Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 19, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FAF | |
Entity Registrant Name | First American Financial Corp | |
Entity Central Index Key | 1,472,787 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 108,743,996 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 894,430 | $ 1,190,080 |
Accounts and accrued income receivable, net | 281,985 | 276,610 |
Income taxes receivable | 903 | 5,547 |
Investments: | ||
Deposits with banks | 16,388 | 21,445 |
Debt securities, includes pledged securities of $122,008 and $120,742 | 4,274,116 | 3,450,252 |
Equity securities | 312,035 | 402,412 |
Other investments | 163,512 | 159,783 |
Investments, Total | 4,766,051 | 4,033,892 |
Property and equipment, net | 398,952 | 395,287 |
Title plants and other indexes | 551,232 | 530,589 |
Deferred income taxes | 19,712 | 19,712 |
Goodwill | 968,550 | 959,945 |
Other intangible assets, net | 50,887 | 55,812 |
Other assets | 188,446 | 198,626 |
Total assets | 8,121,148 | 7,666,100 |
Liabilities and Equity | ||
Deposits | 2,621,209 | 2,332,714 |
Accounts payable and accrued liabilities | 894,913 | 854,105 |
Deferred revenue | 214,406 | 202,764 |
Reserve for known and incurred but not reported claims | 971,453 | 1,011,780 |
Income taxes payable | 49,643 | 6,228 |
Deferred income taxes | 91,482 | 95,128 |
Notes and contracts payable | 584,952 | 587,337 |
Total liabilities | $ 5,428,058 | $ 5,090,056 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized—500 shares;Outstanding—none | ||
Common stock, $0.00001 par value; Authorized—300,000 shares; Outstanding—108,744 shares and 107,541 shares | $ 1 | $ 1 |
Additional paid-in capital | 2,138,623 | 2,109,712 |
Retained earnings | 785,859 | 662,310 |
Accumulated other comprehensive loss | (234,413) | (199,106) |
Total stockholders’ equity | 2,690,070 | 2,572,917 |
Noncontrolling interests | 3,020 | 3,127 |
Total equity | 2,693,090 | 2,576,044 |
Total liabilities and equity | $ 8,121,148 | $ 7,666,100 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Pledged securities included in debt securities | $ 122,008 | $ 120,742 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares outstanding | 108,744,000 | 107,541,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Direct premiums and escrow fees | $ 625,652 | $ 564,396 | $ 1,772,581 | $ 1,529,391 |
Agent premiums | 576,450 | 496,887 | 1,495,879 | 1,341,020 |
Information and other | 162,671 | 161,227 | 479,849 | 464,572 |
Net investment income | 22,272 | 22,828 | 70,694 | 64,254 |
Net realized investment (losses) gains | (3,130) | 14,392 | (215) | 23,261 |
Total revenues | 1,383,915 | 1,259,730 | 3,818,788 | 3,422,498 |
Expenses | ||||
Personnel costs | 400,884 | 365,304 | 1,155,500 | 1,045,955 |
Premiums retained by agents | 462,087 | 395,324 | 1,199,375 | 1,070,260 |
Other operating expenses | 220,623 | 219,536 | 652,290 | 622,024 |
Provision for policy losses and other claims | 139,126 | 119,390 | 363,550 | 337,739 |
Depreciation and amortization | 21,072 | 24,127 | 63,389 | 63,879 |
Premium taxes | 17,439 | 15,427 | 46,920 | 41,971 |
Interest | 7,288 | 4,670 | 21,798 | 13,007 |
Total expenses | 1,268,519 | 1,143,778 | 3,502,822 | 3,194,835 |
Income before income taxes | 115,396 | 115,952 | 315,966 | 227,663 |
Income taxes | 39,637 | 35,015 | 108,831 | 74,186 |
Net income | 75,759 | 80,937 | 207,135 | 153,477 |
Less: Net income attributable to noncontrolling interests | 217 | 232 | 615 | 454 |
Net income attributable to the Company | $ 75,542 | $ 80,705 | $ 206,520 | $ 153,023 |
Net income per share attributable to the Company's stockholders (Note 8): | ||||
Basic | $ 0.69 | $ 0.75 | $ 1.91 | $ 1.43 |
Diluted | 0.69 | 0.74 | 1.88 | 1.41 |
Cash dividends declared per share | $ 0.25 | $ 0.24 | $ 0.75 | $ 0.60 |
Weighted-average common shares outstanding (Note 8): | ||||
Basic | 108,647 | 107,136 | 108,284 | 106,727 |
Diluted | 110,004 | 108,863 | 109,706 | 108,546 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 75,759 | $ 80,937 | $ 207,135 | $ 153,477 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (losses) gains on securities | (10,942) | (14,735) | (19,374) | 11,504 |
Foreign currency translation adjustment | (15,416) | (12,557) | (29,210) | (6,985) |
Pension benefit adjustment | 4,058 | 907 | 13,260 | 8,690 |
Other comprehensive (loss) income, net of tax | (22,300) | (26,385) | (35,324) | 13,209 |
Comprehensive income | 53,459 | 54,552 | 171,811 | 166,686 |
Less: Comprehensive income attributable to noncontrolling interests | 206 | 235 | 598 | 464 |
Comprehensive income attributable to the Company | $ 53,253 | $ 54,317 | $ 171,213 | $ 166,222 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 207,135 | $ 153,477 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Provision for policy losses and other claims | 363,550 | 337,739 |
Depreciation and amortization | 63,389 | 63,879 |
Amortization of premiums and accretion of discounts on debt securities, net | 21,702 | 17,984 |
Excess tax benefits from share-based compensation | (8,496) | (6,050) |
Net realized investment losses (gains) | 215 | (23,261) |
Share-based compensation | 20,261 | 15,962 |
Equity in earnings of affiliates, net | (7,710) | (1,068) |
Dividends from equity method investments | 7,559 | 4,018 |
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions: | ||
Claims paid, including assets acquired, net of recoveries | (364,255) | (353,048) |
Net change in income tax accounts | 56,784 | 55,372 |
Increase in accounts and accrued income receivable | (32,194) | (23,191) |
Decrease in accounts payable and accrued liabilities | (7,074) | (74,407) |
Increase in deferred revenue | 12,049 | 6,780 |
Other, net | 19,282 | (8,015) |
Cash provided by operating activities | 352,197 | 166,171 |
Cash flows from investing activities: | ||
Net cash effect of acquisitions/dispositions | (26,662) | (162,910) |
Net decrease in deposits with banks | 2,471 | 2,888 |
Purchases of debt and equity securities | (1,726,939) | (1,203,474) |
Proceeds from sales of debt and equity securities | 443,276 | 627,174 |
Proceeds from maturities of debt securities | 531,440 | 276,812 |
Net change in other investments | 470 | 5,093 |
Net paydowns on loans receivable | 20,002 | |
Capital expenditures | (91,964) | (63,923) |
Proceeds from sales of property and equipment | 17,057 | 11,675 |
Cash used for investing activities | (850,851) | (486,663) |
Cash flows from financing activities: | ||
Net change in deposits | 288,495 | 606,373 |
Net proceeds from issuance of debt | 300,503 | |
Repayment of debt | (4,087) | (161,878) |
Net activity related to noncontrolling interests | (705) | (658) |
Excess tax benefits from share-based compensation | 8,496 | 6,050 |
Net (payments) proceeds in connection with share-based compensation plans | (1,534) | 885 |
Cash dividends | (81,283) | (64,159) |
Cash provided by financing activities | 209,382 | 687,116 |
Effect of exchange rate changes on cash | (6,378) | 2,412 |
Net (decrease) increase in cash and cash equivalents | (295,650) | 369,036 |
Cash and cash equivalents—Beginning of period | 1,190,080 | 834,837 |
Cash and cash equivalents—End of period | 894,430 | 1,203,873 |
Supplemental information: | ||
Interest | 21,166 | 15,701 |
Premium taxes | 45,683 | 47,729 |
Income taxes, less refunds of $711 and $9,843 | $ 52,069 | $ 20,510 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Cash Flows [Abstract] | ||
Income taxes, refunds | $ 711 | $ 9,843 |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total stockholders' equity | Noncontrolling Interests |
Balance value at Dec. 31, 2014 | $ 2,576,044 | $ 1 | $ 2,109,712 | $ 662,310 | $ (199,106) | $ 2,572,917 | $ 3,127 |
Balance shares at Dec. 31, 2014 | 107,541 | 107,541 | |||||
Net income for nine months ended September 30, 2015 | $ 207,135 | 206,520 | 206,520 | 615 | |||
Dividends on common shares | (81,283) | (81,283) | (81,283) | ||||
Shares issued in connection with share-based compensation plans, value | 6,962 | 8,650 | (1,688) | 6,962 | |||
Shares issued in connection with share-based compensation plans, shares | 1,203 | ||||||
Share-based compensation | 20,261 | 20,261 | 20,261 | ||||
Net activity related to noncontrolling interests | (705) | (705) | |||||
Other comprehensive loss (Note 12) | (35,324) | (35,307) | (35,307) | (17) | |||
Balance value at Sep. 30, 2015 | $ 2,693,090 | $ 1 | $ 2,138,623 | $ 785,859 | $ (234,413) | $ 2,690,070 | $ 3,020 |
Balance shares at Sep. 30, 2015 | 108,744 | 108,744 |
Basis of Condensed Consolidated
Basis of Condensed Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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, 2014. 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. Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“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 15, 2014, with early adoption permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. Pending Accounting Pronouncements In September 2015, the FASB issued updated guidance intended to simplify the accounting for adjustments made to provisional amounts recognized in a business combination and eliminates the requirement to retrospectively account for those adjustments. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015 and applies prospectively to adjustments made to provisional amounts that occur after the effective date of this guidance with early adoption permitted for financial statements that have not been issued. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In August 2015, the FASB issued updated guidance relating to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. The updated guidance allows for the deferral and presentation of debt issuance costs as an asset which may be amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any related outstanding borrowings. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In May 2015, the FASB issued updated disclosure guidance related to short-duration contracts issued by insurance entities. The updated guidance is intended to increase the transparency of significant estimates made in measuring liabilities for unpaid claims and claim adjustment expenses and to provide additional insight into an insurance entity’s ability to underwrite and anticipate costs associated with claims. The updated guidance is effective for annual reporting periods beginning after December 15, 2015 and for interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to impact its condensed consolidated financial statements. In May 2015, the FASB issued updated guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presented and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to impact its condensed consolidated financial statements. In April 2015, the FASB issued updated guidance intended to c larify the accounting treatment for cloud computing arrangements that include software licenses. Under the updated guidance, if a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. In April 2015, the FASB issued updated guidance intended to simplify, and provide consistency to, the presentation of debt issuance costs. The new standard requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In February 2015, the FASB issued updated guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. 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 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 recognition. 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. Revenue from insurance contracts is not within the scope of this guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. In August 2015, the FASB issued updated guidance which defers the effective date of this guidance by one year to interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. |
Escrow Deposits, Like-Kind Exch
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets | 9 Months Ended |
Sep. 30, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 $8.0 billion and $6.3 billion at September 30, 2015 and December 31, 2014, respectively, of which $2.5 billion and $2.2 billion, respectively, were held at the Company’s federal savings bank subsidiary, First American Trust, FSB. The escrow deposits held at First American Trust, FSB are temporarily invested in cash and cash equivalents and debt securities, with offsetting liabilities included in deposits in the accompanying condensed consolidated balance sheets. 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 September 30, 2015 and December 31, 2014. 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 and, as a result, the Company has ongoing programs for realizing economic benefits with various financial institutions. The results from 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 $2.9 billion and $2.4 billion at September 30, 2015 and December 31, 2014, respectively. The like-kind exchange deposits are 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 returns on such proceeds. |
Debt and Equity Securities
Debt and Equity Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Debt and Equity Securities | Note 3 – Debt and Equity Securities Investments in debt securities, all of which are classified as available-for-sale, are as follows: (in thousands) Amortized Gross unrealized Estimated Gains Losses September 30, 2015 U.S. Treasury bonds $ 112,624 $ 803 $ (622 ) $ 112,805 Municipal bonds 682,228 12,136 (1,376 ) 692,988 Foreign bonds 179,546 2,234 (470 ) 181,310 Governmental agency bonds 420,178 1,999 (840 ) 421,337 Governmental agency mortgage-backed securities 2,071,934 11,367 (5,884 ) 2,077,417 Corporate debt securities 795,585 7,210 (14,536 ) 788,259 $ 4,262,095 $ 35,749 $ (23,728 ) $ 4,274,116 December 31, 2014 U.S. Treasury bonds $ 64,195 $ 968 $ (181 ) $ 64,982 Municipal bonds 577,703 10,981 (1,007 ) 587,677 Foreign bonds 194,749 2,009 (8 ) 196,750 Governmental agency bonds 198,330 1,562 (2,018 ) 197,874 Governmental agency mortgage-backed securities 1,812,766 8,491 (9,095 ) 1,812,162 Non-agency mortgage-backed securities 15,949 1,306 (717 ) 16,538 Corporate debt securities 568,774 8,759 (3,264 ) 574,269 $ 3,432,466 $ 34,076 $ (16,290 ) $ 3,450,252 Investments in equity securities, all of which are classified as available-for-sale, are as follows: Cost Gross unrealized Estimated (in thousands) Gains Losses September 30, 2015 Preferred stocks $ 18,965 $ 665 $ (3,985 ) $ 15,645 Common stocks 307,225 9,067 (19,902 ) 296,390 $ 326,190 $ 9,732 $ (23,887 ) $ 312,035 December 31, 2014 Preferred stocks $ 14,976 $ 596 $ (47 ) $ 15,525 Common stocks 378,938 16,680 (8,731 ) 386,887 $ 393,914 $ 17,276 $ (8,778 ) $ 402,412 Sales of debt and equity securities resulted in realized gains of $1.3 million and $9.9 million and realized losses of $1.6 million and $1.7 million for the three months ended September 30, 2015 and 2014, respectively, and realized gains of $6.5 million and $24.6 million and realized losses of $8.2 million and $6.1 million for the nine months ended September 30, 2015 and 2014, respectively. Gross unrealized losses on investments in debt and equity securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2015 Debt securities: U.S. Treasury bonds $ 44,043 $ (619 ) $ 1,667 $ (3 ) $ 45,710 $ (622 ) Municipal bonds 117,512 (1,253 ) 13,980 (123 ) 131,492 (1,376 ) Foreign bonds 26,589 (470 ) — — 26,589 (470 ) Governmental agency bonds 42,938 (778 ) 18,589 (62 ) 61,527 (840 ) Governmental agency mortgage-backed securities 559,912 (1,955 ) 189,496 (3,929 ) 749,408 (5,884 ) Corporate debt securities 352,891 (12,515 ) 22,855 (2,021 ) 375,746 (14,536 ) Total debt securities 1,143,885 (17,590 ) 246,587 (6,138 ) 1,390,472 (23,728 ) Equity securities 233,230 (19,649 ) 15,988 (4,238 ) 249,218 (23,887 ) Total $ 1,377,115 $ (37,239 ) $ 262,575 $ (10,376 ) $ 1,639,690 $ (47,615 ) December 31, 2014 Debt securities: U.S. Treasury bonds $ 8,122 $ (27 ) $ 15,124 $ (154 ) $ 23,246 $ (181 ) Municipal bonds 137,755 (689 ) 19,625 (318 ) 157,380 (1,007 ) Foreign bonds 6,215 (8 ) — — 6,215 (8 ) Governmental agency bonds 27,479 (88 ) 127,936 (1,930 ) 155,415 (2,018 ) Governmental agency mortgage-backed securities 383,717 (1,612 ) 300,918 (7,483 ) 684,635 (9,095 ) Non-agency mortgage-backed securities — — 5,611 (717 ) 5,611 (717 ) Corporate debt securities 198,079 (3,151 ) 9,683 (113 ) 207,762 (3,264 ) Total debt securities 761,367 (5,575 ) 478,897 (10,715 ) 1,240,264 (16,290 ) Equity securities 208,922 (8,587 ) 2,340 (191 ) 211,262 (8,778 ) Total $ 970,289 $ (14,162 ) $ 481,237 $ (10,906 ) $ 1,451,526 $ (25,068 ) Investments in debt securities at September 30, 2015, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 10,421 $ 78,411 $ 11,157 $ 12,635 $ 112,624 Estimated fair value $ 10,480 $ 78,593 $ 11,150 $ 12,582 $ 112,805 Municipal bonds Amortized cost $ 40,995 $ 285,582 $ 219,524 $ 136,127 $ 682,228 Estimated fair value $ 41,151 $ 288,838 $ 224,249 $ 138,750 $ 692,988 Foreign bonds Amortized cost $ 48,824 $ 116,849 $ 10,812 $ 3,061 $ 179,546 Estimated fair value $ 49,112 $ 118,252 $ 10,959 $ 2,987 $ 181,310 Governmental agency bonds Amortized cost $ 11,677 $ 338,426 $ 43,163 $ 26,912 $ 420,178 Estimated fair value $ 11,690 $ 339,130 $ 43,633 $ 26,884 $ 421,337 Corporate debt securities Amortized cost $ 20,341 $ 329,518 $ 368,094 $ 77,632 $ 795,585 Estimated fair value $ 20,547 $ 331,346 $ 361,815 $ 74,551 $ 788,259 Total debt securities excluding mortgage-backed securities Amortized cost $ 132,258 $ 1,148,786 $ 652,750 $ 256,367 $ 2,190,161 Estimated fair value $ 132,980 $ 1,156,159 $ 651,806 $ 255,754 $ 2,196,699 Total mortgage-backed securities Amortized cost $ 2,071,934 Estimated fair value $ 2,077,417 Total debt securities Amortized cost $ 4,262,095 Estimated fair value $ 4,274,116 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 such obligations with or without call or prepayment penalties. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 4 – Goodwill A summary of the changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 30, 2015, is as follows: (in thousands) Title Specialty Total Balance as of December 31, 2014 $ 913,180 $ 46,765 $ 959,945 Acquisitions 16,060 — 16,060 Foreign currency translation (7,455 ) — (7,455 ) Balance as of September 30, 2015 $ 921,785 $ 46,765 $ 968,550 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. During the nine months ended September 30, 2015 there were no triggering events that would require an impairment analysis. There is no accumulated impairment for goodwill as the Company has never recognized impairment to any of its reporting units. |
Other Intangible Assets
Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Note 5 – Other Intangible Assets Other intangible assets consist of the following: (in thousands) September 30, 2015 December 31, Finite-lived intangible assets: Customer relationships $ 94,589 $ 94,850 Noncompete agreements 27,229 27,286 Trademarks 9,359 11,241 Patents 2,840 2,840 134,017 136,217 Accumulated amortization (100,007 ) (97,282 ) 34,010 38,935 Indefinite-lived intangible assets: Licenses 16,877 16,877 $ 50,887 $ 55,812 Amortization expense for finite-lived intangible assets was $2.3 million and $7.1 million for the three and nine months ended September 30, 2015, respectively, and $5.3 million and $10.4 million for the three and nine months ended September 30, 2014, respectively. Estimated amortization expense for finite-lived intangible assets for the next five years is as follows: Year (in thousands) Remainder of 2015 $ 2,242 2016 $ 8,344 2017 $ 7,153 2018 $ 4,701 2019 $ 3,907 2020 $ 2,315 |
Reserve for Known and Incurred
Reserve for Known and Incurred but Not Reported Claims | 9 Months Ended |
Sep. 30, 2015 | |
Insurance Loss Reserves [Abstract] | |
Reserve for Known and Incurred but Not Reported Claims | Note 6 – Reserve for Known and Incurred But Not Reported Claims A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) September 30, 2015 December 31, 2014 Known title claims $ 84,478 8.7 % $ 165,330 16.3 % Incurred but not reported claims 830,255 85.5 % 802,069 79.3 % Total title claims 914,733 94.2 % 967,399 95.6 % Non-title claims 56,720 5.8 % 44,381 4.4 % Total loss reserves $ 971,453 100.0 % $ 1,011,780 100.0 % The Company’s reserve for known title claims was $84.5 million at September 30, 2015, a decline of $80.9 million, or 48.9%, from the balance at December 31, 2014. This decline is primarily attributable to settlement payments associated with certain large claims during the first quarter of 2015. The reserve for known title claims associated with these claims recorded at December 31, 2014 was $56.0 million. The Company paid $35.0 million, net of $21.0 million recovered through reinsurance, during the first quarter of 2015 to settle these claims. The provision for title insurance losses, expressed as a percentage of title insurance premiums and escrow fees, was 6.5% for the three and nine months ended September 30, 2015 and 6.7% and 7.2% for the three and nine months ended September 30, 2014, respectively. The current quarter rate of 6.5% reflects the ultimate loss rate of 6.0% for the current policy year and a $5.5 million net increase in the loss reserve estimates for prior policy years. The third quarter of 2014 rate of 6.7% reflected the ultimate loss rate of 6.0% for the 2014 policy year and a $6.8 million net increase in the loss reserve estimates for prior policy years. The rate for the nine months ended September 30, 2014 of 7.2% included the impact of a large commercial claim from policy year 2007, net of anticipated recoveries. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – Income Taxes The Company’s effective income tax rate (income tax expense as a percentage of income before income taxes) was 34.3% and 34.4% for the three and nine months ended September 30, 2015, respectively, and 30.2% and 32.6% for the three and nine months ended September 30, 2014, 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 on the Company’s tax returns recorded in 2014. In addition, the prior year tax rates reflected non-recurring tax benefits resulting from certain adjustments to the Company’s state and non-U.S. tax accounts. 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 September 30, 2015 and December 31, 2014, the Company had a net payable to CoreLogic of $36.2 million and $35.1 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 increase during the current year was primarily the result of an additional accrual for tax matters prior to the spin-off. The Company evaluates the realizability of its deferred tax assets by assessing the valuation allowance and adjusts the 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. The ability or failure to achieve the forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of deferred tax assets. Based on future operating results in certain jurisdictions, it is possible that the current valuation allowance positions of those jurisdictions could be adjusted in the next 12 months. As of September 30, 2015 and December 31, 2014, the liability for income taxes associated with uncertain tax positions was $24.4 million and $24.1 million, respectively. The net increase in the liability during 2015 was primarily attributable to activity related to examinations conducted by various taxing authorities. As of September 30, 2015 and December 31, 2014, the liability could be reduced by $3.4 million of offsetting tax benefits associated with the correlative effects of potential adjustments including timing adjustments and state income taxes. The net amounts of $21.0 million and $20.7 million as of September 30, 2015 and December 31, 2014, 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 income tax expense. As of September 30, 2015 and December 31, 2014, the Company had accrued $9.5 million and $8.9 million, respectively, of interest and penalties (net of tax benefits of $4.0 million and $3.7 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 unrecognized tax positions may significantly decrease within the next 12 months. These changes may be the result of 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 | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8 – Earnings Per Share The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Numerator Net income attributable to the Company $ 75,542 $ 80,705 $ 206,520 $ 153,023 Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUs”) 68 189 230 361 Net income allocated to common stockholders $ 75,474 $ 80,516 $ 206,290 $ 152,662 Denominator Basic weighted-average shares 108,647 107,136 108,284 106,727 Effect of dilutive employee stock options and RSUs 1,357 1,727 1,422 1,819 Diluted weighted-average shares 110,004 108,863 109,706 108,546 Net income per share attributable to the Company’s stockholders Basic $ 0.69 $ 0.75 $ 1.91 $ 1.43 Diluted $ 0.69 $ 0.74 $ 1.88 $ 1.41 RSUs excluded from weighted-average diluted common shares outstanding due to their antidilutive effect totaled 2 thousand and 1 thousand for the three and nine months ended September 30, 2015, respectively. Stock options and RSUs excluded from weighted-average diluted common shares outstanding due to their antidilutive effect for the three and nine months ended September 30, 2014 totaled 132 thousand and 133 thousand, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 9 – Employee Benefit Plans Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans during the three and nine months ended September 30, 2015 and 2014 includes the following components: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Expense: Service costs $ 390 $ 329 $ 1,170 $ 986 Interest costs 6,786 7,933 20,805 21,845 Expected return on plan assets (5,341 ) (6,165 ) (16,237 ) (15,554 ) Amortization of net actuarial loss 7,613 2,372 24,596 17,186 Amortization of prior service credit (1,041 ) (1,038 ) (3,122 ) (3,115 ) $ 8,407 $ 3,431 $ 27,212 $ 21,348 The Company contributed $31.6 million to the defined benefit pension and supplemental benefit plans during the nine months ended September 30, 2015 and expects to contribute an additional $4.2 million during the remainder of 2015. These contributions include 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 Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements Certain of the Company’s assets are carried at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company categorizes its assets and liabilities carried at fair value 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 Company (observable inputs) and the Company’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. The hierarchy level assigned to the assets and liabilities is based on management’s assessment of the transparency and reliability of the inputs used to estimate the fair values 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 assets or liabilities. Level 2—Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets or liabilities 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, the hierarchy level assigned is based upon the lowest level of input that is significant to the fair value measurement. Assets measured at fair value on a recurring basis The valuation techniques and inputs used by the Company to estimate the fair value of assets measured on a recurring basis, are summarized as follows: Debt securities The fair values of debt securities were 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. Non-agency mortgage-backed securities and certain corporate debt securities were not actively traded and there were fewer observable inputs available requiring the use of more judgment in determining their fair values, which resulted in their classification as Level 3. Equity securities The fair values 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 fair values of the Company’s assets, measured on a recurring basis, as of September 30, 2015 and December 31, 2014: (in thousands) Total Level 1 Level 2 Level 3 September 30, 2015 Assets: Debt securities: U.S. Treasury bonds $ 112,805 $ — $ 112,805 $ — Municipal bonds 692,988 — 692,988 — Foreign bonds 181,310 — 181,310 — Governmental agency bonds 421,337 — 421,337 — Governmental agency mortgage-backed securities 2,077,417 — 2,077,417 — Corporate debt securities 788,259 — 779,901 8,358 4,274,116 — 4,265,758 8,358 Equity securities: Preferred stocks 15,645 15,645 — — Common stocks 296,390 296,390 — — 312,035 312,035 — — Total assets $ 4,586,151 $ 312,035 $ 4,265,758 $ 8,358 (in thousands) Total Level 1 Level 2 Level 3 December 31, 2014 Assets: Debt securities: U.S. Treasury bonds $ 64,982 $ — $ 64,982 $ — Municipal bonds 587,677 — 587,677 — Foreign bonds 196,750 — 196,750 — Governmental agency bonds 197,874 — 197,874 — Governmental agency mortgage-backed securities 1,812,162 — 1,812,162 — Non-agency mortgage-backed securities 16,538 — — 16,538 Corporate debt securities 574,269 — 574,269 — 3,450,252 — 3,433,714 16,538 Equity securities: Preferred stocks 15,525 15,525 — — Common stocks 386,887 386,887 — — 402,412 402,412 — — Total assets $ 3,852,664 $ 402,412 $ 3,433,714 $ 16,538 There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 and 2014. Transfers into or out of the Level 3 category occur when unobservable inputs become more or less significant to the fair value measurement. For the three months ended September 30, 2015 transfers between Level 2 and Level 3 were based on market liquidity and related transparency of pricing and associated observable inputs for certain of the Company’s corporate debt securities. There were no transfers in or out of Level 3 during the three and nine months ended September 30, 2014. 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 the fair values of Level 3 assets measured on a recurring basis for the three months ended September 30, 2015 and 2014: (in thousands) September 30, 2015 September 30, 2014 Corporate debt securities Non-agency mortgage-backed securities Fair value at beginning of period $ 11,358 $ 17,994 Transfers into Level 3 1,921 — Transfers out of Level 3 (4,011 ) — Net realized and unrealized gains (losses): Included in earnings: Net realized investment losses (2 ) — Included in other comprehensive income (loss) (40 ) 252 Purchases 1,698 — Sales (92 ) — Settlements (2,474 ) (695 ) Fair value at end of period $ 8,358 $ 17,551 The following table presents a summary of the changes in the fair values of Level 3 assets measured on a recurring basis for the nine months ended September 30, 2015 and 2014: (in thousands) September 30, 2015 September 30, 2014 Corporate debt securities Non-agency mortgage-backed securities Total Non-agency mortgage-backed securities Fair value at beginning of period $ — $ 16,538 $ 16,538 $ 19,022 Net realized and unrealized gains (losses): Included in earnings: Net realized investment gains (losses) 1 (1,015 ) (1,014 ) — Net other-than-temporary impairment losses — — — (1,033 ) Included in other comprehensive income (loss) 6 (589 ) (583 ) 941 Purchases 8,831 — 8,831 — Sales (427 ) (14,934 ) (15,361 ) — Settlements (53 ) — (53 ) (1,379 ) Fair value at end of period $ 8,358 $ — $ 8,358 $ 17,551 Unrealized gains (losses) included in earnings for the period relating to Level 3 assets that were still held at the end of the period: Net other-than-temporary impairment losses $ — $ — $ — $ (1,033 ) Financial instruments not measured at fair value In estimating the fair values of its financial instruments not measured at fair value, 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. Deposits with banks The fair value of deposits with banks is estimated based on rates currently offered for deposits of similar remaining maturities, where applicable. Notes receivable, net 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 credit quality. Deposits The carrying value of escrow and other deposit accounts approximates fair value due to the short-term nature of these liabilities. Notes and contracts payable The fair value of notes and contracts payable is estimated based on current rates offered to the Company for debt of similar remaining maturities. The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of September 30, 2015 and December 31, 2014: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 September 30, 2015 Assets: Cash and cash equivalents $ 894,430 $ 894,430 $ 894,430 $ — $ — Deposits with banks $ 16,388 $ 16,444 $ 547 $ 15,897 $ — Notes receivable, net $ 6,026 $ 4,440 $ — $ — $ 4,440 Liabilities: Deposits $ 2,621,209 $ 2,621,209 $ 2,621,209 $ — $ — Notes and contracts payable $ 584,952 $ 596,894 $ — $ 590,673 $ 6,221 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2014 Assets: Cash and cash equivalents $ 1,190,080 $ 1,190,080 $ 1,190,080 $ — $ — Deposits with banks $ 21,445 $ 21,540 $ 4,068 $ 17,472 $ — Notes receivable, net $ 6,130 $ 3,930 $ — $ — $ 3,930 Liabilities: Deposits $ 2,332,714 $ 2,332,714 $ 2,332,714 $ — $ — Notes and contracts payable $ 587,337 $ 595,087 $ — $ 588,542 $ 6,545 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 11 – Share-Based Compensation The following table presents expenses associated with the Company’s share-based compensation plans: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Expense: RSUs $ 4,059 $ 2,910 $ 18,278 $ 14,275 Stock options 68 68 203 203 Employee stock purchase plan 571 465 1,780 1,484 $ 4,698 $ 3,443 $ 20,261 $ 15,962 The following table summarizes RSU activity for the nine months ended September 30, 2015: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average RSUs unvested at December 31, 2014 2,337 $ 21.21 Granted during 2015 750 $ 34.74 Vested during 2015 (986 ) $ 18.44 Forfeited during 2015 (22 ) $ 28.27 RSUs unvested at September 30, 2015 2,079 $ 27.33 The following table summarizes stock option activity for the nine months ended September 30, 2015: (in thousands, except weighted-average Number Weighted- Weighted- Aggregate Balance at December 31, 2014 686 $ 20.18 Exercised during 2015 (307 ) $ 16.79 Balance at September 30, 2015 379 $ 22.94 3.0 years $ 6,107 Vested and expected to vest at September 30, 2015 379 $ 22.94 3.0 years $ 6,107 Exercisable at September 30, 2015 279 $ 21.26 1.1 years $ 4,974 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) (AOCI) | Note 12 – Accumulated Other Comprehensive Income (Loss) (“AOCI”) The following table presents a summary of the changes in each component of AOCI for the nine months ended September 30, 2015: (in thousands) Unrealized Foreign Pension Accumulated Balance at December 31, 2014 $ 10,911 $ (20,420 ) $ (189,580 ) $ (199,089 ) Change in unrealized gains (losses) on securities (28,421 ) — — (28,421 ) Change in foreign currency translation adjustment — (29,210 ) — (29,210 ) Amortization of net actuarial loss — — 24,596 24,596 Amortization of prior service cost — — (3,122 ) (3,122 ) Tax effect 9,047 — (8,214 ) 833 Balance at September 30, 2015 $ (8,463 ) $ (49,630 ) $ (176,320 ) $ (234,413 ) Allocated to the Company $ (8,463 ) $ (49,630 ) $ (176,320 ) $ (234,413 ) Allocated to noncontrolling interests — — — — Balance at September 30, 2015 $ (8,463 ) $ (49,630 ) $ (176,320 ) $ (234,413 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended September 30, 2015 and 2014: (in thousands) Unrealized Foreign Pension Total Three Months Ended September 30, 2015 Pretax change before reclassifications $ (15,614 ) $ (15,416 ) $ — $ (31,030 ) Reclassifications out of AOCI (108 ) — 6,572 6,464 Tax effect 4,780 — (2,514 ) 2,266 Total other comprehensive income (loss), net of tax $ (10,942 ) $ (15,416 ) $ 4,058 $ (22,300 ) Three Months Ended September 30, 2014 Pretax change before reclassifications $ (15,076 ) $ (12,557 ) $ — $ (27,633 ) Reclassifications out of AOCI (9,241 ) — 1,334 (7,907 ) Tax effect 9,582 — (427 ) 9,155 Total other comprehensive income (loss), net of tax $ (14,735 ) $ (12,557 ) $ 907 $ (26,385 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2015 and 2014: (in thousands) Unrealized Foreign Pension Total Nine Months Ended September 30, 2015 Pretax change before reclassifications $ (29,966 ) $ (29,210 ) $ — $ (59,176 ) Reclassifications out of AOCI 1,545 — 21,474 23,019 Tax effect 9,047 — (8,214 ) 833 Total other comprehensive income (loss), net of tax $ (19,374 ) $ (29,210 ) $ 13,260 $ (35,324 ) Nine Months Ended September 30, 2014 Pretax change before reclassifications $ 35,317 $ (6,985 ) $ — $ 28,332 Reclassifications out of AOCI (16,689 ) — 14,071 (2,618 ) Tax effect (7,124 ) — (5,381 ) (12,505 ) Total other comprehensive income (loss), net of tax $ 11,504 $ (6,985 ) $ 8,690 $ 13,209 The following table presents the effect of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: Amounts reclassified from AOCI (in thousands) Three Months Ended September 30, Nine Months Ended September 30, Affected line items in the condensed 2015 2014 2015 2014 consolidated statements of income Unrealized gains (losses) on securities: Net realized gains (losses) on sales of securities $ 108 $ 9,241 $ (1,545 ) $ 17,722 Net realized investment gains (losses) Net other-than-temporary impairment losses — — — (1,033 ) Net realized investment gains (losses) Pretax total $ 108 $ 9,241 $ (1,545 ) $ 16,689 Tax effect $ (33 ) $ (3,641 ) $ 492 $ (6,383 ) Pension benefit adjustment: Amortization of defined benefit pension and supplemental benefit plan items: Net actuarial loss $ (7,613 ) $ (2,372 ) $ (24,596 ) $ (17,186 ) (1) Prior service credit 1,041 1,038 3,122 3,115 (1) Pretax total $ (6,572 ) $ (1,334 ) $ (21,474 ) $ (14,071 ) Tax effect $ 2,514 $ 427 $ 8,214 $ 5,381 (1) These components of AOCI are included in the computation of net periodic cost. See Note 9 Employee Benefit Plans for additional details. |
Litigation and Regulatory Conti
Litigation and Regulatory Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation and Regulatory Contingencies | Note 13 – 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 · 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, and · Raffone v. First American Title Insurance Company, filed on February 14, 2004 and pending in the Circuit Court, Nassau County, Florida. Both of these lawsuits are putative class actions. A court has granted class certification in Lewis and Raffone. 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 not material 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. The Company believes the estimate of the possible loss or range of loss is not material to the condensed consolidated financial statements as a whole. · 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. · misclassified certain employees, including · Sager v. Interthinx, Inc., filed on January 23, 2015 and pending in the Superior Court of the State of California, County of Los Angeles, and · Weber v. Interthinx, Inc., et al., filed on April 17, 2015 and pending in the United States District Court for the Eastern District of Missouri. Both of these lawsuits are putative class actions for which a class has not been certified. 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, denied home warranty claims, failed to timely file certain documents, and gave items of value to developers, builders and others as inducements to refer business in violation of certain laws, such as consumer protection laws and laws generally prohibiting unfair business practices, and certain obligations, including · Chassen v. First American Financial Corporation, et al., filed on January 22, 2009 and pending in the United States District Court of New Jersey, · Downing v. First American Title Insurance Company, et al., filed on October 2, 2015 and pending in the United States District Court for the Northern District of Georgia, · 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, · 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, · 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, and · In re First American Home Buyers Protection Corporation, consolidated on October 9, 2014 and pending in the United States District Court for the Southern District of California. 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, plaintiff has filed a notice of appeal and the Company filed a cross 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 not material 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’s Canadian operations provide certain services to lenders which it believes to be exempt from excise tax under applicable Canadian tax laws. However, in October 2014, the Canadian taxing authority provided internal guidance that the services in question should be subject to the excise tax. While discussions with the taxing authority are ongoing, the Company believes that the guidance may result in an assessment. The amount, if any, of such assessment is not currently known, and any such assessment would be subject to negotiation. In the event that the Company disagrees with the ultimate assessment, the Company intends to avail itself of avenues of appeal. While the Company believes it is reasonably likely that the Company would prevail on the merits, a loss associated with the matter is possible. In light of the foregoing, the Company is not currently able to reasonably estimate a loss or range of loss associated with the matter. While such a loss could be material to the Company’s operating results in any particular period if an unfavorable outcome results, the Company does not believe that this matter will have a material adverse effect on the Company’s overall financial condition or liquidity. 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. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14 – 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 September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,288,156 $ 136,984 $ 19,753 $ 31,309 Specialty Insurance 101,210 1,684 1,197 927 Corporate (5,428 ) (23,272 ) 122 2 Eliminations (23 ) — — — $ 1,383,915 $ 115,396 $ 21,072 $ 32,238 For the three months ended September 30, 2014: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,165,835 $ 121,000 $ 21,879 $ 25,389 Specialty Insurance 94,854 10,433 1,210 610 Corporate (571 ) (15,481 ) 1,038 — Eliminations (388 ) — — — $ 1,259,730 $ 115,952 $ 24,127 $ 25,999 For the nine months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,534,987 $ 361,223 $ 59,443 $ 91,468 Specialty Insurance 293,398 29,446 3,579 2,804 Corporate (9,148 ) (74,703 ) 367 2 Eliminations (449 ) — — — $ 3,818,788 $ 315,966 $ 63,389 $ 94,274 For the nine months ended September 30, 2014: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,146,558 $ 248,474 $ 57,416 $ 63,395 Specialty Insurance 273,179 35,366 3,787 2,667 Corporate 3,927 (56,177 ) 2,676 — Eliminations (1,166 ) — — — $ 3,422,498 $ 227,663 $ 63,879 $ 66,062 |
Basis of Condensed Consolidat23
Basis of Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
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, 2014. 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“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 15, 2014, with early adoption permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements In September 2015, the FASB issued updated guidance intended to simplify the accounting for adjustments made to provisional amounts recognized in a business combination and eliminates the requirement to retrospectively account for those adjustments. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015 and applies prospectively to adjustments made to provisional amounts that occur after the effective date of this guidance with early adoption permitted for financial statements that have not been issued. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In August 2015, the FASB issued updated guidance relating to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. The updated guidance allows for the deferral and presentation of debt issuance costs as an asset which may be amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any related outstanding borrowings. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In May 2015, the FASB issued updated disclosure guidance related to short-duration contracts issued by insurance entities. The updated guidance is intended to increase the transparency of significant estimates made in measuring liabilities for unpaid claims and claim adjustment expenses and to provide additional insight into an insurance entity’s ability to underwrite and anticipate costs associated with claims. The updated guidance is effective for annual reporting periods beginning after December 15, 2015 and for interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to impact its condensed consolidated financial statements. In May 2015, the FASB issued updated guidance intended to eliminate the diversity in practice surrounding how investments measured at net asset value under the practical expedient with future redemption dates have been categorized in the fair value hierarchy. Under the updated guidance, investments for which fair value is measured at net asset value per share using the practical expedient should no longer be categorized in the fair value hierarchy. The updated guidance requires retrospective adoption for all periods presented and is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. Except for the disclosure requirements, the Company does not expect the adoption of this guidance to impact its condensed consolidated financial statements. In April 2015, the FASB issued updated guidance intended to c larify the accounting treatment for cloud computing arrangements that include software licenses. Under the updated guidance, if a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. In April 2015, the FASB issued updated guidance intended to simplify, and provide consistency to, the presentation of debt issuance costs. The new standard requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. In February 2015, the FASB issued updated guidance which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. 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 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 recognition. 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. Revenue from insurance contracts is not within the scope of this guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption prohibited. In August 2015, the FASB issued updated guidance which defers the effective date of this guidance by one year to interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Gross Unrealized Losses on Investments in Debt and Equity Securities | Gross unrealized losses on investments in debt and equity securities are as follows: Less than 12 months 12 months or longer Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized September 30, 2015 Debt securities: U.S. Treasury bonds $ 44,043 $ (619 ) $ 1,667 $ (3 ) $ 45,710 $ (622 ) Municipal bonds 117,512 (1,253 ) 13,980 (123 ) 131,492 (1,376 ) Foreign bonds 26,589 (470 ) — — 26,589 (470 ) Governmental agency bonds 42,938 (778 ) 18,589 (62 ) 61,527 (840 ) Governmental agency mortgage-backed securities 559,912 (1,955 ) 189,496 (3,929 ) 749,408 (5,884 ) Corporate debt securities 352,891 (12,515 ) 22,855 (2,021 ) 375,746 (14,536 ) Total debt securities 1,143,885 (17,590 ) 246,587 (6,138 ) 1,390,472 (23,728 ) Equity securities 233,230 (19,649 ) 15,988 (4,238 ) 249,218 (23,887 ) Total $ 1,377,115 $ (37,239 ) $ 262,575 $ (10,376 ) $ 1,639,690 $ (47,615 ) December 31, 2014 Debt securities: U.S. Treasury bonds $ 8,122 $ (27 ) $ 15,124 $ (154 ) $ 23,246 $ (181 ) Municipal bonds 137,755 (689 ) 19,625 (318 ) 157,380 (1,007 ) Foreign bonds 6,215 (8 ) — — 6,215 (8 ) Governmental agency bonds 27,479 (88 ) 127,936 (1,930 ) 155,415 (2,018 ) Governmental agency mortgage-backed securities 383,717 (1,612 ) 300,918 (7,483 ) 684,635 (9,095 ) Non-agency mortgage-backed securities — — 5,611 (717 ) 5,611 (717 ) Corporate debt securities 198,079 (3,151 ) 9,683 (113 ) 207,762 (3,264 ) Total debt securities 761,367 (5,575 ) 478,897 (10,715 ) 1,240,264 (16,290 ) Equity securities 208,922 (8,587 ) 2,340 (191 ) 211,262 (8,778 ) Total $ 970,289 $ (14,162 ) $ 481,237 $ (10,906 ) $ 1,451,526 $ (25,068 ) |
Investments in Debt Securities | Investments in debt securities at September 30, 2015, by contractual maturities, are as follows: (in thousands) Due in one Due after Due after Due after Total U.S. Treasury bonds Amortized cost $ 10,421 $ 78,411 $ 11,157 $ 12,635 $ 112,624 Estimated fair value $ 10,480 $ 78,593 $ 11,150 $ 12,582 $ 112,805 Municipal bonds Amortized cost $ 40,995 $ 285,582 $ 219,524 $ 136,127 $ 682,228 Estimated fair value $ 41,151 $ 288,838 $ 224,249 $ 138,750 $ 692,988 Foreign bonds Amortized cost $ 48,824 $ 116,849 $ 10,812 $ 3,061 $ 179,546 Estimated fair value $ 49,112 $ 118,252 $ 10,959 $ 2,987 $ 181,310 Governmental agency bonds Amortized cost $ 11,677 $ 338,426 $ 43,163 $ 26,912 $ 420,178 Estimated fair value $ 11,690 $ 339,130 $ 43,633 $ 26,884 $ 421,337 Corporate debt securities Amortized cost $ 20,341 $ 329,518 $ 368,094 $ 77,632 $ 795,585 Estimated fair value $ 20,547 $ 331,346 $ 361,815 $ 74,551 $ 788,259 Total debt securities excluding mortgage-backed securities Amortized cost $ 132,258 $ 1,148,786 $ 652,750 $ 256,367 $ 2,190,161 Estimated fair value $ 132,980 $ 1,156,159 $ 651,806 $ 255,754 $ 2,196,699 Total mortgage-backed securities Amortized cost $ 2,071,934 Estimated fair value $ 2,077,417 Total debt securities Amortized cost $ 4,262,095 Estimated fair value $ 4,274,116 |
Debt Securities | |
Investments Classified as Available-For-Sale | Investments in debt securities, all of which are classified as available-for-sale, are as follows: (in thousands) Amortized Gross unrealized Estimated Gains Losses September 30, 2015 U.S. Treasury bonds $ 112,624 $ 803 $ (622 ) $ 112,805 Municipal bonds 682,228 12,136 (1,376 ) 692,988 Foreign bonds 179,546 2,234 (470 ) 181,310 Governmental agency bonds 420,178 1,999 (840 ) 421,337 Governmental agency mortgage-backed securities 2,071,934 11,367 (5,884 ) 2,077,417 Corporate debt securities 795,585 7,210 (14,536 ) 788,259 $ 4,262,095 $ 35,749 $ (23,728 ) $ 4,274,116 December 31, 2014 U.S. Treasury bonds $ 64,195 $ 968 $ (181 ) $ 64,982 Municipal bonds 577,703 10,981 (1,007 ) 587,677 Foreign bonds 194,749 2,009 (8 ) 196,750 Governmental agency bonds 198,330 1,562 (2,018 ) 197,874 Governmental agency mortgage-backed securities 1,812,766 8,491 (9,095 ) 1,812,162 Non-agency mortgage-backed securities 15,949 1,306 (717 ) 16,538 Corporate debt securities 568,774 8,759 (3,264 ) 574,269 $ 3,432,466 $ 34,076 $ (16,290 ) $ 3,450,252 |
Equity securities | |
Investments Classified as Available-For-Sale | Investments in equity securities, all of which are classified as available-for-sale, are as follows: Cost Gross unrealized Estimated (in thousands) Gains Losses September 30, 2015 Preferred stocks $ 18,965 $ 665 $ (3,985 ) $ 15,645 Common stocks 307,225 9,067 (19,902 ) 296,390 $ 326,190 $ 9,732 $ (23,887 ) $ 312,035 December 31, 2014 Preferred stocks $ 14,976 $ 596 $ (47 ) $ 15,525 Common stocks 378,938 16,680 (8,731 ) 386,887 $ 393,914 $ 17,276 $ (8,778 ) $ 402,412 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Operating Segment | A summary of the changes in the carrying amount of goodwill, by operating segment, for the nine months ended September 30, 2015, is as follows: (in thousands) Title Specialty Total Balance as of December 31, 2014 $ 913,180 $ 46,765 $ 959,945 Acquisitions 16,060 — 16,060 Foreign currency translation (7,455 ) — (7,455 ) Balance as of September 30, 2015 $ 921,785 $ 46,765 $ 968,550 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Other intangible assets consist of the following: (in thousands) September 30, 2015 December 31, Finite-lived intangible assets: Customer relationships $ 94,589 $ 94,850 Noncompete agreements 27,229 27,286 Trademarks 9,359 11,241 Patents 2,840 2,840 134,017 136,217 Accumulated amortization (100,007 ) (97,282 ) 34,010 38,935 Indefinite-lived intangible assets: Licenses 16,877 16,877 $ 50,887 $ 55,812 |
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 2015 $ 2,242 2016 $ 8,344 2017 $ 7,153 2018 $ 4,701 2019 $ 3,907 2020 $ 2,315 |
Reserve for Known and Incurre27
Reserve for Known and Incurred but Not Reported Claims (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Insurance Loss Reserves [Abstract] | |
Summary of Loss Reserves | A summary of the Company’s loss reserves is as follows: (in thousands, except percentages) September 30, 2015 December 31, 2014 Known title claims $ 84,478 8.7 % $ 165,330 16.3 % Incurred but not reported claims 830,255 85.5 % 802,069 79.3 % Total title claims 914,733 94.2 % 967,399 95.6 % Non-title claims 56,720 5.8 % 44,381 4.4 % Total loss reserves $ 971,453 100.0 % $ 1,011,780 100.0 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Numerator Net income attributable to the Company $ 75,542 $ 80,705 $ 206,520 $ 153,023 Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUs”) 68 189 230 361 Net income allocated to common stockholders $ 75,474 $ 80,516 $ 206,290 $ 152,662 Denominator Basic weighted-average shares 108,647 107,136 108,284 106,727 Effect of dilutive employee stock options and RSUs 1,357 1,727 1,422 1,819 Diluted weighted-average shares 110,004 108,863 109,706 108,546 Net income per share attributable to the Company’s stockholders Basic $ 0.69 $ 0.75 $ 1.91 $ 1.43 Diluted $ 0.69 $ 0.74 $ 1.88 $ 1.41 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Net Periodic Cost | Net periodic cost related to the Company’s defined benefit pension and supplemental benefit plans during the three and nine months ended September 30, 2015 and 2014 includes the following components: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Expense: Service costs $ 390 $ 329 $ 1,170 $ 986 Interest costs 6,786 7,933 20,805 21,845 Expected return on plan assets (5,341 ) (6,165 ) (16,237 ) (15,554 ) Amortization of net actuarial loss 7,613 2,372 24,596 17,186 Amortization of prior service credit (1,041 ) (1,038 ) (3,122 ) (3,115 ) $ 8,407 $ 3,431 $ 27,212 $ 21,348 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets Measured on Recurring Basis | The following table presents the fair values of the Company’s assets, measured on a recurring basis, as of September 30, 2015 and December 31, 2014: (in thousands) Total Level 1 Level 2 Level 3 September 30, 2015 Assets: Debt securities: U.S. Treasury bonds $ 112,805 $ — $ 112,805 $ — Municipal bonds 692,988 — 692,988 — Foreign bonds 181,310 — 181,310 — Governmental agency bonds 421,337 — 421,337 — Governmental agency mortgage-backed securities 2,077,417 — 2,077,417 — Corporate debt securities 788,259 — 779,901 8,358 4,274,116 — 4,265,758 8,358 Equity securities: Preferred stocks 15,645 15,645 — — Common stocks 296,390 296,390 — — 312,035 312,035 — — Total assets $ 4,586,151 $ 312,035 $ 4,265,758 $ 8,358 (in thousands) Total Level 1 Level 2 Level 3 December 31, 2014 Assets: Debt securities: U.S. Treasury bonds $ 64,982 $ — $ 64,982 $ — Municipal bonds 587,677 — 587,677 — Foreign bonds 196,750 — 196,750 — Governmental agency bonds 197,874 — 197,874 — Governmental agency mortgage-backed securities 1,812,162 — 1,812,162 — Non-agency mortgage-backed securities 16,538 — — 16,538 Corporate debt securities 574,269 — 574,269 — 3,450,252 — 3,433,714 16,538 Equity securities: Preferred stocks 15,525 15,525 — — Common stocks 386,887 386,887 — — 402,412 402,412 — — Total assets $ 3,852,664 $ 402,412 $ 3,433,714 $ 16,538 |
Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis | The following table presents a summary of the changes in the fair values of Level 3 assets measured on a recurring basis for the three months ended September 30, 2015 and 2014: (in thousands) September 30, 2015 September 30, 2014 Corporate debt securities Non-agency mortgage-backed securities Fair value at beginning of period $ 11,358 $ 17,994 Transfers into Level 3 1,921 — Transfers out of Level 3 (4,011 ) — Net realized and unrealized gains (losses): Included in earnings: Net realized investment losses (2 ) — Included in other comprehensive income (loss) (40 ) 252 Purchases 1,698 — Sales (92 ) — Settlements (2,474 ) (695 ) Fair value at end of period $ 8,358 $ 17,551 The following table presents a summary of the changes in the fair values of Level 3 assets measured on a recurring basis for the nine months ended September 30, 2015 and 2014: (in thousands) September 30, 2015 September 30, 2014 Corporate debt securities Non-agency mortgage-backed securities Total Non-agency mortgage-backed securities Fair value at beginning of period $ — $ 16,538 $ 16,538 $ 19,022 Net realized and unrealized gains (losses): Included in earnings: Net realized investment gains (losses) 1 (1,015 ) (1,014 ) — Net other-than-temporary impairment losses — — — (1,033 ) Included in other comprehensive income (loss) 6 (589 ) (583 ) 941 Purchases 8,831 — 8,831 — Sales (427 ) (14,934 ) (15,361 ) — Settlements (53 ) — (53 ) (1,379 ) Fair value at end of period $ 8,358 $ — $ 8,358 $ 17,551 Unrealized gains (losses) included in earnings for the period relating to Level 3 assets that were still held at the end of the period: Net other-than-temporary impairment losses $ — $ — $ — $ (1,033 ) |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value as of September 30, 2015 and December 31, 2014: Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 September 30, 2015 Assets: Cash and cash equivalents $ 894,430 $ 894,430 $ 894,430 $ — $ — Deposits with banks $ 16,388 $ 16,444 $ 547 $ 15,897 $ — Notes receivable, net $ 6,026 $ 4,440 $ — $ — $ 4,440 Liabilities: Deposits $ 2,621,209 $ 2,621,209 $ 2,621,209 $ — $ — Notes and contracts payable $ 584,952 $ 596,894 $ — $ 590,673 $ 6,221 Carrying Estimated fair value (in thousands) Amount Total Level 1 Level 2 Level 3 December 31, 2014 Assets: Cash and cash equivalents $ 1,190,080 $ 1,190,080 $ 1,190,080 $ — $ — Deposits with banks $ 21,445 $ 21,540 $ 4,068 $ 17,472 $ — Notes receivable, net $ 6,130 $ 3,930 $ — $ — $ 3,930 Liabilities: Deposits $ 2,332,714 $ 2,332,714 $ 2,332,714 $ — $ — Notes and contracts payable $ 587,337 $ 595,087 $ — $ 588,542 $ 6,545 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expenses Associated with Share-Based Compensation Plans | The following table presents expenses associated with the Company’s share-based compensation plans: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Expense: RSUs $ 4,059 $ 2,910 $ 18,278 $ 14,275 Stock options 68 68 203 203 Employee stock purchase plan 571 465 1,780 1,484 $ 4,698 $ 3,443 $ 20,261 $ 15,962 |
Summary of RSU Activity | The following table summarizes RSU activity for the nine months ended September 30, 2015: (in thousands, except weighted-average grant-date fair value) Shares Weighted-average RSUs unvested at December 31, 2014 2,337 $ 21.21 Granted during 2015 750 $ 34.74 Vested during 2015 (986 ) $ 18.44 Forfeited during 2015 (22 ) $ 28.27 RSUs unvested at September 30, 2015 2,079 $ 27.33 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the nine months ended September 30, 2015: (in thousands, except weighted-average Number Weighted- Weighted- Aggregate Balance at December 31, 2014 686 $ 20.18 Exercised during 2015 (307 ) $ 16.79 Balance at September 30, 2015 379 $ 22.94 3.0 years $ 6,107 Vested and expected to vest at September 30, 2015 379 $ 22.94 3.0 years $ 6,107 Exercisable at September 30, 2015 279 $ 21.26 1.1 years $ 4,974 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table presents a summary of the changes in each component of AOCI for the nine months ended September 30, 2015: (in thousands) Unrealized Foreign Pension Accumulated Balance at December 31, 2014 $ 10,911 $ (20,420 ) $ (189,580 ) $ (199,089 ) Change in unrealized gains (losses) on securities (28,421 ) — — (28,421 ) Change in foreign currency translation adjustment — (29,210 ) — (29,210 ) Amortization of net actuarial loss — — 24,596 24,596 Amortization of prior service cost — — (3,122 ) (3,122 ) Tax effect 9,047 — (8,214 ) 833 Balance at September 30, 2015 $ (8,463 ) $ (49,630 ) $ (176,320 ) $ (234,413 ) Allocated to the Company $ (8,463 ) $ (49,630 ) $ (176,320 ) $ (234,413 ) Allocated to noncontrolling interests — — — — Balance at September 30, 2015 $ (8,463 ) $ (49,630 ) $ (176,320 ) $ (234,413 ) |
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 September 30, 2015 and 2014: (in thousands) Unrealized Foreign Pension Total Three Months Ended September 30, 2015 Pretax change before reclassifications $ (15,614 ) $ (15,416 ) $ — $ (31,030 ) Reclassifications out of AOCI (108 ) — 6,572 6,464 Tax effect 4,780 — (2,514 ) 2,266 Total other comprehensive income (loss), net of tax $ (10,942 ) $ (15,416 ) $ 4,058 $ (22,300 ) Three Months Ended September 30, 2014 Pretax change before reclassifications $ (15,076 ) $ (12,557 ) $ — $ (27,633 ) Reclassifications out of AOCI (9,241 ) — 1,334 (7,907 ) Tax effect 9,582 — (427 ) 9,155 Total other comprehensive income (loss), net of tax $ (14,735 ) $ (12,557 ) $ 907 $ (26,385 ) The following table presents the other comprehensive income (loss) reclassification adjustments for the nine months ended September 30, 2015 and 2014: (in thousands) Unrealized Foreign Pension Total Nine Months Ended September 30, 2015 Pretax change before reclassifications $ (29,966 ) $ (29,210 ) $ — $ (59,176 ) Reclassifications out of AOCI 1,545 — 21,474 23,019 Tax effect 9,047 — (8,214 ) 833 Total other comprehensive income (loss), net of tax $ (19,374 ) $ (29,210 ) $ 13,260 $ (35,324 ) Nine Months Ended September 30, 2014 Pretax change before reclassifications $ 35,317 $ (6,985 ) $ — $ 28,332 Reclassifications out of AOCI (16,689 ) — 14,071 (2,618 ) Tax effect (7,124 ) — (5,381 ) (12,505 ) Total other comprehensive income (loss), net of tax $ 11,504 $ (6,985 ) $ 8,690 $ 13,209 |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the effect of the reclassifications out of AOCI on the respective line items in the condensed consolidated statements of income: Amounts reclassified from AOCI (in thousands) Three Months Ended September 30, Nine Months Ended September 30, Affected line items in the condensed 2015 2014 2015 2014 consolidated statements of income Unrealized gains (losses) on securities: Net realized gains (losses) on sales of securities $ 108 $ 9,241 $ (1,545 ) $ 17,722 Net realized investment gains (losses) Net other-than-temporary impairment losses — — — (1,033 ) Net realized investment gains (losses) Pretax total $ 108 $ 9,241 $ (1,545 ) $ 16,689 Tax effect $ (33 ) $ (3,641 ) $ 492 $ (6,383 ) Pension benefit adjustment: Amortization of defined benefit pension and supplemental benefit plan items: Net actuarial loss $ (7,613 ) $ (2,372 ) $ (24,596 ) $ (17,186 ) (1) Prior service credit 1,041 1,038 3,122 3,115 (1) Pretax total $ (6,572 ) $ (1,334 ) $ (21,474 ) $ (14,071 ) Tax effect $ 2,514 $ 427 $ 8,214 $ 5,381 (1) These components of AOCI are included in the computation of net periodic cost. See Note 9 Employee Benefit Plans for additional details. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information | Selected financial information, by reporting segment, is as follows: For the three months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,288,156 $ 136,984 $ 19,753 $ 31,309 Specialty Insurance 101,210 1,684 1,197 927 Corporate (5,428 ) (23,272 ) 122 2 Eliminations (23 ) — — — $ 1,383,915 $ 115,396 $ 21,072 $ 32,238 For the three months ended September 30, 2014: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 1,165,835 $ 121,000 $ 21,879 $ 25,389 Specialty Insurance 94,854 10,433 1,210 610 Corporate (571 ) (15,481 ) 1,038 — Eliminations (388 ) — — — $ 1,259,730 $ 115,952 $ 24,127 $ 25,999 For the nine months ended September 30, 2015: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,534,987 $ 361,223 $ 59,443 $ 91,468 Specialty Insurance 293,398 29,446 3,579 2,804 Corporate (9,148 ) (74,703 ) 367 2 Eliminations (449 ) — — — $ 3,818,788 $ 315,966 $ 63,389 $ 94,274 For the nine months ended September 30, 2014: (in thousands) Revenues Income (loss) Depreciation Capital Title Insurance and Services $ 3,146,558 $ 248,474 $ 57,416 $ 63,395 Specialty Insurance 273,179 35,366 3,787 2,667 Corporate 3,927 (56,177 ) 2,676 — Eliminations (1,166 ) — — — $ 3,422,498 $ 227,663 $ 63,879 $ 66,062 |
Escrow Deposits, Like-Kind Ex34
Escrow Deposits, Like-Kind Exchange Deposits and Trust Assets (Detail) - USD ($) $ in Billions | Sep. 30, 2015 | Dec. 31, 2014 |
Subsidiaries And Third Party Financial Institutions | ||
Other Assets [Line Items] | ||
Escrow deposits | $ 8 | $ 6.3 |
First American Trust | ||
Other Assets [Line Items] | ||
Escrow deposits | 2.5 | 2.2 |
Trust assets | 3 | 3 |
Third Party Financial Institutions | ||
Other Assets [Line Items] | ||
Like-kind exchange funds | $ 2.9 | $ 2.4 |
Debt and Equity Securities (Inv
Debt and Equity Securities (Investments in Debt Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 4,262,095 | $ 3,432,466 |
Gross unrealized, gains | 35,749 | 34,076 |
Gross unrealized, losses | (23,728) | (16,290) |
Debt securities, Estimated fair value | 4,274,116 | 3,450,252 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 112,624 | 64,195 |
Gross unrealized, gains | 803 | 968 |
Gross unrealized, losses | (622) | (181) |
Debt securities, Estimated fair value | 112,805 | 64,982 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 682,228 | 577,703 |
Gross unrealized, gains | 12,136 | 10,981 |
Gross unrealized, losses | (1,376) | (1,007) |
Debt securities, Estimated fair value | 692,988 | 587,677 |
Foreign Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 179,546 | 194,749 |
Gross unrealized, gains | 2,234 | 2,009 |
Gross unrealized, losses | (470) | (8) |
Debt securities, Estimated fair value | 181,310 | 196,750 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 420,178 | 198,330 |
Gross unrealized, gains | 1,999 | 1,562 |
Gross unrealized, losses | (840) | (2,018) |
Debt securities, Estimated fair value | 421,337 | 197,874 |
Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,071,934 | 1,812,766 |
Gross unrealized, gains | 11,367 | 8,491 |
Gross unrealized, losses | (5,884) | (9,095) |
Debt securities, Estimated fair value | 2,077,417 | 1,812,162 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 795,585 | 568,774 |
Gross unrealized, gains | 7,210 | 8,759 |
Gross unrealized, losses | (14,536) | (3,264) |
Debt securities, Estimated fair value | $ 788,259 | 574,269 |
Non-Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 15,949 | |
Gross unrealized, gains | 1,306 | |
Gross unrealized, losses | (717) | |
Debt securities, Estimated fair value | $ 16,538 |
Debt and Equity Securities (I36
Debt and Equity Securities (Investments in Equity Securities, Classified as Available-For-Sale) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Amortized Cost | $ 326,190 | $ 393,914 |
Equity securities, Gross unrealized gains | 9,732 | 17,276 |
Equity securities, Gross unrealized losses | (23,887) | (8,778) |
Equity securities | 312,035 | 402,412 |
Preferred stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Amortized Cost | 18,965 | 14,976 |
Equity securities, Gross unrealized gains | 665 | 596 |
Equity securities, Gross unrealized losses | (3,985) | (47) |
Equity securities | 15,645 | 15,525 |
Common stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Amortized Cost | 307,225 | 378,938 |
Equity securities, Gross unrealized gains | 9,067 | 16,680 |
Equity securities, Gross unrealized losses | (19,902) | (8,731) |
Equity securities | $ 296,390 | $ 386,887 |
Debt and Equity Securities (Nar
Debt and Equity Securities (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments Debt And Equity Securities [Abstract] | ||||
Realized gains on sales of securities | $ 1.3 | $ 9.9 | $ 6.5 | $ 24.6 |
Realized losses on sales of securities | $ 1.6 | $ 1.7 | $ 8.2 | $ 6.1 |
Debt and Equity Securities (Gro
Debt and Equity Securities (Gross Unrealized Losses on Investments in Debt and Equity Securities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | $ 1,377,115 | $ 970,289 |
Unrealized losses, Less than 12 months | (37,239) | (14,162) |
Estimated fair value, 12 months or longer | 262,575 | 481,237 |
Unrealized losses, 12 months or longer | (10,376) | (10,906) |
Estimated fair value, Total | 1,639,690 | 1,451,526 |
Unrealized losses, Total | (47,615) | (25,068) |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 1,143,885 | 761,367 |
Unrealized losses, Less than 12 months | (17,590) | (5,575) |
Estimated fair value, 12 months or longer | 246,587 | 478,897 |
Unrealized losses, 12 months or longer | (6,138) | (10,715) |
Estimated fair value, Total | 1,390,472 | 1,240,264 |
Unrealized losses, Total | (23,728) | (16,290) |
Debt Securities | U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 44,043 | 8,122 |
Unrealized losses, Less than 12 months | (619) | (27) |
Estimated fair value, 12 months or longer | 1,667 | 15,124 |
Unrealized losses, 12 months or longer | (3) | (154) |
Estimated fair value, Total | 45,710 | 23,246 |
Unrealized losses, Total | (622) | (181) |
Debt Securities | Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 117,512 | 137,755 |
Unrealized losses, Less than 12 months | (1,253) | (689) |
Estimated fair value, 12 months or longer | 13,980 | 19,625 |
Unrealized losses, 12 months or longer | (123) | (318) |
Estimated fair value, Total | 131,492 | 157,380 |
Unrealized losses, Total | (1,376) | (1,007) |
Debt Securities | Foreign Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 26,589 | 6,215 |
Unrealized losses, Less than 12 months | (470) | (8) |
Estimated fair value, Total | 26,589 | 6,215 |
Unrealized losses, Total | (470) | (8) |
Debt Securities | Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 42,938 | 27,479 |
Unrealized losses, Less than 12 months | (778) | (88) |
Estimated fair value, 12 months or longer | 18,589 | 127,936 |
Unrealized losses, 12 months or longer | (62) | (1,930) |
Estimated fair value, Total | 61,527 | 155,415 |
Unrealized losses, Total | (840) | (2,018) |
Debt Securities | Governmental Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 559,912 | 383,717 |
Unrealized losses, Less than 12 months | (1,955) | (1,612) |
Estimated fair value, 12 months or longer | 189,496 | 300,918 |
Unrealized losses, 12 months or longer | (3,929) | (7,483) |
Estimated fair value, Total | 749,408 | 684,635 |
Unrealized losses, Total | (5,884) | (9,095) |
Debt Securities | Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 352,891 | 198,079 |
Unrealized losses, Less than 12 months | (12,515) | (3,151) |
Estimated fair value, 12 months or longer | 22,855 | 9,683 |
Unrealized losses, 12 months or longer | (2,021) | (113) |
Estimated fair value, Total | 375,746 | 207,762 |
Unrealized losses, Total | (14,536) | (3,264) |
Debt Securities | Non-Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, 12 months or longer | 5,611 | |
Unrealized losses, 12 months or longer | (717) | |
Estimated fair value, Total | 5,611 | |
Unrealized losses, Total | (717) | |
Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated fair value, Less than 12 months | 233,230 | 208,922 |
Unrealized losses, Less than 12 months | (19,649) | (8,587) |
Estimated fair value, 12 months or longer | 15,988 | 2,340 |
Unrealized losses, 12 months or longer | (4,238) | (191) |
Estimated fair value, Total | 249,218 | 211,262 |
Unrealized losses, Total | $ (23,887) | $ (8,778) |
Debt and Equity Securities (I39
Debt and Equity Securities (Investments in Debt Securities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 4,262,095 | $ 3,432,466 |
Debt securities, Estimated fair value | 4,274,116 | 3,450,252 |
U.S. Treasury Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 10,421 | |
Amortized cost, Due after one through five years | 78,411 | |
Amortized cost, Due after five through ten years | 11,157 | |
Amortized cost, Due after ten years | 12,635 | |
Amortized Cost | 112,624 | 64,195 |
Estimated fair value, Due in one year or less | 10,480 | |
Estimated fair value, Due after one through five years | 78,593 | |
Estimated fair value, Due after five through ten years | 11,150 | |
Estimated fair value, Due after ten years | 12,582 | |
Debt securities, Estimated fair value | 112,805 | 64,982 |
Municipal Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 40,995 | |
Amortized cost, Due after one through five years | 285,582 | |
Amortized cost, Due after five through ten years | 219,524 | |
Amortized cost, Due after ten years | 136,127 | |
Amortized Cost | 682,228 | 577,703 |
Estimated fair value, Due in one year or less | 41,151 | |
Estimated fair value, Due after one through five years | 288,838 | |
Estimated fair value, Due after five through ten years | 224,249 | |
Estimated fair value, Due after ten years | 138,750 | |
Debt securities, Estimated fair value | 692,988 | 587,677 |
Foreign Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 48,824 | |
Amortized cost, Due after one through five years | 116,849 | |
Amortized cost, Due after five through ten years | 10,812 | |
Amortized cost, Due after ten years | 3,061 | |
Amortized Cost | 179,546 | 194,749 |
Estimated fair value, Due in one year or less | 49,112 | |
Estimated fair value, Due after one through five years | 118,252 | |
Estimated fair value, Due after five through ten years | 10,959 | |
Estimated fair value, Due after ten years | 2,987 | |
Debt securities, Estimated fair value | 181,310 | 196,750 |
Governmental Agency Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 11,677 | |
Amortized cost, Due after one through five years | 338,426 | |
Amortized cost, Due after five through ten years | 43,163 | |
Amortized cost, Due after ten years | 26,912 | |
Amortized Cost | 420,178 | 198,330 |
Estimated fair value, Due in one year or less | 11,690 | |
Estimated fair value, Due after one through five years | 339,130 | |
Estimated fair value, Due after five through ten years | 43,633 | |
Estimated fair value, Due after ten years | 26,884 | |
Debt securities, Estimated fair value | 421,337 | 197,874 |
Corporate Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 20,341 | |
Amortized cost, Due after one through five years | 329,518 | |
Amortized cost, Due after five through ten years | 368,094 | |
Amortized cost, Due after ten years | 77,632 | |
Amortized Cost | 795,585 | 568,774 |
Estimated fair value, Due in one year or less | 20,547 | |
Estimated fair value, Due after one through five years | 331,346 | |
Estimated fair value, Due after five through ten years | 361,815 | |
Estimated fair value, Due after ten years | 74,551 | |
Debt securities, Estimated fair value | 788,259 | $ 574,269 |
Debt Securities Excluding Mortgage Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | 132,258 | |
Amortized cost, Due after one through five years | 1,148,786 | |
Amortized cost, Due after five through ten years | 652,750 | |
Amortized cost, Due after ten years | 256,367 | |
Amortized Cost | 2,190,161 | |
Estimated fair value, Due in one year or less | 132,980 | |
Estimated fair value, Due after one through five years | 1,156,159 | |
Estimated fair value, Due after five through ten years | 651,806 | |
Estimated fair value, Due after ten years | 255,754 | |
Debt securities, Estimated fair value | 2,196,699 | |
Total Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 2,071,934 | |
Estimated fair value | $ 2,077,417 |
Goodwill (Carrying Amount of Go
Goodwill (Carrying Amount of Goodwill by Operating Segment) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 959,945 |
Acquisitions | 16,060 |
Foreign currency translation | (7,455) |
Ending balance | 968,550 |
Title Insurance and Services | |
Goodwill [Line Items] | |
Beginning balance | 913,180 |
Acquisitions | 16,060 |
Foreign currency translation | (7,455) |
Ending balance | 921,785 |
Specialty Insurance | |
Goodwill [Line Items] | |
Beginning balance | 46,765 |
Ending balance | $ 46,765 |
Goodwill (Narrative) (Detail)
Goodwill (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2015USD ($)segment | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Number of reporting units | segment | 4 |
Accumulated goodwill impairment | $ 0 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Intangible Assets Net Excluding Goodwill [Abstract] | ||
Customer relationships | $ 94,589 | $ 94,850 |
Noncompete agreements | 27,229 | 27,286 |
Trademarks | 9,359 | 11,241 |
Patents | 2,840 | 2,840 |
Finite-lived intangible assets, gross | 134,017 | 136,217 |
Accumulated amortization | (100,007) | (97,282) |
Finite-lived intangible assets, net | 34,010 | 38,935 |
Licenses | 16,877 | 16,877 |
Other intangibles assets, net | $ 50,887 | $ 55,812 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||
Amortization expense | $ 2.3 | $ 5.3 | $ 7.1 | $ 10.4 |
Other Intangible Assets (Estima
Other Intangible Assets (Estimated Amortization Expense for Finite-Lived Intangible Assets) (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Remainder of 2015 | $ 2,242 |
2,016 | 8,344 |
2,017 | 7,153 |
2,018 | 4,701 |
2,019 | 3,907 |
2,020 | $ 2,315 |
Reserve for Known and Incurre45
Reserve for Known and Incurred but Not Reported Claims (Summary of Loss Reserves) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Insurance [Abstract] | ||
Known title claims, amount | $ 84,478 | $ 165,330 |
Incurred but not reported claims, amount | 830,255 | 802,069 |
Total title claims, amount | 914,733 | 967,399 |
Non-title claims, amount | 56,720 | 44,381 |
Total loss reserves, amount | $ 971,453 | $ 1,011,780 |
Known title claims, percent | 8.70% | 16.30% |
Incurred but not reported claims, percent | 85.50% | 79.30% |
Total title claims, percent | 94.20% | 95.60% |
Non-title claims, percent | 5.80% | 4.40% |
Total loss reserves, percent | 100.00% | 100.00% |
Reserve for Known and Incurre46
Reserve for Known and Incurred but Not Reported Claims (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Reserve For Known And Incurred But Not Reported Claims [Line Items] | ||||||
Known title claims, amount | $ 84,478 | $ 84,478 | $ 165,330 | |||
Decline in reserve for known title claims, amount | $ 80,900 | |||||
Decline in reserve for known title claims, percentage | 48.90% | |||||
Amount of payments to settle claims net of recovered through reinsurance | $ 35,000 | |||||
Amount recovered through reinsurance | $ 21,000 | |||||
Provision for title loss, percentage of title premiums and escrow fees | 6.50% | 6.70% | 6.50% | 7.20% | ||
Ultimate loss rate | 6.00% | 6.00% | ||||
Estimated increase in loss reserve for prior policy years | $ 5,500 | $ 6,800 | ||||
Known title large claims | ||||||
Reserve For Known And Incurred But Not Reported Claims [Line Items] | ||||||
Known title claims, amount | $ 56,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 34.30% | 30.20% | 34.40% | 32.60% | |
Net payable related to spin-off tax liabilities | $ 36.2 | $ 36.2 | $ 35.1 | ||
Liability for income taxes associated with uncertain tax positions | 24.4 | 24.4 | 24.1 | ||
Offsetting tax benefits related to uncertain tax positions | 3.4 | 3.4 | 3.4 | ||
Uncertain tax positions, net | 21 | 21 | 20.7 | ||
Accrued interest and penalties on uncertain tax positions | $ 9.5 | 9.5 | 8.9 | ||
Other tax benefits related to interest and penalties of uncertain tax positions | $ 4 | $ 3.7 | |||
Unrecognized tax positions increase decrease, months | It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company’s unrecognized tax positions may significantly decrease within the next 12 months. These changes may be the result of ongoing audits or the expiration of federal and state statutes of limitations for the assessment of taxes. |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to the Company | $ 75,542 | $ 80,705 | $ 206,520 | $ 153,023 |
Less: dividends and undistributed earnings allocated to unvested restricted stock units (“RSUs”) | 68 | 189 | 230 | 361 |
Net income allocated to common stockholders | $ 75,474 | $ 80,516 | $ 206,290 | $ 152,662 |
Basic weighted-average shares | 108,647 | 107,136 | 108,284 | 106,727 |
Effect of dilutive employee stock options and RSUs | 1,357 | 1,727 | 1,422 | 1,819 |
Diluted weighted-average shares | 110,004 | 108,863 | 109,706 | 108,546 |
Basic | $ 0.69 | $ 0.75 | $ 1.91 | $ 1.43 |
Diluted | $ 0.69 | $ 0.74 | $ 1.88 | $ 1.41 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Options and Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options and RSUs excluded from the weighted-average diluted common shares outstanding | 2 | 132 | 1 | 133 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Cost) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Compensation And Retirement Disclosure [Abstract] | ||||
Service costs | $ 390 | $ 329 | $ 1,170 | $ 986 |
Interest costs | 6,786 | 7,933 | 20,805 | 21,845 |
Expected return on plan assets | (5,341) | (6,165) | (16,237) | (15,554) |
Amortization of net actuarial loss | 7,613 | 2,372 | 24,596 | 17,186 |
Amortization of prior service credit | (1,041) | (1,038) | (3,122) | (3,115) |
Net periodic cost | $ 8,407 | $ 3,431 | $ 27,212 | $ 21,348 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Contribution | $ 31.6 |
Expected additional contributions remainder of 2015 | $ 4.2 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Total assets | $ 4,586,151 | $ 3,852,664 |
Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 4,274,116 | 3,450,252 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 312,035 | 402,412 |
U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 112,805 | 64,982 |
Municipal Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 692,988 | 587,677 |
Foreign Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 181,310 | 196,750 |
Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 421,337 | 197,874 |
Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 2,077,417 | 1,812,162 |
Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 788,259 | 574,269 |
Preferred stocks | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 15,645 | 15,525 |
Common Stock | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 296,390 | 386,887 |
Non-Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 16,538 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Total assets | 312,035 | 402,412 |
Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 312,035 | 402,412 |
Level 1 | Preferred stocks | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 15,645 | 15,525 |
Level 1 | Common Stock | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 296,390 | 386,887 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Total assets | 4,265,758 | 3,433,714 |
Level 2 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 4,265,758 | 3,433,714 |
Level 2 | U.S. Treasury Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 112,805 | 64,982 |
Level 2 | Municipal Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 692,988 | 587,677 |
Level 2 | Foreign Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 181,310 | 196,750 |
Level 2 | Governmental Agency Bonds | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 421,337 | 197,874 |
Level 2 | Governmental Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 2,077,417 | 1,812,162 |
Level 2 | Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 779,901 | 574,269 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Total assets | 8,358 | 16,538 |
Level 3 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | 8,358 | 16,538 |
Level 3 | Corporate Debt Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | $ 8,358 | |
Level 3 | Non-Agency Mortgage-Backed Securities | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ||
Available for sale securities, estimated fair value | $ 16,538 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value assets, Level 1 to Level 2 transfers amount | $ 0 | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers amount | 0 | 0 | $ 0 |
Non-Agency Mortgage-Backed Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | $ 0 | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Changes in Fair Value of Level 3 Assets Measured on Recurring Basis) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 16,538,000 | |||
Net realized investment gains (losses) | (1,014,000) | |||
Included in other comprehensive income (loss) | (583,000) | |||
Purchases | 8,831,000 | |||
Sales | (15,361,000) | |||
Settlements | (53,000) | |||
Fair value at end of period | $ 8,358,000 | 8,358,000 | ||
Corporate Debt Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | 11,358,000 | |||
Transfers into Level 3 | 1,921,000 | |||
Transfers out of Level 3 | (4,011,000) | |||
Net realized investment gains (losses) | (2,000) | 1,000 | ||
Included in other comprehensive income (loss) | (40,000) | 6,000 | ||
Purchases | 1,698,000 | 8,831,000 | ||
Sales | (92,000) | (427,000) | ||
Settlements | (2,474,000) | (53,000) | ||
Fair value at end of period | $ 8,358,000 | 8,358,000 | ||
Non-Agency Mortgage-Backed Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair value at beginning of period | $ 17,994,000 | 16,538,000 | $ 19,022,000 | |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Net realized investment gains (losses) | (1,015,000) | |||
Included in other comprehensive income (loss) | 252,000 | (589,000) | 941,000 | |
Sales | $ (14,934,000) | |||
Settlements | (695,000) | (1,379,000) | ||
Fair value at end of period | $ 17,551,000 | 17,551,000 | ||
Net other-than-temporary impairment losses | $ (1,033,000) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments Not Measured at Fair Value) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 894,430 | $ 1,190,080 |
Deposits with banks | 16,388 | 21,445 |
Notes receivable, net | 6,026 | 6,130 |
Liabilities: | ||
Deposits | 2,621,209 | 2,332,714 |
Notes and contracts payable | 584,952 | 587,337 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 894,430 | 1,190,080 |
Deposits with banks | 16,444 | 21,540 |
Notes receivable, net | 4,440 | 3,930 |
Liabilities: | ||
Deposits | 2,621,209 | 2,332,714 |
Notes and contracts payable | 596,894 | 595,087 |
Estimated Fair Value | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 894,430 | 1,190,080 |
Deposits with banks | 547 | 4,068 |
Liabilities: | ||
Deposits | 2,621,209 | 2,332,714 |
Estimated Fair Value | Level 2 | ||
Assets: | ||
Deposits with banks | 15,897 | 17,472 |
Liabilities: | ||
Notes and contracts payable | 590,673 | 588,542 |
Estimated Fair Value | Level 3 | ||
Assets: | ||
Notes receivable, net | 4,440 | 3,930 |
Liabilities: | ||
Notes and contracts payable | $ 6,221 | $ 6,545 |
Share-Based Compensation (Expen
Share-Based Compensation (Expenses Associated with Share-Based Compensation Plans) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 4,698 | $ 3,443 | $ 20,261 | $ 15,962 |
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 4,059 | 2,910 | 18,278 | 14,275 |
Stock options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 68 | 68 | 203 | 203 |
Employee stock purchase plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 571 | $ 465 | $ 1,780 | $ 1,484 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of RSU Activity) (Detail) - Restricted stock units shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
RSU, Shares | |
Beginning Balance, Shares | 2,337 |
Granted, Shares | 750 |
Vested, Shares | (986) |
Forfeited, Shares | (22) |
Ending Balance, Shares | 2,079 |
RSU, Weighted-average grant-date fair value | |
Beginning Balance, Weighted-average grant-date fair value | $ / shares | $ 21.21 |
Granted, Weighted-average grant-date fair value | $ / shares | 34.74 |
Vested, Weighted-average grant-date fair value | $ / shares | 18.44 |
Forfeited, Weighted-average grant-date fair value | $ / shares | 28.27 |
Ending Balance, Weighted-average grant-date fair value | $ / shares | $ 27.33 |
Share-Based Compensation (Sum58
Share-Based Compensation (Summary of Stock Option Activity) (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Stock option, number outstanding | |
Beginning Balance, Number outstanding | 686 |
Exercised, Number outstanding | (307) |
Ending Balance, Number outstanding | 379 |
Vested and expected to vest at September 30, 2015, Number outstanding | 379 |
Exercisable at September 30, 2015, Number outstanding | 279 |
Stock option, weighted-average exercise price | |
Beginning Balance, Weighted-average exercise price | $ / shares | $ 20.18 |
Exercised, Weighted-average exercise price | $ / shares | 16.79 |
Ending Balance, Weighted-average exercise price | $ / shares | 22.94 |
Vested and expected to vest at September 30, 2015, Weighted-average exercise price | $ / shares | 22.94 |
Exercisable at September 30, 2015, Weighted-average exercise price | $ / shares | $ 21.26 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |
Ending Balance, Weighted-average remaining contractual term, years | 3 years |
Vested and expected to vest at September 30, 2015, Weighted-average remaining contractual term, years | 3 years |
Exercisable at September 30, 2015, Weighted-average remaining contractual term, years | 1 year 1 month 6 days |
Ending Balance, Aggregate intrinsic value | $ | $ 6,107 |
Vested and expected to vest at September 30, 2015, Aggregate intrinsic value | $ | 6,107 |
Exercisable at September 30, 2015, Aggregate intrinsic value | $ | $ 4,974 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Loss) (AOCI) (Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | $ (199,089) | ||||
Change in unrealized gains (losses) on securities | (28,421) | ||||
Change in foreign currency translation adjustment | (29,210) | ||||
Amortization of net actuarial loss | 24,596 | ||||
Amortization of prior service cost | (3,122) | ||||
Tax effect | $ 2,266 | $ 9,155 | 833 | $ (12,505) | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (234,413) | (234,413) | |||
Accumulated other comprehensive income (loss), Allocated to the Company | (234,413) | (234,413) | $ (199,106) | ||
Unrealized Gains (Losses) on Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | 10,911 | ||||
Change in unrealized gains (losses) on securities | (28,421) | ||||
Tax effect | 4,780 | 9,582 | 9,047 | (7,124) | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (8,463) | (8,463) | |||
Accumulated other comprehensive income (loss), Allocated to the Company | (8,463) | (8,463) | |||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (20,420) | ||||
Change in foreign currency translation adjustment | (29,210) | ||||
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (49,630) | (49,630) | |||
Accumulated other comprehensive income (loss), Allocated to the Company | (49,630) | (49,630) | |||
Pension Benefit Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) including non-controlling interest, Beginning Balance | (189,580) | ||||
Amortization of net actuarial loss | 24,596 | ||||
Amortization of prior service cost | (3,122) | ||||
Tax effect | (2,514) | $ (427) | (8,214) | $ (5,381) | |
Accumulated other comprehensive income (loss) including non-controlling interest, Ending Balance | (176,320) | (176,320) | |||
Accumulated other comprehensive income (loss), Allocated to the Company | $ (176,320) | $ (176,320) |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Income (Loss) (Other Comprehensive Income (Loss) Reclassification Adjustments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pretax change before reclassifications | $ (31,030) | $ (27,633) | $ (59,176) | $ 28,332 |
Reclassifications out of AOCI | 6,464 | (7,907) | 23,019 | (2,618) |
Tax effect | 2,266 | 9,155 | 833 | (12,505) |
Other comprehensive (loss) income, net of tax | (22,300) | (26,385) | (35,324) | 13,209 |
Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pretax change before reclassifications | (15,614) | (15,076) | (29,966) | 35,317 |
Reclassifications out of AOCI | (108) | (9,241) | 1,545 | (16,689) |
Tax effect | 4,780 | 9,582 | 9,047 | (7,124) |
Other comprehensive (loss) income, net of tax | (10,942) | (14,735) | (19,374) | 11,504 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Pretax change before reclassifications | (15,416) | (12,557) | (29,210) | (6,985) |
Other comprehensive (loss) income, net of tax | (15,416) | (12,557) | (29,210) | (6,985) |
Pension Benefit Adjustment | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassifications out of AOCI | 6,572 | 1,334 | 21,474 | 14,071 |
Tax effect | (2,514) | (427) | (8,214) | (5,381) |
Other comprehensive (loss) income, net of tax | $ 4,058 | $ 907 | $ 13,260 | $ 8,690 |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Loss) (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax total | $ (6,464) | $ 7,907 | $ (23,019) | $ 2,618 | |
Income taxes | 39,637 | 35,015 | 108,831 | 74,186 | |
Amortization of net actuarial loss | 7,613 | 2,372 | 24,596 | 17,186 | |
Amortization of prior service credit | (1,041) | (1,038) | (3,122) | (3,115) | |
Unrealized Gains (Losses) on Securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax total | 108 | 9,241 | (1,545) | 16,689 | |
Pension Benefit Adjustment | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax total | (6,572) | (1,334) | (21,474) | (14,071) | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized Gains (Losses) on Securities | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized gains (losses) on sales of securities | 108 | 9,241 | (1,545) | 17,722 | |
Net other-than-temporary impairment losses | (1,033) | ||||
Pretax total | 108 | 9,241 | (1,545) | 16,689 | |
Income taxes | (33) | (3,641) | 492 | (6,383) | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Pension Benefit Adjustment | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Pretax total | (6,572) | (1,334) | (21,474) | (14,071) | |
Income taxes | 2,514 | 427 | 8,214 | 5,381 | |
Amortization of net actuarial loss | (7,613) | (2,372) | (24,596) | (17,186) | [1] |
Amortization of prior service credit | $ 1,041 | $ 1,038 | $ 3,122 | $ 3,115 | [1] |
[1] | These components of AOCI are included in the computation of net periodic cost. See Note 9 Employee Benefit Plans for additional details. |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) | 9 Months Ended |
Sep. 30, 2015State | |
Segment Reporting [Abstract] | |
Number of states issues title insurance policies | 49 |
Number of states licensed to issues property and casualty insurance policies | 50 |
Number of states issues property and casualty policies | 46 |
Number of states issues home warranty contracts | 39 |
Segment Information (Schedule o
Segment Information (Schedule of Selected Financial Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,383,915 | $ 1,259,730 | $ 3,818,788 | $ 3,422,498 |
Income (loss) before income taxes | 115,396 | 115,952 | 315,966 | 227,663 |
Depreciation and amortization | 21,072 | 24,127 | 63,389 | 63,879 |
Capital expenditures | 32,238 | 25,999 | 94,274 | 66,062 |
Operating Segments | Title Insurance and Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,288,156 | 1,165,835 | 3,534,987 | 3,146,558 |
Income (loss) before income taxes | 136,984 | 121,000 | 361,223 | 248,474 |
Depreciation and amortization | 19,753 | 21,879 | 59,443 | 57,416 |
Capital expenditures | 31,309 | 25,389 | 91,468 | 63,395 |
Operating Segments | Specialty Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 101,210 | 94,854 | 293,398 | 273,179 |
Income (loss) before income taxes | 1,684 | 10,433 | 29,446 | 35,366 |
Depreciation and amortization | 1,197 | 1,210 | 3,579 | 3,787 |
Capital expenditures | 927 | 610 | 2,804 | 2,667 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (5,428) | (571) | (9,148) | 3,927 |
Income (loss) before income taxes | (23,272) | (15,481) | (74,703) | (56,177) |
Depreciation and amortization | 122 | 1,038 | 367 | 2,676 |
Capital expenditures | 2 | 2 | ||
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (23) | $ (388) | $ (449) | $ (1,166) |