 | 1,281,532 |
Governmental Agency Mortgage-Backed Securities | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 1,403,309 | 1,281,532 |
Non-Agency Mortgage-Backed Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 19,022 | 21,846 |
Non-Agency Mortgage-Backed Securities | Level 3 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 19,022 | 21,846 |
Corporate Debt Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 360,084 | 326,311 |
Corporate Debt Securities | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 360,084 | 326,311 |
Preferred stocks | Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 11,085 | 14,037 |
Preferred stocks | Level 1 | Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 11,085 | 14,037 |
Common Stock | Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 346,958 | 183,883 |
Common Stock | Level 1 | Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | $346,958 | $183,883 |
Debt_and_Equity_Securities_Sum1
Debt and Equity Securities (Summary of Changes in Fair Value of Level 3 Available-For-Sale Investments) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' |
Fair value at beginning of year | $21,846 | $30,634 | ' |
Net other-than-temporary impairment losses recognized in earnings | ' | -3,564 | -9,068 |
Included in other comprehensive loss | 4,174 | 6,645 | ' |
Settlements | -6,998 | -5,553 | ' |
Sales | ' | -6,316 | ' |
Fair value as of December 31 | 19,022 | 21,846 | 30,634 |
Net other-than-temporary impairment losses recognized in earnings | ' | ($3,564) | ($9,068) |
Debt_and_Equity_Securities_Nar
Debt and Equity Securities (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Realized gains on sales of securities | $17.20 | $70.10 | $12.40 |
Realized losses on sales of securities | 15.5 | 0.3 | 1.4 |
Non-Agency Mortgage-Backed Securities | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Other-than-temporary impairments | ' | 3.6 | 9.1 |
CoreLogic | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Common shares issued to Company and FATICO | ' | ' | 12.9 |
Number of shares sold | ' | 8.9 | 4 |
Cash price from sale of shares | ' | $207.90 | $75.80 |
Financing_Receivables_Summary_
Financing Receivables (Summary of Financing Receivables) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | $78,032 | $111,992 |
Allowance for loan losses | -3,626 | -3,893 |
Participations sold | -633 | -761 |
Deferred loan fees, net | -18 | 14 |
Loans receivable, net | 73,755 | 107,352 |
Notes receivable, gross | 13,126 | 14,068 |
Loss reserve | -2,584 | -2,902 |
Notes receivable, net | 10,542 | 11,166 |
Total financing receivables, net | 84,297 | 118,518 |
Multi-Family Residential | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | 7,455 | 8,768 |
Commercial | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | 69,865 | 102,626 |
Other | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | 712 | 598 |
Notes Receivable-Secured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Notes receivable, gross | 10,533 | 11,358 |
Notes Receivable-Unsecured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Notes receivable, gross | $2,593 | $2,710 |
Financing_Receivables_Aging_An
Financing Receivables (Aging Analysis of Loans and Notes Receivable) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | $78,032 | $111,992 |
Multi-Family Residential | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 7,455 | 8,768 |
Commercial | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 69,865 | 102,626 |
Loans Receivable | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 78,032 | 111,992 |
Current | 75,974 | 109,235 |
30-59 days past due | ' | ' |
60-89 days past due | ' | 160 |
90 days or more past due | ' | ' |
Non-accrual status | 2,058 | 2,597 |
Loans Receivable | Multi-Family Residential | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 7,455 | 8,768 |
Current | 7,455 | 8,768 |
30-59 days past due | ' | ' |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Non-accrual status | ' | ' |
Loans Receivable | Commercial | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 69,865 | 102,626 |
Current | 67,807 | 99,911 |
30-59 days past due | ' | ' |
60-89 days past due | ' | 160 |
90 days or more past due | ' | ' |
Non-accrual status | 2,058 | 2,555 |
Loans Receivable | Other | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 712 | 598 |
Current | 712 | 556 |
30-59 days past due | ' | ' |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Non-accrual status | ' | 42 |
Notes Receivable Net | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 13,126 | 14,068 |
Current | 6,555 | 6,836 |
30-59 days past due | 3,668 | 3,912 |
60-89 days past due | ' | 72 |
90 days or more past due | 231 | 827 |
Non-accrual status | 2,672 | 2,421 |
Notes Receivable Net | Notes Receivable-Secured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 10,533 | 11,358 |
Current | 5,784 | 6,517 |
30-59 days past due | 3,668 | 3,912 |
60-89 days past due | ' | 72 |
90 days or more past due | 231 | 16 |
Non-accrual status | 850 | 841 |
Notes Receivable Net | Notes Receivable-Unsecured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 2,593 | 2,710 |
Current | 771 | 319 |
30-59 days past due | ' | ' |
60-89 days past due | ' | ' |
90 days or more past due | ' | 811 |
Non-accrual status | $1,822 | $1,580 |
Financing_Receivables_Aggregat
Financing Receivables (Aggregate Annual Maturities for Loans and Notes Receivable) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total | $78,032 | $111,992 |
Loans Receivable | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
2014 | 1,005 | ' |
2015 | 4,524 | ' |
2016 | 1,592 | ' |
2017 | 6,017 | ' |
2018 | 9,297 | ' |
2019 and thereafter | 55,597 | ' |
Total | 78,032 | 111,992 |
Notes Receivable Net | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
2014 | 5,315 | ' |
2015 | 1,235 | ' |
2016 | 1,553 | ' |
2017 | 741 | ' |
2018 | 527 | ' |
2019 and thereafter | 3,755 | ' |
Total | $13,126 | $14,068 |
Financing_Receivables_Narrativ
Financing Receivables (Narrative) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Receivables With Imputed Interest [Line Items] | ' | ' |
Average yield on the loan portfolio | 6.04% | 6.31% |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Land | $29,816 | $30,111 |
Buildings | 277,131 | 274,352 |
Furniture and equipment | 182,912 | 169,412 |
Capitalized software | 402,713 | 379,151 |
Property and equipment, Gross | 892,572 | 853,026 |
Accumulated depreciation and amortization | -531,224 | -509,576 |
Property and equipment, Total | $361,348 | $343,450 |
Goodwill_Carrying_Amount_of_Go
Goodwill (Carrying Amount of Goodwill by Operating Segment) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Beginning balance | $845,857 | $818,420 |
Acquisitions | 4,456 | 25,648 |
Foreign currency exchange | -4,287 | 1,789 |
Ending balance | 846,026 | 845,857 |
Title Insurance And Services | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 799,092 | 771,655 |
Acquisitions | 4,456 | 25,648 |
Foreign currency exchange | -4,287 | 1,789 |
Ending balance | 799,261 | 799,092 |
Specialty Insurance | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 46,765 | 46,765 |
Acquisitions | ' | ' |
Foreign currency exchange | ' | ' |
Ending balance | $46,765 | $46,765 |
Other_Intangible_Assets_Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible Assets Net Excluding Goodwill [Abstract] | ' | ' |
Customer lists | $77,382 | $77,981 |
Covenants not to compete | 26,928 | 26,842 |
Trademarks | 10,026 | 10,070 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 117,176 | 117,733 |
Accumulated amortization | -88,624 | -78,495 |
Finite-lived intangible assets, net | 28,552 | 39,238 |
Licenses | 17,795 | 17,857 |
Other intangible assets, net | $46,347 | $57,095 |
Other_Intangible_Assets_Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Intangible Assets Net Excluding Goodwill [Abstract] | ' |
2014 | $8,243 |
2015 | 4,726 |
2016 | 3,819 |
2017 | 2,215 |
2018 | $2,116 |
Other_Intangible_Assets_Narrat
Other Intangible Assets (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets Net Excluding Goodwill [Abstract] | ' | ' | ' |
Amortization expense | $12 | $12 | $13.90 |
Deposits_Escrow_Savings_and_In
Deposits (Escrow, Savings and Investment Certificate Accounts) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Escrow Savings And Investment Certificate Accounts [Line Items] | ' | ' | ||
Interest bearing | $1,376,921 | $904,919 | ||
Non-interest bearing | 176,964 | 323,568 | ||
Escrow accounts | 1,553,885 | 1,228,487 | ||
Savings accounts | 22,015 | 25,067 | ||
Less than one year | 19,813 | 20,315 | ||
One to five years | 6,783 | 16,900 | ||
Certificate accounts | 26,596 | 37,215 | ||
Business checking and other deposits | 90,436 | [1] | 120,424 | [1] |
Deposits, Total | $1,692,932 | $1,411,193 | ||
Escrow accounts, Annualized interest rates | 0.13% | 0.17% | ||
Savings accounts, Annualized interest rates | 0.50% | 0.60% | ||
Certificate accounts, Annualized interest rates | 1.28% | 1.46% | ||
[1] | Business checking and other deposits primarily reflect non-interest bearing accounts. |
Reserve_for_Known_and_Incurred1
Reserve for Known and Incurred But Not Reported Claims - (Activity in Reserve for Known and Incurred but Not Reported Claims) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Liability For Unpaid Claims And Claims Adjustment Expense Adjustment Of Opening Balance [Line Items] | ' | ' | ' |
Balance at beginning of year | $976,462 | $1,014,676 | $1,108,238 |
Provision related to: Current year | 380,723 | 335,097 | 308,425 |
Provision related to: Prior years | 149,633 | 62,620 | 111,711 |
Total Provision | 530,356 | 397,717 | 420,136 |
Payments, net of recoveries, related to: Current year | 182,653 | 160,138 | 149,004 |
Payments, net of recoveries, related to: Prior years | 296,657 | 285,848 | 354,430 |
Total Payments, net of recoveries | 479,310 | 445,986 | 503,434 |
Other | -9,143 | 10,055 | -10,264 |
Balance at end of year | $1,018,365 | $976,462 | $1,014,676 |
Recovered_Sheet2
Reserve for Known And Incurred But Not Reported Claims (Summary Of Loss Reserves) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 |
In Thousands, unless otherwise specified | |||
Insurance [Abstract] | ' | ' | ' |
Known title claims, amount | $135,478 | $133,070 | ' |
IBNR, amount | 840,104 | 805,430 | ' |
Total title claims, amount | 975,582 | 938,500 | ' |
Non-title claims, amount | 42,783 | 37,962 | ' |
Total loss reserves, amount | $1,018,365 | $976,462 | $45,300 |
Known title claims, percent | 13.30% | 13.60% | ' |
IBNR, percent | 82.50% | 82.50% | ' |
Total title claims, percent | 95.80% | 96.10% | ' |
Non-title claims, percent | 4.20% | 3.90% | ' |
Total loss reserves, percent | 100.00% | 100.00% | ' |
Reserve_for_Known_And_Incurred2
Reserve for Known And Incurred But Not Reported Claims (Narrative) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Minimum | Maximum | Insurance And Services Segment | Domestic Lender | Domestic Lender | Commercial Policies | Guaranteed Valuation Product | Guaranteed Valuation Product | International Business | |||||||
Insurance [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current year payments related to specialty insurance segment | ' | ' | ' | $167,300,000 | $144,100,000 | $135,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior year payments related to specialty insurance segment | ' | ' | ' | 16,000,000 | 16,700,000 | 20,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of title premiums and escrow fees | ' | ' | ' | 8.80% | 6.90% | 9.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current quarter rate, expected ultimate loss, percentage | ' | ' | ' | 8.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated increase in loss reserve for prior policy years | ' | ' | 34,200,000 | 148,500,000 | 62,100,000 | ' | ' | ' | ' | 67,400,000 | 25,600,000 | 38,800,000 | 11,800,000 | 21,700,000 | 15,600,000 |
Ultimate loss rate | ' | ' | ' | 5.00% | 5.10% | 5.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
IBNR reserve | ' | ' | ' | 840,104,000 | 805,430,000 | ' | 729,700,000 | 1,000,000,000 | 840,100,000 | ' | ' | ' | ' | ' | ' |
Reasonable estimates of IBNR reserve range limit minimum | ' | ' | ' | 110,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reasonable estimates of IBNR reserve range limit maximum | ' | ' | ' | 201,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserve for known and incurred but not reported claims | ' | ' | 45,300,000 | 1,018,365,000 | 976,462,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge related to settlement | $19,200,000 | $13,000,000 | $32,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of adjustment related to annualized | 150.00% | ' | ' | ' | ' | 150.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected ultimate loss ratio percentage | ' | ' | ' | 5.00% | 4.10% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes_and_Contracts_Payable_Sc
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Notes and contracts payable | $310,285 | $229,760 |
4.3% senior unsecured notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes and contracts payable | 249,163 | ' |
Line of Credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes and contracts payable | ' | 160,000 |
Trust Deed Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes and contracts payable | 38,151 | 41,749 |
Other Notes and Contracts Payable | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Notes and contracts payable | $22,971 | $28,011 |
Notes_and_Contracts_Payable_Sc1
Notes and Contracts Payable (Schedule of Notes and Contracts Payable) (Parenthetical) (Detail) (USD $) | Jan. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | 4.3% senior unsecured notes | Line of Credit | Line of Credit | Trust Deed Notes | Trust Deed Notes | Other Notes and Contracts Payable | Other Notes and Contracts Payable | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Senior unsecured notes expire date | ' | 1-Feb-23 | ' | ' | ' | ' | ' | ' |
Debt instrument unamortized discount amount | ' | $837 | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate | 4.35% | 4.35% | ' | 2.21% | 5.42% | 5.44% | 2.96% | 2.84% |
Line of credit borrowings due, date | ' | ' | 17-Apr-16 | ' | ' | ' | ' | ' |
Maturity year | ' | ' | ' | ' | '2032 | '2032 | ' | ' |
Debt collateralized by land and buildings | ' | ' | ' | ' | $55,206 | $58,244 | ' | ' |
Maturity year | ' | ' | ' | ' | ' | ' | '2020 | '2020 |
Notes_and_Contracts_Payable_Na
Notes and Contracts Payable (Narrative) (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jan. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Maximum | Minimum | Revolving Credit Facility | Notes and Contracts Payable | Notes and Contracts Payable | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate | ' | ' | ' | ' | ' | 4.34% | 2.87% |
New senior secured credit agreement | ' | ' | ' | ' | $600 | ' | ' |
Credit agreement termination date | ' | ' | ' | ' | 17-Apr-16 | ' | ' |
Percentage of proceed from issuance of equity | ' | 50.00% | ' | ' | ' | ' | ' |
Percentage of proceed from issuance of debt | ' | 50.00% | ' | ' | ' | ' | ' |
Loan commitments | ' | 300 | ' | ' | ' | ' | ' |
Percentage in excess of federal funds rate | ' | 0.50% | ' | ' | ' | ' | ' |
Spread over LIBOR | ' | 1.00% | 1.50% | 0.75% | ' | ' | ' |
Spread for adjusted LIBOR rate | ' | ' | 2.50% | 1.75% | ' | ' | ' |
Senior unsecured notes issued | 250 | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, percentage | 4.30% | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, term | '10 years | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, maturity date | '2023 | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, price percentage | 99.64% | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, yield percentage | 4.35% | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, interest payable terms | 'Interest is due semi-annually on February 1 and August 1, beginning August 1, 2013. | ' | ' | ' | ' | ' | ' |
Senior unsecured notes, increased unused capacity | $600 | ' | ' | ' | ' | ' | ' |
Notes_and_Contracts_Payable_Ag
Notes and Contracts Payable (Aggregate Annual Maturities of Notes and Contracts Payable) (Detail) (Notes and Contracts Payable, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Notes and Contracts Payable | ' |
Debt Instrument [Line Items] | ' |
2014 | $13,667 |
2015 | 15,020 |
2016 | 3,982 |
2017 | 5,190 |
2018 | 3,429 |
Thereafter | 268,997 |
Notes and contracts payable, Total | $310,285 |
Investment_Income_Schedule_of_
Investment Income (Schedule of Investment Income) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment Income [Line Items] | ' | ' | ' |
Cash equivalents and deposits with banks | $3,694 | $4,407 | $6,602 |
Debt securities | 47,226 | 45,112 | 47,337 |
Other long-term investments | 2,009 | 1,013 | 1,693 |
Loans receivable | 5,474 | 8,132 | 10,172 |
Dividends on equity securities | 11,776 | 5,388 | 2,896 |
Equity in earnings of affiliates, net | 5,316 | 6,514 | 2,717 |
Other | 14,400 | 10,465 | 5,354 |
Investment income | $89,895 | $81,031 | $76,771 |
Income_Taxes_Summary_of_Tax_Ex
Income Taxes - Summary of Tax Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Current Federal | $86,406 | $82,269 | ($23,095) |
Current State | 7,887 | 15,229 | -1,267 |
Current Foreign | 24,331 | 8,234 | 13,926 |
Current Income Tax Expense (Benefit), Total | 118,624 | 105,732 | -10,436 |
Deferred Federal | 8,937 | 60,242 | 69,302 |
Deferred State | 9,774 | 111 | 4,585 |
Deferred Foreign | -13,691 | -407 | -11,737 |
Deferred Income Tax Expense (Benefit), Total | 5,020 | 59,946 | 62,150 |
Income tax | $123,644 | $165,678 | $51,714 |
Income_Taxes_Computed_by_Apply
Income Taxes - Computed by Applying Federal Income Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Taxes calculated at federal rate | $108,748 | $163,592 | $45,603 |
State taxes, net of federal benefit | 11,480 | 9,525 | 2,499 |
Change in liability for tax positions | 3,537 | 2,033 | 2,548 |
Change in capital loss valuation allowance | ' | -5,276 | ' |
Foreign income taxed at different rates | 8,567 | 2,881 | 1,805 |
Foreign tax credit | -5,640 | -2,921 | ' |
Other items, net | -3,048 | -4,156 | -741 |
Income tax | $123,644 | $165,678 | $51,714 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Liability (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Taxes [Line Items] | ' | ' |
Deferred revenue | $8,360 | $8,110 |
Employee benefits | 73,302 | 82,421 |
Bad debt reserves | 17,588 | 13,423 |
Investment in affiliates | 8,026 | 9,096 |
Loss reserves | 1,728 | 3,044 |
Pension | 86,858 | 121,605 |
Net operating loss carryforward | 38,867 | 23,749 |
Securities | 1,880 | ' |
Other | 6,782 | 8,874 |
Deferred tax assets before valuation allowance | 243,391 | 270,322 |
Valuation allowance | -18,119 | -14,172 |
Deferred tax assets | 225,272 | 256,150 |
Depreciable and amortizable assets | 258,855 | 238,688 |
Claims and related salvage | 21,196 | 36,307 |
Securities | ' | 18,142 |
Deferred tax liabilities | 280,051 | 293,137 |
Net deferred tax liability | $54,779 | $36,987 |
Income_Taxes_Changes_In_Unreco
Income Taxes - Changes In Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Unrecognized tax benefits—opening balance | $47,900 | $17,300 | $11,100 |
Gross increases (decreases)—tax positions in prior period | -600 | 200 | ' |
Gross increases—current period tax positions | 500 | 30,500 | 6,200 |
Expiration of the statute of limitations for the assessment of taxes | ' | -100 | ' |
Unrecognized tax benefits—ending balance | $47,800 | $47,900 | $17,300 |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Income (loss) from continuing operations before noncontrolling interests, Domestic | $286,200,000 | $449,600,000 | $128,200,000 | ' |
Income (loss) from continuing operations before noncontrolling interests, Foreign | 24,500,000 | 17,800,000 | 2,100,000 | ' |
Federal income tax rate | 35.00% | ' | ' | ' |
Effective income tax rate | 39.80% | 35.40% | 39.70% | ' |
Tax benefits recorded | 6,200,000 | 2,400,000 | ' | ' |
Operating loss carryforwards, amount | 152,000,000 | ' | ' | ' |
Operating loss carryforwards, indefinite expiration, amount | 40,900,000 | ' | ' | ' |
Operating loss carryforwards, remaining expiration, amount | 111,100,000 | ' | ' | ' |
Amount of deferred tax assets valuation allowance | 18,100,000 | 5,300,000 | ' | ' |
Valuation allowance | 14,200,000 | ' | ' | ' |
Deferred Tax Assets Valuation Allowances On Other Foreign Deferred Tax Assets | 3,900,000 | ' | ' | ' |
Valuation allowance credited to tax expense | ' | 5,300,000 | ' | ' |
Earnings Of Foreign Subsidiaries | 121,800,000 | ' | ' | ' |
Uncertain tax positions | 47,800,000 | 47,900,000 | 17,300,000 | 11,100,000 |
Offsetting tax benefits related to uncertain tax positions | 32,600,000 | 32,600,000 | 2,900,000 | ' |
Uncertain tax positions, net | 15,200,000 | 15,300,000 | 14,400,000 | ' |
Accrued interest and penalties on uncertain tax positions | 4,700,000 | 4,200,000 | 3,600,000 | ' |
Net of tax benefits | 1,900,000 | 1,700,000 | 1,400,000 | ' |
Unrecognized tax positions increase decrease, months | '12 months | ' | ' | ' |
CoreLogic | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Net payable related to Separation-related tax liabilities | 56,500,000 | 52,500,000 | ' | ' |
Federal | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Operating loss carryforwards, amount | 1,100,000 | ' | ' | ' |
State | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Operating loss carryforwards, amount | 11,200,000 | ' | ' | ' |
Foreign | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Operating loss carryforwards, amount | $139,700,000 | ' | ' | ' |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income attributable to the Company | $51,627 | [1] | $63,890 | $34,672 | $36,178 | $93,277 | $103,470 | $73,001 | $31,293 | $186,367 | $301,041 | $78,276 | |||||||
Less: dividends and undistributed earnings allocated to unvested RSUs | ' | ' | ' | ' | ' | ' | ' | ' | 324 | 682 | 172 | ||||||||
Net income allocated to common stockholders | ' | ' | ' | ' | ' | ' | ' | ' | $186,043 | $300,359 | $78,104 | ||||||||
Basic weighted-average shares | ' | ' | ' | ' | ' | ' | ' | ' | 106,991 | 106,307 | 105,197 | ||||||||
Effect of dilutive employee stock options and RSUs | ' | ' | ' | ' | ' | ' | ' | ' | 2,111 | 2,235 | 1,717 | ||||||||
Diluted weighted-average shares | ' | ' | ' | ' | ' | ' | ' | ' | 109,102 | 108,542 | 106,914 | ||||||||
Basic | $0.49 | [1],[2] | $0.60 | [2] | $0.32 | [2] | $0.34 | [2] | $0.87 | [2] | $0.97 | [2] | $0.69 | [2] | $0.30 | [2] | $1.74 | $2.83 | $0.74 |
Diluted | $0.48 | [1],[2] | $0.59 | [2] | $0.31 | [2] | $0.33 | [2] | $0.85 | [2] | $0.95 | [2] | $0.68 | [2] | $0.29 | [2] | $1.71 | $2.77 | $0.73 |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | ||||||||||||||||||
[2] | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income per share attributable to the Company’s stockholders: | ' | ' | ' |
Stock options and RSUs excluded from the weighted-average diluted common shares outstanding | 11 | 700 | 1,400 |
Employee_Benefit_Plans_Princip
Employee Benefit Plans (Principal Components of Employee Benefit Plan Expenses) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plan expenses | $63,585 | $77,154 | $54,990 |
Savings Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plan expenses | 10,458 | 27,778 | 8,697 |
Defined Benefit Pension Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plan expenses | 20,975 | 22,657 | 22,386 |
Unfunded Supplemental Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plan expenses | 16,673 | 16,553 | 17,279 |
Other Plans, Net | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employee benefit plan expenses | $15,479 | $10,166 | $6,628 |
Employee_Benefit_Plans_Balance
Employee Benefit Plans (Balance Sheet Impact, Including Benefit Obligations, Assets and Funded Status) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in projected benefit obligation: | ' | ' | ' |
Service costs | $1,915 | $1,712 | $2,167 |
Interest costs | 26,861 | 29,068 | 30,152 |
Change in plan assets: | ' | ' | ' |
Plan assets at fair value at beginning of year | 294,216 | ' | ' |
Plan assets at fair value at end of year | 313,469 | 294,216 | ' |
Defined Benefit Pension Plans | ' | ' | ' |
Change in projected benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 424,462 | 385,756 | ' |
Service costs | ' | ' | ' |
Interest costs | 17,340 | 18,445 | ' |
Plan amendment | ' | ' | ' |
Actuarial (gains) losses | -38,766 | 37,030 | ' |
Benefits paid | -21,001 | -16,769 | ' |
Projected benefit obligation at end of year | 382,035 | 424,462 | ' |
Change in plan assets: | ' | ' | ' |
Plan assets at fair value at beginning of year | 294,216 | 257,078 | ' |
Actual return on plan assets | 10,971 | 33,236 | ' |
Contributions | 29,283 | 20,671 | ' |
Benefits paid | -21,001 | -16,769 | ' |
Plan assets at fair value at end of year | 313,469 | 294,216 | ' |
Reconciliation of funded status, Unfunded status of the plans | -68,566 | -130,246 | ' |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | -68,566 | -130,246 | ' |
Unrecognized net actuarial loss | 162,084 | 215,405 | ' |
Unrecognized prior service cost (credit) | 40 | 65 | ' |
Amounts recognized in accumulated other comprehensive income | 162,124 | 215,470 | ' |
Accumulated benefit obligation at end of year | 382,035 | 424,462 | ' |
Unfunded Supplemental Benefit Plans | ' | ' | ' |
Change in projected benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | 250,226 | 223,516 | ' |
Service costs | 1,915 | 1,712 | ' |
Interest costs | 9,521 | 10,623 | ' |
Plan amendment | 2,088 | ' | ' |
Actuarial (gains) losses | -24,233 | 27,226 | ' |
Benefits paid | -13,059 | -12,851 | ' |
Projected benefit obligation at end of year | 226,458 | 250,226 | ' |
Change in plan assets: | ' | ' | ' |
Plan assets at fair value at beginning of year | ' | ' | ' |
Actual return on plan assets | ' | ' | ' |
Contributions | 13,059 | 12,851 | ' |
Benefits paid | -13,059 | -12,851 | ' |
Plan assets at fair value at end of year | ' | ' | ' |
Reconciliation of funded status, Unfunded status of the plans | -226,458 | -250,226 | ' |
Amounts recognized in the consolidated balance sheet, Accrued benefit liability | -226,458 | -250,226 | ' |
Unrecognized net actuarial loss | 90,303 | 124,183 | ' |
Unrecognized prior service cost (credit) | -29,142 | -35,639 | ' |
Amounts recognized in accumulated other comprehensive income | 61,161 | 88,544 | ' |
Accumulated benefit obligation at end of year | $226,458 | $250,226 | ' |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Cost) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' |
Service costs | $1,915 | $1,712 | $2,167 |
Interest costs | 26,861 | 29,068 | 30,152 |
Expected return on plan assets | -18,776 | -15,553 | -15,316 |
Amortization of net actuarial loss | 32,033 | 28,368 | 27,047 |
Amortization of prior service credit | -4,385 | -4,385 | -4,385 |
Net periodic cost | $37,648 | $39,210 | $39,665 |
Employee_Benefit_Plans_Weighte
Employee Benefit Plans (Weighted-Average Actuarial Assumptions Used to Determine Costs) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 4.18% | 4.90% |
Rate of return on plan assets | 6.50% | 5.75% |
Unfunded Supplemental Benefit Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 3.91% | 4.90% |
Employee_Benefit_Plans_Weighte1
Employee Benefit Plans (Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Pension Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans, Discount rate | 4.97% | 4.18% |
Unfunded Supplemental Benefit Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined benefit pension plans, Discount rate | 4.80% | 3.91% |
Employee_Benefit_Plans_Target_
Employee Benefit Plans (Target Asset Allocation Based on Funded Status) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Funded Ratio 100% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 100.00% |
Return seeking assets | 0.00% |
Liability tracking assets | 100.00% |
Funded Ratio 97.5% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 97.50% |
Return seeking assets | 15.00% |
Liability tracking assets | 85.00% |
Funded Ratio 95% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 95.00% |
Return seeking assets | 30.00% |
Liability tracking assets | 70.00% |
Funded Ratio 92.5% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 92.50% |
Return seeking assets | 40.00% |
Liability tracking assets | 60.00% |
Funded Ratio 90% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 90.00% |
Return seeking assets | 50.00% |
Liability tracking assets | 50.00% |
Funded Ratio 87.5% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 87.50% |
Return seeking assets | 60.00% |
Liability tracking assets | 40.00% |
Funded Ratio 85% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 85.00% |
Return seeking assets | 70.00% |
Liability tracking assets | 30.00% |
Funded Ratio Below 85.0% | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Settlement funded status | 85.00% |
Return seeking assets | 85.00% |
Liability tracking assets | 15.00% |
Employee_Benefit_Plans_Asset_A
Employee Benefit Plans (Asset Allocation) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash equivalents | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of plan assets | 0.70% | 0.60% |
Equities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of plan assets | 48.30% | 34.10% |
Fixed Income Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of plan assets | 29.70% | 38.60% |
Balance Funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of plan assets | 18.90% | 24.30% |
Other | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Percentage of plan assets | 2.40% | 2.40% |
Employee_Benefit_Plans_Benefit
Employee Benefit Plans (Benefit Payments, Expected Future Service) (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $33,726 |
2015 | 34,835 |
2016 | 35,303 |
2017 | 36,962 |
2018 | 38,070 |
Five years thereafter | $202,341 |
Employee_Benefit_Plans_Defined
Employee Benefit Plans (Defined Benefit Pension Plan Assets at Fair Value) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | $313,469 | $294,216 | ||
Level 1 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 147,221 | 173,730 | ||
Level 2 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 158,820 | 113,400 | ||
Level 3 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 7,428 | 7,086 | ||
Cash and Cash equivalents | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 2,080 | 1,922 | ||
Cash and Cash equivalents | Level 1 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 2,080 | 1,922 | ||
Cash and Cash equivalents | Level 2 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | ' | ||
Cash and Cash equivalents | Level 3 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | ' | ||
Equities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 151,604 | [1] | 100,283 | [1] |
Equities | Level 1 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 95,860 | [1] | 100,283 | [1] |
Equities | Level 2 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 55,744 | [1] | ' | [1] |
Equities | Level 3 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | [1] | ' | [1] |
Fixed Income Funds | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 93,210 | [2] | 113,525 | [2] |
Fixed Income Funds | Level 1 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 49,281 | [2] | 71,525 | [2] |
Fixed Income Funds | Level 2 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 43,929 | [2] | 42,000 | [2] |
Fixed Income Funds | Level 3 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | [2] | ' | [2] |
Balanced Funds | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 59,147 | [3] | 71,400 | [3] |
Balanced Funds | Level 1 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | [3] | ' | [3] |
Balanced Funds | Level 2 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 59,147 | [3] | 71,400 | [3] |
Balanced Funds | Level 3 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | [3] | ' | [3] |
Other | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | 7,428 | [4] | 7,086 | [4] |
Other | Level 1 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | [4] | ' | [4] |
Other | Level 2 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | ' | [4] | ' | [4] |
Other | Level 3 | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Estimated fair value | $7,428 | [4] | $7,086 | [4] |
[1] | Investments in passively managed index funds, actively managed mutual funds with holdings in domestic and international equities and investments in domestic equities. These investments are valued at the closing price reported on the major market on which the individual securities are traded or the Net Asset Value (“NAVâ€) provided by the administrator of the fund. | |||
[2] | Investments in passively managed index funds and actively managed mutual funds with holdings in domestic and international corporate bonds, sovereign bonds, mortgage-backed securities, and other fixed income instruments. These investments are valued using matrix pricing models and quoted prices of the securities in active markets. | |||
[3] | Investments in global multi-asset risk parity strategy funds with holdings in domestic and international debt and equity securities, commodities, real estate, and derivative investments. These investments are valued using the NAV provided by the administrator of the fund. | |||
[4] | Investments in a guaranteed deposit fund with holdings in insurance contracts. These investments are valued at contract value of the fund including contributions and earnings, less applicable costs and liabilities, as provided by the administrator of the fund. |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Deferred compensation plan, allowable deferment rate | 100.00% | ' | ' |
Maximum benefit rate of final average compensation under non qualified plan | 30.00% | ' | ' |
Maximum benefit rate of final average compensation under unfunded supplemental plan | 15.00% | ' | ' |
Amortization of net actuarial loss | $32,033,000 | $28,368,000 | $27,047,000 |
Cash contribution to pension plans | 27,700,000 | ' | ' |
Cash contribution to unfunded supplemental benefit plans | 14,000,000 | ' | ' |
Chief Executive Officer | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Maximum annual benefit | 500,000 | ' | ' |
All Other Executive Supplemental Benefit Plan Participants | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Maximum annual benefit | 350,000 | ' | ' |
All Management Supplemental Benefit Plan Participants | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Maximum annual benefit | 250,000 | ' | ' |
Savings Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan expenses | 10,500,000 | 27,800,000 | 8,700,000 |
Common stock, outstanding | 3,903,000 | 4,144,000 | ' |
Percentage of plan shares in total shares outstanding | 3.70% | 3.90% | ' |
Rabbi Trust | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Assets held-in-trust | 73,200,000 | 64,400,000 | ' |
Unfunded liabilities | 71,100,000 | 61,600,000 | ' |
Defined Benefit Pension And Supplemental Benefit Plans | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Amortization of net loss | 22,400,000 | ' | ' |
Amortization of net actuarial loss | $4,200,000 | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Carrying Amounts and Fair Values of Financial Instruments) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | $834,837 | $670,529 |
Accounts and accrued income receivable, net | 236,895 | 259,779 |
Loans receivable, net | 73,397 | 111,925 |
Deposits with banks | 23,601 | 28,079 |
Available-for-sale investments at fair value | 3,177,860 | 2,849,801 |
Notes receivable, net | 9,953 | 11,376 |
Deposits | 1,693,138 | 1,411,575 |
Accounts payable and accrued liabilities | 406,819 | 390,741 |
Notes and contracts payable | 301,007 | 233,071 |
Carrying Amount | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 834,837 | 670,529 |
Accounts and accrued income receivable, net | 236,895 | 259,779 |
Loans receivable, net | 73,755 | 107,352 |
Deposits with banks | 23,492 | 27,875 |
Notes receivable, net | 10,542 | 11,166 |
Deposits | 1,692,932 | 1,411,193 |
Accounts payable and accrued liabilities | 406,819 | 390,741 |
Notes and contracts payable | 310,285 | 229,760 |
Fair Value | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 834,837 | 670,529 |
Accounts and accrued income receivable, net | 236,895 | 259,779 |
Loans receivable, net | 73,397 | 111,925 |
Deposits with banks | 23,601 | 28,079 |
Notes receivable, net | 9,953 | 11,376 |
Deposits | 1,693,138 | 1,411,575 |
Accounts payable and accrued liabilities | 406,819 | 390,741 |
Notes and contracts payable | 301,007 | 233,071 |
Debt Securities | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,819,817 | 2,651,881 |
Debt Securities | Carrying Amount | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,819,817 | 2,651,881 |
Debt Securities | Fair Value | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,819,817 | 2,651,881 |
Equity Securities | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Equity Securities | Carrying Amount | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Equity Securities | Fair Value | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | $358,043 | $197,920 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Fair Value of Financial Instruments, Classified Using Three-Level Hierarchy) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $834,837 | $670,529 |
Accounts and accrued income receivable, net | 236,895 | 259,779 |
Loans receivable, net | 73,397 | 111,925 |
Deposits with banks | 23,601 | 28,079 |
Available-for-sale investments at fair value | 3,177,860 | 2,849,801 |
Notes receivable, net | 9,953 | 11,376 |
Deposits | 1,693,138 | 1,411,575 |
Accounts payable and accrued liabilities | 406,819 | 390,741 |
Notes and contracts payable | 301,007 | 233,071 |
Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 834,837 | 670,529 |
Accounts and accrued income receivable, net | 236,895 | 259,779 |
Loans receivable, net | ' | ' |
Deposits with banks | 2,070 | 6,110 |
Notes receivable, net | ' | ' |
Deposits | 1,666,336 | 1,373,978 |
Accounts payable and accrued liabilities | 406,819 | 390,741 |
Notes and contracts payable | ' | ' |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | ' | ' |
Accounts and accrued income receivable, net | ' | ' |
Loans receivable, net | ' | ' |
Deposits with banks | 21,531 | 21,969 |
Notes receivable, net | ' | ' |
Deposits | 26,802 | 37,597 |
Accounts payable and accrued liabilities | ' | ' |
Notes and contracts payable | 294,221 | 223,218 |
Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | ' | ' |
Accounts and accrued income receivable, net | ' | ' |
Loans receivable, net | 73,397 | 111,925 |
Deposits with banks | ' | ' |
Notes receivable, net | 9,953 | 11,376 |
Deposits | ' | ' |
Accounts payable and accrued liabilities | ' | ' |
Notes and contracts payable | 6,786 | 9,853 |
Debt Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,819,817 | 2,651,881 |
Debt Securities | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | ' | ' |
Debt Securities | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,800,795 | 2,630,035 |
Debt Securities | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 19,022 | 21,846 |
Equity Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Equity Securities | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 358,043 | 197,920 |
Equity Securities | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | ' | ' |
Equity Securities | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | ' | ' |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Share-Based Compensation Expense) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Restricted stock units | $20,827 | $13,953 | $14,203 |
Stock options | 8 | ' | 9 |
Employee stock purchase plan | 1,466 | 886 | 769 |
Share-based compensation plans, Total | $22,301 | $14,839 | $14,981 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Summary of RSU Activity) (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Beginning Balance, Shares | 2,962 |
Granted during 2013, Shares | 1,109 |
Vested during 2013, Shares | -1,260 |
Forfeited during 2013, Shares | -91 |
Ending Balance, Shares | 2,720 |
Beginning Balance, Weighted-average grant-date fair value | $13.36 |
Granted during 2013, Weighted-average grant-date fair value | $24.61 |
Vested during 2013, Weighted-average grant-date fair value | $13.85 |
Forfeited during 2013, Weighted-average grant-date fair value | $17.05 |
Ending Balance, Weighted-average grant-date fair value | $17.60 |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans (Summary of Stock Option Activity) (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Beginning Balance, Number outstanding | 1,670 |
Granted during 2013, Number outstanding | 132 |
Exercised during 2013, Number outstanding | -532 |
Ending Balance, Number outstanding | 1,270 |
Vested and expected to vest at December 31, 2013, Number outstanding | 1,270 |
Exercisable at December 31, 2013, Number outstanding | 1,137 |
Beginning Balance, Weighted-average exercise price | $15.70 |
Granted during 2013, Weighted-average exercise price | $27.66 |
Exercised during 2013, Weighted-average exercise price | $13.10 |
Ending Balance, Weighted-average exercise price | $18.03 |
Vested and expected to vest at December 31, 2013, Weighted-average exercise price | $18.03 |
Exercisable at December 31, 2013, Weighted-average exercise price | $16.91 |
Ending Balance, Weighted-average remaining contractual term, years | '2 years 2 months 12 days |
Vested and expected to vest at December 31, 2013, Weighted-average remaining contractual term, years | '2 years 2 months 12 days |
Exercisable at December 31, 2013, Weighted-average remaining contractual term, years | '1 year 3 months 18 days |
Ending Balance, Aggregate intrinsic value | $12,911 |
Vested and expected to vest at December 31, 2013, Aggregate intrinsic value | 12,911 |
Exercisable at December 31, 2013, Aggregate intrinsic value | $12,839 |
ShareBased_Compensation_Plans_4
Share-Based Compensation Plans (Narrative) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Purchase of common stock under employee stock purchase plan | 85.00% | ' | ' |
Unrecognized compensation cost related to unvested stock options | $1,100,000 | ' | ' |
Unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period, Years | '4 years | ' | ' |
Total fair value of shares vested and not distributed | 4,300,000 | 2,300,000 | 2,200,000 |
Total intrinsic value of options exercised for years | 6,000,000 | 7,100,000 | 645,000 |
TFAC's Plans | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Common stock that can be awarded under terms of incentive compensation plan, in shares | 6,700,000 | ' | ' |
Incentive Compensation Plan, termination period, in years | '10 years | ' | ' |
Purchase of common stock under employee stock purchase plan | 85.00% | ' | ' |
Shares issued in connection with Company's and TFAC's plans | 350,000 | 323,000 | ' |
Shares reserved for future issuances | 3,800,000 | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost related to unvested stock options | $19,000,000 | ' | ' |
Unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted-average period, Years | '3 years 3 months 18 days | ' | ' |
Stockholders_Equity_Detail
Stockholders' Equity (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 27 Months Ended | |
Share data in Thousands, unless otherwise specified | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $150,000,000 | ' | ' | ' |
Remaining authorize amount under stock repurchase program | ' | 82,900,000 | ' | ' |
Purchase of Company, value | ' | $64,606,000 | $2,502,000 | $67,100,000 |
Common Stock | ' | ' | ' | ' |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Common stock repurchased, shares | ' | 2,951 | 204 | 3,200 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Future Minimum Rental Payments) (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Line Items] | ' |
2014 | $79,250 |
2015 | 67,150 |
2016 | 51,627 |
2017 | 34,967 |
2018 | 21,435 |
Thereafter | 37,129 |
Future minimum rental payments | $291,558 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Contingencies And Commitments [Line Items] | ' | ' | ' |
Total rental expense for all operating leases | $94.60 | $96.80 | $102.60 |
Contingently liable for guarantees of indebtedness owed by affiliates and third parties | 14.7 | 23.2 | ' |
Maximum potential amount of future payments | $14.70 | $23.20 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net unrealized gains (losses) on securities, Beginning Balance | $21,938 | ($13,409) | ($3,237) |
Net unrealized gains (losses) on securities, Pretax change Before reclassifications | -44,205 | 122,243 | -746 |
Net unrealized gains (losses) on securities, Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 3,809 | 6,502 | 3,573 |
Net unrealized gain (losses) Amounts reclassified from accumulated other comprehensive income | -9,795 | -69,834 | -10,987 |
Net unrealized gains (losses) on securities, Tax effect | 19,526 | -23,564 | -2,012 |
Net unrealized gains (losses) on securities, Ending Balance | -8,727 | 21,938 | -13,409 |
Foreign currency translation adjustment, Beginning Balance | 9,924 | 4,793 | 10,960 |
Foreign currency translation adjustment, Pretax change before reclassifications | -13,650 | 5,131 | -6,167 |
Foreign currency translation adjustment, Ending Balance | -3,726 | 9,924 | 4,793 |
Pension benefit adjustment, Beginning Balance | -182,408 | -168,837 | -156,803 |
Pension benefit adjustment, Pretax change | 53,080 | -46,602 | -42,721 |
Pension benefit adjustment,Amounts reclassified from accumulated other comprehensive income | 27,648 | 23,983 | 22,662 |
Pension benefit adjustment, Tax effect | -31,404 | 9,048 | 8,025 |
Pension benefit adjustment, Ending Balance | -133,084 | -182,408 | -168,837 |
Accumulated other comprehensive income (loss), Beginning Balance | -150,546 | -177,453 | -149,080 |
Accumulated other comprehensive income (loss), Pretax change | -4,775 | 80,772 | -49,634 |
Accumulated other comprehensive income (loss), Pretax change in other-than-temporary impairments for which credit-related portion was recognized in earnings | 3,809 | 6,502 | 3,573 |
Accumulated other comprehensive income (loss), Amounts reclassified from accumulated other comprehensive income | 17,853 | -45,851 | 11,675 |
Accumulated other comprehensive income (loss), Tax effect | -11,878 | -14,516 | 6,013 |
Accumulated other comprehensive income (loss), Ending Balance | ($145,537) | ($150,546) | ($177,453) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Income (Loss) Allocated to Company and Noncontrolling Interest) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net unrealized gains (losses) on securities | ($8,727) | $21,938 | ($13,409) | ' |
Foreign currency translation adjustment, Allocated to the Company | -3,726 | 9,924 | 4,793 | ' |
Foreign currency translation adjustment, Allocated to noncontrolling interests | ' | ' | ' | ' |
Foreign currency translation adjustment | -3,726 | 9,924 | 4,793 | 10,960 |
Pension benefit adjustment, Allocated to the Company | -133,084 | -182,408 | -168,837 | ' |
Pension benefit adjustment, Allocated to noncontrolling interests | ' | ' | ' | ' |
Pension benefit adjustment | -133,084 | -182,408 | -168,837 | -156,803 |
Accumulated other comprehensive income (loss) | -145,537 | -150,546 | -177,453 | -149,080 |
Parent | ' | ' | ' | ' |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net unrealized gains (losses) on securities | -8,734 | 21,928 | -13,415 | ' |
Accumulated other comprehensive income (loss) | -145,544 | -150,556 | -177,459 | ' |
Noncontrolling Interests | ' | ' | ' | ' |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net unrealized gains (losses) on securities | 7 | 10 | 6 | ' |
Accumulated other comprehensive income (loss) | $7 | $10 | $6 | ' |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of Accumulated Other Comprehensive Income) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net unrealized gains on securities: | ' | ' | ' | |
Net realized gains on sales of securities | $9,795 | $69,834 | $10,987 | |
Tax effect | -3,811 | ' | ' | |
Amortization of defined benefit pension and supplemental benefit plan items: | ' | ' | ' | |
Net actuarial loss | -32,033 | [1] | ' | ' |
Prior service credit | 4,385 | [1] | ' | ' |
Pretax total | -27,648 | ' | ' | |
Tax effect | $10,757 | ' | ' | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 14 Employee Benefit Plans for additional details. |
Recovered_Sheet3
Litigation And Regulatory Contingencies (Detail) (Narrative) (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2011 | Mar. 31, 2011 |
Litigation And Other Contingencies [Line Items] | ' | ' | ' |
Charge related to settlement | $19.20 | $13 | $32.20 |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Business | |
Business Acquisition Actual Revenue And Pre Tax Income Loss [Line Items] | ' |
Number of business acquired | 4 |
Aggregate purchase price in cash | $5.30 |
Contingent consideration | 1.2 |
Purchase of remaining noncontrolling interests in cash | $1 |
Segment_Information_Schedule_o
Segment Information (Schedule of Selected Financial Information) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $1,276,823 | $1,208,402 | $1,089,833 | $966,763 | $4,956,077 | $4,541,821 | $3,820,574 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 74,916 | 74,950 | 76,889 | |
Equity in earnings of affiliates, net | ' | ' | ' | ' | ' | ' | ' | ' | 5,316 | 6,514 | 2,717 | |
Income (loss) before income taxes | 84,847 | [1] | 107,045 | 59,224 | 59,592 | 147,684 | 155,882 | 112,290 | 51,550 | 310,708 | 467,406 | 130,293 |
Assets | 6,520,600 | ' | ' | ' | 6,050,847 | ' | ' | ' | 6,520,600 | 6,050,847 | 5,362,210 | |
Investment in affiliates | 125,022 | ' | ' | ' | 129,970 | ' | ' | ' | 125,022 | 129,970 | 136,727 | |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 87,142 | 83,892 | 75,373 | |
Operating Segments | Title Insurance And Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,606,088 | 4,200,520 | 3,541,119 | |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 66,956 | 67,610 | 69,259 | |
Equity in earnings of affiliates, net | ' | ' | ' | ' | ' | ' | ' | ' | 7,387 | 7,677 | 4,493 | |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 350,165 | 473,681 | 173,581 | |
Assets | 5,751,632 | ' | ' | ' | 5,427,432 | ' | ' | ' | 5,751,632 | 5,427,432 | 4,947,903 | |
Investment in affiliates | 124,921 | ' | ' | ' | 127,217 | ' | ' | ' | 124,921 | 127,217 | 132,628 | |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 83,469 | 78,614 | 68,098 | |
Operating Segments | Specialty Insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 339,613 | 315,171 | 286,982 | |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,865 | 4,553 | 4,197 | |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 42,132 | 47,459 | 39,852 | |
Assets | 499,788 | ' | ' | ' | 487,780 | ' | ' | ' | 499,788 | 487,780 | 490,620 | |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 3,673 | 5,278 | 7,024 | |
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 13,008 | 29,892 | -3,652 | |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3,095 | 2,787 | 3,433 | |
Equity in earnings of affiliates, net | ' | ' | ' | ' | ' | ' | ' | ' | -2,071 | -1,163 | -1,776 | |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -81,589 | -53,349 | -83,525 | |
Assets | 330,802 | ' | ' | ' | 272,928 | ' | ' | ' | 330,802 | 272,928 | 40,479 | |
Investment in affiliates | 101 | ' | ' | ' | 2,753 | ' | ' | ' | 101 | 2,753 | 4,099 | |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 251 | |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | -2,632 | -3,762 | -3,875 | |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | -385 | 385 | |
Assets | ($61,622) | ' | ' | ' | ($137,293) | ' | ' | ' | ($61,622) | ($137,293) | ($116,792) | |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Segment_Financial_Information_1
Segment Financial Information (Schedule Of Total Revenues From External Customers And Long-Lived Assets) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $1,276,823 | $1,208,402 | $1,089,833 | $966,763 | $4,956,077 | $4,541,821 | $3,820,574 |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 4,622,680 | 4,179,369 | 3,473,986 | |
Long-lived assets | 1,716,034 | ' | ' | ' | 1,685,097 | ' | ' | ' | 1,716,034 | 1,685,097 | 1,658,210 | |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 320,413 | 332,577 | 350,239 | |
Long-lived assets | 135,912 | ' | ' | ' | 151,289 | ' | ' | ' | 135,912 | 151,289 | 136,188 | |
Operating Segments | Title Insurance And Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 4,606,088 | 4,200,520 | 3,541,119 | |
Operating Segments | Title Insurance And Services | Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 4,283,067 | 3,865,480 | 3,188,989 | |
Long-lived assets | 1,610,310 | ' | ' | ' | 1,580,399 | ' | ' | ' | 1,610,310 | 1,580,399 | 1,553,839 | |
Operating Segments | Title Insurance And Services | Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 320,413 | 332,577 | 350,239 | |
Long-lived assets | 135,912 | ' | ' | ' | 151,289 | ' | ' | ' | 135,912 | 151,289 | 136,188 | |
Operating Segments | Specialty Insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 339,613 | 315,171 | 286,982 | |
Operating Segments | Specialty Insurance | Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 339,613 | 313,889 | 284,997 | |
Long-lived assets | $105,724 | ' | ' | ' | $104,698 | ' | ' | ' | $105,724 | $104,698 | $104,371 | |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Segment_Information_Narrative_
Segment Information (Narrative) (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
State | |
Segment Reporting Information [Line Items] | ' |
Number of states company issues title insurance policies | 49 |
Number of states company licensed to issue property and casualty insurance policies | 50 |
Number of states company issues property and casualty policies | 46 |
Number of states company issues home warranty contracts | 39 |
Subsequent_Events_Detail
Subsequent Events (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 05, 2014 |
Mortgage Analytics | Subsequent Event | ||
Mortgage Analytics | |||
Subsequent Event [Line Items] | ' | ' | ' |
Business acquisition date | ' | 5-Feb-14 | ' |
Aggregate purchase price in cash | $5.30 | ' | $155 |
Drawings to acquire businesses gross | ' | ' | $150 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $1,276,823 | $1,208,402 | $1,089,833 | $966,763 | $4,956,077 | $4,541,821 | $3,820,574 | |||||||
Income before income taxes | 84,847 | [1] | 107,045 | 59,224 | 59,592 | 147,684 | 155,882 | 112,290 | 51,550 | 310,708 | 467,406 | 130,293 | |||||||
Net income | 51,789 | [1] | 64,095 | 34,948 | 36,232 | 93,202 | 103,900 | 73,517 | 31,109 | 187,064 | 301,728 | 78,579 | |||||||
Net income attributable to noncontrolling interests | 162 | [1] | 205 | 276 | 54 | -75 | 430 | 516 | -184 | 697 | 687 | 303 | |||||||
Net income attributable to the Company | $51,627 | [1] | $63,890 | $34,672 | $36,178 | $93,277 | $103,470 | $73,001 | $31,293 | $186,367 | $301,041 | $78,276 | |||||||
Basic | $0.49 | [1],[2] | $0.60 | [2] | $0.32 | [2] | $0.34 | [2] | $0.87 | [2] | $0.97 | [2] | $0.69 | [2] | $0.30 | [2] | $1.74 | $2.83 | $0.74 |
Diluted | $0.48 | [1],[2] | $0.59 | [2] | $0.31 | [2] | $0.33 | [2] | $0.85 | [2] | $0.95 | [2] | $0.68 | [2] | $0.29 | [2] | $1.71 | $2.77 | $0.73 |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. | ||||||||||||||||||
[2] | Net income per share attributable to the Company’s stockholders for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. |
Quarterly_Financial_Data_Paren
Quarterly Financial Data (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Quarterly Financial Data [Line Items] | ' |
Reduction in net income | $4.40 |
Decreases in diluted net income per share attributable to the Company’s stockholders | $0.04 |
Schedule_I_Summary_Of_Investme
Schedule I - Summary Of Investments-Other Than Investments In Related Parties (Detail) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ' | |
Cost | $3,390,161 | |
Market value | 3,384,848 | |
Amount at which shown in the balance sheet | 3,385,328 | |
Deposits with banks | ' | |
Investment [Line Items] | ' | |
Cost | 23,492 | |
Market value | 23,601 | |
Amount at which shown in the balance sheet | 23,492 | |
Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 2,848,594 | |
Market value | 2,819,817 | |
Amount at which shown in the balance sheet | 2,819,817 | |
Equity Securities | ' | |
Investment [Line Items] | ' | |
Cost | 334,099 | |
Market value | 358,043 | |
Amount at which shown in the balance sheet | 358,043 | |
Notes Receivable Net | ' | |
Investment [Line Items] | ' | |
Cost | 10,542 | |
Market value | 9,953 | |
Amount at which shown in the balance sheet | 10,542 | |
Other Long-term Investments | ' | |
Investment [Line Items] | ' | |
Cost | 173,434 | |
Market value | 173,434 | [1] |
Amount at which shown in the balance sheet | 173,434 | |
U.S. Treasury Bonds | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 66,400 | |
Market value | 66,384 | |
Amount at which shown in the balance sheet | 66,384 | |
Municipal Bonds | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 491,143 | |
Market value | 485,965 | |
Amount at which shown in the balance sheet | 485,965 | |
Foreign Bonds | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 221,298 | |
Market value | 222,508 | |
Amount at which shown in the balance sheet | 222,508 | |
Governmental Agency Bonds | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 267,713 | |
Market value | 262,545 | |
Amount at which shown in the balance sheet | 262,545 | |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 1,426,489 | |
Market value | 1,403,309 | |
Amount at which shown in the balance sheet | 1,403,309 | |
Non-agency mortgage-backed securities | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 19,658 | |
Market value | 19,022 | |
Amount at which shown in the balance sheet | 19,022 | |
Corporate Debt Securities | Debt Securities | ' | |
Investment [Line Items] | ' | |
Cost | 355,893 | |
Market value | 360,084 | |
Amount at which shown in the balance sheet | $360,084 | |
[1] | As other long-term investments are not publicly traded, reasonable estimate of the fair values could not be made without incurring excessive costs. |
Schedule_II_Condensed_Balance_
Schedule II - Condensed Balance Sheets Parent Company (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $834,837 | $670,529 | $444,693 | $742,690 |
Income taxes receivable | 26,527 | 14,093 | ' | ' |
Other assets | 185,658 | 160,712 | ' | ' |
Total assets | 6,520,600 | 6,050,847 | 5,362,210 | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Accounts payable and other accrued liabilities | 795,812 | 874,013 | ' | ' |
Pension costs and other retirement plans | 388,993 | 483,272 | ' | ' |
Deferred income taxes | 54,779 | 36,987 | ' | ' |
Notes and contracts payable | 310,285 | 229,760 | ' | ' |
Total liabilities | 4,064,357 | 3,699,078 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Preferred stock, $0.00001 par value, Authorized—500 shares; Outstanding—none | ' | ' | ' | ' |
Common stock, $0.00001 par value: Authorized-300,000 shares; Outstanding-105,900 shares and 107,239 shares as of December 31, 2013 and 2012, respectively | 1 | 1 | ' | ' |
Additional paid-in capital | 2,077,828 | 2,111,605 | ' | ' |
Retained earnings | 520,764 | 387,015 | ' | ' |
Accumulated other comprehensive loss | -145,537 | -150,546 | -177,453 | -149,080 |
Total stockholders’ equity | 2,453,049 | 2,348,065 | ' | ' |
Noncontrolling interests | 3,194 | 3,704 | ' | ' |
Total equity | 2,456,243 | 2,351,769 | 2,034,939 | 1,993,721 |
Total liabilities and equity | 6,520,600 | 6,050,847 | ' | ' |
Parent Company | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 221,666 | 163,488 | 147,339 | 86,417 |
Income taxes receivable | 26,527 | 14,093 | ' | ' |
Investment in subsidiaries | 2,944,803 | 2,908,476 | ' | ' |
Other assets | 88,752 | 86,509 | ' | ' |
Total assets | 3,281,748 | 3,172,566 | ' | ' |
LIABILITIES AND EQUITY | ' | ' | ' | ' |
Accounts payable and other accrued liabilities | 75,656 | 64,760 | ' | ' |
Pension costs and other retirement plans | 371,671 | 445,246 | ' | ' |
Due to subsidiaries, net | 14,236 | 29,926 | ' | ' |
Deferred income taxes | 54,779 | 36,987 | ' | ' |
Notes and contracts payable | 249,163 | 160,000 | ' | ' |
Notes and contracts payable to subsidiaries | 60,000 | 83,878 | ' | ' |
Total liabilities | 825,505 | 820,797 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Preferred stock, $0.00001 par value, Authorized—500 shares; Outstanding—none | ' | ' | ' | ' |
Common stock, $0.00001 par value: Authorized-300,000 shares; Outstanding-105,900 shares and 107,239 shares as of December 31, 2013 and 2012, respectively | 1 | 1 | ' | ' |
Additional paid-in capital | 2,077,828 | 2,111,605 | ' | ' |
Retained earnings | 520,764 | 387,015 | ' | ' |
Accumulated other comprehensive loss | -145,544 | -150,556 | ' | ' |
Total stockholders’ equity | 2,453,049 | 2,348,065 | ' | ' |
Noncontrolling interests | 3,194 | 3,704 | ' | ' |
Total equity | 2,456,243 | 2,351,769 | ' | ' |
Total liabilities and equity | $3,281,748 | $3,172,566 | ' | ' |
Schedule_II_Condensed_Balance_1
Schedule II - Condensed Balance Sheets Parent Company (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares outstanding | 105,900 | 107,239 |
Parent Company | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares outstanding | 105,900 | 107,239 |
Schedule_II_Condensed_Statemen
Schedule II - Condensed Statements Of Income Parent Company (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from external customers | $1,219,872 | [1] | $1,300,978 | $1,288,464 | $1,146,763 | $1,276,823 | $1,208,402 | $1,089,833 | $966,763 | $4,956,077 | $4,541,821 | $3,820,574 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 123,644 | 165,678 | 51,714 | |
Net income | 51,789 | [1] | 64,095 | 34,948 | 36,232 | 93,202 | 103,900 | 73,517 | 31,109 | 187,064 | 301,728 | 78,579 |
Less: Net income attributable to noncontrolling interests | 162 | [1] | 205 | 276 | 54 | -75 | 430 | 516 | -184 | 697 | 687 | 303 |
Net income attributable to the Company | 51,627 | [1] | 63,890 | 34,672 | 36,178 | 93,277 | 103,470 | 73,001 | 31,293 | 186,367 | 301,041 | 78,276 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 372,996 | 285,141 | 60,600 | |
Other income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 12,804 | 29,839 | -3,604 | |
Revenues from external customers | ' | ' | ' | ' | ' | ' | ' | ' | 385,800 | 314,980 | 56,996 | |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 36,184 | 24,569 | 26,010 | |
Income before income taxes and equity in undistributed (losses) earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 349,616 | 290,411 | 30,986 | |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 139,127 | 102,940 | 12,298 | |
Equity in undistributed (losses) earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -23,425 | 114,257 | 59,891 | |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 187,064 | 301,728 | 78,579 | |
Less: Net income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 697 | 687 | 303 | |
Net income attributable to the Company | ' | ' | ' | ' | ' | ' | ' | ' | $186,367 | $301,041 | $78,276 | |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Schedule_II_Condensed_Statemen1
Schedule II - Condensed Statements Of Comprehensive Income Parent Company (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net income | $51,789 | [1] | $64,095 | $34,948 | $36,232 | $93,202 | $103,900 | $73,517 | $31,109 | $187,064 | $301,728 | $78,579 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrealized (loss) gain on securities | ' | ' | ' | ' | ' | ' | ' | ' | -32,992 | 31,445 | -12,316 | |
Unrealized gain on securities for which credit-related portion was recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | 2,327 | 3,902 | 2,144 | |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -13,650 | 5,131 | -6,167 | |
Pension benefit adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 49,324 | -13,571 | -12,034 | |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 5,009 | 26,907 | -28,373 | |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 192,073 | 328,635 | 50,206 | |
Less: Comprehensive income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 694 | 691 | 233 | |
Comprehensive income attributable to the Company | ' | ' | ' | ' | ' | ' | ' | ' | 191,379 | 327,944 | 49,973 | |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 187,064 | 301,728 | 78,579 | |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Unrealized (loss) gain on securities | ' | ' | ' | ' | ' | ' | ' | ' | -32,992 | 31,445 | -12,316 | |
Unrealized gain on securities for which credit-related portion was recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | 2,327 | 3,902 | 2,144 | |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -13,650 | 5,131 | -6,167 | |
Pension benefit adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 49,324 | -13,571 | -12,034 | |
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 5,009 | 26,907 | -28,373 | |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 192,073 | 328,635 | 50,206 | |
Less: Comprehensive income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 694 | 691 | 233 | |
Comprehensive income attributable to the Company | ' | ' | ' | ' | ' | ' | ' | ' | $191,379 | $327,944 | $49,973 | |
[1] | Net income for the quarter ended December 31, 2013 includes a net reduction of $4.4 million related to certain items that should have been recorded in a prior period. These items decreased diluted net income per share attributable to the Company’s stockholders by $0.04 for the quarter. |
Schedule_II_Condensed_Statemen2
Schedule II - Condensed Statements Of Cash Flows Parent Company (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' | ' |
Cash provided by (used for) operating activities | $378,472 | ' | $429,675 | $136,674 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' | ' |
Proceeds from sales of equity securities | 621,255 | ' | 954,626 | 672,095 |
Proceeds from sale of property and equipment | 5,807 | ' | 7,767 | 9,345 |
Net change in other long-term investments | 6,443 | ' | 6,591 | 3,860 |
Capital expenditures | -87,142 | ' | -83,892 | -69,797 |
Cash provided by investing activities | -465,156 | -417,663 | -417,663 | -13,653 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' | ' |
Proceeds from issuance of debt | 249,144 | ' | 440,065 | 24,185 |
Repayment of debt | -168,205 | ' | -510,544 | -23,117 |
Excess tax benefits from share-based compensation | 6,202 | ' | 2,372 | 1,145 |
Net proceeds in connection with share-based compensation plans | 1,736 | ' | 12,668 | 1,152 |
Cash dividends | -51,324 | ' | -44,705 | -25,216 |
Cash used for financing activities | 252,792 | ' | 213,719 | -418,164 |
Net increase in cash and cash equivalents | 164,308 | ' | 225,836 | -297,997 |
Cash and cash equivalents—Beginning of year | 670,529 | 444,693 | 444,693 | 742,690 |
Cash and cash equivalents—End of year | 834,837 | ' | 670,529 | 444,693 |
Parent Company | ' | ' | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' | ' |
Cash provided by (used for) operating activities | 71,326 | ' | -38,703 | 73,816 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' | ' |
Proceeds from sales of equity securities | ' | ' | 137,823 | ' |
Proceeds from notes receivable from CoreLogic | ' | ' | ' | 18,787 |
Proceeds from sale of property and equipment | ' | ' | ' | 1,056 |
Contributions to subsidiaries | -800 | ' | -10,999 | ' |
Net change in other long-term investments | 6,549 | ' | 595 | -935 |
Capital expenditures | ' | ' | ' | -29 |
Cash provided by investing activities | 5,749 | ' | 127,419 | 18,879 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' | ' |
Proceeds from issuance of debt | 249,095 | ' | 440,000 | ' |
Repayment of debt | -160,000 | ' | -480,000 | -1,083 |
Repayment of debt to subsidiaries | ' | ' | -2,902 | -5,269 |
Excess tax benefits from share-based compensation | 6,202 | ' | 2,372 | 1,145 |
Net proceeds in connection with share-based compensation plans | 1,736 | ' | 12,668 | 1,152 |
Purchase of Company shares | -64,606 | ' | ' | -2,502 |
Cash dividends | -51,324 | ' | -44,705 | -25,216 |
Cash used for financing activities | -18,897 | ' | -72,567 | -31,773 |
Net increase in cash and cash equivalents | 58,178 | ' | 16,149 | 60,922 |
Cash and cash equivalents—Beginning of year | 163,488 | 147,339 | 147,339 | 86,417 |
Cash and cash equivalents—End of year | $221,666 | ' | $163,488 | $147,339 |
Schedule_II_Notes_to_Condensed
Schedule II - Notes to Condensed Financial Statements Parent Company (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash dividends received from subsidiaries | $125.10 | $11.80 | $75.60 |
Tax receivable due from subsidiaries | $23.90 | ' | ' |
Schedule_II_Adjustments_on_Con
Schedule II - Adjustments on Condensed Statements of Cash Flows Parent Company (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Cash Flows [Abstract] | ' | ' | ' | ' |
Effect of exchange rate changes on cash | ($1,800) | ' | $105 | ($2,854) |
Cash used for operating activities | 378,472 | ' | 429,675 | 136,674 |
Cash used for investing activities | -465,156 | -417,663 | -417,663 | -13,653 |
Cash used for financing activities | 252,792 | ' | 213,719 | -418,164 |
Cash provided by (used for) operating activities | 378,472 | ' | 429,675 | 136,674 |
As previously filed | ' | ' | ' | ' |
Statement Of Cash Flows [Abstract] | ' | ' | ' | ' |
Cash used for investing activities | ' | -434,590 | ' | -26,103 |
Difference | ' | ' | ' | ' |
Statement Of Cash Flows [Abstract] | ' | ' | ' | ' |
Cash used for investing activities | ' | 16,927 | ' | 12,450 |
Parent Company | ' | ' | ' | ' |
Statement Of Cash Flows [Abstract] | ' | ' | ' | ' |
Effect of exchange rate changes on cash | ' | ' | ' | ' |
Net activity related to noncontrolling interests | ' | ' | ' | ' |
Cash used for operating activities | 71,326 | ' | -38,703 | 73,816 |
Cash used for investing activities | 5,749 | ' | 127,419 | 18,879 |
Cash used for financing activities | -18,897 | ' | -72,567 | -31,773 |
Cash provided by (used for) operating activities | 71,326 | ' | -38,703 | 73,816 |
Parent Company | As previously filed | ' | ' | ' | ' |
Statement Of Cash Flows [Abstract] | ' | ' | ' | ' |
Effect of exchange rate changes on cash | ' | ' | 4,974 | -5,731 |
Net activity related to noncontrolling interests | ' | ' | -4,094 | -4,491 |
Cash used for operating activities | ' | ' | -39,583 | 84,038 |
Cash used for investing activities | ' | ' | 138,418 | ' |
Cash used for financing activities | ' | ' | -87,660 | -36,264 |
Cash provided by (used for) operating activities | ' | ' | -39,583 | 84,038 |
Parent Company | Difference | ' | ' | ' | ' |
Statement Of Cash Flows [Abstract] | ' | ' | ' | ' |
Effect of exchange rate changes on cash | ' | ' | -4,974 | 5,731 |
Net activity related to noncontrolling interests | ' | ' | 4,094 | 4,491 |
Cash used for operating activities | ' | ' | 880 | -10,222 |
Cash used for investing activities | ' | ' | -10,999 | ' |
Cash used for financing activities | ' | ' | 15,093 | 4,491 |
Cash provided by (used for) operating activities | ' | ' | $880 | ($10,222) |
Schedule_III_Balance_Sheet_Cap
Schedule III - Balance Sheet Captions (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Supplementary Insurance Information By Segment [Line Items] | ' | ' |
Deferred policy acquisition costs | $26,812 | $22,589 |
Claims reserves | 1,018,365 | 976,462 |
Deferred revenues | 192,184 | 170,663 |
Operating Segments | Title Insurance And Services | ' | ' |
Supplementary Insurance Information By Segment [Line Items] | ' | ' |
Deferred policy acquisition costs | 2,375 | 681 |
Claims reserves | 977,355 | 941,748 |
Deferred revenues | 14,544 | 8,533 |
Operating Segments | Specialty Insurance | ' | ' |
Supplementary Insurance Information By Segment [Line Items] | ' | ' |
Deferred policy acquisition costs | 24,437 | 21,908 |
Claims reserves | 41,010 | 34,714 |
Deferred revenues | $177,640 | $162,130 |
Schedule_III_Income_Statement_
Schedule III - Income Statement Captions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplementary Insurance Information By Segment [Line Items] | ' | ' | ' |
Premiums and escrow fees | $4,229,326 | $3,751,645 | $3,126,120 |
Net investment income | 99,106 | 145,153 | 72,971 |
Loss provision | 530,356 | 397,717 | 420,136 |
Amortization of deferred policy acquisition costs | -1,268 | 1,066 | -1,161 |
Other operating expenses | 885,805 | 836,319 | 761,878 |
Premiums written | 344,433 | 312,696 | 280,424 |
Operating Segments | Title Insurance And Services | ' | ' | ' |
Supplementary Insurance Information By Segment [Line Items] | ' | ' | ' |
Premiums and escrow fees | 3,900,132 | 3,455,592 | 2,852,455 |
Net investment income | 79,940 | 101,495 | 68,713 |
Loss provision | 343,461 | 237,427 | 270,697 |
Amortization of deferred policy acquisition costs | 1,261 | 1,174 | ' |
Other operating expenses | 816,870 | 769,477 | 702,508 |
Operating Segments | Specialty Insurance | ' | ' | ' |
Supplementary Insurance Information By Segment [Line Items] | ' | ' | ' |
Premiums and escrow fees | 329,194 | 296,053 | 273,665 |
Net investment income | 8,767 | 17,513 | 11,786 |
Loss provision | 186,895 | 160,290 | 149,439 |
Amortization of deferred policy acquisition costs | -2,529 | -108 | -1,161 |
Other operating expenses | 41,725 | 42,395 | 38,066 |
Premiums written | 344,433 | 312,696 | 280,424 |
Corporate | ' | ' | ' |
Supplementary Insurance Information By Segment [Line Items] | ' | ' | ' |
Net investment income | 13,008 | 29,892 | -3,652 |
Other operating expenses | 27,264 | 24,462 | 21,303 |
Eliminations | ' | ' | ' |
Supplementary Insurance Information By Segment [Line Items] | ' | ' | ' |
Net investment income | -2,609 | -3,747 | -3,876 |
Other operating expenses | ($54) | ($15) | $1 |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Title Insurance And Services | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Premiums and escrow fees before reinsurance | $3,923,117 | $3,472,675 | $2,861,418 |
Ceded to other companies | 27,483 | 19,884 | 13,744 |
Assumed from other companies | 4,498 | 2,801 | 4,781 |
Premiums and escrow fees | 3,900,132 | 3,455,592 | 2,852,455 |
Percentage of amount assumed to premiums and escrow fees | 0.10% | 0.10% | 0.20% |
Specialty Insurance | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Premiums and escrow fees before reinsurance | 338,204 | 305,073 | 283,885 |
Ceded to other companies | 9,010 | 9,020 | 10,220 |
Premiums and escrow fees | $329,194 | $296,053 | $273,665 |
Percentage of amount assumed to premiums and escrow fees | 0.00% | 0.00% | 0.00% |
Schedule_V_Valuation_And_Quali
Schedule V - Valuation And Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reserve Deducted From Accounts Receivable | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | $30,917 | $30,504 | $39,904 | |||
Additions Charged to costs and expenses | 7,478 | 4,927 | 1,723 | |||
Deductions from reserve | 6,564 | [1] | 4,514 | [1] | 11,123 | [1] |
Balance at end of period | 31,831 | 30,917 | 30,504 | |||
Reserve For Known And Incurred But Not Reported Claims | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 976,462 | 1,014,676 | 1,108,238 | |||
Additions Charged to costs and expenses | 530,356 | 397,717 | 420,136 | |||
Additions Charged to other accounts | -9,143 | 10,055 | -10,264 | |||
Deductions from reserve | 479,310 | [2] | 445,986 | [2] | 503,434 | [2] |
Balance at end of period | 1,018,365 | 976,462 | 1,014,676 | |||
Reserve Deducted From Loans Receivable | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 3,893 | 4,171 | 3,271 | |||
Additions Charged to costs and expenses | -215 | ' | 900 | |||
Deductions from reserve | 52 | [1] | 278 | [1] | ' | |
Balance at end of period | 3,626 | 3,893 | 4,171 | |||
Reserve Deducted From Notes Receivable | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 2,902 | 4,183 | 5,905 | |||
Additions Charged to costs and expenses | -132 | 462 | 1,026 | |||
Deductions from reserve | 186 | 1,743 | 2,748 | |||
Balance at end of period | 2,584 | 2,902 | 4,183 | |||
Reserve Deducted From Deferred Income Taxes | ' | ' | ' | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 14,172 | 21,426 | 19,126 | |||
Additions Charged to costs and expenses | 3,578 | ' | ' | |||
Additions Charged to other accounts | 369 | 15 | 5,276 | |||
Deductions from reserve | ' | 7,269 | 2,976 | |||
Balance at end of period | $18,119 | $14,172 | $21,426 | |||
[1] | Amount represents accounts written off, net of recoveries. | |||||
[2] | Amount represents claim payments, net of recoveries |