Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 21, 2014 | |
Document And Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'FAF | ' |
Entity Registrant Name | 'First American Financial Corp | ' |
Entity Central Index Key | '0001472787 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 107,103,099 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $1,041,259 | $834,837 |
Accounts and accrued income receivable, net | 291,607 | 236,895 |
Income taxes receivable | ' | 37,632 |
Investments: | ' | ' |
Deposits with banks | 24,108 | 23,492 |
Debt securities, includes pledged securities of $124,181 and $123,956 | 2,947,204 | 2,819,817 |
Equity securities | 313,289 | 358,043 |
Other long-term investments | 179,637 | 183,976 |
Investments, Total | 3,464,238 | 3,385,328 |
Loans receivable, net | 58,841 | 73,755 |
Property and equipment, net | 368,600 | 361,348 |
Title plants and other indexes | 526,799 | 523,879 |
Deferred income taxes | 27,478 | 27,478 |
Goodwill | 993,871 | 846,026 |
Other intangible assets, net | 50,578 | 46,347 |
Other assets | 192,892 | 185,658 |
Total assets | 7,016,163 | 6,559,183 |
Liabilities and Equity | ' | ' |
Deposits | 1,962,711 | 1,692,932 |
Accounts payable and accrued liabilities | 739,831 | 795,812 |
Deferred revenue | 187,608 | 192,184 |
Reserve for known and incurred but not reported claims | 1,013,150 | 1,018,365 |
Income taxes payable | 14,274 | ' |
Deferred income taxes | 97,170 | 93,362 |
Notes and contracts payable | 454,681 | 310,285 |
Total liabilities | 4,469,425 | 4,102,940 |
Commitments and contingencies (Note 16) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.00001 par value; Authorized—500 shares; Outstanding—none | ' | ' |
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—107,100 shares and 105,900 shares | 1 | 1 |
Additional paid-in capital | 2,096,246 | 2,077,828 |
Retained earnings | 553,734 | 520,764 |
Accumulated other comprehensive loss | -105,957 | -145,544 |
Total stockholders’ equity | 2,544,024 | 2,453,049 |
Noncontrolling interests | 2,714 | 3,194 |
Total equity | 2,546,738 | 2,456,243 |
Total liabilities and equity | $7,016,163 | $6,559,183 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Pledged securities included in debt securities | $124,181 | $123,956 |
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 | 107,100 | 105,900 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues | ' | ' | ' | ' |
Direct premiums and escrow fees | $531,123 | $593,205 | $964,995 | $1,071,056 |
Agent premiums | 423,209 | 496,730 | 844,133 | 981,195 |
Information and other | 165,703 | 171,522 | 303,345 | 323,655 |
Investment income | 23,659 | 22,485 | 41,426 | 45,543 |
Net realized investment gains | 6,790 | 4,522 | 9,902 | 13,778 |
Net other-than-temporary impairment (“OTTIâ€) losses recognized in earnings: | ' | ' | ' | ' |
Net OTTI losses recognized in earnings | -515 | ' | -1,033 | ' |
Total revenues | 1,149,969 | 1,288,464 | 2,162,768 | 2,435,227 |
Expenses | ' | ' | ' | ' |
Personnel costs | 354,133 | 364,767 | 680,651 | 709,267 |
Premiums retained by agents | 338,271 | 396,024 | 674,936 | 783,567 |
Other operating expenses | 214,121 | 232,765 | 402,488 | 438,111 |
Provision for policy losses and other claims | 128,466 | 198,766 | 218,349 | 314,792 |
Depreciation and amortization | 19,780 | 18,192 | 39,752 | 36,587 |
Premium taxes | 14,254 | 14,795 | 26,544 | 26,912 |
Interest | 4,486 | 3,931 | 8,337 | 7,175 |
Total expenses | 1,073,511 | 1,229,240 | 2,051,057 | 2,316,411 |
Income before income taxes | 76,458 | 59,224 | 111,711 | 118,816 |
Income taxes | 25,770 | 24,276 | 39,171 | 47,636 |
Net income | 50,688 | 34,948 | 72,540 | 71,180 |
Less: Net income attributable to noncontrolling interests | 94 | 276 | 222 | 330 |
Net income attributable to the Company | 50,594 | 34,672 | 72,318 | 70,850 |
Net income per share attributable to the Company’s stockholders (Note 10): | ' | ' | ' | ' |
Basic | $0.47 | $0.32 | $0.68 | $0.66 |
Diluted | $0.47 | $0.31 | $0.67 | $0.64 |
Cash dividends declared per share | ' | $0.12 | $0.36 | $0.24 |
Weighted-average common shares outstanding (Note 10): | ' | ' | ' | ' |
Basic | 106,878 | 108,210 | 106,522 | 107,881 |
Diluted | 108,647 | 110,311 | 108,423 | 110,072 |
Debt Securities | ' | ' | ' | ' |
Net other-than-temporary impairment (“OTTIâ€) losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses on debt securities | -137 | ' | -167 | ' |
Portion of OTTI losses on debt securities recognized in other comprehensive loss | ($378) | ' | ($866) | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $50,688 | $34,948 | $72,540 | $71,180 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized gain (loss) on securities | 13,902 | -40,492 | 25,804 | -40,745 |
Unrealized gain (loss) on securities for which credit losses have been recognized in earnings | 137 | -612 | 435 | 20 |
Foreign currency translation adjustment | 11,612 | -9,794 | 5,572 | -16,616 |
Pension benefit adjustment | 3,892 | 4,143 | 7,783 | 8,287 |
Total other comprehensive income (loss), net of tax | 29,543 | -46,755 | 39,594 | -49,054 |
Comprehensive income (loss) | 80,231 | -11,807 | 112,134 | 22,126 |
Less: Comprehensive income attributable to noncontrolling interests | 98 | 268 | 229 | 323 |
Comprehensive income (loss) attributable to the Company | $80,133 | ($12,075) | $111,905 | $21,803 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $72,540 | $71,180 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Provision for policy losses and other claims | 218,349 | 314,792 |
Depreciation and amortization | 39,752 | 36,587 |
Amortization of premiums and accretion of discounts on securities, net | 11,967 | 11,872 |
Excess tax benefits from share-based compensation | -5,827 | -5,681 |
Share-based compensation | 12,519 | 14,344 |
Net realized investment gains | -9,902 | -13,778 |
Net OTTI losses recognized in earnings | 1,033 | ' |
Equity in earnings of affiliates, net | 1,748 | -7,136 |
Dividends from equity method investments | 3,471 | 5,137 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | ' | ' |
Claims paid, including assets acquired, net of recoveries | -240,144 | -224,739 |
Net change in income tax accounts | 33,493 | 28,967 |
Increase in accounts and accrued income receivable | -11,439 | -8,682 |
Decrease in accounts payable and accrued liabilities | -74,174 | -56,146 |
(Decrease) increase in deferred revenue | -5,017 | 2,327 |
Other, net | -3,476 | -10,610 |
Cash provided by operating activities | 44,893 | 158,434 |
Cash flows from investing activities: | ' | ' |
Net cash effect of acquisitions/dispositions | -166,354 | -150 |
Net increase in deposits with banks | -256 | -2,419 |
Net decrease in loans receivable | 14,914 | 22,642 |
Purchases of debt and equity securities | -592,381 | -701,372 |
Proceeds from sales of debt and equity securities | 386,744 | 286,705 |
Proceeds from maturities of debt securities | 173,644 | 271,004 |
Net change in other long-term investments | 1,364 | 1,974 |
Capital expenditures | -40,063 | -38,879 |
Proceeds from sale of property and equipment | 13 | 5,071 |
Cash used for investing activities | -222,375 | -155,424 |
Cash flows from financing activities: | ' | ' |
Net change in deposits | 269,779 | 171,454 |
Proceeds from issuance of debt | 300,735 | 249,095 |
Repayment of debt | -156,476 | -163,761 |
Net payments in connection with share-based compensation plans | -911 | -4,488 |
Net activity related to noncontrolling interests | -633 | -504 |
Excess tax benefits from share-based compensation | 5,827 | 5,681 |
Purchase of Company shares | ' | -17,485 |
Cash dividends | -38,441 | -25,934 |
Cash provided by financing activities | 379,880 | 214,058 |
Effect of exchange rate changes on cash | 4,024 | -5,823 |
Net increase in cash and cash equivalents | 206,422 | 211,245 |
Cash and cash equivalents—Beginning of period | 834,837 | 670,529 |
Cash and cash equivalents—End of period | 1,041,259 | 881,774 |
Supplemental information: | ' | ' |
Interest | 8,346 | 2,657 |
Premium taxes | 36,825 | 33,913 |
Income taxes, less refunds of $1,016 and $461 | $5,827 | $18,208 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (Parenthetical) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income taxes, refunds | $1,016 | $461 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement Of Stockholders' 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, 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 | ' | ' | ' | ' | ' |
Net income | 72,540 | ' | ' | 72,318 | ' | 72,318 | 222 |
Dividends on common shares | -38,441 | ' | ' | -38,441 | ' | -38,441 | ' |
Shares issued in connection with share-based compensation plans, value | 4,916 | ' | 5,823 | -907 | ' | 4,916 | ' |
Shares issued in connection with share-based compensation plans, shares | ' | 1,200 | ' | ' | ' | ' | ' |
Share-based compensation expense | 12,519 | ' | 12,519 | ' | ' | 12,519 | ' |
Net activity related to noncontrolling interests | -633 | ' | 76 | ' | ' | 76 | -709 |
Other comprehensive income (Note 15) | 39,594 | ' | ' | ' | 39,587 | 39,587 | 7 |
Balance value at Jun. 30, 2014 | $2,546,738 | $1 | $2,096,246 | $553,734 | ($105,957) | $2,544,024 | $2,714 |
Balance shares at Jun. 30, 2014 | ' | 107,100 | ' | ' | ' | ' | ' |
Basis_of_Condensed_Consolidate
Basis of Condensed Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Condensed Consolidated Financial Statements | ' |
Note 1 – Basis of Condensed Consolidated Financial Statements | |
Basis of Presentation | |
The condensed consolidated financial information included in this report has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the consolidated results for the interim periods. All material intercompany transactions and balances have been eliminated upon consolidation. | |
Reclassifications, Revisions and Out-of-Period Adjustments | |
Certain 2013 amounts have been reclassified to conform to the 2014 presentation. | |
The condensed consolidated statement of cash flows for the six months ended June 30, 2013 was revised for an error which resulted in an adjustment between cash and cash equivalents and deposits with banks. The adjustment resulted in a reduction to net increase in deposits with banks of $23.4 million, an increase in cash and cash equivalents—beginning of period of $43.3 million and an increase in cash and cash equivalents—end of period of $19.9 million. | |
The condensed consolidated balance sheet as of December 31, 2013 was revised for an error which resulted in an adjustment between income taxes receivable and deferred income taxes. The adjustment resulted in an increase to income taxes receivable of $11.1 million, an increase in deferred income tax assets of $27.5 million and an increase in deferred income tax liabilities of $38.6 million. | |
During the three months ended June 30, 2014, the Company identified and recorded adjustments to correct for certain errors in foreign currency translation and transactions in prior periods. These adjustments resulted in an increase to other operating expenses of $4.3 million. | |
The Company does not consider these adjustments to be material, individually or in the aggregate, to either the current year or any previously issued consolidated financial statements. | |
Recently Adopted Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“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. The adoption of the guidance had no impact on the Company’s condensed consolidated financial statements. | |
Pending Accounting Pronouncements | |
In June 2014, the FASB issued updated guidance intended to eliminate the diversity in practice regarding share-based payment awards that include terms which provide for a performance target that affects vesting being achieved after the requisite service period. The new standard requires that a performance target which affects vesting and could be achieved after the requisite service period be treated as a performance condition that affects vesting and should not be reflected in estimating the grant-date fair value. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its condensed consolidated financial statements. | |
In May 2014, the FASB issued updated guidance for recognizing revenue from contracts with customers to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within and across industries, and across capital markets. The new revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. | |
In April 2014, the FASB issued updated guidance which changes the criteria for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The updated guidance is effective for interim and annual reporting periods beginning after December 31, 2014, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its condensed consolidated financial statements. |
Escrow_Deposits_LikeKind_Excha
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | 6 Months Ended |
Jun. 30, 2014 | |
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | ' |
Note 2 – Escrow Deposits, Like-kind Exchange Deposits and Trust Assets | |
The Company administers escrow deposits and trust assets as a service to its customers. Escrow deposits totaled $6.5 billion and $4.7 billion at June 30, 2014 and December 31, 2013, respectively, of which $1.8 billion and $1.6 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 condensed 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 held or managed by First American Trust, FSB totaled $3.0 billion at June 30, 2014 and December 31, 2013. 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 condensed 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 condensed consolidated financial statements as income or a reduction in expense, as appropriate, based on the nature of the arrangement and benefit received. | |
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 each 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 $1.8 billion and $1.4 billion at June 30, 2014 and December 31, 2013, respectively. 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 condensed 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. |
Debt_and_Equity_Securities
Debt and Equity Securities | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
(in thousands) | Amortized | Gross unrealized | Estimated | Other-than- | |||||||||||||||||||||
cost | fair value | temporary | |||||||||||||||||||||||
impairments | |||||||||||||||||||||||||
Gains | Losses | in AOCI | |||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 82,510 | $ | 874 | $ | (221 | ) | $ | 83,163 | $ | — | ||||||||||||||
Municipal bonds | 516,201 | 9,362 | (2,028 | ) | 523,535 | — | |||||||||||||||||||
Foreign bonds | 190,195 | 1,621 | (135 | ) | 191,681 | — | |||||||||||||||||||
Governmental agency bonds | 225,555 | 1,046 | (2,709 | ) | 223,892 | — | |||||||||||||||||||
Governmental agency mortgage-backed securities | 1,460,102 | 5,956 | (12,001 | ) | 1,454,057 | — | |||||||||||||||||||
Non-agency mortgage-backed securities (1) | 17,941 | 1,346 | (1,293 | ) | 17,994 | 19,877 | |||||||||||||||||||
Corporate debt securities | 444,205 | 9,434 | (757 | ) | 452,882 | — | |||||||||||||||||||
$ | 2,936,709 | $ | 29,639 | $ | (19,144 | ) | $ | 2,947,204 | $ | 19,877 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | |||||||||||||||
-1 | At June 30, 2014, the $17.9 million amortized cost is net of $1.0 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the six months ended June 30, 2014. At June 30, 2014 and December 31, 2013, the $1.3 million and $1.8 million, respectively, of gross unrealized losses related to securities determined to be other-than-temporarily impaired. The $19.9 million and $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCI”) at June 30, 2014 and December 31, 2013, respectively, which relate to non-agency mortgage-backed securities, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings as the losses were not considered to be credit related. | ||||||||||||||||||||||||
The cost and estimated fair value of investments in equity securities, all of which are classified as available-for-sale, are as follows: | |||||||||||||||||||||||||
Cost | Gross unrealized | Estimated | |||||||||||||||||||||||
(in thousands) | Gains | Losses | fair value | ||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Preferred stocks | $ | 9,653 | $ | 1,936 | $ | (232 | ) | $ | 11,357 | ||||||||||||||||
Common stocks | 276,020 | 26,341 | (429 | ) | 301,932 | ||||||||||||||||||||
$ | 285,673 | $ | 28,277 | $ | (661 | ) | $ | 313,289 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | |||||||||||||||||
The Company had the following net unrealized gains (losses) as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
(in thousands) | As of | As of | |||||||||||||||||||||||
30-Jun-14 | December 31, 2013 | ||||||||||||||||||||||||
Debt securities for which an OTTI has been recognized | $ | 87 | $ | (625 | ) | ||||||||||||||||||||
Debt securities—all other | 10,408 | (28,152 | ) | ||||||||||||||||||||||
Equity securities | 27,616 | 23,944 | |||||||||||||||||||||||
$ | 38,111 | $ | (4,833 | ) | |||||||||||||||||||||
Sales of debt and equity securities resulted in realized gains of $8.0 million and $5.6 million and realized losses of $0.6 million and $1.4 million for the three months ended June 30, 2014 and 2013, respectively, and realized gains of $14.6 million and $12.2 million and realized losses of $4.3 million and $2.0 million for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The Company had the following gross unrealized losses as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 4,073 | $ | (11 | ) | $ | 17,246 | $ | (210 | ) | $ | 21,319 | $ | (221 | ) | ||||||||||
Municipal bonds | 48,817 | (167 | ) | 105,820 | (1,861 | ) | 154,637 | (2,028 | ) | ||||||||||||||||
Foreign bonds | 11,473 | (63 | ) | 6,630 | (72 | ) | 18,103 | (135 | ) | ||||||||||||||||
Governmental agency bonds | 8,259 | (25 | ) | 133,676 | (2,684 | ) | 141,935 | (2,709 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 424,099 | (1,769 | ) | 402,830 | (10,232 | ) | 826,929 | (12,001 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | 1,871 | (213 | ) | 6,566 | (1,080 | ) | 8,437 | (1,293 | ) | ||||||||||||||||
Corporate debt securities | 86,760 | (482 | ) | 26,921 | (275 | ) | 113,681 | (757 | ) | ||||||||||||||||
Total debt securities | 585,352 | (2,730 | ) | 699,689 | (16,414 | ) | 1,285,041 | (19,144 | ) | ||||||||||||||||
Equity securities | 8,749 | (414 | ) | 4,805 | (247 | ) | 13,554 | (661 | ) | ||||||||||||||||
Total | $ | 594,101 | $ | (3,144 | ) | $ | 704,494 | $ | (16,661 | ) | $ | 1,298,595 | $ | (19,805 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | ) | ||||||||||
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 subsequently been downgraded to below investment grade. The table below summarizes the composition of the Company’s non-agency mortgage-backed securities as of June 30, 2014, by collateral type and year of issuance. | |||||||||||||||||||||||||
(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 | $ | 3,235 | $ | 2,759 | ||||||||||||||||||||
2006 | 3 | 8,346 | 7,794 | ||||||||||||||||||||||
2005 | 1 | 851 | 817 | ||||||||||||||||||||||
Alt-A single family residential: | |||||||||||||||||||||||||
2007 | 1 | 5,509 | 6,624 | ||||||||||||||||||||||
6 | $ | 17,941 | $ | 17,994 | |||||||||||||||||||||
The amortized cost and estimated fair value of debt securities at June 30, 2014, 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 | ten | ||||||||||||||||||||||||
years | years | ||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||
Amortized cost | $ | 10,754 | $ | 43,020 | $ | 26,304 | $ | 2,432 | $ | 82,510 | |||||||||||||||
Estimated fair value | $ | 10,850 | $ | 43,199 | $ | 26,491 | $ | 2,623 | $ | 83,163 | |||||||||||||||
Municipal bonds | |||||||||||||||||||||||||
Amortized cost | $ | 10,130 | $ | 218,468 | $ | 171,734 | $ | 115,869 | $ | 516,201 | |||||||||||||||
Estimated fair value | $ | 10,222 | $ | 221,151 | $ | 175,474 | $ | 116,688 | $ | 523,535 | |||||||||||||||
Foreign bonds | |||||||||||||||||||||||||
Amortized cost | $ | 45,372 | $ | 127,876 | $ | 15,984 | $ | 963 | $ | 190,195 | |||||||||||||||
Estimated fair value | $ | 45,639 | $ | 129,076 | $ | 15,988 | $ | 978 | $ | 191,681 | |||||||||||||||
Governmental agency bonds | |||||||||||||||||||||||||
Amortized cost | $ | 6,450 | $ | 131,967 | $ | 78,254 | $ | 8,884 | $ | 225,555 | |||||||||||||||
Estimated fair value | $ | 6,470 | $ | 131,174 | $ | 76,848 | $ | 9,400 | $ | 223,892 | |||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 22,851 | $ | 242,589 | $ | 150,941 | $ | 27,824 | $ | 444,205 | |||||||||||||||
Estimated fair value | $ | 23,123 | $ | 248,490 | $ | 152,788 | $ | 28,481 | $ | 452,882 | |||||||||||||||
Total debt securities excluding mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 95,557 | $ | 763,920 | $ | 443,217 | $ | 155,972 | $ | 1,458,666 | |||||||||||||||
Estimated fair value | $ | 96,304 | $ | 773,090 | $ | 447,589 | $ | 158,170 | $ | 1,475,153 | |||||||||||||||
Total mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 1,478,043 | |||||||||||||||||||||||
Estimated fair value | $ | 1,472,051 | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 2,936,709 | |||||||||||||||||||||||
Estimated fair value | $ | 2,947,204 | |||||||||||||||||||||||
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 June 30, 2014, 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 June 30, 2014, 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 June 30, 2014 in estimating the cash flows expected to be collected for these securities. | |||||||||||||||||||||||||
Weighted average | Range | ||||||||||||||||||||||||
Prepayment speeds | 9 | % | 8.3 | % | – | 10.5 | % | ||||||||||||||||||
Default rates | 1.4 | % | 0.3 | % | – | 2.4 | % | ||||||||||||||||||
Loss severity | 39.2 | % | 14.4 | % | – | 52.3 | % | ||||||||||||||||||
As a result of the Company’s security-level review, it recognized other-than-temporary impairments considered to be credit related on its non-agency mortgage-backed securities of $0.5 million and $1.0 million for the three and six months ended June 30, 2014, respectively, and did not recognize any other-than-temporary impairments considered to be credit related for the three and six months ended June 30, 2013. It is possible that the Company could recognize additional other-than-temporary impairment losses on securities it owns at June 30, 2014 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 three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
For the Three | For the Six | ||||||||||||||||||||||||
Months Ended June 30, | Months Ended June 30, | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,996 | $ | 16,478 | $ | 16,478 | $ | 16,478 | |||||||||||||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 515 | — | 1,033 | — | |||||||||||||||||||||
Cumulative credit loss on debt securities held at end of period | $ | 17,511 | $ | 16,478 | $ | 17,511 | $ | 16,478 | |||||||||||||||||
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 three and six months ended June 30, 2014 and 2013, 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 and there were fewer observable inputs available requiring the pricing services to use more judgment in determining the fair value of the securities, the Company classified its 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 June 30, 2014 and December 31, 2013, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||||||||||
(in thousands) | Estimated | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
fair value | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 83,163 | $ | –– | $ | 83,163 | $ | –– | |||||||||||||||||
Municipal bonds | 523,535 | –– | 523,535 | –– | |||||||||||||||||||||
Foreign bonds | 191,681 | –– | 191,681 | –– | |||||||||||||||||||||
Governmental agency bonds | 223,892 | –– | 223,892 | –– | |||||||||||||||||||||
Governmental agency mortgage-backed securities | 1,454,057 | –– | 1,454,057 | –– | |||||||||||||||||||||
Non-agency mortgage-backed securities | 17,994 | –– | –– | 17,994 | |||||||||||||||||||||
Corporate debt securities | 452,882 | –– | 452,882 | –– | |||||||||||||||||||||
2,947,204 | –– | 2,929,210 | 17,994 | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Preferred stocks | 11,357 | 11,357 | –– | –– | |||||||||||||||||||||
Common stocks | 301,932 | 301,932 | –– | –– | |||||||||||||||||||||
313,289 | 313,289 | –– | –– | ||||||||||||||||||||||
$ | 3,260,493 | $ | 313,289 | $ | 2,929,210 | $ | 17,994 | ||||||||||||||||||
(in thousands) | Estimated | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
fair value | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | ||||||||||||||||||
The Company did not have any transfers in and out of Level 1, Level 2 and Level 3 measurements during the three and six months ended June 30, 2014 and 2013. 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 three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Three | For the Six | ||||||||||||||||||||||||
Months Ended June 30, | Months Ended June 30, | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Fair value at beginning of period | $ | 18,646 | $ | 22,620 | $ | 19,022 | $ | 21,846 | |||||||||||||||||
Total gains/(losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | (515 | ) | — | (1,033 | ) | — | |||||||||||||||||||
Included in other comprehensive income | 223 | (990 | ) | 689 | 121 | ||||||||||||||||||||
Settlements | (360 | ) | (1,019 | ) | (684 | ) | (1,356 | ) | |||||||||||||||||
Fair value at end of period | $ | 17,994 | $ | 20,611 | $ | 17,994 | $ | 20,611 | |||||||||||||||||
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 | $ | (515 | ) | $ | — | $ | (1,033 | ) | $ | — | |||||||||||||||
The Company did not purchase or sell any non-agency mortgage-backed securities during the three and six months ended June 30, 2014 and 2013. |
Financing_Receivables
Financing Receivables | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Financing Receivables | ' | |||||||||||||||||||||||
Note 4 – Financing Receivables | ||||||||||||||||||||||||
Financing receivables are summarized as follows: | ||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans receivable, net: | ||||||||||||||||||||||||
Real estate—mortgage | ||||||||||||||||||||||||
Multi-family residential | $ | 7,259 | $ | 7,455 | ||||||||||||||||||||
Commercial | 55,350 | 69,865 | ||||||||||||||||||||||
Other | 403 | 712 | ||||||||||||||||||||||
63,012 | 78,032 | |||||||||||||||||||||||
Allowance for loan losses | (3,627 | ) | (3,626 | ) | ||||||||||||||||||||
Participations sold | (518 | ) | (633 | ) | ||||||||||||||||||||
Deferred loan fees, net | (26 | ) | (18 | ) | ||||||||||||||||||||
Loans receivable, net | 58,841 | 73,755 | ||||||||||||||||||||||
Other long-term investments: | ||||||||||||||||||||||||
Notes receivable—secured | 9,611 | 10,533 | ||||||||||||||||||||||
Notes receivable—unsecured | 2,892 | 2,593 | ||||||||||||||||||||||
12,503 | 13,126 | |||||||||||||||||||||||
Loss reserve | (2,395 | ) | (2,584 | ) | ||||||||||||||||||||
Notes receivable, net | 10,108 | 10,542 | ||||||||||||||||||||||
Total financing receivables, net | $ | 68,949 | $ | 84,297 | ||||||||||||||||||||
Aging analysis of loans and notes receivable at June 30, 2014 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 | $ | 7,259 | $ | 7,259 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial | 55,350 | 53,370 | — | — | — | 1,980 | ||||||||||||||||||
Other | 403 | 403 | — | — | — | — | ||||||||||||||||||
$ | 63,012 | $ | 61,032 | $ | — | $ | — | $ | — | $ | 1,980 | |||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 9,611 | $ | 5,142 | $ | 3,590 | $ | 45 | $ | — | $ | 834 | ||||||||||||
Unsecured | 2,892 | 1,235 | 8 | — | — | 1,649 | ||||||||||||||||||
$ | 12,503 | $ | 6,377 | $ | 3,598 | $ | 45 | $ | — | $ | 2,483 | |||||||||||||
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 | |||||||||||||
Goodwill
Goodwill | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Goodwill | ' | ||||||||||||
Note 5 – Goodwill | |||||||||||||
A summary of the changes in the carrying amount of goodwill, by operating segment, for the six months ended June 30, 2014 is as follows: | |||||||||||||
(in thousands) | Title | Specialty | Total | ||||||||||
Insurance | Insurance | ||||||||||||
and Services | |||||||||||||
Balance as of December 31, 2013 | $ | 799,261 | $ | 46,765 | $ | 846,026 | |||||||
Acquisitions | 147,203 | — | 147,203 | ||||||||||
Foreign currency exchange | 642 | — | 642 | ||||||||||
Balance as of June 30, 2014 | $ | 947,106 | $ | 46,765 | $ | 993,871 | |||||||
For further discussion about the Company’s acquisitions see Note 17 – Business Combinations. | |||||||||||||
The Company’s four reporting units for purposes of assessing impairment are title insurance, home warranty, property and casualty insurance and trust and other services. There is no accumulated impairment for goodwill as the Company has never recognized any impairment for its reporting units. | |||||||||||||
In accordance with accounting guidance and consistent with prior years, the Company’s policy is to perform an annual assessment of goodwill for impairment for each reporting unit in the fourth quarter. An impairment analysis has not been performed during the six months ended June 30, 2014 as no triggering events requiring such an analysis occurred. |
Other_Intangible_Assets
Other Intangible Assets | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Other Intangible Assets | ' | |||||||||
Note 6 – Other Intangible Assets | ||||||||||
Other intangible assets consist of the following: | ||||||||||
(in thousands) | June 30, | December 31, | ||||||||
2014 | 2013 | |||||||||
Finite-lived intangible assets: | ||||||||||
Customer relationships | $ | 86,674 | $ | 77,382 | ||||||
Noncompete agreements | 27,197 | 26,928 | ||||||||
Trademarks | 10,024 | 10,026 | ||||||||
Patents | 2,840 | 2,840 | ||||||||
126,735 | 117,176 | |||||||||
Accumulated amortization | (93,950 | ) | (88,624 | ) | ||||||
32,785 | 28,552 | |||||||||
Indefinite-lived intangible assets: | ||||||||||
Licenses | 17,793 | 17,795 | ||||||||
$ | 50,578 | $ | 46,347 | |||||||
Amortization expense for finite-lived intangible assets was $2.2 million and $5.2 million for the three and six months ended June 30, 2014, respectively, and $3.1 million and $6.2 million for the three and six months ended June 30, 2013, respectively. | ||||||||||
Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: | ||||||||||
Year | (in thousands) | |||||||||
Remainder of 2014 | $ | 3,621 | ||||||||
2015 | $ | 5,282 | ||||||||
2016 | $ | 4,583 | ||||||||
2017 | $ | 2,856 | ||||||||
2018 | $ | 2,705 | ||||||||
2019 | $ | 2,267 | ||||||||
Reserve_for_Known_and_Incurred
Reserve for Known and Incurred but Not Reported Claims | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Reserve for Known and Incurred but Not Reported Claims | ' | ||||||||||||||||
Note 7 – Reserve for Known and Incurred But Not Reported Claims | |||||||||||||||||
A summary of the Company’s loss reserves, including known title claims, incurred but not reported claims (“IBNR”) and non-title claims, is as follows: | |||||||||||||||||
(in thousands, except percentages) | 30-Jun-14 | 31-Dec-13 | |||||||||||||||
Known title claims | $ | 128,317 | 12.7 | % | $ | 135,478 | 13.3 | % | |||||||||
IBNR | 838,903 | 82.8 | % | 840,104 | 82.5 | % | |||||||||||
Total title claims | 967,220 | 95.5 | % | 975,582 | 95.8 | % | |||||||||||
Non-title claims | 45,930 | 4.5 | % | 42,783 | 4.2 | % | |||||||||||
Total loss reserves | $ | 1,013,150 | 100 | % | $ | 1,018,365 | 100 | % | |||||||||
The provision for title losses, expressed as a percentage of title premiums and escrow fees, was 8.9% and 7.5% for the three and six months ended June 30, 2014, respectively, and 14.8% and 12.0% for the three and six months ended June 30, 2013, respectively. | |||||||||||||||||
The current quarter rate of 8.9% reflects the ultimate loss rate of 6.0% for the current policy year and a $25.1 million net increase in the loss reserve estimates for prior policy years. The increase in loss reserve estimates for prior policy years was primarily related to a large commercial claim from policy year 2007, net of anticipated recoveries. | |||||||||||||||||
The second quarter of 2013 rate of 14.8% reflected an ultimate loss rate of 5.8% for policy year 2013 and an $89.0 million net increase in the loss reserve estimates for prior policy years. The increase in loss reserve estimates for prior policy years reflected claims development above expected levels during the second quarter of 2013, primarily from domestic lenders policies and, to a lesser extent, the Company’s guaranteed valuation product offered in Canada. The reserve strengthening associated with domestic lenders policies was $58.7 million and was primarily attributable to policy years 2004 through 2008. During the second quarter of 2013, claims on domestic lenders policies significantly exceeded the Company’s expectations and management expected this level of elevated claims experience to continue through 2013 and for a period thereafter. The reserve strengthening associated with the guaranteed valuation product offered in Canada was $12.9 million and was primarily attributable to claims frequency exceeding the Company’s expectations during the second quarter of 2013. Given management’s revised outlook, a reserve strengthening was recorded to reflect increases to ultimate losses for prior policy years. |
Notes_and_Contracts_Payable
Notes and Contracts Payable | 6 Months Ended |
Jun. 30, 2014 | |
Notes and Contracts Payable | ' |
Note 8 – Notes and Contracts Payable | |
In May 2014, the Company amended and restated its credit agreement with JPMorgan Chase Bank, N.A. in its capacity as administrative agent and the lenders party thereto. The credit agreement is comprised of a $700.0 million revolving credit facility. Unless terminated earlier, the revolving loan commitments under the credit agreement will terminate on May 14, 2019. The obligations of the Company under the credit agreement are neither secured nor guaranteed. The agreement replaced the Company’s $600.0 million senior unsecured credit agreement that had been in place since November 14, 2012. Proceeds under the credit agreement may be used for general corporate purposes. | |
The credit agreement includes an expansion option that permits the Company, subject to satisfaction of certain conditions, to increase the revolving commitments and/or add term loan tranches (“Incremental Term Loans”) in an aggregate amount not to exceed $150.0 million. Incremental Term Loans, if made, may not mature prior to the revolving commitment termination date, provided that amortization may occur prior to such date. | |
At the Company’s election, borrowings of revolving loans under the credit agreement bear interest at (a) the Alternate Base Rate plus the applicable spread or (b) the Adjusted LIBOR rate plus the applicable spread (in each case as defined in the agreement). 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 applicable spread varies depending upon the debt rating assigned by Moody’s Investor Service, Inc. and/or Standard & Poor’s Rating Services. The minimum applicable spread for Alternate Base Rate borrowings is 0.625% and the maximum is 1.00%. The minimum applicable spread for Adjusted LIBOR rate borrowings is 1.625% and the maximum is 2.00%. The rate of interest on Incremental Term Loans will be established at or about the time such loans are made and may differ from the rate of interest on revolving 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 an event of default the lenders may accelerate the loans. Upon the occurrence of certain insolvency and bankruptcy events of default the loans will automatically accelerate. As of June 30, 2014, the Company was in compliance with the financial covenants under the credit agreement. | |
In March 2014, the Company borrowed $150.0 million under its credit facility to partially fund acquisitions during the first quarter of 2014. See Note 17 – Business Combinations to the condensed consolidated financial statements for further discussion of the Company’s acquisitions. At June 30, 2014, outstanding borrowings under the facility totaled $150.0 million at an interest rate of 1.90%. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
Note 9 – Income Taxes | |
The Company’s effective income tax rate (income tax expense as a percentage of income before income taxes) was 33.7% and 35.1% for the three and six months ended June 30, 2014, respectively, and 41.0% and 40.1% for the three and six months ended June 30, 2013, respectively. 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. | |
In connection with the Company’s June 2010 spin-off from its prior parent, which subsequently assumed the name CoreLogic, Inc. (“CoreLogic”), it 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 June 30, 2014 and December 31, 2013, the Company had a net payable to CoreLogic of $54.1 million and $56.5 million, respectively, related to tax matters prior to the spin-off. This amount is included in the Company’s condensed consolidated balance sheets in accounts payable and accrued liabilities. The decrease during the current year was primarily the result of an examination settlement reached with a taxing authority for tax matters prior to the spin-off. | |
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. | |
As of June 30, 2014 and December 31, 2013, the liability for income taxes associated with uncertain tax positions was $24.0 million and $47.8 million, respectively. The decrease during the current year was primarily attributable to an examination settlement reached with a taxing authority for issues related to the timing of deductibility, which, accordingly, did not impact the Company’s condensed consolidated statement of income. As of June 30, 2014 and December 31, 2013, the liabilities could be reduced by $3.4 million and $32.6 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 $20.6 million and $15.2 million as of June 30, 2014 and December 31, 2013, respectively, if recognized, would favorably affect the Company’s effective tax rate. | |
The Company’s continuing practice is to recognize interest and penalties, if any, related to uncertain tax positions in tax expense. As of June 30, 2014 and December 31, 2013, the Company had accrued $8.5 million and $4.7 million, respectively, of interest and penalties (net of tax benefits of $3.5 million and $1.9 million, respectively) related to uncertain tax positions. | |
It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s uncertain 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 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. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 10 – Earnings Per Share | |||||||||||||||||
The computation of basic and diluted earnings per share is as follows: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator | |||||||||||||||||
Net income attributable to the Company | $ | 50,594 | $ | 34,672 | $ | 72,318 | $ | 70,850 | |||||||||
Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUs”) | 123 | 47 | 176 | 100 | |||||||||||||
Net income allocated to common stockholders | $ | 50,471 | $ | 34,625 | $ | 72,142 | $ | 70,750 | |||||||||
Denominator | |||||||||||||||||
Basic weighted-average shares | 106,878 | 108,210 | 106,522 | 107,881 | |||||||||||||
Effect of dilutive employee stock options and RSUs | 1,769 | 2,101 | 1,901 | 2,191 | |||||||||||||
Diluted weighted-average shares | 108,647 | 110,311 | 108,423 | 110,072 | |||||||||||||
Net income per share attributable to the Company’s stockholders | |||||||||||||||||
Basic | $ | 0.47 | $ | 0.32 | $ | 0.68 | $ | 0.66 | |||||||||
Diluted | $ | 0.47 | $ | 0.31 | $ | 0.67 | $ | 0.64 | |||||||||
For the three and six months ended June 30, 2014, 134 thousand and 133 thousand, respectively, of stock options and RSUs were excluded from the weighted-average diluted shares outstanding due to their antidilutive effect. For the three and six months ended June 30, 2013, no stock options or RSUs had an antidilutive effect on weighted-average diluted shares outstanding. |
Employee_Benefit_Plans
Employee Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||
Note 11 – Employee Benefit Plans | |||||||||||||||||
Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans during the three and six months ended June 30, 2014 and 2013 includes the following components: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Expense: | |||||||||||||||||
Service costs | $ | 329 | $ | 479 | $ | 658 | $ | 958 | |||||||||
Interest costs | 6,956 | 6,724 | 13,912 | 13,448 | |||||||||||||
Expected return on plan assets | (4,694 | ) | (4,674 | ) | (9,388 | ) | (9,348 | ) | |||||||||
Amortization of net actuarial loss | 7,407 | 8,002 | 14,814 | 16,004 | |||||||||||||
Amortization of prior service credit | (1,038 | ) | (1,096 | ) | (2,076 | ) | (2,192 | ) | |||||||||
$ | 8,960 | $ | 9,435 | $ | 17,920 | $ | 18,870 | ||||||||||
The Company contributed $18.1 million to the defined benefit pension and supplemental benefit plans during the six months ended June 30, 2014, and expects to contribute an additional $23.7 million during the remainder of 2014. These contributions include both those required by funding regulations as well as discretionary contributions necessary to provide benefit payments to participants of certain of the Company’s non-qualified supplemental benefit plans. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Note 12 – 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 condensed 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 June 30, 2014 and December 31, 2013 are presented in the following table: | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,041,259 | $ | 1,041,259 | $ | 834,837 | $ | 834,837 | |||||||||
Accounts and accrued income receivable, net | $ | 291,607 | $ | 291,607 | $ | 236,895 | $ | 236,895 | |||||||||
Loans receivable, net | $ | 58,841 | $ | 60,223 | $ | 73,755 | $ | 73,397 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 24,108 | $ | 24,204 | $ | 23,492 | $ | 23,601 | |||||||||
Debt securities | $ | 2,947,204 | $ | 2,947,204 | $ | 2,819,817 | $ | 2,819,817 | |||||||||
Equity securities | $ | 313,289 | $ | 313,289 | $ | 358,043 | $ | 358,043 | |||||||||
Notes receivable, net | $ | 10,108 | $ | 9,927 | $ | 10,542 | $ | 9,953 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,962,711 | $ | 1,962,839 | $ | 1,692,932 | $ | 1,693,138 | |||||||||
Accounts payable and accrued liabilities | $ | 361,730 | $ | 361,730 | $ | 406,819 | $ | 406,819 | |||||||||
Notes and contracts payable | $ | 454,681 | $ | 458,571 | $ | 310,285 | $ | 301,007 | |||||||||
The following table presents the fair value of the Company’s financial instruments as of June 30, 2014 and December 31, 2013, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Jun-14 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,041,259 | $ | 1,041,259 | $ | — | $ | — | |||||||||
Accounts and accrued income receivable, net | $ | 291,607 | $ | 291,607 | $ | — | $ | — | |||||||||
Loans receivable, net | $ | 60,223 | $ | — | $ | — | $ | 60,223 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 24,204 | $ | 3,046 | $ | 21,158 | $ | — | |||||||||
Debt securities | $ | 2,947,204 | $ | — | $ | 2,929,210 | $ | 17,994 | |||||||||
Equity securities | $ | 313,289 | $ | 313,289 | $ | — | $ | — | |||||||||
Notes receivable, net | $ | 9,927 | $ | — | $ | — | $ | 9,927 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,962,839 | $ | 1,943,463 | $ | 19,376 | $ | — | |||||||||
Accounts payable and accrued liabilities | $ | 361,730 | $ | 361,730 | $ | — | $ | — | |||||||||
Notes and contracts payable | $ | 458,571 | $ | — | $ | 448,090 | $ | 10,481 | |||||||||
(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 | |||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||||||
Note 13 – Share-Based Compensation Plans | |||||||||||||||||
The following table presents the compensation expense associated with the Company’s share-based compensation plans for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Restricted stock units | $ | 3,091 | $ | 4,197 | $ | 11,365 | $ | 13,698 | |||||||||
Stock options | 68 | — | 135 | — | |||||||||||||
Employee stock purchase plan | (38 | ) | 260 | 1,019 | 646 | ||||||||||||
$ | 3,121 | $ | 4,457 | $ | 12,519 | $ | 14,344 | ||||||||||
The following table summarizes RSU activity for the six months ended June 30, 2014: | |||||||||||||||||
(in thousands, except weighted‑average grant-date fair value) | Shares | Weighted-average | |||||||||||||||
grant-date | |||||||||||||||||
fair value | |||||||||||||||||
RSUs unvested at December 31, 2013 | 2,720 | $ | 17.6 | ||||||||||||||
Granted during 2014 | 645 | $ | 26.63 | ||||||||||||||
Vested during 2014 | (1,021 | ) | $ | 15.65 | |||||||||||||
Forfeited during 2014 | (15 | ) | $ | 16.46 | |||||||||||||
RSUs unvested at June 30, 2014 | 2,329 | $ | 20.97 | ||||||||||||||
The following table summarizes stock option activity for the six months ended June 30, 2014: | |||||||||||||||||
(in thousands, except weighted- | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
average exercise price and contractual term) | outstanding | average | average | intrinsic | |||||||||||||
exercise price | remaining | value | |||||||||||||||
contractual term | |||||||||||||||||
Balance at December 31, 2013 | 1,270 | $ | 18.03 | ||||||||||||||
Exercised during 2014 | (391 | ) | $ | 14.15 | |||||||||||||
Balance at June 30, 2014 | 879 | $ | 19.76 | 2.4 years | $ | 7,057 | |||||||||||
Vested and expected to vest at June 30, 2014 | 879 | $ | 19.76 | 2.4 years | $ | 7,057 | |||||||||||
Exercisable at June 30, 2014 | 746 | $ | 18.36 | 1.1 years | $ | 7,039 | |||||||||||
Stockholders_Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity | ' |
Note 14 – Stockholders’ Equity | |
In March 2014, the Company’s board of directors approved an increase in the size of the Company’s stock repurchase plan from $150.0 million to $250.0 million, of which $182.9 million remained as of June 30, 2014. Purchases may be made from time to time by the Company in the open market at prevailing market prices or in privately negotiated transactions. The Company did not repurchase any shares of its common stock during the three and six months ended June 30, 2014 and as of June 30, 2014, 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. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||
Note 15 – Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
Changes in the balances of each component of accumulated other comprehensive income (loss) for the six months ended June 30, 2014 are as follows: | ||||||||||||||||||
(in thousands) | Net unrealized | Foreign | Pension | Accumulated | ||||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||||
adjustment | income (loss) | |||||||||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||||
Change in net unrealized gains (losses) on securities | 42,232 | — | — | 42,232 | ||||||||||||||
Change in net unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 712 | — | — | 712 | ||||||||||||||
Change in foreign currency translation adjustment | — | 5,572 | — | 5,572 | ||||||||||||||
Amortization of net actuarial loss | — | — | 14,814 | 14,814 | ||||||||||||||
Amortization of prior service credit | — | — | (2,076 | ) | (2,076 | ) | ||||||||||||
Tax effect | (16,705 | ) | — | (4,955 | ) | (21,660 | ) | |||||||||||
Balance at June 30, 2014 | $ | 17,512 | $ | 1,846 | $ | (125,301 | ) | $ | (105,943 | ) | ||||||||
Allocated to the Company | $ | 17,498 | $ | 1,846 | $ | (125,301 | ) | $ | (105,957 | ) | ||||||||
Allocated to noncontrolling interests | 14 | — | — | 14 | ||||||||||||||
Balance at June 30, 2014 | $ | 17,512 | $ | 1,846 | $ | (125,301 | ) | $ | (105,943 | ) | ||||||||
The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended June 30, 2014 and 2013: | ||||||||||||||||||
(in thousands) | Net unrealized | Foreign | Pension | Accumulated | ||||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||||
adjustment | income (loss) | |||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||
Pretax change before reclassifications | $ | 29,818 | $ | 11,612 | $ | — | $ | 41,430 | ||||||||||
Reclassifications out of AOCI | (6,840 | ) | — | 6,369 | (471 | ) | ||||||||||||
Tax effect | (8,939 | ) | — | (2,477 | ) | (11,416 | ) | |||||||||||
Total other comprehensive income (loss), net of tax | $ | 14,039 | $ | 11,612 | $ | 3,892 | $ | 29,543 | ||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||
Pretax change before reclassifications | $ | (63,816 | ) | $ | (9,794 | ) | $ | — | $ | (73,610 | ) | |||||||
Reclassifications out of AOCI | (4,691 | ) | — | 6,906 | 2,215 | |||||||||||||
Tax effect | 27,403 | — | (2,763 | ) | 24,640 | |||||||||||||
Total other comprehensive income (loss), net of tax | $ | (41,104 | ) | $ | (9,794 | ) | $ | 4,143 | $ | (46,755 | ) | |||||||
The following table presents the other comprehensive income (loss) reclassification adjustments for the six months ended June 30, 2014 and 2013: | ||||||||||||||||||
(in thousands) | Net unrealized | Foreign | Pension | Accumulated | ||||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||||
adjustment | income (loss) | |||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||
Pretax change before reclassifications | $ | 51,953 | $ | 5,572 | $ | — | $ | 57,525 | ||||||||||
Reclassifications out of AOCI | (9,009 | ) | — | 12,738 | 3,729 | |||||||||||||
Tax effect | (16,705 | ) | — | (4,955 | ) | (21,660 | ) | |||||||||||
Total other comprehensive income (loss), net of tax | $ | 26,239 | $ | 5,572 | $ | 7,783 | $ | 39,594 | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||
Pretax change before reclassifications | $ | (56,622 | ) | $ | (16,616 | ) | $ | — | $ | (73,238 | ) | |||||||
Reclassifications out of AOCI | (11,254 | ) | — | 13,812 | 2,558 | |||||||||||||
Tax effect | 27,151 | — | (5,525 | ) | 21,626 | |||||||||||||
Total other comprehensive income (loss), net of tax | $ | (40,725 | ) | $ | (16,616 | ) | $ | 8,287 | $ | (49,054 | ) | |||||||
The following table presents the effect of the reclassifications out of accumulated other comprehensive income (loss) on the respective line items in the condensed consolidated statements of income: | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||
(in thousands) | Three Months Ended | Six Months Ended | Affected line items in the condensed | |||||||||||||||
June 30, | June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | consolidated statements of income | ||||||||||||||
Net unrealized gains (losses) on securities: | ||||||||||||||||||
Net realized gains on sales of securities | $ | 7,355 | $ | 4,691 | $ | 10,042 | $ | 11,254 | Net realized investment gains | |||||||||
Net OTTI losses recognized in earnings | (515 | ) | — | (1,033 | ) | — | Net OTTI losses recognized in earnings | |||||||||||
Pretax total | $ | 6,840 | $ | 4,691 | $ | 9,009 | $ | 11,254 | ||||||||||
Tax effect | $ | (2,661 | ) | $ | (1,876 | ) | $ | (3,505 | ) | $ | (4,502 | ) | ||||||
Pension benefit adjustment: | ||||||||||||||||||
Amortization of defined benefit pension and supplemental benefit plan items: | ||||||||||||||||||
Net actuarial loss | (7,407 | ) | (8,002 | ) | (14,814 | ) | (16,004 | ) | -1 | |||||||||
Prior service credit | 1,038 | 1,096 | 2,076 | 2,192 | -1 | |||||||||||||
Pretax total | $ | (6,369 | ) | $ | (6,906 | ) | $ | (12,738 | ) | $ | (13,812 | ) | ||||||
Tax effect | $ | 2,477 | $ | 2,763 | $ | 4,955 | $ | 5,525 | ||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 11 – Employee Benefit Plans for additional details. |
Litigation_and_Regulatory_Cont
Litigation and Regulatory Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Litigation and Regulatory Contingencies | ' | |
Note 16 – Litigation and Regulatory Contingencies | ||
The Company and its subsidiaries are parties to a number of non-ordinary course lawsuits. These lawsuits frequently 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 minimis). 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 and Raffone. The class originally certified in Slapikas was subsequently decertified. 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 condensed 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 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. | |
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, | |
• | 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, et al., 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, | |
• | Snyder v. First American Financial Corporation, et al., filed on June 21, 2014 and pending in the United States District Court for the District of Colorado, 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 Kaufman and Kirk, 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 has concluded and plaintiff has filed a notice of appeal. 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 condensed 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. | ||
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 condensed 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 condensed consolidated financial statements as a whole. |
Business_Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2014 | |
Business Combinations | ' |
Note 17 – Business Combinations | |
In March 2014, the Company completed the acquisition of a company that provides loan quality analytics, decision support tools and loan review services for the mortgage industry for a purchase price of $155.0 million. The Company has recorded preliminary fair value estimates for the assets acquired and liabilities assumed which are subject to change pending completion of the Company’s purchase price allocation. The Company completed three additional acquisitions during the six months ended June 30, 2014, for an aggregate purchase price of $10.9 million. The Company allocates the purchase price of each acquisition to the assets acquired and liabilities assumed using a variety of valuation techniques including discounted cash flow analysis. These acquisitions have been included in the Company’s title insurance and services segment. In March 2014, the Company drew $150.0 million on its credit facility to partially fund the acquisitions. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Note 18 – Segment 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, by reporting segment, is as follows: | |||||||||||||||||
For the three months ended June 30, 2014: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 1,055,395 | $ | 84,837 | $ | 17,623 | $ | 18,028 | |||||||||
Specialty Insurance | 91,184 | 11,035 | 1,338 | 878 | |||||||||||||
Corporate | 3,779 | (19,414 | ) | 819 | — | ||||||||||||
Eliminations | (389 | ) | — | — | — | ||||||||||||
$ | 1,149,969 | $ | 76,458 | $ | 19,780 | $ | 18,906 | ||||||||||
For the three months ended June 30, 2013: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 1,205,047 | $ | 73,040 | $ | 16,260 | $ | 19,664 | |||||||||
Specialty Insurance | 84,023 | 7,291 | 1,209 | 558 | |||||||||||||
Corporate | 138 | (21,107 | ) | 723 | — | ||||||||||||
Eliminations | (744 | ) | — | — | — | ||||||||||||
$ | 1,288,464 | $ | 59,224 | $ | 18,192 | $ | 20,222 | ||||||||||
For the six months ended June 30, 2014: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 1,980,724 | $ | 127,473 | $ | 35,537 | $ | 38,007 | |||||||||
Specialty Insurance | 178,325 | 24,933 | 2,577 | 2,056 | |||||||||||||
Corporate | 4,498 | (40,695 | ) | 1,638 | — | ||||||||||||
Eliminations | (779 | ) | — | — | — | ||||||||||||
$ | 2,162,768 | $ | 111,711 | $ | 39,752 | $ | 40,063 | ||||||||||
For the six months ended June 30, 2013: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 2,267,626 | $ | 137,308 | $ | 32,744 | $ | 37,287 | |||||||||
Specialty Insurance | 165,534 | 23,195 | 2,387 | 1,592 | |||||||||||||
Corporate | 3,568 | (41,687 | ) | 1,456 | — | ||||||||||||
Eliminations | (1,501 | ) | — | — | — | ||||||||||||
$ | 2,435,227 | $ | 118,816 | $ | 36,587 | $ | 38,879 | ||||||||||
Basis_of_Condensed_Consolidate1
Basis of Condensed Consolidated Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial information included in this report has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The condensed consolidated financial statements included herein are unaudited; however, in the opinion of management, they contain all normal recurring adjustments necessary for a fair statement of the consolidated results for the interim periods. All material intercompany transactions and balances have been eliminated upon consolidation. | |
Reclassifications, Revisions and Out-of-Period Adjustments | ' |
Reclassifications, Revisions and Out-of-Period Adjustments | |
Certain 2013 amounts have been reclassified to conform to the 2014 presentation. | |
The condensed consolidated statement of cash flows for the six months ended June 30, 2013 was revised for an error which resulted in an adjustment between cash and cash equivalents and deposits with banks. The adjustment resulted in a reduction to net increase in deposits with banks of $23.4 million, an increase in cash and cash equivalents—beginning of period of $43.3 million and an increase in cash and cash equivalents—end of period of $19.9 million. | |
The condensed consolidated balance sheet as of December 31, 2013 was revised for an error which resulted in an adjustment between income taxes receivable and deferred income taxes. The adjustment resulted in an increase to income taxes receivable of $11.1 million, an increase in deferred income tax assets of $27.5 million and an increase in deferred income tax liabilities of $38.6 million. | |
During the three months ended June 30, 2014, the Company identified and recorded adjustments to correct for certain errors in foreign currency translation and transactions in prior periods. These adjustments resulted in an increase to other operating expenses of $4.3 million. | |
The Company does not consider these adjustments to be material, individually or in the aggregate, to either the current year or any previously issued consolidated financial statements. | |
Recently Adopted Accounting Pronouncements | ' |
Recently Adopted Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“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. The adoption of the guidance had no impact on the Company’s condensed consolidated financial statements. | |
Pending Accounting Pronouncements | ' |
Pending Accounting Pronouncements | |
In June 2014, the FASB issued updated guidance intended to eliminate the diversity in practice regarding share-based payment awards that include terms which provide for a performance target that affects vesting being achieved after the requisite service period. The new standard requires that a performance target which affects vesting and could be achieved after the requisite service period be treated as a performance condition that affects vesting and should not be reflected in estimating the grant-date fair value. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its condensed consolidated financial statements. | |
In May 2014, the FASB issued updated guidance for recognizing revenue from contracts with customers to provide a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within and across industries, and across capital markets. The new revenue standard contains principles that an entity will apply to determine the measurement of revenue and the timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. | |
In April 2014, the FASB issued updated guidance which changes the criteria for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The updated guidance is effective for interim and annual reporting periods beginning after December 31, 2014, with early adoption permitted. The Company expects the adoption of this guidance to have no impact on its condensed consolidated financial statements. | |
Cash and Cash Equivalents | ' |
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 | ' |
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 | ' |
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 | ' |
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 condensed 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 | ' |
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 | ' |
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 | ' |
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. |
Debt_and_Equity_Securities_Tab
Debt and Equity Securities (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
(in thousands) | Amortized | Gross unrealized | Estimated | Other-than- | |||||||||||||||||||||
cost | fair value | temporary | |||||||||||||||||||||||
impairments | |||||||||||||||||||||||||
Gains | Losses | in AOCI | |||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 82,510 | $ | 874 | $ | (221 | ) | $ | 83,163 | $ | — | ||||||||||||||
Municipal bonds | 516,201 | 9,362 | (2,028 | ) | 523,535 | — | |||||||||||||||||||
Foreign bonds | 190,195 | 1,621 | (135 | ) | 191,681 | — | |||||||||||||||||||
Governmental agency bonds | 225,555 | 1,046 | (2,709 | ) | 223,892 | — | |||||||||||||||||||
Governmental agency mortgage-backed securities | 1,460,102 | 5,956 | (12,001 | ) | 1,454,057 | — | |||||||||||||||||||
Non-agency mortgage-backed securities (1) | 17,941 | 1,346 | (1,293 | ) | 17,994 | 19,877 | |||||||||||||||||||
Corporate debt securities | 444,205 | 9,434 | (757 | ) | 452,882 | — | |||||||||||||||||||
$ | 2,936,709 | $ | 29,639 | $ | (19,144 | ) | $ | 2,947,204 | $ | 19,877 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | |||||||||||||||
-1 | At June 30, 2014, the $17.9 million amortized cost is net of $1.0 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the six months ended June 30, 2014. At June 30, 2014 and December 31, 2013, the $1.3 million and $1.8 million, respectively, of gross unrealized losses related to securities determined to be other-than-temporarily impaired. The $19.9 million and $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCI”) at June 30, 2014 and December 31, 2013, respectively, which relate to non-agency mortgage-backed securities, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings as the losses were not considered to be credit related. | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
Cost | Gross unrealized | Estimated | |||||||||||||||||||||||
(in thousands) | Gains | Losses | fair value | ||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Preferred stocks | $ | 9,653 | $ | 1,936 | $ | (232 | ) | $ | 11,357 | ||||||||||||||||
Common stocks | 276,020 | 26,341 | (429 | ) | 301,932 | ||||||||||||||||||||
$ | 285,673 | $ | 28,277 | $ | (661 | ) | $ | 313,289 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | |||||||||||||||||
Net Unrealized Gains (Losses) | ' | ||||||||||||||||||||||||
The Company had the following net unrealized gains (losses) as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
(in thousands) | As of | As of | |||||||||||||||||||||||
30-Jun-14 | December 31, 2013 | ||||||||||||||||||||||||
Debt securities for which an OTTI has been recognized | $ | 87 | $ | (625 | ) | ||||||||||||||||||||
Debt securities—all other | 10,408 | (28,152 | ) | ||||||||||||||||||||||
Equity securities | 27,616 | 23,944 | |||||||||||||||||||||||
$ | 38,111 | $ | (4,833 | ) | |||||||||||||||||||||
Gross Unrealized Losses | ' | ||||||||||||||||||||||||
The Company had the following gross unrealized losses as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 4,073 | $ | (11 | ) | $ | 17,246 | $ | (210 | ) | $ | 21,319 | $ | (221 | ) | ||||||||||
Municipal bonds | 48,817 | (167 | ) | 105,820 | (1,861 | ) | 154,637 | (2,028 | ) | ||||||||||||||||
Foreign bonds | 11,473 | (63 | ) | 6,630 | (72 | ) | 18,103 | (135 | ) | ||||||||||||||||
Governmental agency bonds | 8,259 | (25 | ) | 133,676 | (2,684 | ) | 141,935 | (2,709 | ) | ||||||||||||||||
Governmental agency mortgage-backed securities | 424,099 | (1,769 | ) | 402,830 | (10,232 | ) | 826,929 | (12,001 | ) | ||||||||||||||||
Non-agency mortgage-backed securities | 1,871 | (213 | ) | 6,566 | (1,080 | ) | 8,437 | (1,293 | ) | ||||||||||||||||
Corporate debt securities | 86,760 | (482 | ) | 26,921 | (275 | ) | 113,681 | (757 | ) | ||||||||||||||||
Total debt securities | 585,352 | (2,730 | ) | 699,689 | (16,414 | ) | 1,285,041 | (19,144 | ) | ||||||||||||||||
Equity securities | 8,749 | (414 | ) | 4,805 | (247 | ) | 13,554 | (661 | ) | ||||||||||||||||
Total | $ | 594,101 | $ | (3,144 | ) | $ | 704,494 | $ | (16,661 | ) | $ | 1,298,595 | $ | (19,805 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | ) | ||||||||||
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 subsequently been downgraded to below investment grade. The table below summarizes the composition of the Company’s non-agency mortgage-backed securities as of June 30, 2014, by collateral type and year of issuance. | |||||||||||||||||||||||||
(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 | $ | 3,235 | $ | 2,759 | ||||||||||||||||||||
2006 | 3 | 8,346 | 7,794 | ||||||||||||||||||||||
2005 | 1 | 851 | 817 | ||||||||||||||||||||||
Alt-A single family residential: | |||||||||||||||||||||||||
2007 | 1 | 5,509 | 6,624 | ||||||||||||||||||||||
6 | $ | 17,941 | $ | 17,994 | |||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Debt Securities | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of debt securities at June 30, 2014, 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 | ten | ||||||||||||||||||||||||
years | years | ||||||||||||||||||||||||
U.S. Treasury bonds | |||||||||||||||||||||||||
Amortized cost | $ | 10,754 | $ | 43,020 | $ | 26,304 | $ | 2,432 | $ | 82,510 | |||||||||||||||
Estimated fair value | $ | 10,850 | $ | 43,199 | $ | 26,491 | $ | 2,623 | $ | 83,163 | |||||||||||||||
Municipal bonds | |||||||||||||||||||||||||
Amortized cost | $ | 10,130 | $ | 218,468 | $ | 171,734 | $ | 115,869 | $ | 516,201 | |||||||||||||||
Estimated fair value | $ | 10,222 | $ | 221,151 | $ | 175,474 | $ | 116,688 | $ | 523,535 | |||||||||||||||
Foreign bonds | |||||||||||||||||||||||||
Amortized cost | $ | 45,372 | $ | 127,876 | $ | 15,984 | $ | 963 | $ | 190,195 | |||||||||||||||
Estimated fair value | $ | 45,639 | $ | 129,076 | $ | 15,988 | $ | 978 | $ | 191,681 | |||||||||||||||
Governmental agency bonds | |||||||||||||||||||||||||
Amortized cost | $ | 6,450 | $ | 131,967 | $ | 78,254 | $ | 8,884 | $ | 225,555 | |||||||||||||||
Estimated fair value | $ | 6,470 | $ | 131,174 | $ | 76,848 | $ | 9,400 | $ | 223,892 | |||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 22,851 | $ | 242,589 | $ | 150,941 | $ | 27,824 | $ | 444,205 | |||||||||||||||
Estimated fair value | $ | 23,123 | $ | 248,490 | $ | 152,788 | $ | 28,481 | $ | 452,882 | |||||||||||||||
Total debt securities excluding mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 95,557 | $ | 763,920 | $ | 443,217 | $ | 155,972 | $ | 1,458,666 | |||||||||||||||
Estimated fair value | $ | 96,304 | $ | 773,090 | $ | 447,589 | $ | 158,170 | $ | 1,475,153 | |||||||||||||||
Total mortgage-backed securities | |||||||||||||||||||||||||
Amortized cost | $ | 1,478,043 | |||||||||||||||||||||||
Estimated fair value | $ | 1,472,051 | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||||
Amortized cost | $ | 2,936,709 | |||||||||||||||||||||||
Estimated fair value | $ | 2,947,204 | |||||||||||||||||||||||
Summary of Primary Assumptions used in Estimating Cash Flows Expected to be Collected for Securities | ' | ||||||||||||||||||||||||
The table below summarizes the primary assumptions used at June 30, 2014 in estimating the cash flows expected to be collected for these securities. | |||||||||||||||||||||||||
Weighted average | Range | ||||||||||||||||||||||||
Prepayment speeds | 9 | % | 8.3 | % | – | 10.5 | % | ||||||||||||||||||
Default rates | 1.4 | % | 0.3 | % | – | 2.4 | % | ||||||||||||||||||
Loss severity | 39.2 | % | 14.4 | % | – | 52.3 | % | ||||||||||||||||||
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 three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||||||
For the Three | For the Six | ||||||||||||||||||||||||
Months Ended June 30, | Months Ended June 30, | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Cumulative credit loss on debt securities held at beginning of period | $ | 16,996 | $ | 16,478 | $ | 16,478 | $ | 16,478 | |||||||||||||||||
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 515 | — | 1,033 | — | |||||||||||||||||||||
Cumulative credit loss on debt securities held at end of period | $ | 17,511 | $ | 16,478 | $ | 17,511 | $ | 16,478 | |||||||||||||||||
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 June 30, 2014 and December 31, 2013, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||||||||||
(in thousands) | Estimated | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
fair value | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
U.S. Treasury bonds | $ | 83,163 | $ | –– | $ | 83,163 | $ | –– | |||||||||||||||||
Municipal bonds | 523,535 | –– | 523,535 | –– | |||||||||||||||||||||
Foreign bonds | 191,681 | –– | 191,681 | –– | |||||||||||||||||||||
Governmental agency bonds | 223,892 | –– | 223,892 | –– | |||||||||||||||||||||
Governmental agency mortgage-backed securities | 1,454,057 | –– | 1,454,057 | –– | |||||||||||||||||||||
Non-agency mortgage-backed securities | 17,994 | –– | –– | 17,994 | |||||||||||||||||||||
Corporate debt securities | 452,882 | –– | 452,882 | –– | |||||||||||||||||||||
2,947,204 | –– | 2,929,210 | 17,994 | ||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Preferred stocks | 11,357 | 11,357 | –– | –– | |||||||||||||||||||||
Common stocks | 301,932 | 301,932 | –– | –– | |||||||||||||||||||||
313,289 | 313,289 | –– | –– | ||||||||||||||||||||||
$ | 3,260,493 | $ | 313,289 | $ | 2,929,210 | $ | 17,994 | ||||||||||||||||||
(in thousands) | Estimated | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
fair value | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
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 | ||||||||||||||||||
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 three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Three | For the Six | ||||||||||||||||||||||||
Months Ended June 30, | Months Ended June 30, | ||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Fair value at beginning of period | $ | 18,646 | $ | 22,620 | $ | 19,022 | $ | 21,846 | |||||||||||||||||
Total gains/(losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in earnings: | |||||||||||||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | (515 | ) | — | (1,033 | ) | — | |||||||||||||||||||
Included in other comprehensive income | 223 | (990 | ) | 689 | 121 | ||||||||||||||||||||
Settlements | (360 | ) | (1,019 | ) | (684 | ) | (1,356 | ) | |||||||||||||||||
Fair value at end of period | $ | 17,994 | $ | 20,611 | $ | 17,994 | $ | 20,611 | |||||||||||||||||
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 | $ | (515 | ) | $ | — | $ | (1,033 | ) | $ | — | |||||||||||||||
Financing_Receivables_Tables
Financing Receivables (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Summary of Financing Receivables | ' | |||||||||||||||||||||||
Financing receivables are summarized as follows: | ||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Loans receivable, net: | ||||||||||||||||||||||||
Real estate—mortgage | ||||||||||||||||||||||||
Multi-family residential | $ | 7,259 | $ | 7,455 | ||||||||||||||||||||
Commercial | 55,350 | 69,865 | ||||||||||||||||||||||
Other | 403 | 712 | ||||||||||||||||||||||
63,012 | 78,032 | |||||||||||||||||||||||
Allowance for loan losses | (3,627 | ) | (3,626 | ) | ||||||||||||||||||||
Participations sold | (518 | ) | (633 | ) | ||||||||||||||||||||
Deferred loan fees, net | (26 | ) | (18 | ) | ||||||||||||||||||||
Loans receivable, net | 58,841 | 73,755 | ||||||||||||||||||||||
Other long-term investments: | ||||||||||||||||||||||||
Notes receivable—secured | 9,611 | 10,533 | ||||||||||||||||||||||
Notes receivable—unsecured | 2,892 | 2,593 | ||||||||||||||||||||||
12,503 | 13,126 | |||||||||||||||||||||||
Loss reserve | (2,395 | ) | (2,584 | ) | ||||||||||||||||||||
Notes receivable, net | 10,108 | 10,542 | ||||||||||||||||||||||
Total financing receivables, net | $ | 68,949 | $ | 84,297 | ||||||||||||||||||||
Aging Analysis of Loans and Notes Receivable | ' | |||||||||||||||||||||||
Aging analysis of loans and notes receivable at June 30, 2014 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 | $ | 7,259 | $ | 7,259 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial | 55,350 | 53,370 | — | — | — | 1,980 | ||||||||||||||||||
Other | 403 | 403 | — | — | — | — | ||||||||||||||||||
$ | 63,012 | $ | 61,032 | $ | — | $ | — | $ | — | $ | 1,980 | |||||||||||||
Notes Receivable: | ||||||||||||||||||||||||
Secured | $ | 9,611 | $ | 5,142 | $ | 3,590 | $ | 45 | $ | — | $ | 834 | ||||||||||||
Unsecured | 2,892 | 1,235 | 8 | — | — | 1,649 | ||||||||||||||||||
$ | 12,503 | $ | 6,377 | $ | 3,598 | $ | 45 | $ | — | $ | 2,483 | |||||||||||||
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 | |||||||||||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Carrying Amount of Goodwill by Operating Segment | ' | ||||||||||||
A summary of the changes in the carrying amount of goodwill, by operating segment, for the six months ended June 30, 2014 is as follows: | |||||||||||||
(in thousands) | Title | Specialty | Total | ||||||||||
Insurance | Insurance | ||||||||||||
and Services | |||||||||||||
Balance as of December 31, 2013 | $ | 799,261 | $ | 46,765 | $ | 846,026 | |||||||
Acquisitions | 147,203 | — | 147,203 | ||||||||||
Foreign currency exchange | 642 | — | 642 | ||||||||||
Balance as of June 30, 2014 | $ | 947,106 | $ | 46,765 | $ | 993,871 | |||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Schedule of Other Intangible Assets | ' | |||||||||
Other intangible assets consist of the following: | ||||||||||
(in thousands) | June 30, | December 31, | ||||||||
2014 | 2013 | |||||||||
Finite-lived intangible assets: | ||||||||||
Customer relationships | $ | 86,674 | $ | 77,382 | ||||||
Noncompete agreements | 27,197 | 26,928 | ||||||||
Trademarks | 10,024 | 10,026 | ||||||||
Patents | 2,840 | 2,840 | ||||||||
126,735 | 117,176 | |||||||||
Accumulated amortization | (93,950 | ) | (88,624 | ) | ||||||
32,785 | 28,552 | |||||||||
Indefinite-lived intangible assets: | ||||||||||
Licenses | 17,793 | 17,795 | ||||||||
$ | 50,578 | $ | 46,347 | |||||||
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) | |||||||||
Remainder of 2014 | $ | 3,621 | ||||||||
2015 | $ | 5,282 | ||||||||
2016 | $ | 4,583 | ||||||||
2017 | $ | 2,856 | ||||||||
2018 | $ | 2,705 | ||||||||
2019 | $ | 2,267 | ||||||||
Reserve_for_Known_and_Incurred1
Reserve for Known and Incurred but Not Reported Claims (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Summary of Loss Reserves | ' | ||||||||||||||||
A summary of the Company’s loss reserves, including known title claims, incurred but not reported claims (“IBNR”) and non-title claims, is as follows: | |||||||||||||||||
(in thousands, except percentages) | 30-Jun-14 | 31-Dec-13 | |||||||||||||||
Known title claims | $ | 128,317 | 12.7 | % | $ | 135,478 | 13.3 | % | |||||||||
IBNR | 838,903 | 82.8 | % | 840,104 | 82.5 | % | |||||||||||
Total title claims | 967,220 | 95.5 | % | 975,582 | 95.8 | % | |||||||||||
Non-title claims | 45,930 | 4.5 | % | 42,783 | 4.2 | % | |||||||||||
Total loss reserves | $ | 1,013,150 | 100 | % | $ | 1,018,365 | 100 | % | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Schedule of Earnings Per Share | ' | ||||||||||||||||
The computation of basic and diluted earnings per share is as follows: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator | |||||||||||||||||
Net income attributable to the Company | $ | 50,594 | $ | 34,672 | $ | 72,318 | $ | 70,850 | |||||||||
Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUs”) | 123 | 47 | 176 | 100 | |||||||||||||
Net income allocated to common stockholders | $ | 50,471 | $ | 34,625 | $ | 72,142 | $ | 70,750 | |||||||||
Denominator | |||||||||||||||||
Basic weighted-average shares | 106,878 | 108,210 | 106,522 | 107,881 | |||||||||||||
Effect of dilutive employee stock options and RSUs | 1,769 | 2,101 | 1,901 | 2,191 | |||||||||||||
Diluted weighted-average shares | 108,647 | 110,311 | 108,423 | 110,072 | |||||||||||||
Net income per share attributable to the Company’s stockholders | |||||||||||||||||
Basic | $ | 0.47 | $ | 0.32 | $ | 0.68 | $ | 0.66 | |||||||||
Diluted | $ | 0.47 | $ | 0.31 | $ | 0.67 | $ | 0.64 | |||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Net Periodic Cost | ' | ||||||||||||||||
Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans during the three and six months ended June 30, 2014 and 2013 includes the following components: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Expense: | |||||||||||||||||
Service costs | $ | 329 | $ | 479 | $ | 658 | $ | 958 | |||||||||
Interest costs | 6,956 | 6,724 | 13,912 | 13,448 | |||||||||||||
Expected return on plan assets | (4,694 | ) | (4,674 | ) | (9,388 | ) | (9,348 | ) | |||||||||
Amortization of net actuarial loss | 7,407 | 8,002 | 14,814 | 16,004 | |||||||||||||
Amortization of prior service credit | (1,038 | ) | (1,096 | ) | (2,076 | ) | (2,192 | ) | |||||||||
$ | 8,960 | $ | 9,435 | $ | 17,920 | $ | 18,870 | ||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | ' | ||||||||||||||||
The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2014 and December 31, 2013 are presented in the following table: | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,041,259 | $ | 1,041,259 | $ | 834,837 | $ | 834,837 | |||||||||
Accounts and accrued income receivable, net | $ | 291,607 | $ | 291,607 | $ | 236,895 | $ | 236,895 | |||||||||
Loans receivable, net | $ | 58,841 | $ | 60,223 | $ | 73,755 | $ | 73,397 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 24,108 | $ | 24,204 | $ | 23,492 | $ | 23,601 | |||||||||
Debt securities | $ | 2,947,204 | $ | 2,947,204 | $ | 2,819,817 | $ | 2,819,817 | |||||||||
Equity securities | $ | 313,289 | $ | 313,289 | $ | 358,043 | $ | 358,043 | |||||||||
Notes receivable, net | $ | 10,108 | $ | 9,927 | $ | 10,542 | $ | 9,953 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,962,711 | $ | 1,962,839 | $ | 1,692,932 | $ | 1,693,138 | |||||||||
Accounts payable and accrued liabilities | $ | 361,730 | $ | 361,730 | $ | 406,819 | $ | 406,819 | |||||||||
Notes and contracts payable | $ | 454,681 | $ | 458,571 | $ | 310,285 | $ | 301,007 | |||||||||
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 June 30, 2014 and December 31, 2013, classified using the three-level hierarchy for fair value measurements: | |||||||||||||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Jun-14 | |||||||||||||||||
Financial Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,041,259 | $ | 1,041,259 | $ | — | $ | — | |||||||||
Accounts and accrued income receivable, net | $ | 291,607 | $ | 291,607 | $ | — | $ | — | |||||||||
Loans receivable, net | $ | 60,223 | $ | — | $ | — | $ | 60,223 | |||||||||
Investments: | |||||||||||||||||
Deposits with banks | $ | 24,204 | $ | 3,046 | $ | 21,158 | $ | — | |||||||||
Debt securities | $ | 2,947,204 | $ | — | $ | 2,929,210 | $ | 17,994 | |||||||||
Equity securities | $ | 313,289 | $ | 313,289 | $ | — | $ | — | |||||||||
Notes receivable, net | $ | 9,927 | $ | — | $ | — | $ | 9,927 | |||||||||
Financial Liabilities: | |||||||||||||||||
Deposits | $ | 1,962,839 | $ | 1,943,463 | $ | 19,376 | $ | — | |||||||||
Accounts payable and accrued liabilities | $ | 361,730 | $ | 361,730 | $ | — | $ | — | |||||||||
Notes and contracts payable | $ | 458,571 | $ | — | $ | 448,090 | $ | 10,481 | |||||||||
(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 | |||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Share-Based Compensation Expense | ' | ||||||||||||||||
The following table presents the compensation expense associated with the Company’s share-based compensation plans for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Restricted stock units | $ | 3,091 | $ | 4,197 | $ | 11,365 | $ | 13,698 | |||||||||
Stock options | 68 | — | 135 | — | |||||||||||||
Employee stock purchase plan | (38 | ) | 260 | 1,019 | 646 | ||||||||||||
$ | 3,121 | $ | 4,457 | $ | 12,519 | $ | 14,344 | ||||||||||
Summary of RSU Activity | ' | ||||||||||||||||
The following table summarizes RSU activity for the six months ended June 30, 2014: | |||||||||||||||||
(in thousands, except weighted‑average grant-date fair value) | Shares | Weighted-average | |||||||||||||||
grant-date | |||||||||||||||||
fair value | |||||||||||||||||
RSUs unvested at December 31, 2013 | 2,720 | $ | 17.6 | ||||||||||||||
Granted during 2014 | 645 | $ | 26.63 | ||||||||||||||
Vested during 2014 | (1,021 | ) | $ | 15.65 | |||||||||||||
Forfeited during 2014 | (15 | ) | $ | 16.46 | |||||||||||||
RSUs unvested at June 30, 2014 | 2,329 | $ | 20.97 | ||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes stock option activity for the six months ended June 30, 2014: | |||||||||||||||||
(in thousands, except weighted- | Number | Weighted- | Weighted- | Aggregate | |||||||||||||
average exercise price and contractual term) | outstanding | average | average | intrinsic | |||||||||||||
exercise price | remaining | value | |||||||||||||||
contractual term | |||||||||||||||||
Balance at December 31, 2013 | 1,270 | $ | 18.03 | ||||||||||||||
Exercised during 2014 | (391 | ) | $ | 14.15 | |||||||||||||
Balance at June 30, 2014 | 879 | $ | 19.76 | 2.4 years | $ | 7,057 | |||||||||||
Vested and expected to vest at June 30, 2014 | 879 | $ | 19.76 | 2.4 years | $ | 7,057 | |||||||||||
Exercisable at June 30, 2014 | 746 | $ | 18.36 | 1.1 years | $ | 7,039 | |||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||
Changes in the balances of each component of accumulated other comprehensive income (loss) for the six months ended June 30, 2014 are as follows: | ||||||||||||||||||
(in thousands) | Net unrealized | Foreign | Pension | Accumulated | ||||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||||
adjustment | income (loss) | |||||||||||||||||
Balance at December 31, 2013 | $ | (8,727 | ) | $ | (3,726 | ) | $ | (133,084 | ) | $ | (145,537 | ) | ||||||
Change in net unrealized gains (losses) on securities | 42,232 | — | — | 42,232 | ||||||||||||||
Change in net unrealized gains (losses) on securities for which credit losses have been recognized in earnings | 712 | — | — | 712 | ||||||||||||||
Change in foreign currency translation adjustment | — | 5,572 | — | 5,572 | ||||||||||||||
Amortization of net actuarial loss | — | — | 14,814 | 14,814 | ||||||||||||||
Amortization of prior service credit | — | — | (2,076 | ) | (2,076 | ) | ||||||||||||
Tax effect | (16,705 | ) | — | (4,955 | ) | (21,660 | ) | |||||||||||
Balance at June 30, 2014 | $ | 17,512 | $ | 1,846 | $ | (125,301 | ) | $ | (105,943 | ) | ||||||||
Allocated to the Company | $ | 17,498 | $ | 1,846 | $ | (125,301 | ) | $ | (105,957 | ) | ||||||||
Allocated to noncontrolling interests | 14 | — | — | 14 | ||||||||||||||
Balance at June 30, 2014 | $ | 17,512 | $ | 1,846 | $ | (125,301 | ) | $ | (105,943 | ) | ||||||||
Adjustments for Reclassification of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||
The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended June 30, 2014 and 2013: | ||||||||||||||||||
(in thousands) | Net unrealized | Foreign | Pension | Accumulated | ||||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||||
adjustment | income (loss) | |||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||
Pretax change before reclassifications | $ | 29,818 | $ | 11,612 | $ | — | $ | 41,430 | ||||||||||
Reclassifications out of AOCI | (6,840 | ) | — | 6,369 | (471 | ) | ||||||||||||
Tax effect | (8,939 | ) | — | (2,477 | ) | (11,416 | ) | |||||||||||
Total other comprehensive income (loss), net of tax | $ | 14,039 | $ | 11,612 | $ | 3,892 | $ | 29,543 | ||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||
Pretax change before reclassifications | $ | (63,816 | ) | $ | (9,794 | ) | $ | — | $ | (73,610 | ) | |||||||
Reclassifications out of AOCI | (4,691 | ) | — | 6,906 | 2,215 | |||||||||||||
Tax effect | 27,403 | — | (2,763 | ) | 24,640 | |||||||||||||
Total other comprehensive income (loss), net of tax | $ | (41,104 | ) | $ | (9,794 | ) | $ | 4,143 | $ | (46,755 | ) | |||||||
(in thousands) | Net unrealized | Foreign | Pension | Accumulated | ||||||||||||||
gains (losses) | currency | benefit | other | |||||||||||||||
on securities | translation | adjustment | comprehensive | |||||||||||||||
adjustment | income (loss) | |||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||
Pretax change before reclassifications | $ | 51,953 | $ | 5,572 | $ | — | $ | 57,525 | ||||||||||
Reclassifications out of AOCI | (9,009 | ) | — | 12,738 | 3,729 | |||||||||||||
Tax effect | (16,705 | ) | — | (4,955 | ) | (21,660 | ) | |||||||||||
Total other comprehensive income (loss), net of tax | $ | 26,239 | $ | 5,572 | $ | 7,783 | $ | 39,594 | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||
Pretax change before reclassifications | $ | (56,622 | ) | $ | (16,616 | ) | $ | — | $ | (73,238 | ) | |||||||
Reclassifications out of AOCI | (11,254 | ) | — | 13,812 | 2,558 | |||||||||||||
Tax effect | 27,151 | — | (5,525 | ) | 21,626 | |||||||||||||
Total other comprehensive income (loss), net of tax | $ | (40,725 | ) | $ | (16,616 | ) | $ | 8,287 | $ | (49,054 | ) | |||||||
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||
The following table presents the effect of the reclassifications out of accumulated other comprehensive income (loss) on the respective line items in the condensed consolidated statements of income: | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||
(in thousands) | Three Months Ended | Six Months Ended | Affected line items in the condensed | |||||||||||||||
June 30, | June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | consolidated statements of income | ||||||||||||||
Net unrealized gains (losses) on securities: | ||||||||||||||||||
Net realized gains on sales of securities | $ | 7,355 | $ | 4,691 | $ | 10,042 | $ | 11,254 | Net realized investment gains | |||||||||
Net OTTI losses recognized in earnings | (515 | ) | — | (1,033 | ) | — | Net OTTI losses recognized in earnings | |||||||||||
Pretax total | $ | 6,840 | $ | 4,691 | $ | 9,009 | $ | 11,254 | ||||||||||
Tax effect | $ | (2,661 | ) | $ | (1,876 | ) | $ | (3,505 | ) | $ | (4,502 | ) | ||||||
Pension benefit adjustment: | ||||||||||||||||||
Amortization of defined benefit pension and supplemental benefit plan items: | ||||||||||||||||||
Net actuarial loss | (7,407 | ) | (8,002 | ) | (14,814 | ) | (16,004 | ) | -1 | |||||||||
Prior service credit | 1,038 | 1,096 | 2,076 | 2,192 | -1 | |||||||||||||
Pretax total | $ | (6,369 | ) | $ | (6,906 | ) | $ | (12,738 | ) | $ | (13,812 | ) | ||||||
Tax effect | $ | 2,477 | $ | 2,763 | $ | 4,955 | $ | 5,525 | ||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 11 – Employee Benefit Plans for additional details. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Schedule Of Selected Financial Information | ' | ||||||||||||||||
Selected financial information, by reporting segment, is as follows: | |||||||||||||||||
For the three months ended June 30, 2014: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 1,055,395 | $ | 84,837 | $ | 17,623 | $ | 18,028 | |||||||||
Specialty Insurance | 91,184 | 11,035 | 1,338 | 878 | |||||||||||||
Corporate | 3,779 | (19,414 | ) | 819 | — | ||||||||||||
Eliminations | (389 | ) | — | — | — | ||||||||||||
$ | 1,149,969 | $ | 76,458 | $ | 19,780 | $ | 18,906 | ||||||||||
For the three months ended June 30, 2013: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 1,205,047 | $ | 73,040 | $ | 16,260 | $ | 19,664 | |||||||||
Specialty Insurance | 84,023 | 7,291 | 1,209 | 558 | |||||||||||||
Corporate | 138 | (21,107 | ) | 723 | — | ||||||||||||
Eliminations | (744 | ) | — | — | — | ||||||||||||
$ | 1,288,464 | $ | 59,224 | $ | 18,192 | $ | 20,222 | ||||||||||
For the six months ended June 30, 2014: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 1,980,724 | $ | 127,473 | $ | 35,537 | $ | 38,007 | |||||||||
Specialty Insurance | 178,325 | 24,933 | 2,577 | 2,056 | |||||||||||||
Corporate | 4,498 | (40,695 | ) | 1,638 | — | ||||||||||||
Eliminations | (779 | ) | — | — | — | ||||||||||||
$ | 2,162,768 | $ | 111,711 | $ | 39,752 | $ | 40,063 | ||||||||||
For the six months ended June 30, 2013: | |||||||||||||||||
(in thousands) | Revenues | Income (loss) | Depreciation | Capital | |||||||||||||
before | and | expenditures | |||||||||||||||
income taxes | amortization | ||||||||||||||||
Title Insurance and Services | $ | 2,267,626 | $ | 137,308 | $ | 32,744 | $ | 37,287 | |||||||||
Specialty Insurance | 165,534 | 23,195 | 2,387 | 1,592 | |||||||||||||
Corporate | 3,568 | (41,687 | ) | 1,456 | — | ||||||||||||
Eliminations | (1,501 | ) | — | — | — | ||||||||||||
$ | 2,435,227 | $ | 118,816 | $ | 36,587 | $ | 38,879 | ||||||||||
Basis_of_Condensed_Consolidate2
Basis of Condensed Consolidated Financial Statements - (Narrative) (Detail) (USD $) | 3 Months Ended | |||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Difference | Difference | Difference | Scenario, Adjustment | |||
Reduction in net increase in deposits with banks | ' | ' | $23,400,000 | $19,900,000 | $43,300,000 | ' |
Income taxes receivable | ' | 37,632,000 | ' | ' | ' | 11,100,000 |
Increase in deferred income tax assets | ' | ' | ' | ' | ' | 27,500,000 |
Deferred income taxes | 97,170,000 | 93,362,000 | ' | ' | ' | 38,600,000 |
Translation adjustment resulted in increase to other operating expenses | $4,300,000 | ' | ' | ' | ' | ' |
Escrow_Deposits_LikeKind_Excha1
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Billions, unless otherwise specified | ||
Other Assets [Line Items] | ' | ' |
Escrow deposits | $6.50 | $4.70 |
Escrow deposits held at federal savings bank subsidiary | 1.8 | 1.6 |
Like-kind exchange funds | 1.8 | 1.4 |
First American Trust | ' | ' |
Other Assets [Line Items] | ' | ' |
Trust assets | $3 | $3 |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Debt securities, Estimated fair value | $2,947,204 | $2,819,817 | ||
Other-than-temporary impairments in AOCI | 19,900 | 20,700 | ||
Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 2,936,709 | 2,848,594 | ||
Gross unrealized, gains | 29,639 | 18,371 | ||
Gross unrealized, losses | -19,144 | -47,148 | ||
Debt securities, Estimated fair value | 2,947,204 | 2,819,817 | ||
Other-than-temporary impairments in AOCI | 19,877 | 20,743 | ||
U.S. Treasury Bonds | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 82,510 | ' | ||
Debt securities, Estimated fair value | 83,163 | ' | ||
U.S. Treasury Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 82,510 | 66,400 | ||
Gross unrealized, gains | 874 | 669 | ||
Gross unrealized, losses | -221 | -685 | ||
Debt securities, Estimated fair value | 83,163 | 66,384 | ||
Municipal Bonds | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 516,201 | ' | ||
Debt securities, Estimated fair value | 523,535 | ' | ||
Municipal Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 516,201 | 491,143 | ||
Gross unrealized, gains | 9,362 | 5,113 | ||
Gross unrealized, losses | -2,028 | -10,291 | ||
Debt securities, Estimated fair value | 523,535 | 485,965 | ||
Foreign Bonds | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 190,195 | ' | ||
Debt securities, Estimated fair value | 191,681 | ' | ||
Foreign Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 190,195 | 221,298 | ||
Gross unrealized, gains | 1,621 | 1,836 | ||
Gross unrealized, losses | -135 | -626 | ||
Debt securities, Estimated fair value | 191,681 | 222,508 | ||
Governmental Agency Bonds | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 225,555 | ' | ||
Debt securities, Estimated fair value | 223,892 | ' | ||
Governmental Agency Bonds | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 225,555 | 267,713 | ||
Gross unrealized, gains | 1,046 | 233 | ||
Gross unrealized, losses | -2,709 | -5,401 | ||
Debt securities, Estimated fair value | 223,892 | 262,545 | ||
Governmental Agency Mortgage-Backed Securities | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 1,460,102 | 1,426,489 | ||
Gross unrealized, gains | 5,956 | 2,074 | ||
Gross unrealized, losses | -12,001 | -25,254 | ||
Debt securities, Estimated fair value | 1,454,057 | 1,403,309 | ||
Non-Agency Mortgage-Backed Securities | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 17,941 | [1] | 19,658 | [1] |
Gross unrealized, gains | 1,346 | [1] | 1,167 | [1] |
Gross unrealized, losses | -1,293 | [1] | -1,803 | [1] |
Debt securities, Estimated fair value | 17,994 | [1] | 19,022 | [1] |
Other-than-temporary impairments in AOCI | 19,877 | [1] | 20,743 | [1] |
Corporate Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 444,205 | ' | ||
Debt securities, Estimated fair value | 452,882 | ' | ||
Corporate Debt Securities | Debt Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | 444,205 | 355,893 | ||
Gross unrealized, gains | 9,434 | 7,279 | ||
Gross unrealized, losses | -757 | -3,088 | ||
Debt securities, Estimated fair value | $452,882 | $360,084 | ||
[1] | At June 30, 2014, the $17.9 million amortized cost is net of $1.0 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the six months ended June 30, 2014. At June 30, 2014 and December 31, 2013, the $1.3 million and $1.8 million, respectively, of gross unrealized losses related to securities determined to be other-than-temporarily impaired. The $19.9 million and $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCIâ€) at June 30, 2014 and December 31, 2013, respectively, which relate to non-agency mortgage-backed securities, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings as the losses were not considered to be credit related. |
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 $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 |
Credit Related | Credit Related | |||||||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Gross unrealized, losses | ' | ' | ' | ' | ' | ' | $1,300,000 | $1,800,000 |
Other-than-temporary impairments in AOCI | 19,900,000 | ' | 20,700,000 | ' | ' | ' | ' | ' |
Amortized Cost | ' | ' | ' | ' | ' | ' | 17,900,000 | ' |
Other-than-temporary impairments | $17,511,000 | $16,996,000 | $16,478,000 | $16,478,000 | $16,478,000 | $16,478,000 | $1,000,000 | ' |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Equity securities | $313,289 | $358,043 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 285,673 | 334,099 |
Gross unrealized, gains | 28,277 | 26,704 |
Gross unrealized, losses | -661 | -2,760 |
Equity securities | 313,289 | 358,043 |
Equity Securities | Preferred stocks | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 9,653 | 9,915 |
Gross unrealized, gains | 1,936 | 1,567 |
Gross unrealized, losses | -232 | -397 |
Equity securities | 11,357 | 11,085 |
Equity Securities | Common Stock | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 276,020 | 324,184 |
Gross unrealized, gains | 26,341 | 25,137 |
Gross unrealized, losses | -429 | -2,363 |
Equity securities | $301,932 | $346,958 |
Debt_and_Equity_Securities_Net
Debt and Equity Securities (Net Unrealized Gains (Losses) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Debt securities for which an OTTI has been recognized | $87 | ($625) |
Available-for-sale Securities, Gross unrealized gains (losses) | 38,111 | -4,833 |
Debt Securities-All Other | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Gross unrealized gains (losses) | 10,408 | -28,152 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Gross unrealized gains (losses) | $27,616 | $23,944 |
Debt_and_Equity_Securities_Nar
Debt and Equity Securities (Narrative) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' |
Realized gains on sales of securities | $8 | $5.60 | $14.60 | $12.20 |
Realized losses on sales of securities | 0.6 | 1.4 | 4.3 | 2 |
Non-Agency Mortgage-Backed Securities | ' | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' |
Other-than-temporary impairments | $0.50 | ' | $1 | ' |
Debt_and_Equity_Securities_Gro
Debt and Equity Securities (Gross Unrealized Losses) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | $594,101 | $1,580,179 |
Unrealized losses, Less than 12 months | -3,144 | -41,734 |
Estimated fair value, 12 months or longer | 704,494 | 177,875 |
Unrealized losses, 12 months or longer | -16,661 | -8,174 |
Estimated fair value, Total | 1,298,595 | 1,758,054 |
Unrealized losses, Total | -19,805 | -49,908 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 8,749 | 85,112 |
Unrealized losses, Less than 12 months | -414 | -2,718 |
Estimated fair value, 12 months or longer | 4,805 | 1,046 |
Unrealized losses, 12 months or longer | -247 | -42 |
Estimated fair value, Total | 13,554 | 86,158 |
Unrealized losses, Total | -661 | -2,760 |
Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 585,352 | 1,495,067 |
Unrealized losses, Less than 12 months | -2,730 | -39,016 |
Estimated fair value, 12 months or longer | 699,689 | 176,829 |
Unrealized losses, 12 months or longer | -16,414 | -8,132 |
Estimated fair value, Total | 1,285,041 | 1,671,896 |
Unrealized losses, Total | -19,144 | -47,148 |
Debt Securities | U.S. Treasury Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 4,073 | 37,492 |
Unrealized losses, Less than 12 months | -11 | -685 |
Estimated fair value, 12 months or longer | 17,246 | ' |
Unrealized losses, 12 months or longer | -210 | ' |
Estimated fair value, Total | 21,319 | 37,492 |
Unrealized losses, Total | -221 | -685 |
Debt Securities | Municipal Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 48,817 | 230,180 |
Unrealized losses, Less than 12 months | -167 | -8,938 |
Estimated fair value, 12 months or longer | 105,820 | 27,687 |
Unrealized losses, 12 months or longer | -1,861 | -1,353 |
Estimated fair value, Total | 154,637 | 257,867 |
Unrealized losses, Total | -2,028 | -10,291 |
Debt Securities | Foreign Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 11,473 | 56,579 |
Unrealized losses, Less than 12 months | -63 | -626 |
Estimated fair value, 12 months or longer | 6,630 | ' |
Unrealized losses, 12 months or longer | -72 | ' |
Estimated fair value, Total | 18,103 | 56,579 |
Unrealized losses, Total | -135 | -626 |
Debt Securities | Governmental Agency Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 8,259 | 203,011 |
Unrealized losses, Less than 12 months | -25 | -5,375 |
Estimated fair value, 12 months or longer | 133,676 | 131 |
Unrealized losses, 12 months or longer | -2,684 | -26 |
Estimated fair value, Total | 141,935 | 203,142 |
Unrealized losses, Total | -2,709 | -5,401 |
Debt Securities | Governmental Agency Mortgage-Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 424,099 | 838,411 |
Unrealized losses, Less than 12 months | -1,769 | -20,970 |
Estimated fair value, 12 months or longer | 402,830 | 124,425 |
Unrealized losses, 12 months or longer | -10,232 | -4,284 |
Estimated fair value, Total | 826,929 | 962,836 |
Unrealized losses, Total | -12,001 | -25,254 |
Debt Securities | Non-Agency Mortgage-Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 1,871 | ' |
Unrealized losses, Less than 12 months | -213 | ' |
Estimated fair value, 12 months or longer | 6,566 | 12,086 |
Unrealized losses, 12 months or longer | -1,080 | -1,803 |
Estimated fair value, Total | 8,437 | 12,086 |
Unrealized losses, Total | -1,293 | -1,803 |
Debt Securities | Corporate Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Estimated fair value, Less than 12 months | 86,760 | 129,394 |
Unrealized losses, Less than 12 months | -482 | -2,422 |
Estimated fair value, 12 months or longer | 26,921 | 12,500 |
Unrealized losses, 12 months or longer | -275 | -666 |
Estimated fair value, Total | 113,681 | 141,894 |
Unrealized losses, Total | ($757) | ($3,088) |
Debt_and_Equity_Securities_Com
Debt and Equity Securities (Composition of Company's Non-Agency Mortgage-Backed Securities) (Detail) (Debt Securities, USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Security | ||||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Amortized Cost | $2,936,709 | $2,848,594 | ||
Non-Agency Mortgage-Backed Securities | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Number of Securities | 6 | ' | ||
Amortized Cost | 17,941 | [1] | 19,658 | [1] |
Estimated Fair Value | 17,994 | ' | ||
Non-Agency Mortgage-Backed Securities | Prime Single Family Residential Two Thousand Seven | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Number of Securities | 1 | ' | ||
Amortized Cost | 3,235 | ' | ||
Estimated Fair Value | 2,759 | ' | ||
Non-Agency Mortgage-Backed Securities | Prime Single Family Residential Two Thousand Six | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Number of Securities | 3 | ' | ||
Amortized Cost | 8,346 | ' | ||
Estimated Fair Value | 7,794 | ' | ||
Non-Agency Mortgage-Backed Securities | Prime Single Family Residential Two Thousand Five | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Number of Securities | 1 | ' | ||
Amortized Cost | 851 | ' | ||
Estimated Fair Value | 817 | ' | ||
Non-Agency Mortgage-Backed Securities | Single Family Residential Two Thousand Seven | ' | ' | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ||
Number of Securities | 1 | ' | ||
Amortized Cost | 5,509 | ' | ||
Estimated Fair Value | $6,624 | ' | ||
[1] | At June 30, 2014, the $17.9 million amortized cost is net of $1.0 million in other-than-temporary impairments determined to be credit related which have been recognized in earnings for the six months ended June 30, 2014. At June 30, 2014 and December 31, 2013, the $1.3 million and $1.8 million, respectively, of gross unrealized losses related to securities determined to be other-than-temporarily impaired. The $19.9 million and $20.7 million other-than-temporary impairments recorded in accumulated other comprehensive income (loss) (“AOCIâ€) at June 30, 2014 and December 31, 2013, respectively, which relate to non-agency mortgage-backed securities, represent the amount of other-than-temporary impairment losses recognized in AOCI which were not included in earnings as the losses were not considered to be credit related. |
Debt_and_Equity_Securities_Amo2
Debt and Equity Securities (Amortized Cost and Estimated Fair Value of Debt Securities) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Debt securities, Estimated fair value | $2,947,204 | $2,819,817 |
Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,936,709 | 2,848,594 |
Debt securities, Estimated fair value | 2,947,204 | 2,819,817 |
U.S. Treasury Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 10,754 | ' |
Amortized cost, Due after one through five years | 43,020 | ' |
Amortized cost, Due after five through ten years | 26,304 | ' |
Amortized cost, Due after ten years | 2,432 | ' |
Amortized Cost | 82,510 | ' |
Estimated fair value, Due in one year or less | 10,850 | ' |
Estimated fair value, Due after one through five years | 43,199 | ' |
Estimated fair value, Due after five through ten years | 26,491 | ' |
Estimated fair value, Due after ten years | 2,623 | ' |
Debt securities, Estimated fair value | 83,163 | ' |
U.S. Treasury Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 82,510 | 66,400 |
Debt securities, Estimated fair value | 83,163 | 66,384 |
Municipal Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 10,130 | ' |
Amortized cost, Due after one through five years | 218,468 | ' |
Amortized cost, Due after five through ten years | 171,734 | ' |
Amortized cost, Due after ten years | 115,869 | ' |
Amortized Cost | 516,201 | ' |
Estimated fair value, Due in one year or less | 10,222 | ' |
Estimated fair value, Due after one through five years | 221,151 | ' |
Estimated fair value, Due after five through ten years | 175,474 | ' |
Estimated fair value, Due after ten years | 116,688 | ' |
Debt securities, Estimated fair value | 523,535 | ' |
Municipal Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 516,201 | 491,143 |
Debt securities, Estimated fair value | 523,535 | 485,965 |
Foreign Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 45,372 | ' |
Amortized cost, Due after one through five years | 127,876 | ' |
Amortized cost, Due after five through ten years | 15,984 | ' |
Amortized cost, Due after ten years | 963 | ' |
Amortized Cost | 190,195 | ' |
Estimated fair value, Due in one year or less | 45,639 | ' |
Estimated fair value, Due after one through five years | 129,076 | ' |
Estimated fair value, Due after five through ten years | 15,988 | ' |
Estimated fair value, Due after ten years | 978 | ' |
Debt securities, Estimated fair value | 191,681 | ' |
Foreign Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 190,195 | 221,298 |
Debt securities, Estimated fair value | 191,681 | 222,508 |
Governmental Agency Bonds | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 6,450 | ' |
Amortized cost, Due after one through five years | 131,967 | ' |
Amortized cost, Due after five through ten years | 78,254 | ' |
Amortized cost, Due after ten years | 8,884 | ' |
Amortized Cost | 225,555 | ' |
Estimated fair value, Due in one year or less | 6,470 | ' |
Estimated fair value, Due after one through five years | 131,174 | ' |
Estimated fair value, Due after five through ten years | 76,848 | ' |
Estimated fair value, Due after ten years | 9,400 | ' |
Debt securities, Estimated fair value | 223,892 | ' |
Governmental Agency Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 225,555 | 267,713 |
Debt securities, Estimated fair value | 223,892 | 262,545 |
Corporate Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 22,851 | ' |
Amortized cost, Due after one through five years | 242,589 | ' |
Amortized cost, Due after five through ten years | 150,941 | ' |
Amortized cost, Due after ten years | 27,824 | ' |
Amortized Cost | 444,205 | ' |
Estimated fair value, Due in one year or less | 23,123 | ' |
Estimated fair value, Due after one through five years | 248,490 | ' |
Estimated fair value, Due after five through ten years | 152,788 | ' |
Estimated fair value, Due after ten years | 28,481 | ' |
Debt securities, Estimated fair value | 452,882 | ' |
Corporate Debt Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 444,205 | 355,893 |
Debt securities, Estimated fair value | 452,882 | 360,084 |
Debt Securities Excluding Mortgage Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized cost, Due in one year or less | 95,557 | ' |
Amortized cost, Due after one through five years | 763,920 | ' |
Amortized cost, Due after five through ten years | 443,217 | ' |
Amortized cost, Due after ten years | 155,972 | ' |
Amortized Cost | 1,458,666 | ' |
Estimated fair value, Due in one year or less | 96,304 | ' |
Estimated fair value, Due after one through five years | 773,090 | ' |
Estimated fair value, Due after five through ten years | 447,589 | ' |
Estimated fair value, Due after ten years | 158,170 | ' |
Debt securities, Estimated fair value | 1,475,153 | ' |
Total Mortgage-Backed Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,478,043 | ' |
Debt securities, Estimated fair value | $1,472,051 | ' |
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) | 6 Months Ended |
Jun. 30, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | ' |
Prepayment speeds, Range | 9.00% |
Default rates, Range | 1.40% |
Loss severity, Range | 39.20% |
Minimum | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Prepayment speeds, Range | 8.30% |
Default rates, Range | 0.30% |
Loss severity, Range | 14.40% |
Maximum | ' |
Schedule Of Available For Sale Securities [Line Items] | ' |
Prepayment speeds, Range | 10.50% |
Default rates, Range | 2.40% |
Loss severity, Range | 52.30% |
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 $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items] | ' | ' | ' | ' |
Cumulative credit loss on debt securities held at beginning of period | $16,996 | $16,478 | $16,478 | $16,478 |
Addition to credit loss for which an other-than-temporary impairment was previously recognized | 515 | ' | 1,033 | ' |
Cumulative credit loss on debt securities held at end of period | $17,511 | $16,478 | $17,511 | $16,478 |
Debt_and_Equity_Securities_Ava
Debt and Equity Securities (Available-For-Sale Investments Measured at Fair Value on Recurring Basis) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | $3,260,493 | $3,177,860 |
Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,947,204 | 2,819,817 |
Level 1 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Level 2 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,929,210 | 2,800,795 |
Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,929,210 | 2,800,795 |
Level 3 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 17,994 | 19,022 |
Level 3 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 17,994 | 19,022 |
U.S. Treasury Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 83,163 | 66,384 |
U.S. Treasury Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 83,163 | 66,384 |
Municipal Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 523,535 | 485,965 |
Municipal Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 523,535 | 485,965 |
Foreign Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 191,681 | 222,508 |
Foreign Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 191,681 | 222,508 |
Governmental Agency Bonds | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 223,892 | 262,545 |
Governmental Agency Bonds | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 223,892 | 262,545 |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 1,454,057 | 1,403,309 |
Governmental Agency Mortgage-Backed Securities | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 1,454,057 | 1,403,309 |
Non-Agency Mortgage-Backed Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 17,994 | 19,022 |
Non-Agency Mortgage-Backed Securities | Level 3 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 17,994 | 19,022 |
Corporate Debt Securities | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 452,882 | 360,084 |
Corporate Debt Securities | Level 2 | Debt Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 452,882 | 360,084 |
Equity Securities | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Equity Securities | Preferred stocks | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 11,357 | 11,085 |
Equity Securities | Common Stock | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 301,932 | 346,958 |
Equity Securities | Level 1 | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Equity Securities | Level 1 | Preferred stocks | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | 11,357 | 11,085 |
Equity Securities | Level 1 | Common Stock | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Available-for-sale investments at fair value | $301,932 | $346,958 |
Debt_and_Equity_Securities_Sum1
Debt and Equity Securities (Summary of Changes in Fair Value of Level 3 Available-For-Sale Investments) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ' |
Fair value at beginning of period | $18,646 | $22,620 | $19,022 | $21,846 |
Net other-than-temporary impairment losses recognized in earnings | -515 | ' | -1,033 | ' |
Included in other comprehensive income | 223 | -990 | 689 | 121 |
Settlements | -360 | -1,019 | -684 | -1,356 |
Fair value at end of period | 17,994 | 20,611 | 17,994 | 20,611 |
Net other-than-temporary impairment losses recognized in earnings | ($515) | ' | ($1,033) | ' |
Financing_Receivables_Summary_
Financing Receivables (Summary of Financing Receivables) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | $63,012 | $78,032 |
Allowance for loan losses | -3,627 | -3,626 |
Participations sold | -518 | -633 |
Deferred loan fees, net | -26 | -18 |
Loans receivable, net | 58,841 | 73,755 |
Notes receivable, gross | 12,503 | 13,126 |
Loss reserve | -2,395 | -2,584 |
Notes receivable, net | 10,108 | 10,542 |
Total financing receivables, net | 68,949 | 84,297 |
Multi-family residential | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | 7,259 | 7,455 |
Commercial | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | 55,350 | 69,865 |
Other | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Loans receivable, gross | 403 | 712 |
Notes Receivable-Secured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Notes receivable, gross | 9,611 | 10,533 |
Notes Receivable-Unsecured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Notes receivable, gross | $2,892 | $2,593 |
Financing_Receivables_Aging_An
Financing Receivables (Aging Analysis of Loans and Notes Receivable) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | $63,012 | $78,032 |
Multi-family residential | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 7,259 | 7,455 |
Commercial | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 55,350 | 69,865 |
Other | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 403 | 712 |
Loans Receivable | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 63,012 | 78,032 |
Current | 61,032 | 75,974 |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Non-accrual status | 1,980 | 2,058 |
Loans Receivable | Multi-family residential | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 7,259 | 7,455 |
Current | 7,259 | 7,455 |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Loans Receivable | Commercial | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 55,350 | 69,865 |
Current | 53,370 | 67,807 |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Non-accrual status | 1,980 | 2,058 |
Loans Receivable | Other | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 403 | 712 |
Current | 403 | 712 |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Notes Receivable Net | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 12,503 | 13,126 |
Current | 6,377 | 6,555 |
30-59 days past due | 3,598 | 3,668 |
60-89 days past due | 45 | ' |
90 days or more past due | ' | 231 |
Non-accrual status | 2,483 | 2,672 |
Notes Receivable Net | Notes Receivable-Secured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 9,611 | 10,533 |
Current | 5,142 | 5,784 |
30-59 days past due | 3,590 | 3,668 |
60-89 days past due | 45 | ' |
90 days or more past due | ' | 231 |
Non-accrual status | 834 | 850 |
Notes Receivable Net | Notes Receivable-Unsecured | ' | ' |
Accounts Notes And Loans Receivable [Line Items] | ' | ' |
Total Loans Receivable | 2,892 | 2,593 |
Current | 1,235 | 771 |
30-59 days past due | 8 | ' |
60-89 days past due | ' | ' |
90 days or more past due | ' | ' |
Non-accrual status | $1,649 | $1,822 |
Goodwill_Carrying_Amount_of_Go
Goodwill (Carrying Amount of Goodwill by Operating Segment) (Detail) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Title Insurance And Services | Specialty Insurance | Specialty Insurance | ||
Goodwill [Line Items] | ' | ' | ' | ' |
Beginning balance | $846,026 | $799,261 | $46,765 | $46,765 |
Acquisitions | 147,203 | 147,203 | ' | ' |
Foreign currency exchange | 642 | 642 | ' | ' |
Ending balance | $993,871 | $947,106 | $46,765 | $46,765 |
Other_Intangible_Assets_Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets Net Excluding Goodwill [Abstract] | ' | ' |
Customer relationships | $86,674 | $77,382 |
Noncompete agreements | 27,197 | 26,928 |
Trademarks | 10,024 | 10,026 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 126,735 | 117,176 |
Accumulated amortization | -93,950 | -88,624 |
Finite-lived intangible assets, net | 32,785 | 28,552 |
Licenses | 17,793 | 17,795 |
Other intangibles assets, net | $50,578 | $46,347 |
Other_Intangible_Assets_Narrat
Other Intangible Assets (Narrative) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Intangible Assets Net Excluding Goodwill [Abstract] | ' | ' | ' | ' |
Amortization expense | $2.20 | $3.10 | $5.20 | $6.20 |
Other_Intangible_Assets_Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Intangible Assets Net Excluding Goodwill [Abstract] | ' |
Remainder of 2014 | $3,621 |
2015 | 5,282 |
2016 | 4,583 |
2017 | 2,856 |
2018 | 2,705 |
2019 | $2,267 |
Reserve_for_Known_and_Incurred2
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Insurance [Abstract] | ' | ' |
Known title claims, amount | $128,317 | $135,478 |
IBNR, amount | 838,903 | 840,104 |
Total title claims, amount | 967,220 | 975,582 |
Non-title claims, amount | 45,930 | 42,783 |
Total loss reserves, amount | $1,013,150 | $1,018,365 |
Known title claims, percent | 12.70% | 13.30% |
IBNR, percent | 82.80% | 82.50% |
Total title claims, percent | 95.50% | 95.80% |
Non-title claims, percent | 4.50% | 4.20% |
Total loss reserves, percent | 100.00% | 100.00% |
Reserve_for_Known_and_Incurred3
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Insurance [Abstract] | ' | ' | ' | ' |
Provision for title loss, percentage of title premiums and escrow fees | 8.90% | 14.80% | 7.50% | 12.00% |
Current quarter rate, expected ultimate loss, percentage | 8.90% | 14.80% | ' | ' |
Ultimate loss rate | 6.00% | 5.80% | ' | ' |
Estimated increase in loss reserve for prior policy years | $25.10 | $89 | ' | ' |
Domestic Lender | ' | ' | ' | ' |
Insurance [Abstract] | ' | ' | ' | ' |
Estimated increase in loss reserve for prior policy years | ' | 58.7 | ' | ' |
Guaranteed Valuation Product | ' | ' | ' | ' |
Insurance [Abstract] | ' | ' | ' | ' |
Estimated increase in loss reserve for prior policy years | ' | $12.90 | ' | ' |
Notes_and_Contracts_Payable_Na
Notes and Contracts Payable (Narrative) (Detail) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | 31-May-14 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ' | ' | ' |
Credit facility, maximum borrowing capacity | ' | $700 | $600 |
Credit agreement termination date | 14-May-19 | ' | ' |
Line of credit facility, maximum increase in revolving credit | 150 | ' | ' |
Outstanding borrowings under credit facility | 150 | ' | 150 |
Credit facility, available borrowing capacity | ' | ' | ' |
Credit facility interest rate | 1.90% | ' | ' |
Base Rate | Minimum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, applicable spread | 0.63% | ' | ' |
Base Rate | Maximum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, applicable spread | 1.00% | ' | ' |
London Interbank Offered Rate (LIBOR) | Minimum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, applicable spread | 1.63% | ' | ' |
London Interbank Offered Rate (LIBOR) | Maximum | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, applicable spread | 2.00% | ' | ' |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Effective income tax rate | 33.70% | 41.00% | 35.10% | 40.10% | ' |
Net payable related to Separation-related tax liabilities | $54.10 | ' | $54.10 | ' | $56.50 |
Uncertain tax positions | 24 | ' | 24 | ' | 47.8 |
Offsetting tax benefits related to uncertain tax positions | ' | ' | 3.4 | ' | 32.6 |
Uncertain tax positions, net | 20.6 | ' | 20.6 | ' | 15.2 |
Accrued interest and penalties on uncertain tax positions | 8.5 | ' | 8.5 | ' | 4.7 |
Net of tax benefits | ' | ' | $3.50 | ' | $1.90 |
Uncertain tax positions increase decrease, months | ' | ' | '12 months | ' | ' |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income attributable to the Company | $50,594 | $34,672 | $72,318 | $70,850 |
Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUsâ€) | 123 | 47 | 176 | 100 |
Net income allocated to common stockholders | $50,471 | $34,625 | $72,142 | $70,750 |
Basic weighted-average shares | 106,878 | 108,210 | 106,522 | 107,881 |
Effect of dilutive employee stock options and RSUs | 1,769 | 2,101 | 1,901 | 2,191 |
Diluted weighted-average shares | 108,647 | 110,311 | 108,423 | 110,072 |
Basic | $0.47 | $0.32 | $0.68 | $0.66 |
Diluted | $0.47 | $0.31 | $0.67 | $0.64 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Stock options and RSUs excluded from the weighted-average diluted common shares outstanding | 134 | 0 | 133 | 0 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Cost) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service costs | $329 | $479 | $658 | $958 |
Interest costs | 6,956 | 6,724 | 13,912 | 13,448 |
Expected return on plan assets | -4,694 | -4,674 | -9,388 | -9,348 |
Amortization of net actuarial loss | 7,407 | 8,002 | 14,814 | 16,004 |
Amortization of prior service credit | -1,038 | -1,096 | -2,076 | -2,192 |
Net periodic cost | $8,960 | $9,435 | $17,920 | $18,870 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Compensation And Retirement Disclosure [Abstract] | ' |
Contribution | $18.10 |
Additional contributions | $23.70 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Carrying Amounts and Fair Values of Financial Instruments) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | $1,041,259 | $834,837 |
Accounts and accrued income receivable, net | 291,607 | 236,895 |
Loans receivable, net | 60,223 | 73,397 |
Deposits with banks | 24,204 | 23,601 |
Available-for-sale investments at fair value | 3,260,493 | 3,177,860 |
Notes receivable, net | 9,927 | 9,953 |
Deposits | 1,962,839 | 1,693,138 |
Accounts payable and accrued liabilities | 361,730 | 406,819 |
Notes and contracts payable | 458,571 | 301,007 |
Carrying Amount | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 1,041,259 | 834,837 |
Accounts and accrued income receivable, net | 291,607 | 236,895 |
Loans receivable, net | 58,841 | 73,755 |
Deposits with banks | 24,108 | 23,492 |
Notes receivable, net | 10,108 | 10,542 |
Deposits | 1,962,711 | 1,692,932 |
Accounts payable and accrued liabilities | 361,730 | 406,819 |
Notes and contracts payable | 454,681 | 310,285 |
Fair Value | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 1,041,259 | 834,837 |
Accounts and accrued income receivable, net | 291,607 | 236,895 |
Loans receivable, net | 60,223 | 73,397 |
Deposits with banks | 24,204 | 23,601 |
Notes receivable, net | 9,927 | 9,953 |
Deposits | 1,962,839 | 1,693,138 |
Accounts payable and accrued liabilities | 361,730 | 406,819 |
Notes and contracts payable | 458,571 | 301,007 |
Debt Securities | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,947,204 | 2,819,817 |
Debt Securities | Carrying Amount | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,947,204 | 2,819,817 |
Debt Securities | Fair Value | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,947,204 | 2,819,817 |
Equity Securities | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Equity Securities | Carrying Amount | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Equity Securities | Fair Value | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale investments at fair value | $313,289 | $358,043 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Fair Value of Financial Instruments, Classified Using Three-Level Hierarchy) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $1,041,259 | $834,837 |
Accounts and accrued income receivable, net | 291,607 | 236,895 |
Loans receivable, net | 60,223 | 73,397 |
Deposits with banks | 24,204 | 23,601 |
Available-for-sale investments at fair value | 3,260,493 | 3,177,860 |
Notes receivable, net | 9,927 | 9,953 |
Deposits | 1,962,839 | 1,693,138 |
Accounts payable and accrued liabilities | 361,730 | 406,819 |
Notes and contracts payable | 458,571 | 301,007 |
Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 1,041,259 | 834,837 |
Accounts and accrued income receivable, net | 291,607 | 236,895 |
Deposits with banks | 3,046 | 2,070 |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Deposits | 1,943,463 | 1,666,336 |
Accounts payable and accrued liabilities | 361,730 | 406,819 |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Deposits with banks | 21,158 | 21,531 |
Available-for-sale investments at fair value | 2,929,210 | 2,800,795 |
Deposits | 19,376 | 26,802 |
Notes and contracts payable | 448,090 | 294,221 |
Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Loans receivable, net | 60,223 | 73,397 |
Available-for-sale investments at fair value | 17,994 | 19,022 |
Notes receivable, net | 9,927 | 9,953 |
Notes and contracts payable | 10,481 | 6,786 |
Debt Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,947,204 | 2,819,817 |
Debt Securities | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 2,929,210 | 2,800,795 |
Debt Securities | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 17,994 | 19,022 |
Equity Securities | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | 313,289 | 358,043 |
Equity Securities | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale investments at fair value | $313,289 | $358,043 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Share-Based Compensation Expense) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Restricted stock units | $3,091 | $4,197 | $11,365 | $13,698 |
Stock options | 68 | ' | 135 | ' |
Employee stock purchase plan | -38 | 260 | 1,019 | 646 |
Share-based compensation plans, Total | $3,121 | $4,457 | $12,519 | $14,344 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans (Summary of RSU Activity) (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Beginning Balance, Shares | 2,720 |
Granted during 2014, Shares | 645 |
Vested during 2014, Shares | -1,021 |
Forfeited during 2014, Shares | -15 |
Ending Balance, Shares | 2,329 |
Beginning Balance, Weighted-average grant-date fair value | $17.60 |
Granted during 2014, Weighted-average grant-date fair value | $26.63 |
Vested during 2014, Weighted-average grant-date fair value | $15.65 |
Forfeited during 2014, Weighted-average grant-date fair value | $16.46 |
Ending Balance, Weighted-average grant-date fair value | $20.97 |
ShareBased_Compensation_Plans_3
Share-Based Compensation Plans (Summary of Stock Option Activity) (Detail) (USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' |
Beginning Balance, Number outstanding | 1,270 |
Exercised during 2014, Number outstanding | -391 |
Ending Balance, Number outstanding | 879 |
Vested and expected to vest at June 30, 2014, Number outstanding | 879 |
Exercisable at June 30, 2014, Number outstanding | 746 |
Beginning Balance, Weighted-average exercise price | $18.03 |
Exercised during 2014, Weighted-average exercise price | $14.15 |
Ending Balance, Weighted-average exercise price | $19.76 |
Vested and expected to vest at June 30, 2014, Weighted-average exercise price | $19.76 |
Exercisable at June 30, 2014, Weighted-average exercise price | $18.36 |
Ending Balance, Weighted-average remaining contractual term, years | '2 years 4 months 24 days |
Vested and expected to vest at June 30, 2014, Weighted-average remaining contractual term, years | '2 years 4 months 24 days |
Exercisable at June 30, 2014, Weighted-average remaining contractual term, years | '1 year 1 month 6 days |
Ending Balance, Aggregate intrinsic value | $7,057 |
Vested and expected to vest at June 30, 2014, Aggregate intrinsic value | 7,057 |
Exercisable at June 30, 2014, Aggregate intrinsic value | $7,039 |
Stockholders_Equity_Detail
Stockholders' Equity (Detail) (USD $) | 1 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2011 | Jun. 30, 2014 |
Stockholders' Equity Note [Abstract] | ' | ' |
Stock repurchase program, authorized amount | $150 | $250 |
Remaining authorize amount under stock repurchase program | ' | 182.9 |
Purchase of Company, value | ' | $67.10 |
Common Stock | ' | ' |
Stockholders' Equity Note [Abstract] | ' | ' |
Common stock repurchased, shares | ' | 3.2 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | ' | ' | ($145,537) | ' | ' |
Change in net unrealized gains (losses) on securities | ' | ' | 42,232 | ' | ' |
Change in net unrealized gains (losses) on securities for which credit losses have been recognized in earnings | ' | ' | 712 | ' | ' |
Change in foreign currency translation adjustment | 11,612 | -9,794 | 5,572 | -16,616 | ' |
Amortization of net actuarial loss | ' | ' | 14,814 | ' | ' |
Amortization of prior service credit | ' | ' | -2,076 | ' | ' |
Accumulated other comprehensive income (loss), Tax effect | -11,416 | 24,640 | -21,660 | 21,626 | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | -105,943 | ' | -105,943 | ' | ' |
Accumulated other comprehensive income (loss), Allocated to the Company | -105,957 | ' | -105,957 | ' | -145,544 |
Accumulated other comprehensive income (loss), Allocated to noncontrolling interests | 14 | ' | 14 | ' | ' |
Net Unrealized Gains (Losses) on Securities | ' | ' | ' | ' | ' |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | ' | ' | -8,727 | ' | ' |
Change in net unrealized gains (losses) on securities | ' | ' | 42,232 | ' | ' |
Change in net unrealized gains (losses) on securities for which credit losses have been recognized in earnings | ' | ' | 712 | ' | ' |
Accumulated other comprehensive income (loss), Tax effect | ' | ' | -16,705 | ' | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 17,512 | ' | 17,512 | ' | ' |
Accumulated other comprehensive income (loss), Allocated to the Company | 17,498 | ' | 17,498 | ' | ' |
Accumulated other comprehensive income (loss), Allocated to noncontrolling interests | 14 | ' | 14 | ' | ' |
Foreign Currency Translation Adjustment | ' | ' | ' | ' | ' |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | ' | ' | -3,726 | ' | ' |
Change in foreign currency translation adjustment | 11,612 | -9,794 | 5,572 | -16,616 | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | 1,846 | ' | 1,846 | ' | ' |
Accumulated other comprehensive income (loss), Allocated to the Company | 1,846 | ' | 1,846 | ' | ' |
Pension Benefit Adjustment | ' | ' | ' | ' | ' |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | ' | ' | -133,084 | ' | ' |
Amortization of net actuarial loss | ' | ' | 14,814 | ' | ' |
Amortization of prior service credit | ' | ' | -2,076 | ' | ' |
Accumulated other comprehensive income (loss), Tax effect | ' | ' | -4,955 | ' | ' |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | -125,301 | ' | -125,301 | ' | ' |
Accumulated other comprehensive income (loss), Allocated to the Company | ($125,301) | ' | ($125,301) | ' | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net unrealized gains (losses), Total other comprehensive income (loss), net of tax | $13,902 | ($40,492) | $25,804 | ($40,745) |
Foreign currency translation adjustment, Total other comprehensive income (loss), net of tax | 11,612 | -9,794 | 5,572 | -16,616 |
Pension benefit adjustment, Total other comprehensive income (loss), net of tax | -3,892 | -4,143 | -7,783 | -8,287 |
Pretax change before reclassifications | 41,430 | -73,610 | 57,525 | -73,238 |
Reclassifications out of AOCI | -471 | 2,215 | 3,729 | 2,558 |
Tax effect | -11,416 | 24,640 | -21,660 | 21,626 |
Other comprehensive income (Note 15) | 29,543 | -46,755 | 39,594 | -49,054 |
Net Unrealized Gains (Losses) on Securities | ' | ' | ' | ' |
Net unrealized gains (losses) on securities, Pretax change before reclassifications | 29,818 | -63,816 | 51,953 | -56,622 |
Net unrealized gains (losses) on securities, Reclassifications out of AOCI | -6,840 | -4,691 | -9,009 | -11,254 |
Net unrealized gains (losses) on securities, Tax effect | -8,939 | 27,403 | -16,705 | 27,151 |
Net unrealized gains (losses), Total other comprehensive income (loss), net of tax | 14,039 | -41,104 | 26,239 | -40,725 |
Tax effect | ' | ' | -16,705 | ' |
Foreign Currency Translation Adjustment | ' | ' | ' | ' |
Foreign currency translation adjustment | 11,612 | -9,794 | 5,572 | -16,616 |
Foreign currency translation adjustment, Total other comprehensive income (loss), net of tax | 11,612 | -9,794 | 5,572 | -16,616 |
Pension Benefit Adjustment | ' | ' | ' | ' |
Pension benefit adjustment, Reclassifications out of AOCI | 6,369 | 6,906 | 12,738 | 13,812 |
Pension benefit adjustment, Tax effect | -2,477 | -2,763 | -4,955 | -5,525 |
Pension benefit adjustment, Total other comprehensive income (loss), net of tax | 3,892 | 4,143 | 7,783 | 8,287 |
Tax effect | ' | ' | ($4,955) | ' |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Amortization of defined benefit pension and supplemental benefit plan items: | ' | ' | ' | ' | ||||
Amortization of net actuarial loss | ' | ' | $14,814 | ' | ||||
Amortization of prior service credit | ' | ' | -2,076 | ' | ||||
Net Unrealized Gains (Losses) on Securities | ' | ' | ' | ' | ||||
Net unrealized gains (losses) on securities: | ' | ' | ' | ' | ||||
Pretax total | 6,840 | 4,691 | 9,009 | 11,254 | ||||
Pension Benefit Adjustment | ' | ' | ' | ' | ||||
Amortization of defined benefit pension and supplemental benefit plan items: | ' | ' | ' | ' | ||||
Amortization of net actuarial loss | ' | ' | 14,814 | ' | ||||
Amortization of prior service credit | ' | ' | -2,076 | ' | ||||
Pension benefit adjustment, Reclassifications out of AOCI | 6,369 | 6,906 | 12,738 | 13,812 | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Securities | ' | ' | ' | ' | ||||
Net unrealized gains (losses) on securities: | ' | ' | ' | ' | ||||
Net realized gains on sales of securities | 7,355 | 4,691 | 10,042 | 11,254 | ||||
Net OTTI losses recognized in earnings | -515 | ' | -1,033 | ' | ||||
Pretax total | 6,840 | 4,691 | 9,009 | 11,254 | ||||
Tax effect | -2,661 | -1,876 | -3,505 | -4,502 | ||||
Amounts Reclassified from Accumulated Other Comprehensive Income | Pension Benefit Adjustment | ' | ' | ' | ' | ||||
Amortization of defined benefit pension and supplemental benefit plan items: | ' | ' | ' | ' | ||||
Amortization of net actuarial loss | -7,407 | [1] | -8,002 | [1] | -14,814 | [1] | -16,004 | [1] |
Amortization of prior service credit | 1,038 | [1] | 1,096 | [1] | 2,076 | [1] | 2,192 | [1] |
Pension benefit adjustment, Reclassifications out of AOCI | -6,369 | -6,906 | -12,738 | -13,812 | ||||
Tax effect | $2,477 | $2,763 | $4,955 | $5,525 | ||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic cost. See Note 11 – Employee Benefit Plans for additional details. |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2014 |
Business Acquisition [Line Items] | ' | ' |
Acquisition purchase price | $155 | ' |
Aggregate purchase price | 10.9 | ' |
Drew on credit facility | $150 | $150 |
Additional Acquisitions | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of business acquired | 3 | ' |
Segment_Information_Narrative_
Segment Information (Narrative) (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
State | |
Segment Reporting Information [Line Items] | ' |
Number of states company issues title insurance policies | 49 |
Number of states company licensed to issues 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 |
Segment_Information_Schedule_o
Segment Information (Schedule of Selected Financial Information) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $1,149,969 | $1,288,464 | $2,162,768 | $2,435,227 |
Income (loss) before income taxes | 76,458 | 59,224 | 111,711 | 118,816 |
Depreciation and amortization | 19,780 | 18,192 | 39,752 | 36,587 |
Capital expenditures | 18,906 | 20,222 | 40,063 | 38,879 |
Operating Segments | Title Insurance And Services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 1,055,395 | 1,205,047 | 1,980,724 | 2,267,626 |
Income (loss) before income taxes | 84,837 | 73,040 | 127,473 | 137,308 |
Depreciation and amortization | 17,623 | 16,260 | 35,537 | 32,744 |
Capital expenditures | 18,028 | 19,664 | 38,007 | 37,287 |
Operating Segments | Specialty Insurance | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 91,184 | 84,023 | 178,325 | 165,534 |
Income (loss) before income taxes | 11,035 | 7,291 | 24,933 | 23,195 |
Depreciation and amortization | 1,338 | 1,209 | 2,577 | 2,387 |
Capital expenditures | 878 | 558 | 2,056 | 1,592 |
Corporate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 3,779 | 138 | 4,498 | 3,568 |
Income (loss) before income taxes | -19,414 | -21,107 | -40,695 | -41,687 |
Depreciation and amortization | 819 | 723 | 1,638 | 1,456 |
Eliminations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | ($389) | ($744) | ($779) | ($1,501) |