Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | STEWART INFORMATION SERVICES CORP | ||
Entity Central Index Key | 94,344 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | STC | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 884,240 | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 22,292,100 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,050,012 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Direct operations | $ 897,118 | $ 808,327 | $ 763,649 |
Agency operations | 991,332 | 906,062 | 1,046,378 |
Mortgage services | 129,954 | 132,891 | 103,527 |
Investment income | 16,850 | 16,806 | 15,492 |
Investment and other (losses) gains – net | (1,369) | 6,744 | (1,066) |
Total revenues | 2,033,885 | 1,870,830 | 1,927,980 |
Expenses | |||
Amounts retained by agencies | 809,564 | 738,649 | 848,437 |
Employee costs | 658,266 | 624,326 | 571,026 |
Other operating expenses | 381,954 | 347,276 | 280,258 |
Title losses and related claims | 106,265 | 81,305 | 106,318 |
Impairment of goodwill | 35,749 | 0 | 0 |
Depreciation and amortization | 30,298 | 24,226 | 17,920 |
Interest | 2,096 | 3,236 | 2,956 |
Total expenses | 2,024,192 | 1,819,018 | 1,826,915 |
Income before taxes and noncontrolling interests | 9,693 | 51,812 | 101,065 |
Income tax expense | 5,650 | 13,503 | 28,481 |
Net income | 4,043 | 38,309 | 72,584 |
Less net income attributable to noncontrolling interests | 10,247 | 8,556 | 9,558 |
Net (loss) income attributable to Stewart | (6,204) | 29,753 | 63,026 |
Net (loss) income attributable to Stewart | |||
Net income | 4,043 | 38,309 | 72,584 |
Other comprehensive (loss) income, net of taxes: | |||
Foreign currency translation | (11,145) | (7,565) | (6,819) |
Change in unrealized gains (losses) on investments | (3,741) | 9,793 | (7,282) |
Reclassification of adjustment for net gains included in net (loss) income | (1,626) | (555) | (1,601) |
Other comprehensive (loss) income, net of taxes | (16,512) | 1,673 | (15,702) |
Comprehensive (loss) income | (12,469) | 39,982 | 56,882 |
Less comprehensive income attributable to noncontrolling interests | 10,247 | 8,556 | 9,558 |
Comprehensive (loss) income attributable to Stewart | $ (22,716) | $ 31,426 | $ 47,324 |
Basic average shares outstanding (000) | 23,544 | 22,778 | 22,096 |
Basic (loss) earnings per share attributable to Stewart (usd per share) | $ (0.26) | $ 1.31 | $ 2.85 |
Diluted average shares outstanding (000) | 23,544 | 24,710 | 24,741 |
Diluted (loss) earnings per share attributable to Stewart (usd per share) | $ (0.26) | $ 1.24 | $ 2.60 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 179,067 | $ 200,558 |
Short-term investments | 39,707 | 25,042 |
Investments in debt and equity securities available-for-sale, at fair value: | ||
Statutory reserve funds | 483,312 | 438,511 |
Other | 96,537 | 141,592 |
Available for sale securities, Total | 579,849 | 580,103 |
Receivables: | ||
Notes | 3,744 | 4,031 |
Premiums from agencies | 36,393 | 42,929 |
Income taxes | 1,914 | 253 |
Trade and other | 49,453 | 60,654 |
Allowance for uncollectible amounts | (9,833) | (9,193) |
Total receivables | 81,671 | 98,674 |
Property and equipment, at cost: | ||
Land | 3,991 | 5,524 |
Buildings | 22,898 | 26,399 |
Furniture and equipment | 214,350 | 215,344 |
Accumulated depreciation | (169,870) | (171,914) |
Total property and equipment, at cost | 71,369 | 75,353 |
Title plants, at cost | 75,743 | 76,779 |
Real estate, at lower of cost or net realizable value | 570 | 600 |
Investments in investees, on an equity method basis | 9,628 | 9,880 |
Goodwill | 217,722 | 251,868 |
Intangible assets, net of amortization | 18,075 | 26,311 |
Deferred tax assets | 4,949 | 800 |
Other assets | 43,237 | 46,510 |
Total assets | 1,321,587 | 1,392,478 |
Liabilities | ||
Notes payable | 102,399 | 71,180 |
Accounts payable and accrued liabilities | 118,082 | 111,965 |
Estimated title losses | 462,622 | 495,395 |
Deferred tax liabilities | 1,356 | 13,485 |
Total Liabilities | $ 684,459 | $ 692,025 |
Contingent liabilities and commitments | ||
Stockholders’ equity | ||
Additional paid-in capital | $ 156,692 | $ 179,205 |
Retained earnings | 455,519 | 479,733 |
Accumulated other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (13,360) | (2,215) |
Net unrealized gains on investments available-for-sale | 9,403 | 14,770 |
Treasury stock – 352,161 common shares, at cost, for 2015 and 2014 | (2,666) | (2,666) |
Total stockholders’ equity attributable to Stewart | 629,281 | 693,185 |
Noncontrolling interests | 7,847 | 7,268 |
Total stockholders’ equity | 637,128 | 700,453 |
Liabilities and Equity, Total | 1,321,587 | 1,392,478 |
Common Stock | ||
Stockholders’ equity | ||
Common Stock | 22,643 | 23,308 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common Stock | $ 1,050 | $ 1,050 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Treasury stock, common shares | 352,161 | 352,161 |
Common Stock | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 22,643,255 | 23,307,909 |
Common stock, shares outstanding | 22,291,094 | 22,955,748 |
Class B Common Stock | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 1,500,000 | 1,500,000 |
Common stock, shares issued | 1,050,012 | 1,050,012 |
Common stock, shares outstanding | 1,050,012 | 1,050,012 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of net income to cash provided by operating activities: | |||
Net income | $ 4,043 | $ 38,309 | $ 72,584 |
Add (deduct): | |||
Depreciation and amortization | 30,298 | 24,226 | 17,920 |
Provision for bad debt | 3,023 | 1,371 | 2,170 |
Investment and other (gains) losses – net | 1,369 | (6,744) | 1,066 |
Payments for title losses in excess of provisions | (17,154) | (18,803) | (11,280) |
Insurance recoveries of title losses | 213 | 17,181 | 1,914 |
Impairment of goodwill | 35,749 | 0 | 0 |
Decrease (increase) in receivables – net | 13,267 | 9,397 | (5,796) |
Decrease (increase) in other assets – net | 3,073 | (1,878) | (1,467) |
Increase (decrease) in payables and accrued liabilities – net | 2,088 | (6,854) | (8,100) |
Decrease (increase) in net deferred income taxes | (5,800) | 3,176 | 16,260 |
Net income from equity investees | (3,579) | (3,442) | (4,137) |
Dividends received from equity investees | 3,811 | 3,582 | 4,766 |
Stock based compensation expense | 4,445 | 4,020 | 1,006 |
Other – net | 5,668 | 448 | 281 |
Cash provided by operating activities | 80,514 | 63,989 | 87,187 |
Investing activities: | |||
Proceeds from investments available-for-sale sold | 69,280 | 58,132 | 81,999 |
Proceeds from investments available-for-sale matured | 42,195 | 48,427 | 11,849 |
Purchases of investments available-for-sale | (147,697) | (147,372) | (148,512) |
Net (purchases) sales of short-term investments | (14,664) | 13,294 | (1,311) |
Purchases of property and equipment, title plants and real estate – net | (19,658) | (19,537) | (17,282) |
Proceeds from the sale of land, buildings, and furniture and equipment | 4,214 | 1,415 | 2,168 |
Increases in notes receivable | (915) | (307) | (1,002) |
Collections on notes receivable | 1,302 | 386 | 2,666 |
Cash paid for acquisition of subsidiaries and other – net | (3,958) | (39,990) | (14,921) |
Proceeds from the sale of equity investees and other assets | 0 | 15 | 3,090 |
Proceeds from the sale of real estate | 0 | 2,105 | 0 |
Other – net | 1,110 | 4,875 | 2,893 |
Cash used by investing activities | (68,791) | (78,557) | (78,363) |
Financing activities: | |||
Proceeds from notes payable | 52,651 | 120,273 | 11,146 |
Payments on notes payable | (22,494) | (60,838) | (12,199) |
Purchase of remaining interest of consolidated subsidiaries | (209) | (20) | (5,051) |
Cash dividends paid | (18,010) | (2,334) | (2,159) |
Subsidiary dividends paid to noncontrolling interests | (9,706) | (8,986) | (9,239) |
Repurchases of Common Stock | (27,950) | (22,048) | 0 |
Cash payments for settlement of debt | 0 | 0 | (742) |
Other—net | 168 | (21) | 48 |
Cash (used) provided by financing activities | (25,550) | 26,026 | (18,196) |
Effects of changes in foreign currency exchange rates | (7,664) | (5,189) | (4,877) |
(Decrease) increase in cash and cash equivalents | (21,491) | 6,269 | (14,249) |
Cash and cash equivalents at beginning of year | 200,558 | 194,289 | 208,538 |
Cash and cash equivalents at end of year | 179,067 | 200,558 | 194,289 |
Supplemental information: | |||
Retirement of Convertible Senior Notes with issuance of Common Stock | 0 | 27,190 | 37,810 |
Changes in financial statement amounts due to purchase of subsidiaries: | |||
Goodwill acquired | 7,220 | 21,440 | 10,883 |
Receivables and other assets acquired | 38 | 12,620 | 6,918 |
Intangible assets | 0 | 21,110 | 8,519 |
Liabilities acquired | (3,300) | (15,180) | (11,399) |
Cash paid for acquisitions of subsidiaries and other – net | 3,958 | 39,990 | 14,921 |
Assets purchased through capital lease obligations | 1,062 | 2,003 | 4,769 |
Income taxes – net paid (refunded) | 14,982 | (106) | 18,032 |
Interest paid | $ 1,873 | $ 2,616 | $ 2,202 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common and Class B Common Stock ($1 par value) | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained Earnings | Treasury stock | Noncontrolling interests |
Beginning balance at Dec. 31, 2012 | $ 580,372 | $ 19,756 | $ 133,685 | $ 26,584 | $ 391,447 | $ (2,666) | $ 11,566 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net loss attributable to Stewart | 63,026 | 63,026 | |||||
Cash dividends on Common Stock | (2,159) | (2,159) | |||||
Stock bonuses and other (including tax effects) | 901 | 1 | 900 | ||||
Exercise of stock options | 59 | 2 | 57 | ||||
Conversion of Convertible Senior Notes for Common Stock | 41,809 | 3,094 | 38,715 | ||||
Purchase of remaining interest of consolidated subsidiary | (1,442) | (1,442) | |||||
Net change in unrealized gains and losses on investments (net of tax) | (7,282) | (7,282) | |||||
Net realized gain reclassification (net of tax) | (1,601) | (1,601) | |||||
Foreign currency translation (net of tax) | (6,819) | (6,819) | |||||
Net income attributable to noncontrolling interests | 9,558 | 9,558 | |||||
Subsidiary dividends paid to noncontrolling interests | (9,239) | (9,239) | |||||
Net effect of changes in ownership and other | (4,094) | (4,094) | |||||
Ending balance at Dec. 31, 2013 | 663,089 | 22,853 | 171,915 | 10,882 | 452,314 | (2,666) | 7,791 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net loss attributable to Stewart | 29,753 | 29,753 | |||||
Cash dividends on Common Stock | (2,334) | (2,334) | |||||
Stock bonuses and other (including tax effects) | 3,916 | 77 | 3,839 | ||||
Exercise of stock options | 58 | 2 | 56 | ||||
Stock repurchases | (22,048) | (685) | (21,363) | ||||
Conversion of Convertible Senior Notes for Common Stock | 27,190 | 2,111 | 25,079 | ||||
Purchase of remaining interest of consolidated subsidiary | (321) | (321) | |||||
Net change in unrealized gains and losses on investments (net of tax) | 9,793 | 9,793 | |||||
Net realized gain reclassification (net of tax) | (555) | (555) | |||||
Foreign currency translation (net of tax) | (7,565) | (7,565) | |||||
Net income attributable to noncontrolling interests | 8,556 | 8,556 | |||||
Subsidiary dividends paid to noncontrolling interests | (8,986) | (8,986) | |||||
Net effect of changes in ownership and other | (93) | (93) | |||||
Ending balance at Dec. 31, 2014 | 700,453 | 24,358 | 179,205 | 12,555 | 479,733 | (2,666) | 7,268 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net loss attributable to Stewart | (6,204) | (6,204) | |||||
Cash dividends on Common Stock | (18,010) | (18,010) | |||||
Stock bonuses and other (including tax effects) | 4,851 | 93 | 4,758 | ||||
Exercise of stock options | 130 | 4 | 126 | ||||
Stock repurchases | (27,950) | (762) | (27,188) | ||||
Purchase of remaining interest of consolidated subsidiary | (209) | (209) | |||||
Net change in unrealized gains and losses on investments (net of tax) | (3,741) | (3,741) | |||||
Net realized gain reclassification (net of tax) | (1,626) | (1,626) | |||||
Foreign currency translation (net of tax) | (11,145) | (11,145) | |||||
Net income attributable to noncontrolling interests | 10,247 | 10,247 | |||||
Subsidiary dividends paid to noncontrolling interests | (9,706) | (9,706) | |||||
Net effect of changes in ownership and other | 38 | 38 | |||||
Ending balance at Dec. 31, 2015 | $ 637,128 | $ 23,693 | $ 156,692 | $ (3,957) | $ 455,519 | $ (2,666) | $ 7,847 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (PARENTHETICAL) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends on common stock (usd per share) | $ 0.80 | $ 0.10 | $ 0.10 |
General
General | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
General | General. Stewart Information Services Corporation, through its subsidiaries (collectively, the Company), is primarily engaged in the business of providing title insurance and real estate transaction related services. The Company operates through a network of production facilities, owned policy-issuing offices and independent agencies in the United States and international markets. Stewart Information Services Corporation is a customer-focused, global title insurance and real estate services company offering products and services through its direct operations, network of approved agencies and other businesses within the Company. The Company provides these services to homebuyers and sellers; residential and commercial real estate professionals; mortgage lenders and servicers; title agencies and real estate attorneys; home builders; and United States and foreign governments. The Company also provides loan origination and servicing support; loan review and due diligence services; real estate valuation services; REO asset management; home and personal insurance services; compliance solutions; service performance management and technology to streamline the real estate process. Approximately 51% of consolidated title revenues for the year ended December 31, 2015 were generated in Texas, New York, California, Florida and international markets. A. Management’s responsibility. The accompanying consolidated financial statements were prepared by management, who is responsible for their integrity and objectivity. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP), including management’s best judgments and estimates. Actual results could differ from those estimates. B. Reclassifications. Certain prior year amounts in these consolidated financial statements have been reclassified for comparative purposes. Net income (loss) attributable to Stewart and stockholders’ equity, as previously reported, were not affected. C. Consolidation. The consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns 20% through 50% of the entity, are accounted for by the equity method. D. Statutory accounting. Stewart Title Guaranty Company (Guaranty) and other title insurance underwriters owned by the Company prepare financial statements in accordance with statutory accounting practices prescribed or permitted by regulatory authorities. In conforming the statutory financial statements to GAAP, the statutory premium reserve and the reserve for known title losses are eliminated and, in substitution, amounts are established for estimated title losses (Note 1F), for which the net effect, after providing for income taxes, is included in the consolidated statements of operations and comprehensive (loss) income. Additionally, the investments in debt securities available-for-sale, which are carried at amortized cost for statutory accounting, are reported at fair value and the net unrealized gains and losses, net of applicable deferred taxes, on the investments are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. E. Revenue recognition. Operating revenues from direct title operations are considered earned at the time of the closing of the related real estate transaction. The Company recognizes premium revenues on title insurance policies written by independent agencies (agencies) when the policies are reported to the Company. In addition, where reasonable estimates can be made, the Company accrues for policies issued but not reported until after period end. The Company believes that reasonable estimates can be made when recent and consistent policy issuance information is available. Estimates are based on historical reporting patterns and other information obtained about agencies, as well as current trends in direct operations and in the title industry. In this accrual, future transactions are not being estimated. The Company is estimating revenues on policies that have already been issued by agencies but not yet reported to or received by the Company. The Company has consistently followed the same basic method of estimating unreported policy revenues for more than 10 years. Revenues generated by the mortgage services segment are generally considered earned at the time the service is performed or the product is delivered to the customer. F. Title losses and related claims. The Company’s method for recording the reserves for title losses on both an interim and annual basis begins with the calculation of its current loss provision rate, which is applied to the Company’s current premiums resulting in a title loss expense for the period. This loss provision rate is set to provide for estimated losses on current year policies and is determined using moving average ratios of recent actual policy loss payment experience (net of recoveries) to premium revenues. At each quarter end, the Company’s recorded reserve for title losses begins with the prior period’s reserve balance for claim losses, adds the current period provision to that balance and subtracts actual paid claims, resulting in an amount that management compares to its actuarially-based calculation of the ending reserve balance necessary to provide for future reported title losses. The actuarially-based calculation is a paid loss development calculation where loss development factors are selected based on company data and input from the Company’s third-party actuaries. The Company also obtains input from third-party actuaries in the form of a reserve analysis utilizing generally accepted actuarial methods. While the Company is responsible for determining its loss reserves, it utilizes this actuarial input to assess the overall reasonableness of its reserve estimation. If the Company’s recorded reserve amount is not at the actuarial point estimate, but is within a reasonable range (+ 5.0% /- 4.0% ) of its actuarially-based reserve calculation and the actuary’s point estimate, the Company’s management assesses the major factors contributing to the different reserve estimates in order to determine the overall reasonableness of its recorded reserve, as well as the position of the recorded reserves relative to the point estimate and the estimated range of reserves. The major factors considered can change from period to period and include items such as current trends in the real estate industry (which management can assess although there is a time lag in the development of this data for use by the actuary), the size and types of claims reported and changes in the Company’s claims management process. If the recorded amount is not within a reasonable range of the Company’s third-party actuary’s point estimate, it will adjust the recorded reserves in the current period and reassess the provision rate on a prospective basis. Once the Company’s reserve for title losses is recorded, it is reduced in future periods as a result of claims payments and may be increased or reduced by revisions to the Company’s estimate of the overall level of required reserves. Large claims (those exceeding $1.0 million on a single claim), including large title losses due to independent agency defalcations, are analyzed and reserved for separately due to the higher dollar amount of loss, lower volume of claims reported and sporadic reporting of such claims. Due to the inherent uncertainty in predicting future title policy losses, significant judgment is required by both the Company’s management and its third party actuaries in estimating reserves. As a consequence, the Company’s ultimate liability may be materially greater or less than its current reserves and/or its third party actuary’s calculated estimate. G. Cash equivalents. Cash equivalents are highly liquid investments with insignificant interest rate risks and maturities of three months or less at the time of acquisition. H. Short-term investments. Short-term investments comprise time deposits with banks, federal government obligations and other investments maturing in less than one year. I. Investments in debt and equity securities. The investment portfolio is classified as available-for-sale. Realized gains and losses on sales of investments are determined using the specific identification method. Net unrealized gains and losses on investments available-for-sale, net of applicable deferred taxes, are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. At the time unrealized gains and losses become realized, they are reclassified from accumulated other comprehensive (loss) income (using the specific identification method. Other-than-temporary declines in fair values of investments available-for-sale are charged to income. J. Property and equipment. Depreciation is principally computed using the straight-line method over the estimated useful lives of the assets at the following rates: buildings – 30 to 40 years and furniture and equipment – 3 to 10 years. Maintenance and repairs are expensed as incurred while improvements are capitalized. Gains and losses are recognized at disposal. K. Title plants. Title plants include compilations of a county’s official land records, prior examination files, copies of prior title policies, maps and related materials that are geographically indexed to a specific property. The costs of acquiring existing title plants and creating new ones, prior to the time such plants are placed in operation, are capitalized. Title plants are not amortized since there is no indication of any loss of value over time but are subject to review for impairment. The costs of maintaining and operating title plants are expensed as incurred. Gains and losses on sales of copies of title plants or interests in title plants are recognized at the time of sale. L. Goodwill. Goodwill is not amortized, but is reviewed annually and normally completed in the third quarter using June 30 balances, or whenever occurrences of events indicate a potential impairment at the reporting unit level. We have an option to assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If we decide not to use a qualitative assessment or if the reporting unit fails the qualitative assessment, then we perform a two-step quantitative analysis. The step one analysis is performed, using a combination of the income approach (discounted cash flow (DCF) technique) and the market approach (guideline company and precedent transaction analyses), to determine if the carrying value of the goodwill exceeds its fair value, which would indicate a potential impairment. The DCF model utilizes historical and projected operating results and cash flows, initially driven by estimates of changes in future revenue levels, and risk-adjusted discount rates. Our projected operating results are primarily driven by anticipated mortgage originations, which we obtain from projections by industry experts, for our title reporting units and forecasted contractual revenues for our mortgage services reporting unit. Fluctuations in revenues, followed by our ability to appropriately adjust our employee count and other operating expenses, or large and unanticipated adjustments to title loss reserves, are the primary reasons for increases or decreases in our projected operating results. Our market-based valuation methodologies utilize (i) market multiples of earnings and/or other operating metrics of comparable companies and (ii) our market capitalization and a control premium based on market data and factors specific to our ownership and corporate governance structure (such as our Class B Common Stock). If we determine that the carrying value of the reporting unit's goodwill is greater than its fair value, we then perform the step two analysis to determine the implied fair value of the goodwill and calculate the amount of impairment. In performing the step two analysis, the implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In this method, the estimated fair value of the reporting unit is allocated to all the assets and liabilities of that reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value is the purchase price paid. Any impairment of goodwill is treated as the difference between the implied fair value and the carrying amount of the goodwill and is charged to current operations. While we are responsible for assessing whether an impairment of goodwill exists, we utilize inputs from third-party appraisers in performing the quantitative analysis for our impairment review. We evaluate goodwill based on four reporting units with goodwill balances (direct operations, agency operations, international operations and mortgage services). Goodwill is assigned to these reporting units at the time the goodwill is initially recorded. Once assigned to a reporting unit, the goodwill is pooled and no longer attributable to a specific acquisition. All activities within a reporting unit are available to support the carrying value of the goodwill. M. Other intangibles. Other intangible assets are comprised mainly of non-compete, underwriting and customer relationship agreements and acquired software. Intangible assets are amortized over their estimated lives, which are primarily 3 to 10 years. These intangible assets are reviewed for impairment when certain events or changes in circumstances occur that indicate that the carrying amount of an asset may not be recoverable. The Company performs an analysis to determine whether the carrying amount of each intangible asset is recoverable. The carrying amount is not recoverable when it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. For any intangible asset that is not recoverable, the Company calculates the excess of the carrying amount of the intangible asset over its fair value, estimated using the income approach (discounted cash flow technique). The resulting difference of the carrying amount over the fair value is treated as the impairment on the asset. N. Other long-lived assets. The Company reviews the carrying values of title plants and other long-lived assets if certain events occur that may indicate impairment. An impairment of these long-lived assets is indicated when projected undiscounted cash flows over the estimated lives of the assets are less than carrying values. If impairment is indicated, the recorded amounts are written down to fair values. There were no significant impairment charges for long-lived assets during the three years ended December 31, 2015 . O. Fair values. The fair values of financial instruments, including cash and cash equivalents, short-term investments, notes receivable, notes payable and accounts payable, are determined by the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. The net fair values of these financial instruments approximate their carrying values. Investments in debt and equity securities and certain financial instruments are carried at their fair values. P. Leases. The Company recognizes rent expense under noncancelable operating leases, which generally expire over the next 10 years, on the straight-line basis over the terms of the leases, including provisions for any free rent periods or escalating lease payments. Q. Income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the tax basis and the book carrying values of certain assets and liabilities. To the extent that the Company does not believe its deferred tax assets meet the more-likely-than-not realization criteria, it establishes a valuation allowance. When it establishes a valuation allowance, or increases (decreases) the allowance during the year, it records a tax expense (benefit) in its consolidated statements of operations and comprehensive (loss) income. Enacted tax rates are used in calculating amounts. The Company provides for uncertainties in income taxes by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. R. Recent significant accounting pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014-09, Revenue from Contracts with Customers , which eliminated the transaction-specific and industry-specific revenue recognition guidance under current GAAP and replaced it with a principles-based approach for determining revenue recognition. Originally, ASU 2014-09 was effective for annual and interim periods beginning after December 15, 2016. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 by one year to annual and interim periods beginning after December 15, 2017. Earlier application is permitted only for annual and interim periods after December 15, 2016. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and related disclosures. |
Restrictions on cash and invest
Restrictions on cash and investments | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on cash and investments | Restrictions on cash and investments. The Company maintains investments in accordance with certain statutory requirements in the states of domicile of our underwriters for the funding of statutory premium reserves. Statutory reserve funds, which approximated $483.3 million and $438.5 million at December 31, 2015 and 2014 , respectively, are required to be fully funded and invested in high-quality securities and short-term investments. In addition, included within Cash and cash equivalents are statutory reserve funds of approximately $17.2 million and $57.4 million at December 31, 2015 and 2014 , respectively. These cash statutory reserve funds are not restricted or segregated in depository accounts. If the Company fails to maintain minimum investments or cash and cash equivalents to meet statutory requirements, the Company may be subject to fines or other penalties, including potential revocation of its business license. These funds are not available for any other purpose. In the event that insurance regulators adjust the determination of the statutory premium reserves of the Company’s title insurers, these restricted funds as well as statutory surplus would correspondingly increase or decrease. A substantial majority of consolidated cash and investments at each year end was held by the Company’s title insurance subsidiaries. Generally, the types of investments a title insurer can make are subject to legal restrictions. Furthermore, the transfer of funds by a title insurer to its parent or subsidiary operations, as well as other related party transactions, is restricted by law and generally requires the approval of state insurance authorities. |
Statutory surplus and dividend
Statutory surplus and dividend restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Statutory surplus and dividend restrictions | Statutory surplus and dividend restrictions. Substantially all of the consolidated retained earnings at each year end were represented by Guaranty, which owns directly or indirectly all of the subsidiaries included in the consolidation. Guaranty cannot pay a dividend to its parent in excess of certain limits without the approval of the Texas Insurance Commissioner. The maximum dividend that can be paid after such approval in 2016 is $100.4 million . Guaranty paid $15.0 million and $25.0 million in dividends in 2015 and 2014 , respectively, and none in 2013 . Dividends from Guaranty are also voluntarily restricted primarily to maintain statutory surplus and liquidity at competitive levels and to demonstrate significant claims payment ability. The ability of a title insurer to pay claims can significantly affect the decision of lenders and other customers when buying a policy from a particular insurer. Surplus as regards policyholders (sum of statutory capital plus surplus) for Guaranty was $501.8 million and $525.8 million at December 31, 2015 and 2014 , respectively. Statutory net income for Guaranty was $83.2 million , $53.2 million and $43.0 million in 2015 , 2014 and 2013 respectively. The amount of statutory capital and surplus necessary to satisfy regulatory requirements for Guaranty was $2.0 million (and in the aggregate less than $15.0 million for all of the Company’s underwriter entities) at December 31, 2015 , and each of its underwriter entities was in compliance with such requirements as of December 31, 2015 . |
Investments in debt and equity
Investments in debt and equity securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in debt and equity securities | Investments in debt and equity securities. Amortized costs and fair values at December 31, follow: 2015 2014 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Debt securities: Municipal 70,300 72,008 60,656 61,689 Corporate 303,870 309,461 296,578 308,691 Foreign 149,914 153,221 163,099 166,685 U.S. Treasury Bonds 13,803 13,906 14,337 14,802 Equity securities 27,497 31,253 22,710 28,236 565,384 579,849 557,380 580,103 The Company believes its investment portfolio is diversified and expects no material loss to result from the failure to perform by issuers of the debt securities it holds. Investments made by the Company are not collateralized. Foreign debt securities primarily include Canadian government and corporate bonds, which aggregated fair values of $125.2 million and $135.8 million as of December 31, 2015 and 2014 , respectively, and United Kingdom treasury bonds aggregating fair values of $23.1 million and $27.3 million as of December 31, 2015 and 2014 , respectively. Gross unrealized gains and losses at December 31, were: 2015 2014 Gains Losses Gains Losses ($000 omitted) Debt securities: Municipal 1,720 12 1,125 92 Corporate 7,700 2,109 12,559 446 Foreign 3,789 482 3,690 104 U.S. Treasury Bonds 128 25 492 27 Equity securities 4,842 1,086 5,982 456 18,179 3,714 23,848 1,125 Debt securities at December 31, 2015 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 27,118 27,256 After one year through five years 226,497 230,842 After five years through ten years 230,161 235,219 After ten years 54,111 55,279 537,887 548,596 Gross unrealized losses on investments and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 , were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Debt securities: Municipal 9 2,230 3 1,615 12 3,845 Corporate 1,461 83,565 648 32,871 2,109 116,436 Foreign 322 35,008 160 3,155 482 38,163 U.S. Treasury Bonds 6 1,195 19 3,583 25 4,778 Equity securities: 720 4,440 366 3,224 1,086 7,664 2,518 126,438 1,196 44,448 3,714 170,886 The number of investments in an unrealized loss position as of December 31, 2015 was 155 , 30 of which were in unrealized loss positions for more than 12 months. Since the Company does not intend to sell and will more-likely-than-not maintain its investment in equity and debt securities until recovery of the fair value or amortized cost, respectively, these investments are not considered other-than-temporarily impaired. The Company also determined that there is no significant credit risk existing with its debt securities. Further, the Company performed an analysis of certain equity securities with significant unrealized losses and concluded that they were other-than-temporarily impaired as of December 31, 2015. As a result, the Company recognized an other-than-temporary impairment of $ 2.7 million, included as part of Investment and other (losses) gains - net in the 2015 consolidated statement of operations and other comprehensive (loss) income. Gross unrealized losses on investments and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 , were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Debt securities: Municipal 1 2,673 91 12,076 92 14,749 Corporate 107 7,167 339 26,545 446 33,712 Foreign 11 34,236 93 6,446 104 40,682 U.S. Treasury Bonds — — 27 3,694 27 3,694 Equity securities: 456 6,540 — — 456 6,540 575 50,616 550 48,761 1,125 99,377 |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements. The Fair Value Measurements and Disclosures Topic of the FASB Accounting Standards Codification (ASC) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. The Fair Values Measurements and Disclosures Topic establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs when possible. The three levels of inputs used to measure fair value are as follows: • Level 1 – quoted prices in active markets for identical assets or liabilities; • Level 2 – observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data; and • Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. At December 31, 2015 , financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value measurements ($000 omitted) Investments available-for-sale: Debt securities: Municipal — 72,008 — 72,008 Corporate — 309,461 — 309,461 Foreign — 153,221 — 153,221 U.S. Treasury Bonds — 13,906 — 13,906 Equity securities: 31,253 — — 31,253 31,253 548,596 — 579,849 At December 31, 2014 , financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value measurements ($000 omitted) Investments available-for-sale: Debt securities: Municipal — 61,689 — 61,689 Corporate — 308,691 — 308,691 Foreign — 166,685 — 166,685 U.S. Treasury Bonds — 14,802 — 14,802 Equity securities: 28,236 — — 28,236 28,236 551,867 — 580,103 At December 31, 2015 , Level 1 financial instruments consist of equity securities. Level 2 financial instruments consist of municipal, governmental, and corporate bonds, both U.S. and foreign. In accordance with the Company’s policies and guidelines which incorporate relevant statutory requirements, the Company’s third-party registered investment manager invests only in securities rated as investment grade or higher by the major rating services, where observable valuation inputs are significant. All municipal, foreign, and U.S. Treasury bonds are valued using a third-party pricing service, and the corporate bonds are valued using the market approach, which includes three to ten inputs from relevant market sources, including Financial Industry Regulatory Authority’s (FINRA) Trade Reporting and Compliance Engine (TRACE) and independent broker/dealer quotes, bids and offerings, as well as other relevant market data, such as securities with similar characteristics (i.e. sector, rating, maturity, etc.). Broker/dealer quotes, bids and offerings mentioned above are gathered (typically three to ten) and a consensus risk premium spread (credit spread) over risk-free Treasury yields is developed from the inputs obtained, which is then used to calculate the resulting fair value. There were no transfers of investments between Level 1 and Level 2 during the three years ended December 31, 2015 . As of December 31, 2015 and 2014 , assets measured at fair value on a nonrecurring basis are summarized below: 2015 2014 Level 3 Impairment loss recorded Level 3 Impairment loss recorded ($000 omitted) Cost-basis investments 3,127 600 3,938 1,000 The carrying amount of certain cost-basis investments exceeded their fair value and impairment charges of $0.6 million and $1.0 million were recorded in Investment and other (losses) gains – net for the years ended December 31, 2015 and 2014 , respectively. The valuations were based on the values of the underlying assets of the investee. |
Investment income
Investment income | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment income | Investment income. Income from investments and gross realized investment and other gains and losses follow: 2015 2014 2013 ($000 omitted) Investment income: Debt securities 15,181 14,593 13,387 Short-term investments, cash equivalents and other 1,669 2,213 2,105 16,850 16,806 15,492 Investment and other (losses) gains – net: Realized gains 5,948 12,018 7,555 Realized losses (7,317 ) (5,274 ) (8,621 ) (1,369 ) 6,744 (1,066 ) Proceeds from the sales of investments available-for-sale were $69.3 million , $58.1 million and $82.0 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Expenses assignable to investment income were insignificant. There were no significant investments at December 31, 2015 that did not produce income during the year. In 2015, investment and other (losses) gains – net included realized losses of $ 2.7 million relating to other-than-temporary impairment of investment in equity securities available-for-sale, $1.8 million impairment of other intangible assets and $1.4 million relating to office closure costs, partially offset by realized gains of $2.4 million from the sale of debt and equity investments available-for-sale and $1.5 million from the sale of office buildings. In 2014 , investment and other gains (losses) – net included realized gains of $5.6 million from the reduction in the fair value of a contingent consideration liability, $3.8 million from the sale of a business and $1.1 million from the sale of debt and equity investments available-for-sale, partially offset by charges of $1.9 million relating to office closure costs, $1.7 million impairment of an other intangible asset and $1.0 million relating to the impairment of a cost-basis investment. In 2013 , investment and other (losses) gains – net included a $5.4 million non-cash charge relating to the early retirement of $37.8 million of the Convertible Senior Notes (Notes), a $1.5 million loss on the sale of an equity investment and $1.0 million for the impairment of cost-basis investments offset by realized gains of $2.7 million from the sale of debt and equity investments available-for-sale, $2.3 million from non-title-related insurance policy proceeds and $1.9 million from the sale of real estate. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes. Income tax expense consists of the following: 2015 2014 2013 ($000 omitted) Current: Federal 4,774 3,047 2,589 State 709 (224 ) 2,757 Foreign 5,967 7,442 6,753 Deferred: Federal (3,986 ) 3,916 18,361 State (1,375 ) (694 ) (206 ) Foreign (439 ) 16 (1,773 ) Income tax expense 5,650 13,503 28,481 The following reconciles income tax (benefit) expense computed at the federal statutory rate with income tax expense as reported: 2015 2014 2013 ($000 omitted) Expected income tax (benefit) expense at 35% (1) (194 ) 15,140 32,027 Foreign tax rate differential (329 ) (693 ) (422 ) State income tax (benefit) expense – net of Federal impact (914 ) (840 ) 1,586 Impairment of goodwill 7,099 — — Nondeductible expenses 2,768 4,060 2,321 Return-to-provision adjustments (1,329 ) 1,133 (2,408 ) Valuation allowance (668 ) (5,020 ) (6,555 ) Intercompany dividends and dividends received deductions (541 ) (319 ) 449 Tax-exempt interest (404 ) (324 ) (233 ) Noncontrolling interest 251 186 529 Life insurance proceeds (175 ) — (797 ) Nondeductible bond conversion costs — — 1,900 Other – net 86 180 84 Income tax expense 5,650 13,503 28,481 Effective income tax rates (1) (1,019.4 )% 31.2 % 31.1 % (1) Calculated using (loss) income before taxes and after noncontrolling interests. Deferred income taxes as of December 31 were as follows: 2015 2014 ($000 omitted) Deferred tax assets: Tax credit carryforwards 20,242 26,792 Accrued expenses 20,190 17,241 Net operating loss (NOL) carryforwards 6,428 4,260 Foreign currency translation adjustments 5,220 411 Allowance for uncollectible amounts 3,524 3,379 Investments 3,369 1,582 Fixed assets 2,094 5,860 Other 1,954 2,127 Deferred tax assets – gross 63,021 61,652 Valuation allowance (2,217 ) (2,564 ) Deferred tax assets – net 60,804 59,088 Deferred tax liabilities: Amortization – goodwill and other intangibles (27,991 ) (34,740 ) Title loss provisions (18,523 ) (23,365 ) Unrealized gains on investments (4,811 ) (7,953 ) Deferred compensation on life insurance policies (3,558 ) (3,239 ) Other (2,328 ) (2,476 ) Deferred tax liabilities – gross (57,211 ) (71,773 ) Net deferred income tax assets (liabilities) 3,593 (12,685 ) At December 31, 2015 and 2014, net deferred tax assets (liabilities) for U.S. federal tax paying components totaled approximately $3.8 million and $(12.0) million , respectively, and net deferred tax liabilities for foreign tax paying components totaled approximately $0.3 million and $0.7 million , respectively. The net decrease to the valuation allowance during 2015 and 2014 was $0.3 million and $4.4 million , respectively. During 2008, the Company recorded a valuation allowance against U.S. deferred tax assets, net of definite-lived deferred tax liabilities, for which realization could not be assured based on a more-likely-than-not standard. The Company retained that valuation allowance for all subsequent periods through December 31, 2011 principally due to the Company’s cumulative three-year operating loss history as of the end of each period. The Company routinely evaluates the extent to which the valuation allowance may be reversed. During 2013, the Company utilized the remaining portion of its U.S. federal NOL carryforwards and released a $6.6 million valuation allowance on foreign tax credit carry forwards that it believed will, on a more-likely-than-not-basis, be utilized prior to expiration. During 2014, the Company released the remaining $5.0 million valuation allowance on foreign tax credit carryforwards. The Company believes it is more-likely-than-not it will be able to utilize its net deferred tax assets. The Company’s $20.2 million of foreign tax credit carryforwards at December 31, 2015 expire in varying amounts from 2020 through 2023 . The Company's $6.4 million of deferred tax assets relating to NOL carryforwards include certain state amounts expiring in varying amounts from 2019 through 2035 and foreign amounts expiring in varying amounts from 2020 through 2022 or having unlimited carryforward periods. The future utilization of all NOL and foreign tax credit carryforwards is subject to various limitations. The remaining valuation allowance at December 31, 2015 relates principally to certain state and foreign NOL carryforwards. The Company’s income tax returns are routinely subject to examinations by U.S. federal, foreign, and state and local tax authorities. During 2014, the Internal Revenue Service (IRS) completed its examination of calendar years 2005 through 2008 and the Company received anticipated refunds from previously-filed carryback claims in the amount of $2.8 million . Also during 2014, the IRS completed its examination of the calendar year 2012 U.S. federal tax return without any IRS-initiated adjustments. The Company also is involved in routine examinations by state and local tax jurisdictions for calendar years 2008 through 2014. The Company expects no material adjustments from any tax return examinations. |
Goodwill and other intangibles
Goodwill and other intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangibles | Goodwill and other intangibles. A summary of changes in goodwill is as follows: Title Mortgage Services Total ($000 omitted) Balances at January 1, 2014 198,727 33,111 231,838 Acquisitions 3,275 18,165 21,440 Disposals — (1,410 ) (1,410 ) Balances at December 31, 2014 202,002 49,866 251,868 Acquisitions 7,220 — 7,220 Purchase adjustments — (5,268 ) (5,268 ) Impairment — (35,749 ) (35,749 ) Disposals (349 ) — (349 ) Balances at December 31, 2015 208,873 8,849 217,722 The purchase adjustments recorded for 2015 were related to the remeasurement of assumed liabilities related to certain acquisitions from 2014. The Company evaluates goodwill for impairment annually based on information as of June 30 of the current year or more frequently if circumstances suggest that impairment may exist. During 2015 and 2014, management utilized the qualitative assessment for the title reporting units to determine whether it is more likely than not that the fair value of each reporting unit is less than its carrying amount, including goodwill. Based on that analysis, management concluded that the goodwill related to the reporting units within the title segment was not impaired. In 2014, the Company performed a quantitative assessment of the mortgage services segment's goodwill and determined that there was no impairment of goodwill. In July 2015, the Company made the decision to exit the delinquent loan servicing activities included in the mortgage services segment. The Company based its decision to exit these operations on rapidly falling revenues, declining profit margins and the likelihood that future market demand for the related services would continue to diminish. This resulted in a review of the recoverability of goodwill related to the mortgage services segment. Accordingly, the Company performed the quantitative assessment for mortgage services' goodwill. Based on its impairment analysis using the two-step method, the Company recorded a $35.7 million impairment of mortgage services' goodwill for 2015. This impairment is presented as Impairment of goodwill in the 2015 consolidated statement of operations and comprehensive (loss) income. The Company also performed an impairment analysis of other intangible assets within the mortgage services segment for 2015. Based on the Company's impairment review using the discounted cash flow technique to estimate fair value, the Company recorded an impairment of $0.9 million on an intangible asset. During 2014, the Company recorded an impairment of $1.7 million relating to an intangible asset of a separate business under the mortgage services segment. Further, the Company recognized in 2015 a $0.9 million impairment relating to an intangible asset under the title segment that will not be recoverable in future periods. These impairment losses are included in Investment and other (losses) gains - net in the consolidated statements of operations and comprehensive (loss) income. The gross carrying amount and accumulated amortization and impairment of other intangibles was $43.6 million and $25.5 million , respectively, at December 31, 2015 and $43.0 million and $16.7 million , respectively, at December 31, 2014 . The amortization expense recorded for these intangibles was $7.0 million , $6.2 million and $1.9 million in 2015 , 2014 and 2013 , respectively. The annual amortization expense expected to be recognized in the next five years is approximately $ 5.5 million in 2016, $ 4.6 million in 2017, $ 3.6 million in 2018, $ 2.0 million in 2019 and $ 1.0 million in 2020. |
Equity investees
Equity investees | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity investees | Equity investees. Summarized aggregate financial information for equity investees (in which the Company typically owns 20% through 50% of the equity) is as follows: 2015 2014 2013 ($000 omitted) For the year: Revenues 28,843 31,562 42,105 Net income 8,830 7,914 8,064 At December 31: Total assets 33,555 25,533 25,470 Notes payable 20,200 12,727 12,390 Stockholders’ equity 7,213 7,665 5,561 Net premium revenues from policies issued by equity investees were approximately $2.5 million , $3.1 million and $4.4 million in 2015 , 2014 and 2013 , respectively. Income related to equity investees were $3.6 million , $3.4 million and $4.1 million in 2015 , 2014 and 2013 , respectively. These amounts are included in Title insurance – direct operations in the consolidated statements of operations and comprehensive (loss) income. Goodwill related to equity investees was $7.4 million as of December 31, 2015 and 2014 , and is included in Investments in investees in the consolidated balance sheets. Equity investments, including the related goodwill balances, are reviewed for impairment annually and upon the occurrence of an event that may indicate an impairment. No impairment was recorded during the years ended December 31, 2015 and 2014. |
Notes payable, convertible seni
Notes payable, convertible senior notes and line of credit | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes payable, convertible senior notes and line of credit | Notes payable, convertible senior notes and line of credit. A summary of notes payable follows: 2015 2014 ($000 omitted) Banks – varying payments and rates (1) 98,000 60,000 Other than banks 4,399 11,180 102,399 71,180 (1) Average interest rates were 1.68% and 2.21% during the year ended December 31, 2015 and 2014 , respectively. Principal payments on the above notes, based upon the contractual maturities, are due in the amounts of $2.5 million in 2016, $1.3 million in 2017, $0.4 million in 2018, and $98.2 million in 2019. Included within the other notes payable line above are $3.8 million and $5.6 million of capital lease obligations at December 31, 2015 and 2014 , respectively. In October 2009, the Company entered into an agreement providing for the sale of $65.0 million aggregate principal amount of 6.0% Convertible Senior Notes to an initial purchaser for resale to certain qualified institutional buyers in compliance with Rule 144A under the Securities Act of 1933, as amended. In 2013, the Company exchanged an aggregate of $37.8 million principal amount of Notes for an aggregate of 3,094,440 shares of Common Stock plus cash for the accrued and unpaid interest. In October 2014, the Company exchanged the remaining aggregate of $27.2 million principal amount of Notes for an aggregate of 2,111,017 shares of Common Stock. The Company incurred $3.3 million of debt issuance costs related to the Notes which were being amortized over the term of the Notes using the effective interest method. Upon conversion of the remaining Notes in 2014, the debt issuance costs were fully amortized at December 31, 2014. For 2014 and 2013, the amortization of the debt issuance costs was $0.3 million and $0.4 million , respectively, and interest expense on the Notes was $1.3 million and $2.0 million , respectively. As of December 31, 2015 , the Company had available a $125.0 million unsecured line of credit commitment (the Credit Agreement), which expires October 2019, under which borrowings of $98.0 million were outstanding. The unsecured line of credit can be used for general corporate purposes, including acquisitions. Borrowings, at the Company's election, bear interest at either (a) an Alternate Base Rate plus the Applicable Rate (ABR Borrowing) or (b) LIBOR plus the Applicable Rate (Eurodollar Borrowing). The Applicable Rate ranges from 0.50% to 1.00% per annum for ABR Borrowings and 1.50% to 2.00% per annum for Eurodollar Borrowings based on the Company's consolidated Leverage Ratio. Also, under the terms of the Credit Agreement, the Company may at any time, subject to certain conditions, request an increase in the amount of the line of credit up to $50.0 million . The Credit Agreement contains customary affirmative and negative covenants. The Credit Agreement also contains certain consolidated financial covenants providing that (a) the ratio of EBITDA (as defined in the Credit Agreement) to fixed charges (as defined in the agreement) not be below 1.25 to 1.00 on a trailing four-quarter basis (Fixed Charge Ratio); (b) the ratio of total Indebtedness to EBITDA for the prior four consecutive quarters must not be greater than 2.25 to 1.00 (Leverage Ratio); and (c) Capital Expenditures in the aggregate for the Company consolidated in any calendar year may not exceed $20.0 million , with certain allowances for carryover of unused amounts. The Company was in compliance with all covenants as of December 31, 2015 and 2014. On February 10, 2016, the Company entered into a first amendment (First Amendment) relating to the Credit Agreement. The First Amendment amends the Credit Agreement, effective as of December 31, 2015, to, among other things, (i) establish an exception to the limitation on restricted payments under the Credit Agreement for the cash payment of $12.0 million to the holders of the Company’s Class B Common Stock in respect of the Exchange Agreement, as announced in January 2016 (refer to Note 12), for the exchange of the Company’s Class B Common Stock into the Company’s Common Stock, (ii) establish an exception to the limitation on restricted payments under the Credit Agreement in respect of the Company’s new share repurchase program of up to $50.0 million , as announced in November 2015, (iii) increase the general permitted restricted payments (dividends) basket in Section 6.07 of the Credit Agreement from $25.0 million to $35.0 million annually, (iv) provide for an exclusion from the calculation of EBITDA of the $35.9 million impairment charge recorded in the quarter ended September 30, 2015, and (v) increase the amount of capital expenditures permitted in any calendar year from $20 million to $25 million . Our qualified intermediary in tax-deferred property exchanges pursuant to Section 1031 of the Internal Revenue Code enters into short-term loan agreements in the ordinary course of its business. The outstanding balances pursuant to these loans are reflected in notes payable - other than banks in the table above and borrowings and repayments on these loans are reflected in our consolidated statements of cash flows. |
Estimated title losses
Estimated title losses | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [Abstract] | |
Estimated title losses | Estimated title losses. 2015 2014 2013 ($000 omitted) Balances at January 1 495,395 506,888 520,375 Provisions: Current year 68,029 64,577 92,043 Previous policy years 38,236 16,728 14,275 Total provisions 106,265 81,305 106,318 Payments, net of recoveries: Current year (19,182 ) (18,775 ) (23,969 ) Previous policy years (104,450 ) (67,898 ) (91,715 ) Total payments, net of recoveries (123,632 ) (86,673 ) (115,684 ) Adjustments related to acquired balance (2,303 ) 2,268 — Effects of changes in foreign currency exchange rates (13,103 ) (8,393 ) (4,121 ) Balances at December 31 462,622 495,395 506,888 Loss ratios as a percentage of title operating revenues: Current year provisions 3.6 % 3.8 % 5.1 % Total provisions 5.6 % 4.7 % 5.9 % The loss ratio on the total provision recorded for the year ended December 31, 2015 reflected an ultimate loss rate of 3.6% for policies issued in the current year and a net increase in the loss reserve estimates for prior policy years of $38.2 million . The increase in the loss reserve estimate for prior policy years included $6.2 million related to adverse loss development due to continued elevated claims payment experience for certain years and $29.1 million related to provisions for large title claims. Total provisions for large title claims related to prior policy years were $31.7 million , $3.1 million and $28.8 million in 2015 , 2014 and 2013 , respectively. The 2014 and 2013 loss ratios included provisions of 3.8% and 5.1% , respectively, related to the current policy year and net increases in the loss reserves estimate for prior policy years of $16.7 million and $14.3 million , respectively. During 2014 and 2013, the Company continued to experience favorable development relative to prior years which allowed the Company to lower the overall loss provision rates during these years. Provisions for prior policy years during 2014 and 2013 included adverse loss development of $17.9 million and $7.6 million , respectively, relating to other than large title losses. |
Common Stock and Class B Common
Common Stock and Class B Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Common Stock and Class B Common Stock | Common Stock and Class B Common Stock. Holders of Common and Class B Common Stock have the same rights except no cash dividends may be paid on Class B Common Stock. The two classes of stock vote separately when electing directors and on any amendment to the Company’s certificate of incorporation that affects the two classes unequally. A provision of the by-laws requires an affirmative vote of at least two-thirds of the directors to elect officers or to approve any proposal that may come before the directors. This provision cannot be changed without a majority vote of each class of stock. Holders of Class B Common Stock may, with no cumulative voting rights, elect four of nine directors if 1,050,000 or more shares of Class B Common Stock are outstanding; three directors if between 600,000 and 1,050,000 shares are outstanding; and none if less than 600,000 shares of Class B Common Stock are outstanding. Holders of Common Stock, with cumulative voting rights, elect the balance of the nine directors. Class B Common Stock may be converted by its stockholders into Common Stock on a share-for-share basis, although the holders of Class B Common Stock have agreed among themselves not to convert their stock. The agreement may be extended or terminated by them at any time. Such conversion is mandatory on any transfer to a person who is not a lineal descendant (or spouse or trustee of such descendant) of William H. Stewart, founder of Stewart Title Guaranty Company. On January 26, 2016, the Company entered into an Exchange Agreement with the holders of Class B Common Stock relating to the exchange of 1,050,012 Class B Common Stock shares, representing all outstanding Class B Common Stock, for 1,050,012 shares of Common Stock plus $12.0 million in aggregate cash. The Exchange Agreement is subject to several conditions, which include, among others, the approval by the Company's stockholders of the Exchange Agreement and the Company's by-laws during the 2016 annual meeting of stockholders and the approval of the listing of the Common Stock by the New York Stock Exchange. At December 31, 2015 and 2014 , there were 145,820 shares of Common Stock held by a subsidiary of the Company which are included in the Treasury stock reported in the consolidated balance sheets. |
Share-based incentives
Share-based incentives | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based incentives | Share-based incentives. During 2015, 2014 and 2013, the Company granted executives and senior management shares of restricted common stock which are time-based and vest at the end of three years. The Company also granted performance-based shares of restricted common stock which vest upon achievement of certain financial objectives over a period of three years. The aggregate grant-date fair values of these awards in 2015, 2014 and 2013 were $4.4 million ( 119,000 shares with an average grant price of $37.16 ), $4.0 million ( 125,000 shares with an average grant price of $32.24 ) and $2.2 million ( 84,000 shares with an average grant price of $26.01 ), respectively. Awards were made pursuant to the Company’s employee incentive compensation plans and the compensation expense associated with restricted stock awards is recognized over the corresponding vesting period as part of Employee costs in the statements of operations. Additionally, in May 2015, 2014 and 2013, the Company granted its board of directors, as a component of their annual director retainer compensation, 18,000 , 22,000 and 18,000 shares, respectively, of common stock, which immediately vested at grant date. The aggregate fair values of these director awards at grant dates in 2015, 2014 and 2013 were $0.7 million , $0.7 million and $0.5 million , respectively, and the associated expense is recognized in Other operating expenses in the statements of operations. A summary of the restricted common stock award activity during the year ended December 31, 2015 is presented below: Shares Weighted-Average Grant-Date Fair Value per Share ($) Nonvested balance at January 1, 2015 205,119 29.78 Granted 118,506 37.16 Adjustment for performance-based shares 19,610 37.18 Vested (78,115 ) 25.78 Forfeited (12,930 ) 31.43 Nonvested balance at December 31, 2015 252,190 34.88 The fair value of shares that vested in 2015 and 2014 aggregated to $2.9 million and $2.3 million , respectively. For the years ended December 31, 2015, 2014 and 2013, compensation costs recognized in the statements of operations were approximately $4.4 million , $4.0 million and $1.0 million , respectively. The total tax benefits recognized in the statement of operations from tax deductions relating to vesting of restricted common stock awards in 2015, 2014 and 2013 were $1.0 million , $0.3 million and $0.3 million , respectively. As of December 31, 2015, compensation costs not yet recognized related to nonvested restricted common stock awards was $4.7 million , which is expected to be recognized over a weighted average period of 1.7 years. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share. The Company’s basic (loss) earnings per share attributable to Stewart is calculated by dividing net (loss) income attributable to Stewart by the weighted-average number of shares of Common Stock and Class B Common Stock outstanding during the reporting periods. To calculate diluted earnings per share, net income and number of shares are adjusted for the effects of any dilutive shares. Using the if-converted method, net income is adjusted for interest expense, net of any tax effects, applicable to the Convertible Senior Notes, which were fully converted into common stock during October 2014. The number of shares is adjusted by adding the number of dilutive shares, assuming they are issued, during the same reporting period. The treasury stock method is used to calculate the dilutive number of shares related to the Company’s long term incentive and stock option plans. In periods of loss, dilutive shares are excluded from the calculation of the diluted loss per share and diluted loss per share is computed in the same manner as basic loss per share. The calculation of the basic and diluted (loss) earnings per share is as follows: For the Years Ended 2015 2014 2013 ($000 omitted) Numerator: Net (loss) income attributable to Stewart (6,204 ) 29,753 63,026 Interest expense, net of tax effects — 1,006 1,408 If-converted net (loss) income attributable to Stewart (6,204 ) 30,759 64,434 Denominator (000): Basic average shares outstanding 23,544 22,778 22,096 Average number of dilutive shares relating to options — 2 — Average number of dilutive shares relating to convertible senior notes — 1,641 2,467 Average number of dilutive shares relating to restricted shares grant — 289 178 Diluted average shares outstanding 23,544 24,710 24,741 Basic (loss) earnings per share attributable to Stewart (0.26 ) 1.31 2.85 Diluted (loss) earnings per share attributable to Stewart (0.26 ) 1.24 2.60 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Reinsurance | Reinsurance. As is industry practice, the Company cedes risks to other title insurance underwriters and reinsurers on certain transactions. However, the Company remains liable if the reinsurer should fail to meet its obligations. The Company also assumes risks from other underwriters on a transactional basis as well as on certain reinsurance treaties. Payments and recoveries on reinsured losses were insignificant during each of the years ended December 31, 2015 , 2014 , and 2013 . The total amount of premiums for assumed and ceded risks was less than 1.0% of consolidated title revenues in each of the last three years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases. Lease expense was $42.9 million , $42.6 million and $39.2 million in 2015 , 2014 and 2013 , respectively. The future minimum lease payments relating to operating leases are summarized as follows (in thousands of dollars): 2016 45,133 2017 37,585 2018 30,838 2019 22,517 2020 12,585 2021 and after 18,360 167,018 |
Contingent liabilities and comm
Contingent liabilities and commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent liabilities and commitments | Contingent liabilities and commitments. The Company routinely holds third-party funds in segregated escrow accounts pending the closing of real estate transactions resulting in a contingent liability to the Company of approximately $1.3 billion at December 31, 2015 . In addition, the Company is contingently liable for disbursements of escrow funds held by agencies in those cases where specific insured closing guarantees have been issued. The Company owns a qualified intermediary in tax-deferred property exchanges for customers pursuant to Section 1031 of the Internal Revenue Code. The Company holds the proceeds from these transactions until a qualifying exchange can occur. This resulted in a contingent liability to the Company of approximately $1.0 billion at December 31, 2015 . As is industry practice, escrow and Section 1031 exchanger fund accounts are not included in the consolidated balance sheets. In the ordinary course of business, the Company guarantees the third-party indebtedness of certain of its consolidated subsidiaries. As of December 31, 2015 , the maximum potential future payments on the guarantees are not more than the related notes payable recorded in the consolidated balance sheets (refer to Note 10). The Company also guarantees the indebtedness related to lease obligations of certain of its consolidated subsidiaries. The maximum future obligations arising from these lease-related guarantees are not more than the Company’s future minimum lease payments (refer to Note 16). As of December 31, 2015 , the Company also had unused letters of credit aggregating $5.6 million related to workers’ compensation coverage and other insurance. The Company does not expect to make any payments on these guarantees. |
Regulatory and legal developmen
Regulatory and legal developments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Regulatory and legal developments | Regulatory and legal developments. In April 2008, Credit Suisse AG, Cayman Islands Branch (Credit Suisse) asserted a claim under a Stewart Title Guaranty Company (Guaranty) policy of title insurance dated on or about May 19, 2006 based upon the alleged priority of mechanic’s and materialmen’s liens on a resort development in the State of Idaho known as Tamarack. Guaranty ultimately undertook the defense of the claim under a reservation of rights. For reasons set forth in Guaranty's complaint, on or about May 18, 2011, Guaranty withdrew its defense of Credit Suisse and filed a declaratory judgment action in the United States District Court for the District of Idaho captioned Stewart Title Guaranty Company v. Credit Suisse AG, Cayman Islands Branch seeking a declaratory judgment and other relief. In the lawsuit Guaranty sought, among other things, a determination that it had no duty to indemnify Credit Suisse and sought to have certain provisions of the title insurance policy rescinded. Credit Suisse counterclaimed for, among other things, bad faith for failure to pay the claim. On August 29, 2013, the United States District Court for the District of Idaho rendered an opinion on Credit Suisse’s Motion for Partial Summary Judgment. In its opinion the Court, among other things more fully set forth in said opinion, granted Credit Suisse’s motion negating certain policy defenses to coverage asserted by Guaranty. The Court also granted Credit Suisse’s Motion to Amend and permitted the assertion of punitive damages against Guaranty. Guaranty’s Motion to Reconsider the Court’s August 29, 2013 ruling was denied. Guaranty’s Motion for Summary Judgment based on Credit Suisse’s lack of standing to pursue its counter claims, and other grounds was denied on February 26, 2015. A jury trial was set to begin on September 3, 2015. That trial date was vacated pending a resolution of the matter through settlement. The matter has now been settled pursuant to a Confidential Settlement Agreement and all amounts have been paid as of December 31, 2015. * * * The Company is subject to claims and lawsuits arising in the ordinary course of its business, most of which involve disputed policy claims. In some of these lawsuits, the plaintiff seeks exemplary or treble damages in excess of policy limits. The Company does not expect that any of these proceedings will have a material adverse effect on its consolidated financial condition or results of operations. Along with the other major title insurance companies, the Company is party to a number of class action lawsuits concerning the title insurance industry. The Company believes that it has adequate reserves for the various litigation matters and contingencies discussed above and that the likely resolution of these matters will not materially affect its consolidated financial condition or results of operations. The Company is subject to administrative actions and litigation relating to the basis on which premium taxes are paid in certain states. Additionally, the Company has received various other inquiries from governmental regulators concerning practices in the insurance industry. Many of these practices do not concern title insurance. The Company believes that it has adequately reserved for these matters and does not anticipate that the outcome of these inquiries will materially affect its consolidated financial condition or results of operations. The Company is subject to various other administrative actions and inquiries into its business conduct in certain of the states in which it operates. While the Company cannot predict the outcome of the various regulatory and administrative matters, it believes that it has adequately reserved for these matters and does not anticipate that the outcome of any of these matters will materially affect its consolidated financial condition or results of operations. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment information | Segment information. The Company’s three reportable operating segments are title insurance and related services (title), mortgage services and corporate. The title segment provides services needed to transfer the title in a real estate transaction. These services include searching, examining, closing and insuring the condition of the title to the property. The title segment also includes home and personal insurance services and Internal Revenue Code Section 1031 tax-deferred exchanges. The mortgage services segment includes a diverse group of products and services provided to multiple markets. These services include providing origination and servicing support; default and REO services; post-closing outsourcing; portfolio due diligence; mortgage compliance solutions; servicer oversight to residential mortgage lenders, servicers and investors; technology to support the real estate transaction, and centralized title and valuation services to large lenders. The single largest customer of the mortgage services segment accounted for 41.1% , 51.4% and 74.5% of mortgage services revenues in 2015 , 2014 and 2013 , respectively. The corporate segment consists of the expenses of the parent holding company, certain other corporate overhead expenses, and the costs of its centralized support operations not otherwise allocated to the operating segments. The revenues for the segment are primarily related to investment income. Selected statement of operations information related to these segments is as follows: Title Mortgage Services Corporate Total ($000 omitted) 2015: Revenues 1,805,267 212,934 15,684 2,033,885 Impairment of goodwill — 35,749 — 35,749 Depreciation and amortization 8,545 13,074 8,679 30,298 Income (loss) before taxes and noncontrolling interests 225,238 (56,645 ) (158,900 ) 9,693 2014: Revenues 1,660,001 194,018 16,811 1,870,830 Depreciation and amortization 7,059 9,540 7,627 24,226 Income (loss) before taxes and noncontrolling interests 184,016 6,364 (138,568 ) 51,812 2013: Revenues 1,792,210 121,945 13,825 1,927,980 Depreciation and amortization 5,957 4,634 7,329 17,920 Income (loss) before taxes and noncontrolling interests 211,240 12,609 (122,784 ) 101,065 The Company does not provide asset information by reportable operating segment as it does not routinely evaluate the asset position by segment. Revenues for the years ended December 31 in the United States and all international operations are as follows: 2015 2014 2013 ($000 omitted) United States 1,925,865 1,751,458 1,811,714 International 108,020 119,372 116,266 2,033,885 1,870,830 1,927,980 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions. During 2014, the Company completed acquisitions of three companies that provide collateral valuation, settlement services, title and closing services, and quality control and due diligence services for an aggregate purchase price of $ 40.0 million , net of liabilities assumed. The acquisitions were primarily funded by borrowings on the Company’s unsecured line of credit. The Company has recorded fair value estimates for the assets acquired, liabilities assumed and estimated goodwill of $ 20.0 million , based on the completion of the Company’s purchase price allocation as of December 31, 2014. During 2015, the Company recorded purchase adjustments of $5.3 million related to the remeasurement of assumed liabilities related to these acquisitions. |
Other comprehensive (loss) inco
Other comprehensive (loss) income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other comprehensive (loss) income | Other comprehensive (loss) income. Changes in the balances of each component of other comprehensive (loss) income and the related tax effects are as follows: For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the Year Ended December 31, 2013 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) ($000 omitted) ($000 omitted) Foreign currency translation adjustments (16,022 ) (4,877 ) (11,145 ) (10,405 ) (2,840 ) (7,565 ) (10,349 ) (3,530 ) (6,819 ) Unrealized (losses) gains on investments: Change in unrealized (losses) gains on investments (5,757 ) (2,016 ) (3,741 ) 15,066 5,273 9,793 (11,203 ) (3,921 ) (7,282 ) Less: reclassification adjustment for net gains included in net (loss) income (2,501 ) (875 ) (1,626 ) (853 ) (298 ) (555 ) (2,463 ) (862 ) (1,601 ) Net unrealized (losses) gains (8,258 ) (2,891 ) (5,367 ) 14,213 4,975 9,238 (13,666 ) (4,783 ) (8,883 ) Other comprehensive (losses) income (24,280 ) (7,768 ) (16,512 ) 3,808 2,135 1,673 (24,015 ) (8,313 ) (15,702 ) |
Exit activities
Exit activities | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Exit activities | Exit activities. During the third quarter 2015, management approved the exit plan for the delinquent loan servicing activities included in the mortgage services segment. The decision was based on continued pricing pressures on existing contracts and decreased demand for these services. The Company is operating the delinquent loan servicing business on a phased exit schedule and anticipates the completion of its exit no later than the end of first quarter 2016. The Company has estimated the total charge to be incurred related to exiting these operations to be between $5.0 million and $7.0 million . These costs include lease termination costs, additional severance expenses and accelerated amortization expense. For the year ended December 31, 2015, the Company recorded $3.5 million of costs, comprised of $1.1 million of employee termination benefits (of which $0.3 million was paid during 2015), $1.0 million of early lease termination costs accrued and $1.4 million of accelerated depreciation of assets. These amounts are included within the Employee costs, Investments and other (losses) gains - net and Depreciation and amortization lines, respectively, in the consolidated statement of operations and comprehensive (loss) income. |
Quarterly financial information
Quarterly financial information (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information (unaudited) | Quarterly financial information (unaudited). Mar 31 June 30 Sept 30 Dec 31 Total ($000 omitted, except per share) Revenues: 2015 448,872 531,906 555,704 497,403 2,033,885 2014 393,576 446,838 508,097 522,319 1,870,830 Net (loss) income attributable to Stewart: 2015 (12,448 ) 17,106 (13,467 ) 2,605 (6,204 ) 2014 (12,106 ) 6,279 23,717 11,863 29,753 Diluted (loss) earnings per share attributable to Stewart (1) : 2015 (0.52 ) 0.72 (0.58 ) 0.11 (0.26 ) 2014 (0.54 ) 0.27 0.97 0.49 1.24 (1) Quarterly per share data may not sum to annual totals due to rounding or effects of dilution in particular quarters but not in annual totals. |
Schedule I - Parent Company Fin
Schedule I - Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Parent Company Financial Information | SCHEDULE I STEWART INFORMATION SERVICES CORPORATION (Parent Company) STATEMENTS OF OPERATIONS AND RETAINED EARNINGS For the Years Ended December 31, 2015 2014 2013 ($000 omitted) Revenues Investment income 15,000 25,087 — Other losses — (869 ) (3,164 ) Other income 922 90 263 15,922 24,308 (2,901 ) Expenses Employee costs 156 1,110 (91 ) Other operating expenses, including $276 each year to affiliates 7,617 3,806 1,329 Depreciation and amortization 162 421 527 Interest 1,726 2,054 2,494 9,661 7,391 4,259 Income (loss) before taxes and (loss) income from subsidiaries 6,261 16,917 (7,160 ) Income tax expense — 1 24 (Loss) income from subsidiaries (12,465 ) 12,837 70,210 Net (loss) income (6,204 ) 29,753 63,026 Retained earnings at beginning of year 479,733 452,314 391,447 Cash dividends on Common Stock (18,010 ) (2,334 ) (2,159 ) Retained earnings at end of year 455,519 479,733 452,314 See accompanying note to financial statement information. See accompanying Report of Independent Registered Public Accounting Firm. STEWART INFORMATION SERVICES CORPORATION (Parent Company) BALANCE SHEETS As of December 31, 2015 2014 ($000 omitted) Assets Cash and cash equivalents 832 15,210 Receivables: Notes - due from subsidiaries 68,382 46,885 Other, including $120 and $4, respectively, from affiliates 1,093 497 Allowance for uncollectible amounts (7 ) (10 ) 69,468 47,372 Property and equipment, at cost: Furniture and equipment 2,893 2,893 Accumulated depreciation (2,625 ) (2,463 ) 268 430 Title plant, at cost 48 48 Investments in subsidiaries, on an equity-method basis 653,519 688,858 Goodwill 8,470 8,470 Other assets 17,457 16,499 750,062 776,887 Liabilities Notes payable 98,000 60,000 Accounts payable and accrued liabilities, including $4 and $0, respectively, to affiliates 22,781 23,702 120,781 83,702 Contingent liabilities and commitments — — Stockholders’ equity Common Stock – $1 par, authorized 50,000,000; issued 22,643,255 and 23,307,909; outstanding 22,291,094 and 22,955,748, respectively 22,643 23,308 Class B Common Stock– $1 par, authorized 1,500,000; issued and outstanding 1,050,012 1,050 1,050 Additional paid-in capital 156,692 179,205 Retained earnings (1) 455,519 479,733 Accumulated other comprehensive (loss) income: Foreign currency translation adjustments (13,360 ) (2,215 ) Unrealized investment gains 9,403 14,770 Treasury stock – 352,161 common shares, at cost (2,666 ) (2,666 ) Total stockholders’ equity 629,281 693,185 750,062 776,887 (1) Includes undistributed earnings of subsidiaries of $514,522 in 2015 and $544,997 in 2014. See accompanying note to financial statement information. See accompanying Report of Independent Registered Public Accounting Firm. STEWART INFORMATION SERVICES CORPORATION (Parent Company) STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2015 2014 2013 ($000 omitted) Reconciliation of net (loss) income to cash used by operating activities: Net (loss) income (6,204 ) 29,753 63,026 Add (deduct): Depreciation and amortization 162 421 527 Other losses — 869 3,164 Increase in receivables – net (22,096 ) (47,232 ) (95 ) (Increase) decrease in other assets – net (558 ) (828 ) 2,413 Increase in payables and accrued liabilities – net 21,136 12,395 3,335 Losses (income) from subsidiaries 12,465 (12,837 ) (70,210 ) Other – net (26,244 ) (31,824 ) (3,945 ) Cash used by operating activities (21,339 ) (49,283 ) (1,785 ) Investing activities: Dividends from subsidiaries 15,000 25,000 — Proceeds from the sale of property and equipment –net — — 5 Collections on notes receivables — — 1 Cash provided by investing activities 15,000 25,000 6 Financing activities: Proceeds from notes payable 45,000 60,000 — Payments on notes payable (7,000 ) — — Dividends paid (18,010 ) (2,334 ) (2,159 ) Repurchases of Common Stock (27,950 ) (22,048 ) — Purchase of remaining interest of consolidated subsidiary (209 ) (321 ) (1,442 ) Settlement of convertible debt — — (1,149 ) Other – net 130 — — Cash (used) provided by financing activities (8,039 ) 35,297 (4,750 ) (Decrease) increase in cash and cash equivalents (14,378 ) 11,014 (6,529 ) Cash and cash equivalents at beginning of year 15,210 4,196 10,725 Cash and cash equivalents at end of year 832 15,210 4,196 Supplemental information: Income taxes paid 1 24 34 Interest paid 1,681 546 4 See accompanying note to financial statement information. See accompanying Report of Independent Registered Public Accounting Firm. STEWART INFORMATION SERVICES CORPORATION (Parent Company) NOTE TO FINANCIAL STATEMENT INFORMATION The Parent Company operates as a holding company, transacting substantially all of its business through its subsidiaries. Its consolidated financial statements are included in Part II, Item 8 of Form 10-K. The Parent Company financial statements should be read in conjunction with the aforementioned consolidated financial statements and notes thereto and financial statement schedules. Certain prior year amounts in the Parent Company financial statements have been reclassified for comparative purposes. Net (loss) income and stockholders’ equity, as previously reported, were not affected. Interest of $1.7 million on the Convertible Senior Notes was paid by a subsidiary in 2014. In October 2014, the remaining outstanding balance of the Convertible Senior Notes was converted into Common Stock as discussed in Note 10 to the consolidated financial statements. |
Schedule II - VALUATION AND QUA
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II STEWART INFORMATION SERVICES CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS December 31, 2015 Col. A Col. B Col. C Additions Col. D Deductions Col. E Description Balance at beginning of period Charged to costs and expenses Charged to other accounts (describe) (Describe) Balance At end of period ($000 omitted) Stewart Information Services Corporation and subsidiaries: Year ended December 31, 2015: Estimated title losses 495,395 106,265 — 139,038 (A) 462,622 Valuation allowance for deferred tax assets 2,564 (347 ) — — 2,217 Allowance for uncollectible amounts 9,193 3,396 — 2,756 (B) 9,833 Year ended December 31, 2014: Estimated title losses 506,888 81,305 2,268 (C) 95,066 (A) 495,395 Valuation allowance for deferred tax assets 6,971 (4,407 ) — — 2,564 Allowance for uncollectible amounts 9,871 1,977 — 2,655 (B) 9,193 Year ended December 31, 2013: Estimated title losses 520,375 106,318 — 119,805 (A) 506,888 Valuation allowance for deferred tax assets 12,136 (5,165 ) — — 6,971 Allowance for uncollectible amounts 12,823 2,063 — 5,015 (B) 9,871 (A) Represents primarily payments of policy and escrow losses and loss adjustment expenses. (B) Represents uncollectible accounts written off. (C) Represents amounts added through acquisitions. See accompanying Report of Independent Registered Public Accounting Firm. |
General (Policies)
General (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Management's responsibility | Management’s responsibility. The accompanying consolidated financial statements were prepared by management, who is responsible for their integrity and objectivity. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP), including management’s best judgments and estimates. Actual results could differ from those estimates. |
Reclassifications | Reclassifications. Certain prior year amounts in these consolidated financial statements have been reclassified for comparative purposes. Net income (loss) attributable to Stewart and stockholders’ equity, as previously reported, were not affected. |
Consolidation | Consolidation. The consolidated financial statements include all subsidiaries in which the Company owns more than 50% voting rights in electing directors. All significant intercompany amounts and transactions have been eliminated and provisions have been made for noncontrolling interests. Unconsolidated investees, in which the Company typically owns 20% through 50% of the entity, are accounted for by the equity method. |
Statutory accounting | Statutory accounting. Stewart Title Guaranty Company (Guaranty) and other title insurance underwriters owned by the Company prepare financial statements in accordance with statutory accounting practices prescribed or permitted by regulatory authorities. In conforming the statutory financial statements to GAAP, the statutory premium reserve and the reserve for known title losses are eliminated and, in substitution, amounts are established for estimated title losses (Note 1F), for which the net effect, after providing for income taxes, is included in the consolidated statements of operations and comprehensive (loss) income. |
Revenue recognition | Revenue recognition. Operating revenues from direct title operations are considered earned at the time of the closing of the related real estate transaction. The Company recognizes premium revenues on title insurance policies written by independent agencies (agencies) when the policies are reported to the Company. In addition, where reasonable estimates can be made, the Company accrues for policies issued but not reported until after period end. The Company believes that reasonable estimates can be made when recent and consistent policy issuance information is available. Estimates are based on historical reporting patterns and other information obtained about agencies, as well as current trends in direct operations and in the title industry. In this accrual, future transactions are not being estimated. The Company is estimating revenues on policies that have already been issued by agencies but not yet reported to or received by the Company. The Company has consistently followed the same basic method of estimating unreported policy revenues for more than 10 years. Revenues generated by the mortgage services segment are generally considered earned at the time the service is performed or the product is delivered to the customer. |
Title losses and related claims | Title losses and related claims. The Company’s method for recording the reserves for title losses on both an interim and annual basis begins with the calculation of its current loss provision rate, which is applied to the Company’s current premiums resulting in a title loss expense for the period. This loss provision rate is set to provide for estimated losses on current year policies and is determined using moving average ratios of recent actual policy loss payment experience (net of recoveries) to premium revenues. At each quarter end, the Company’s recorded reserve for title losses begins with the prior period’s reserve balance for claim losses, adds the current period provision to that balance and subtracts actual paid claims, resulting in an amount that management compares to its actuarially-based calculation of the ending reserve balance necessary to provide for future reported title losses. The actuarially-based calculation is a paid loss development calculation where loss development factors are selected based on company data and input from the Company’s third-party actuaries. The Company also obtains input from third-party actuaries in the form of a reserve analysis utilizing generally accepted actuarial methods. While the Company is responsible for determining its loss reserves, it utilizes this actuarial input to assess the overall reasonableness of its reserve estimation. If the Company’s recorded reserve amount is not at the actuarial point estimate, but is within a reasonable range (+ 5.0% /- 4.0% ) of its actuarially-based reserve calculation and the actuary’s point estimate, the Company’s management assesses the major factors contributing to the different reserve estimates in order to determine the overall reasonableness of its recorded reserve, as well as the position of the recorded reserves relative to the point estimate and the estimated range of reserves. The major factors considered can change from period to period and include items such as current trends in the real estate industry (which management can assess although there is a time lag in the development of this data for use by the actuary), the size and types of claims reported and changes in the Company’s claims management process. If the recorded amount is not within a reasonable range of the Company’s third-party actuary’s point estimate, it will adjust the recorded reserves in the current period and reassess the provision rate on a prospective basis. Once the Company’s reserve for title losses is recorded, it is reduced in future periods as a result of claims payments and may be increased or reduced by revisions to the Company’s estimate of the overall level of required reserves. Large claims (those exceeding $1.0 million on a single claim), including large title losses due to independent agency defalcations, are analyzed and reserved for separately due to the higher dollar amount of loss, lower volume of claims reported and sporadic reporting of such claims. Due to the inherent uncertainty in predicting future title policy losses, significant judgment is required by both the Company’s management and its third party actuaries in estimating reserves. As a consequence, the Company’s ultimate liability may be materially greater or less than its current reserves and/or its third party actuary’s calculated estimate. |
Cash equivalents | Cash equivalents. Cash equivalents are highly liquid investments with insignificant interest rate risks and maturities of three months or less at the time of acquisition. |
Short-term investments | Short-term investments. Short-term investments comprise time deposits with banks, federal government obligations and other investments maturing in less than one year. |
Investments in debt and equity securities | Investments in debt and equity securities. The investment portfolio is classified as available-for-sale. Realized gains and losses on sales of investments are determined using the specific identification method. Net unrealized gains and losses on investments available-for-sale, net of applicable deferred taxes, are included as a component of accumulated other comprehensive (loss) income within stockholders’ equity. At the time unrealized gains and losses become realized, they are reclassified from accumulated other comprehensive (loss) income (using the specific identification method. Other-than-temporary declines in fair values of investments available-for-sale are charged to income. |
Property and equipment | Property and equipment. Depreciation is principally computed using the straight-line method over the estimated useful lives of the assets at the following rates: buildings – 30 to 40 years and furniture and equipment – 3 to 10 years. Maintenance and repairs are expensed as incurred while improvements are capitalized. Gains and losses are recognized at disposal. |
Title plants | Title plants. Title plants include compilations of a county’s official land records, prior examination files, copies of prior title policies, maps and related materials that are geographically indexed to a specific property. The costs of acquiring existing title plants and creating new ones, prior to the time such plants are placed in operation, are capitalized. Title plants are not amortized since there is no indication of any loss of value over time but are subject to review for impairment. The costs of maintaining and operating title plants are expensed as incurred. Gains and losses on sales of copies of title plants or interests in title plants are recognized at the time of sale. |
Goodwill | Goodwill. Goodwill is not amortized, but is reviewed annually and normally completed in the third quarter using June 30 balances, or whenever occurrences of events indicate a potential impairment at the reporting unit level. We have an option to assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If we decide not to use a qualitative assessment or if the reporting unit fails the qualitative assessment, then we perform a two-step quantitative analysis. The step one analysis is performed, using a combination of the income approach (discounted cash flow (DCF) technique) and the market approach (guideline company and precedent transaction analyses), to determine if the carrying value of the goodwill exceeds its fair value, which would indicate a potential impairment. The DCF model utilizes historical and projected operating results and cash flows, initially driven by estimates of changes in future revenue levels, and risk-adjusted discount rates. Our projected operating results are primarily driven by anticipated mortgage originations, which we obtain from projections by industry experts, for our title reporting units and forecasted contractual revenues for our mortgage services reporting unit. Fluctuations in revenues, followed by our ability to appropriately adjust our employee count and other operating expenses, or large and unanticipated adjustments to title loss reserves, are the primary reasons for increases or decreases in our projected operating results. Our market-based valuation methodologies utilize (i) market multiples of earnings and/or other operating metrics of comparable companies and (ii) our market capitalization and a control premium based on market data and factors specific to our ownership and corporate governance structure (such as our Class B Common Stock). If we determine that the carrying value of the reporting unit's goodwill is greater than its fair value, we then perform the step two analysis to determine the implied fair value of the goodwill and calculate the amount of impairment. In performing the step two analysis, the implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. In this method, the estimated fair value of the reporting unit is allocated to all the assets and liabilities of that reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the estimated fair value is the purchase price paid. Any impairment of goodwill is treated as the difference between the implied fair value and the carrying amount of the goodwill and is charged to current operations. While we are responsible for assessing whether an impairment of goodwill exists, we utilize inputs from third-party appraisers in performing the quantitative analysis for our impairment review. We evaluate goodwill based on four reporting units with goodwill balances (direct operations, agency operations, international operations and mortgage services). Goodwill is assigned to these reporting units at the time the goodwill is initially recorded. Once assigned to a reporting unit, the goodwill is pooled and no longer attributable to a specific acquisition. All activities within a reporting unit are available to support the carrying value of the goodwill. |
Other intangibles | Other intangibles. Other intangible assets are comprised mainly of non-compete, underwriting and customer relationship agreements and acquired software. Intangible assets are amortized over their estimated lives, which are primarily 3 to 10 years. These intangible assets are reviewed for impairment when certain events or changes in circumstances occur that indicate that the carrying amount of an asset may not be recoverable. The Company performs an analysis to determine whether the carrying amount of each intangible asset is recoverable. The carrying amount is not recoverable when it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. For any intangible asset that is not recoverable, the Company calculates the excess of the carrying amount of the intangible asset over its fair value, estimated using the income approach (discounted cash flow technique). The resulting difference of the carrying amount over the fair value is treated as the impairment on the asset. |
Other long-lived assets | Other long-lived assets. The Company reviews the carrying values of title plants and other long-lived assets if certain events occur that may indicate impairment. An impairment of these long-lived assets is indicated when projected undiscounted cash flows over the estimated lives of the assets are less than carrying values. If impairment is indicated, the recorded amounts are written down to fair values. There were no significant impairment charges for long-lived assets during the three years ended December 31, 2015 . |
Fair values | Fair values. The fair values of financial instruments, including cash and cash equivalents, short-term investments, notes receivable, notes payable and accounts payable, are determined by the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal, or most advantageous, market for the asset or liability in an orderly transaction between market participants at the measurement date. The net fair values of these financial instruments approximate their carrying values. Investments in debt and equity securities and certain financial instruments are carried at their fair values. |
Leases | Leases. The Company recognizes rent expense under noncancelable operating leases, which generally expire over the next 10 years, on the straight-line basis over the terms of the leases, including provisions for any free rent periods or escalating lease payments. |
Income taxes | Income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the tax basis and the book carrying values of certain assets and liabilities. To the extent that the Company does not believe its deferred tax assets meet the more-likely-than-not realization criteria, it establishes a valuation allowance. When it establishes a valuation allowance, or increases (decreases) the allowance during the year, it records a tax expense (benefit) in its consolidated statements of operations and comprehensive (loss) income. Enacted tax rates are used in calculating amounts. The Company provides for uncertainties in income taxes by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. |
Recent significant accounting pronouncements | Recent significant accounting pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014-09, Revenue from Contracts with Customers , which eliminated the transaction-specific and industry-specific revenue recognition guidance under current GAAP and replaced it with a principles-based approach for determining revenue recognition. Originally, ASU 2014-09 was effective for annual and interim periods beginning after December 15, 2016. In August 2015, FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 by one year to annual and interim periods beginning after December 15, 2017. Earlier application is permitted only for annual and interim periods after December 15, 2016. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and related disclosures. |
Investments in debt and equit34
Investments in debt and equity securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Costs and Fair Values | Amortized costs and fair values at December 31, follow: 2015 2014 Amortized costs Fair values Amortized costs Fair values ($000 omitted) Debt securities: Municipal 70,300 72,008 60,656 61,689 Corporate 303,870 309,461 296,578 308,691 Foreign 149,914 153,221 163,099 166,685 U.S. Treasury Bonds 13,803 13,906 14,337 14,802 Equity securities 27,497 31,253 22,710 28,236 565,384 579,849 557,380 580,103 |
Gross Unrealized Gains and Losses | Gross unrealized gains and losses at December 31, were: 2015 2014 Gains Losses Gains Losses ($000 omitted) Debt securities: Municipal 1,720 12 1,125 92 Corporate 7,700 2,109 12,559 446 Foreign 3,789 482 3,690 104 U.S. Treasury Bonds 128 25 492 27 Equity securities 4,842 1,086 5,982 456 18,179 3,714 23,848 1,125 |
Debt Securities According to Contractual Terms | Debt securities at December 31, 2015 mature, according to their contractual terms, as follows (actual maturities may differ due to call or prepayment rights): Amortized costs Fair values ($000 omitted) In one year or less 27,118 27,256 After one year through five years 226,497 230,842 After five years through ten years 230,161 235,219 After ten years 54,111 55,279 537,887 548,596 |
Gross Unrealized Losses on Investments and Fair Values of Related Securities | Gross unrealized losses on investments and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 , were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Debt securities: Municipal 1 2,673 91 12,076 92 14,749 Corporate 107 7,167 339 26,545 446 33,712 Foreign 11 34,236 93 6,446 104 40,682 U.S. Treasury Bonds — — 27 3,694 27 3,694 Equity securities: 456 6,540 — — 456 6,540 575 50,616 550 48,761 1,125 99,377 Gross unrealized losses on investments and the fair values of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 , were: Less than 12 months More than 12 months Total Losses Fair values Losses Fair values Losses Fair values ($000 omitted) Debt securities: Municipal 9 2,230 3 1,615 12 3,845 Corporate 1,461 83,565 648 32,871 2,109 116,436 Foreign 322 35,008 160 3,155 482 38,163 U.S. Treasury Bonds 6 1,195 19 3,583 25 4,778 Equity securities: 720 4,440 366 3,224 1,086 7,664 2,518 126,438 1,196 44,448 3,714 170,886 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on Recurring Basis | At December 31, 2015 , financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value measurements ($000 omitted) Investments available-for-sale: Debt securities: Municipal — 72,008 — 72,008 Corporate — 309,461 — 309,461 Foreign — 153,221 — 153,221 U.S. Treasury Bonds — 13,906 — 13,906 Equity securities: 31,253 — — 31,253 31,253 548,596 — 579,849 At December 31, 2014 , financial instruments measured at fair value on a recurring basis are summarized below: Level 1 Level 2 Level 3 Fair value measurements ($000 omitted) Investments available-for-sale: Debt securities: Municipal — 61,689 — 61,689 Corporate — 308,691 — 308,691 Foreign — 166,685 — 166,685 U.S. Treasury Bonds — 14,802 — 14,802 Equity securities: 28,236 — — 28,236 28,236 551,867 — 580,103 |
Assets Measured at Fair Value on Nonrecurring Basis | As of December 31, 2015 and 2014 , assets measured at fair value on a nonrecurring basis are summarized below: 2015 2014 Level 3 Impairment loss recorded Level 3 Impairment loss recorded ($000 omitted) Cost-basis investments 3,127 600 3,938 1,000 |
Investment income (Tables)
Investment income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Gross Realized Investment and Other Gains and Losses | Income from investments and gross realized investment and other gains and losses follow: 2015 2014 2013 ($000 omitted) Investment income: Debt securities 15,181 14,593 13,387 Short-term investments, cash equivalents and other 1,669 2,213 2,105 16,850 16,806 15,492 Investment and other (losses) gains – net: Realized gains 5,948 12,018 7,555 Realized losses (7,317 ) (5,274 ) (8,621 ) (1,369 ) 6,744 (1,066 ) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax expense consists of the following: 2015 2014 2013 ($000 omitted) Current: Federal 4,774 3,047 2,589 State 709 (224 ) 2,757 Foreign 5,967 7,442 6,753 Deferred: Federal (3,986 ) 3,916 18,361 State (1,375 ) (694 ) (206 ) Foreign (439 ) 16 (1,773 ) Income tax expense 5,650 13,503 28,481 |
Reconciliation of Income Tax Expenses Computed at Federal Statutory Rate with Income Tax Expense (Benefit) Reported | The following reconciles income tax (benefit) expense computed at the federal statutory rate with income tax expense as reported: 2015 2014 2013 ($000 omitted) Expected income tax (benefit) expense at 35% (1) (194 ) 15,140 32,027 Foreign tax rate differential (329 ) (693 ) (422 ) State income tax (benefit) expense – net of Federal impact (914 ) (840 ) 1,586 Impairment of goodwill 7,099 — — Nondeductible expenses 2,768 4,060 2,321 Return-to-provision adjustments (1,329 ) 1,133 (2,408 ) Valuation allowance (668 ) (5,020 ) (6,555 ) Intercompany dividends and dividends received deductions (541 ) (319 ) 449 Tax-exempt interest (404 ) (324 ) (233 ) Noncontrolling interest 251 186 529 Life insurance proceeds (175 ) — (797 ) Nondeductible bond conversion costs — — 1,900 Other – net 86 180 84 Income tax expense 5,650 13,503 28,481 Effective income tax rates (1) (1,019.4 )% 31.2 % 31.1 % (1) Calculated using (loss) income before taxes and after noncontrolling interests. |
Deferred Income Taxes | Deferred income taxes as of December 31 were as follows: 2015 2014 ($000 omitted) Deferred tax assets: Tax credit carryforwards 20,242 26,792 Accrued expenses 20,190 17,241 Net operating loss (NOL) carryforwards 6,428 4,260 Foreign currency translation adjustments 5,220 411 Allowance for uncollectible amounts 3,524 3,379 Investments 3,369 1,582 Fixed assets 2,094 5,860 Other 1,954 2,127 Deferred tax assets – gross 63,021 61,652 Valuation allowance (2,217 ) (2,564 ) Deferred tax assets – net 60,804 59,088 Deferred tax liabilities: Amortization – goodwill and other intangibles (27,991 ) (34,740 ) Title loss provisions (18,523 ) (23,365 ) Unrealized gains on investments (4,811 ) (7,953 ) Deferred compensation on life insurance policies (3,558 ) (3,239 ) Other (2,328 ) (2,476 ) Deferred tax liabilities – gross (57,211 ) (71,773 ) Net deferred income tax assets (liabilities) 3,593 (12,685 ) |
Goodwill and other intangibles
Goodwill and other intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | A summary of changes in goodwill is as follows: Title Mortgage Services Total ($000 omitted) Balances at January 1, 2014 198,727 33,111 231,838 Acquisitions 3,275 18,165 21,440 Disposals — (1,410 ) (1,410 ) Balances at December 31, 2014 202,002 49,866 251,868 Acquisitions 7,220 — 7,220 Purchase adjustments — (5,268 ) (5,268 ) Impairment — (35,749 ) (35,749 ) Disposals (349 ) — (349 ) Balances at December 31, 2015 208,873 8,849 217,722 |
Equity investees (Tables)
Equity investees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Aggregate Financial Information for Equity Investees | Summarized aggregate financial information for equity investees (in which the Company typically owns 20% through 50% of the equity) is as follows: 2015 2014 2013 ($000 omitted) For the year: Revenues 28,843 31,562 42,105 Net income 8,830 7,914 8,064 At December 31: Total assets 33,555 25,533 25,470 Notes payable 20,200 12,727 12,390 Stockholders’ equity 7,213 7,665 5,561 |
Notes payable, convertible se40
Notes payable, convertible senior notes and line of credit (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Notes Payable | A summary of notes payable follows: 2015 2014 ($000 omitted) Banks – varying payments and rates (1) 98,000 60,000 Other than banks 4,399 11,180 102,399 71,180 (1) Average interest rates were 1.68% and 2.21% during the year ended December 31, 2015 and 2014 , respectively. |
Estimated title losses (Tables)
Estimated title losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency [Abstract] | |
Estimated Provision of Losses | 2015 2014 2013 ($000 omitted) Balances at January 1 495,395 506,888 520,375 Provisions: Current year 68,029 64,577 92,043 Previous policy years 38,236 16,728 14,275 Total provisions 106,265 81,305 106,318 Payments, net of recoveries: Current year (19,182 ) (18,775 ) (23,969 ) Previous policy years (104,450 ) (67,898 ) (91,715 ) Total payments, net of recoveries (123,632 ) (86,673 ) (115,684 ) Adjustments related to acquired balance (2,303 ) 2,268 — Effects of changes in foreign currency exchange rates (13,103 ) (8,393 ) (4,121 ) Balances at December 31 462,622 495,395 506,888 Loss ratios as a percentage of title operating revenues: Current year provisions 3.6 % 3.8 % 5.1 % Total provisions 5.6 % 4.7 % 5.9 % |
Share-based incentives (Tables)
Share-based incentives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of the Restricted Common Stock Award Activity | A summary of the restricted common stock award activity during the year ended December 31, 2015 is presented below: Shares Weighted-Average Grant-Date Fair Value per Share ($) Nonvested balance at January 1, 2015 205,119 29.78 Granted 118,506 37.16 Adjustment for performance-based shares 19,610 37.18 Vested (78,115 ) 25.78 Forfeited (12,930 ) 31.43 Nonvested balance at December 31, 2015 252,190 34.88 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share | The calculation of the basic and diluted (loss) earnings per share is as follows: For the Years Ended 2015 2014 2013 ($000 omitted) Numerator: Net (loss) income attributable to Stewart (6,204 ) 29,753 63,026 Interest expense, net of tax effects — 1,006 1,408 If-converted net (loss) income attributable to Stewart (6,204 ) 30,759 64,434 Denominator (000): Basic average shares outstanding 23,544 22,778 22,096 Average number of dilutive shares relating to options — 2 — Average number of dilutive shares relating to convertible senior notes — 1,641 2,467 Average number of dilutive shares relating to restricted shares grant — 289 178 Diluted average shares outstanding 23,544 24,710 24,741 Basic (loss) earnings per share attributable to Stewart (0.26 ) 1.31 2.85 Diluted (loss) earnings per share attributable to Stewart (0.26 ) 1.24 2.60 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Lease Payments | The future minimum lease payments relating to operating leases are summarized as follows (in thousands of dollars): 2016 45,133 2017 37,585 2018 30,838 2019 22,517 2020 12,585 2021 and after 18,360 167,018 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segmental Revenues and Expenses | Selected statement of operations information related to these segments is as follows: Title Mortgage Services Corporate Total ($000 omitted) 2015: Revenues 1,805,267 212,934 15,684 2,033,885 Impairment of goodwill — 35,749 — 35,749 Depreciation and amortization 8,545 13,074 8,679 30,298 Income (loss) before taxes and noncontrolling interests 225,238 (56,645 ) (158,900 ) 9,693 2014: Revenues 1,660,001 194,018 16,811 1,870,830 Depreciation and amortization 7,059 9,540 7,627 24,226 Income (loss) before taxes and noncontrolling interests 184,016 6,364 (138,568 ) 51,812 2013: Revenues 1,792,210 121,945 13,825 1,927,980 Depreciation and amortization 5,957 4,634 7,329 17,920 Income (loss) before taxes and noncontrolling interests 211,240 12,609 (122,784 ) 101,065 |
Revenues Generated in Domestic and Foreign Country | Revenues for the years ended December 31 in the United States and all international operations are as follows: 2015 2014 2013 ($000 omitted) United States 1,925,865 1,751,458 1,811,714 International 108,020 119,372 116,266 2,033,885 1,870,830 1,927,980 |
Other comprehensive earnings (l
Other comprehensive earnings (loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Changes in the balances of each component of other comprehensive (loss) income and the related tax effects are as follows: For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 For the Year Ended December 31, 2013 Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of Tax Amount Before-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount ($000 omitted) ($000 omitted) ($000 omitted) Foreign currency translation adjustments (16,022 ) (4,877 ) (11,145 ) (10,405 ) (2,840 ) (7,565 ) (10,349 ) (3,530 ) (6,819 ) Unrealized (losses) gains on investments: Change in unrealized (losses) gains on investments (5,757 ) (2,016 ) (3,741 ) 15,066 5,273 9,793 (11,203 ) (3,921 ) (7,282 ) Less: reclassification adjustment for net gains included in net (loss) income (2,501 ) (875 ) (1,626 ) (853 ) (298 ) (555 ) (2,463 ) (862 ) (1,601 ) Net unrealized (losses) gains (8,258 ) (2,891 ) (5,367 ) 14,213 4,975 9,238 (13,666 ) (4,783 ) (8,883 ) Other comprehensive (losses) income (24,280 ) (7,768 ) (16,512 ) 3,808 2,135 1,673 (24,015 ) (8,313 ) (15,702 ) |
Quarterly financial informati47
Quarterly financial information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | Mar 31 June 30 Sept 30 Dec 31 Total ($000 omitted, except per share) Revenues: 2015 448,872 531,906 555,704 497,403 2,033,885 2014 393,576 446,838 508,097 522,319 1,870,830 Net (loss) income attributable to Stewart: 2015 (12,448 ) 17,106 (13,467 ) 2,605 (6,204 ) 2014 (12,106 ) 6,279 23,717 11,863 29,753 Diluted (loss) earnings per share attributable to Stewart (1) : 2015 (0.52 ) 0.72 (0.58 ) 0.11 (0.26 ) 2014 (0.54 ) 0.27 0.97 0.49 1.24 (1) Quarterly per share data may not sum to annual totals due to rounding or effects of dilution in particular quarters but not in annual totals. |
General - Additional Informatio
General - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($)reporting_unit | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Revenue major segments percentage | 51.00% |
Method for estimating unreported policy revenues, period of use (more than) | 10 years |
Threshold amount for large claims | $ | $ 1,000,000 |
Number of reporting units used for goodwill evaluation | reporting_unit | 4 |
Non-cancelable operating lease, expiration period | 10 years |
Minimum | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Threshold percentage, reserve amount | 4.00% |
Intangible assets estimated life | 3 years |
Minimum | Buildings | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment, useful life | 30 years |
Minimum | Furniture and equipment | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment, useful life | 3 years |
Maximum | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Threshold percentage, reserve amount | 5.00% |
Intangible assets estimated life | 10 years |
Maximum | Buildings | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment, useful life | 40 years |
Maximum | Furniture and equipment | |
Organization Consolidation And Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment, useful life | 10 years |
Restrictions on cash and inve49
Restrictions on cash and investments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Investments restricted for statutory reserve funds | $ 483.3 | $ 438.5 |
Restricted cash and cash equivalent | $ 17.2 | $ 57.4 |
Statutory surplus and dividen50
Statutory surplus and dividend restrictions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends Payable [Line Items] | |||
Maximum amount of dividend to be paid | $ 100,400,000 | ||
Dividends paid by Guaranty | 15,000,000 | $ 25,000,000 | $ 0 |
Surplus for guaranty | 501,800,000 | 525,800,000 | |
Statutory net income | 83,200,000 | $ 53,200,000 | $ 43,000,000 |
Statutory capital and surplus necessary to satisfy regulatory requirements for guaranty | 2,000,000 | ||
Underwriter entities | |||
Dividends Payable [Line Items] | |||
Statutory capital and surplus necessary to satisfy regulatory requirements for guaranty | $ 15,000,000 |
Investments in debt and equit51
Investments in debt and equity securities - Amortized Costs and Fair Values (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized costs | $ 537,887 | |
Equity securities, Amortized costs | 27,497 | $ 22,710 |
Total, Amortized costs | 565,384 | 557,380 |
Debt securities, fair values | 548,596 | |
Equity securities, Fair values | 31,253 | 28,236 |
Available for sale securities, Total | 579,849 | 580,103 |
Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized costs | 70,300 | 60,656 |
Debt securities, fair values | 72,008 | 61,689 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized costs | 303,870 | 296,578 |
Debt securities, fair values | 309,461 | 308,691 |
Foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized costs | 149,914 | 163,099 |
Debt securities, fair values | 153,221 | 166,685 |
U.S. Treasury Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Amortized costs | 13,803 | 14,337 |
Debt securities, fair values | $ 13,906 | $ 14,802 |
Investments in debt and equit52
Investments in debt and equity securities - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($) | |
Unrealized Losses On Investments [Line Items] | ||
Foreign debt securities | $ 548,596 | |
Number of investments in an unrealized loss position | investment | 155 | |
Number of investments in an unrealized loss positions for more than 12 months | investment | 30 | |
Investment and Other (Losses) Gains | ||
Unrealized Losses On Investments [Line Items] | ||
Recognized other than temporary impairment | $ 2,700 | |
Foreign | ||
Unrealized Losses On Investments [Line Items] | ||
Foreign debt securities | 153,221 | $ 166,685 |
Foreign | Canada | ||
Unrealized Losses On Investments [Line Items] | ||
Foreign debt securities | 125,200 | 135,800 |
Foreign | United Kingdom | ||
Unrealized Losses On Investments [Line Items] | ||
Foreign debt securities | $ 23,100 | $ 27,300 |
Investments in debt and equit53
Investments in debt and equity securities - Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized gains | $ 18,179 | $ 23,848 |
Gross unrealized losses | 3,714 | 1,125 |
Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized gains | 1,720 | 1,125 |
Gross unrealized losses | 12 | 92 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized gains | 7,700 | 12,559 |
Gross unrealized losses | 2,109 | 446 |
Foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized gains | 3,789 | 3,690 |
Gross unrealized losses | 482 | 104 |
U.S. Treasury Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized gains | 128 | 492 |
Gross unrealized losses | 25 | 27 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross unrealized gains | 4,842 | 5,982 |
Gross unrealized losses | $ 1,086 | $ 456 |
Investments in debt and equit54
Investments in debt and equity securities - Debt Securities According Contractual Terms (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Amortized costs, In one year or less | $ 27,118 |
Amortized costs, After one year through five years | 226,497 |
Amortized costs, After five years through ten years | 230,161 |
Amortized costs, After ten years | 54,111 |
Amortized costs, Total | 537,887 |
Fair Values, In one year or less | 27,256 |
Fair Values, After one year through five years | 230,842 |
Fair Values, After five years through ten years | 235,219 |
Fair Values, After ten years | 55,279 |
Debt securities, fair values total | $ 548,596 |
Investments in debt and equit55
Investments in debt and equity securities - Gross Unrealized Losses on Investments and Fair Values of Related Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Losses, Less than 12 months | $ 2,518 | $ 575 |
Fair Values, Less than 12 months | 126,438 | 50,616 |
Losses, More than 12 months | 1,196 | 550 |
Fair Values, More than 12 months | 44,448 | 48,761 |
Total Losses | 3,714 | 1,125 |
Total Fair Values | 170,886 | 99,377 |
Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Losses, Less than 12 months | 9 | 1 |
Fair Values, Less than 12 months | 2,230 | 2,673 |
Losses, More than 12 months | 3 | 91 |
Fair Values, More than 12 months | 1,615 | 12,076 |
Total Losses | 12 | 92 |
Total Fair Values | 3,845 | 14,749 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Losses, Less than 12 months | 1,461 | 107 |
Fair Values, Less than 12 months | 83,565 | 7,167 |
Losses, More than 12 months | 648 | 339 |
Fair Values, More than 12 months | 32,871 | 26,545 |
Total Losses | 2,109 | 446 |
Total Fair Values | 116,436 | 33,712 |
Foreign | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Losses, Less than 12 months | 322 | 11 |
Fair Values, Less than 12 months | 35,008 | 34,236 |
Losses, More than 12 months | 160 | 93 |
Fair Values, More than 12 months | 3,155 | 6,446 |
Total Losses | 482 | 104 |
Total Fair Values | 38,163 | 40,682 |
U.S. Treasury Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Losses, Less than 12 months | 6 | 0 |
Fair Values, Less than 12 months | 1,195 | 0 |
Losses, More than 12 months | 19 | 27 |
Fair Values, More than 12 months | 3,583 | 3,694 |
Total Losses | 25 | 27 |
Total Fair Values | 4,778 | 3,694 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Losses, Less than 12 months | 720 | 456 |
Fair Values, Less than 12 months | 4,440 | 6,540 |
Losses, More than 12 months | 366 | 0 |
Fair Values, More than 12 months | 3,224 | 0 |
Total Losses | 1,086 | 456 |
Total Fair Values | $ 7,664 | $ 6,540 |
Fair value measurements - Finan
Fair value measurements - Financial Instrument Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | $ 579,849 | $ 580,103 |
Fair value measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 579,849 | 580,103 |
Fair value measurements, recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 72,008 | 61,689 |
Fair value measurements, recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 309,461 | 308,691 |
Fair value measurements, recurring | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 153,221 | 166,685 |
Fair value measurements, recurring | U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 13,906 | 14,802 |
Fair value measurements, recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 31,253 | 28,236 |
Level 1 | Fair value measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 31,253 | 28,236 |
Level 1 | Fair value measurements, recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 31,253 | 28,236 |
Level 2 | Fair value measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 548,596 | 551,867 |
Level 2 | Fair value measurements, recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 72,008 | 61,689 |
Level 2 | Fair value measurements, recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 309,461 | 308,691 |
Level 2 | Fair value measurements, recurring | Foreign | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | 153,221 | 166,685 |
Level 2 | Fair value measurements, recurring | U.S. Treasury Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, Fair value measurements | $ 13,906 | $ 14,802 |
Fair value measurements - Asset
Fair value measurements - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment loss recorded | $ 600 | $ 1,000 |
Level 3 | Cost-basis investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost-basis investments, at fair value | $ 3,127 | $ 3,938 |
Fair value measurements - Addit
Fair value measurements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | ||
Impairment loss recorded | $ 600 | $ 1,000 |
Investment income - Gross Reali
Investment income - Gross Realized Investment and Other Gains and Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | $ 16,850 | $ 16,806 | $ 15,492 |
Realized gains | 5,948 | 12,018 | 7,555 |
Realized losses | (7,317) | (5,274) | (8,621) |
Investment and other (losses) gains – net | (1,369) | 6,744 | (1,066) |
Debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | 15,181 | 14,593 | 13,387 |
Short-term investments, cash equivalents and other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Investment income | $ 1,669 | $ 2,213 | $ 2,105 |
Investment income - Additional
Investment income - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | |
Net Investment Income [Line Items] | ||||
Proceeds from the sales of investments available-for-sale | $ 69.3 | $ 58.1 | $ 82 | |
Impairment of an intangible asset | 1.8 | 1.7 | ||
Realized gains from sale of debt and equity investments available-for-sale | 2.4 | 1.1 | 2.7 | |
Gain on sale of office buildings | 1.5 | |||
Realized gain from the reduction in the fair value of contingent consideration liability | 5.6 | |||
Realized gain from sale of a business | 3.8 | |||
Impairment of a cost basis investment | 1 | 1 | ||
Non cash charge on early retirement of convertible senior notes | 5.4 | |||
Loss on sale of equity investment | 1.5 | |||
Gain on non title related insurance policy proceeds | 2.3 | |||
Realized gain on sale of real estate | 1.9 | |||
Convertible Notes Payable | ||||
Net Investment Income [Line Items] | ||||
Convertible senior notes | $ 37.8 | $ 27.2 | ||
Facility Closing | ||||
Net Investment Income [Line Items] | ||||
Charges related to office closures | 1.4 | $ 1.9 | ||
Investment and Other (Losses) Gains | ||||
Net Investment Income [Line Items] | ||||
Recognized other than temporary impairment | $ 2.7 |
Income taxes - Income Tax Expen
Income taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 4,774 | $ 3,047 | $ 2,589 |
State | 709 | (224) | 2,757 |
Foreign | 5,967 | 7,442 | 6,753 |
Deferred: | |||
Federal | (3,986) | 3,916 | 18,361 |
State | (1,375) | (694) | (206) |
Foreign | (439) | 16 | (1,773) |
Income tax expense | $ 5,650 | $ 13,503 | $ 28,481 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Income Tax Expenses Computed at Federal Statutory Rate with Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax (benefit) expense at 35% | $ (194) | $ 15,140 | $ 32,027 |
Foreign tax rate differential | (329) | (693) | (422) |
State income tax (benefit) expense – net of Federal impact | (914) | (840) | 1,586 |
Impairment of goodwill | 7,099 | 0 | 0 |
Nondeductible expenses | 2,768 | 4,060 | 2,321 |
Return-to-provision adjustments | (1,329) | 1,133 | (2,408) |
Valuation allowance | (668) | (5,020) | (6,555) |
Intercompany dividends and dividends received deductions | (541) | (319) | 449 |
Tax-exempt interest | (404) | (324) | (233) |
Noncontrolling interest | 251 | 186 | 529 |
Life insurance proceeds | (175) | 0 | (797) |
Nondeductible bond conversion costs | 0 | 0 | 1,900 |
Other – net | 86 | 180 | 84 |
Income tax expense | $ 5,650 | $ 13,503 | $ 28,481 |
Effective income tax rates | (1019.40%) | 31.20% | 31.10% |
Income taxes - Reconciliation63
Income taxes - Reconciliation of Income Tax Expenses Computed at Federal Statutory Rate with Income Tax Expense (Additional Information) (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax rate | 35.00% | 35.00% | 35.00% |
Income taxes - Deferred Income
Income taxes - Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Tax credit carryforwards | $ 20,242 | $ 26,792 |
Accrued expenses | 20,190 | 17,241 |
Net operating loss (NOL) carryforwards | 6,428 | 4,260 |
Foreign currency translation adjustments | 5,220 | 411 |
Allowance for uncollectible amounts | 3,524 | 3,379 |
Investments | 3,369 | 1,582 |
Fixed assets | 2,094 | 5,860 |
Other | 1,954 | 2,127 |
Deferred tax assets – gross | 63,021 | 61,652 |
Valuation allowance | (2,217) | (2,564) |
Deferred tax assets – net | 60,804 | 59,088 |
Deferred tax liabilities: | ||
Amortization – goodwill and other intangibles | (27,991) | (34,740) |
Title loss provisions | (18,523) | (23,365) |
Unrealized gains on investments | (4,811) | (7,953) |
Deferred compensation on life insurance policies | (3,558) | (3,239) |
Other | (2,328) | (2,476) |
Deferred tax liabilities – gross | (57,211) | (71,773) |
Net deferred income tax assets (liabilities) | $ 3,593 | |
Net deferred income tax assets (liabilities) | $ (12,685) |
Income taxes - Additional Infor
Income taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Net deferred tax assets | $ 3,593 | ||
Net deferred tax liabilities | $ 12,685 | ||
Net decrease in valuation allowance | 300 | 4,400 | |
Deferred tax assets relating to NOL carryforwards | 6,428 | 4,260 | |
Anticipated refunds received from previously-filed carryback claims | 2,800 | ||
Domestic Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Net deferred tax assets | 3,800 | ||
Net deferred tax liabilities | 12,000 | ||
Foreign Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Net deferred tax liabilities | 300 | 700 | |
Federal net operating loss, valuation allowances released | $ 6,600 | ||
Foreign tax credits carry forwards, deferred tax asset valuation allowances released | $ 5,000 | ||
Tax credit carry forwards | $ 20,200 |
Goodwill and other intangible66
Goodwill and other intangibles - Summary of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill summary | ||||
Beginning balances | $ 251,868 | $ 231,838 | ||
Acquisitions | 7,220 | 21,440 | ||
Purchase adjustments | (5,268) | |||
Impairment | $ (35,900) | (35,749) | 0 | $ 0 |
Disposals | (349) | (1,410) | ||
Ending balances | 217,722 | 251,868 | 231,838 | |
Title | ||||
Goodwill summary | ||||
Beginning balances | 202,002 | 198,727 | ||
Acquisitions | 7,220 | 3,275 | ||
Purchase adjustments | 0 | |||
Impairment | 0 | |||
Disposals | (349) | 0 | ||
Ending balances | 208,873 | 202,002 | 198,727 | |
Mortgage Services | ||||
Goodwill summary | ||||
Beginning balances | 49,866 | 33,111 | ||
Acquisitions | 0 | 18,165 | ||
Purchase adjustments | (5,268) | |||
Impairment | (35,749) | |||
Disposals | 0 | (1,410) | ||
Ending balances | $ 8,849 | $ 49,866 | $ 33,111 |
Goodwill and other intangible67
Goodwill and other intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment, mortgage services | $ 35,900 | $ 35,749 | $ 0 | $ 0 |
Impairment of an intangible asset | 1,800 | 1,700 | ||
Other intangibles, gross carrying amount | 43,600 | 43,000 | ||
Accumulated amortization and impairment of other intangibles | 25,500 | 16,700 | ||
Amortization expense of other intangibles | 7,000 | 6,200 | $ 1,900 | |
Future amortization expense | ||||
Expected amortization expense in 2016 | 5,500 | |||
Expected amortization expense in 2017 | 4,600 | |||
Expected amortization expense in 2018 | 3,600 | |||
Expected amortization expense in 2019 | 2,000 | |||
Expected amortization expense in 2020 | 1,000 | |||
Title | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment, mortgage services | 0 | |||
Impairment of an intangible asset | 900 | |||
Mortgage Services | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment, mortgage services | 35,749 | |||
Impairment of an intangible asset | $ 900 | $ 1,700 |
Equity investees - Summarized A
Equity investees - Summarized Aggregate Financial Information for Equity Investees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenues | $ 28,843 | $ 31,562 | $ 42,105 |
Net income | 8,830 | 7,914 | 8,064 |
Total assets | 33,555 | 25,533 | 25,470 |
Notes payable | 20,200 | 12,727 | 12,390 |
Stockholders’ equity | $ 7,213 | $ 7,665 | $ 5,561 |
Equity investees - Additional I
Equity investees - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Net premium revenues from policies issued by equity investees | $ 28,843,000 | $ 31,562,000 | $ 42,105,000 | |
Earnings related to equity investees | 8,830,000 | 7,914,000 | 8,064,000 | |
Goodwill related to equity investees | 217,722,000 | 251,868,000 | 231,838,000 | |
Impairment of goodwill | $ 35,900,000 | 35,749,000 | 0 | 0 |
Direct Operations | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Net premium revenues from policies issued by equity investees | 2,500,000 | 3,100,000 | 4,400,000 | |
Earnings related to equity investees | 3,600,000 | 3,400,000 | $ 4,100,000 | |
Equity securities | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Goodwill related to equity investees | 7,400,000 | 7,400,000 | ||
Impairment of goodwill | $ 0 | $ 0 |
Notes payable, convertible se70
Notes payable, convertible senior notes and line of credit - Summary of Notes Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Banks - varying payments and rates | $ 98,000 | $ 60,000 |
Other than banks | 4,399 | 11,180 |
Notes payable | $ 102,399 | $ 71,180 |
Notes payable, convertible se71
Notes payable, convertible senior notes and line of credit - Summary of Notes Payable (Additional Information) (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Average interest rate | 1.68% | 2.21% |
Notes payable, convertible se72
Notes payable, convertible senior notes and line of credit - Additional Information (Detail) | Feb. 10, 2016USD ($) | Jan. 26, 2016USD ($) | Oct. 31, 2014USD ($)shares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)shares | Oct. 31, 2009USD ($) |
Debt Disclosure [Abstract] | ||||||||
Principal payments on notes in 2016 | $ 2,500,000 | |||||||
Principal payments on notes in 2017 | 1,300,000 | |||||||
Principal payments on notes in 2018 | 400,000 | |||||||
Principal payments on notes in 2019 | 98,200,000 | |||||||
Debt Instrument [Line Items] | ||||||||
Capital lease obligations | 4,399,000 | $ 11,180,000 | ||||||
Notes payable, debt issuance cost | 3,300,000 | |||||||
Notes payable, amortization of debt issuance costs | 300,000 | $ 400,000 | ||||||
Notes payable, interest expense | 1,300,000 | 2,000,000 | ||||||
Impairment charge | $ 35,900,000 | 35,749,000 | 0 | 0 | ||||
Subsequent Event | Conversion, Class B Common Stock to Common Stock | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion of Stock, additional cash issued to Class B Common Stock holders | $ 12,000,000 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Bank line of credit facility amount | 125,000,000 | |||||||
Bank line of credit facility, outstanding | 98,000,000 | |||||||
Line of credit, conditional increase in maximum borrowing capacity | $ 50,000,000 | |||||||
Fixed charge ratio, minimum | 1.25 | |||||||
Leverage ratio, maximum | 2.25 | |||||||
Maximum aggregate annual capital expenditures allowed | $ 20,000,000 | |||||||
Annual dividend payments allowed, maximum | $ 25,000,000 | |||||||
Line of Credit | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum aggregate annual capital expenditures allowed | $ 25,000,000 | |||||||
Maximum exception to allowed restricted payments for the new share repurchase program | 50,000,000 | |||||||
Annual dividend payments allowed, maximum | $ 35,000,000 | |||||||
Line of Credit | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit | 0.50% | |||||||
Line of Credit | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit | 1.00% | |||||||
Line of Credit | LIBOR | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit | 1.50% | |||||||
Line of Credit | LIBOR | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate, line of credit | 2.00% | |||||||
Convertible Notes Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible senior notes, aggregate principal amount | $ 65,000,000 | |||||||
Convertible senior notes, interest rate | 6.00% | |||||||
Convertible senior notes, carrying amount | $ 27,200,000 | $ 37,800,000 | ||||||
Convertible senior notes, shares issued during conversion (in shares) | shares | 2,111,017 | 3,094,440 | ||||||
Capital Lease Obligations | ||||||||
Debt Instrument [Line Items] | ||||||||
Capital lease obligations | $ 3,800,000 | $ 5,600,000 |
Estimated title Losses (Detail)
Estimated title Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingency Accrual | |||
Balances at January 1 | $ 495,395 | $ 506,888 | $ 520,375 |
Provisions, Current year | 68,029 | 64,577 | 92,043 |
Provisions, Previous policy years | 38,236 | 16,728 | 14,275 |
Total provisions | 106,265 | 81,305 | 106,318 |
Payments, net of recoveries, Current year | (19,182) | (18,775) | (23,969) |
Payments, net of recoveries, Previous policy years | (104,450) | (67,898) | (91,715) |
Total payments, net of recoveries | (123,632) | (86,673) | (115,684) |
Adjustments related to acquired balance | (2,303) | 2,268 | 0 |
Effects of changes in foreign currency exchange rates | (13,103) | (8,393) | (4,121) |
Balances at December 31 | $ 462,622 | $ 495,395 | $ 506,888 |
Loss ratios as a percentage of title operating revenues: | |||
Current year provisions | 3.60% | 3.80% | 5.10% |
Total provisions | 5.60% | 4.70% | 5.90% |
Estimated title losses - Additi
Estimated title losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Ultimate loss rate for policies issued in current year | 3.60% | 3.80% | 5.10% |
Net increase in loss reserve estimates for prior years | $ 38,236 | $ 16,728 | $ 14,275 |
Recorded provisions | 106,265 | 81,305 | 106,318 |
Change in prior years reserve, claims payment experience | |||
Gain (Loss) on Investments [Line Items] | |||
Net increase in loss reserve estimates for prior years | 6,200 | ||
Recorded provisions | 17,900 | 7,600 | |
Change in prior years reserve, large title claims | |||
Gain (Loss) on Investments [Line Items] | |||
Net increase in loss reserve estimates for prior years | 29,100 | ||
Recorded provisions | $ 31,700 | $ 3,100 | $ 28,800 |
Common Stock and Class B Comm75
Common Stock and Class B Common Stock - Additional Information (Detail) $ in Millions | Jan. 26, 2016USD ($)shares | Dec. 31, 2015directorshares | Dec. 31, 2014shares |
Class of Stock [Line Items] | |||
Number of directors stockholders entitle to elect | 9 | ||
Subsidiaries | |||
Class of Stock [Line Items] | |||
Number of treasury shares held | shares | 145,820 | 145,820 | |
Conversion, Class B Common Stock to Common Stock | Subsequent Event | |||
Conversion of Stock [Line Items] | |||
Conversion of Stock, additional cash issued to Class B Common Stock holders | $ | $ 12 | ||
Conversion, Class B Common Stock to Common Stock | Subsequent Event | Class B Common Stock | |||
Conversion of Stock [Line Items] | |||
Conversion of stock, number of shares converted | shares | 1,050,012 | ||
Conversion, Class B Common Stock to Common Stock | Subsequent Event | Common Stock | |||
Conversion of Stock [Line Items] | |||
Conversion of stock, number of shares issued | shares | 1,050,012 | ||
If 1,050,000 or more shares of Class B Common Stock are outstanding | |||
Class of Stock [Line Items] | |||
Number of directors stockholders entitle to elect | 4 | ||
If between 600,000 and 1,050,000 shares of Class B Common Stock are outstanding | |||
Class of Stock [Line Items] | |||
Number of directors stockholders entitle to elect | 3 | ||
If less than 600,000 shares of Class B Common Stock are outstanding | |||
Class of Stock [Line Items] | |||
Number of directors stockholders entitle to elect | 0 |
Share-based incentives - Additi
Share-based incentives - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May. 31, 2015 | May. 31, 2014 | May. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of vested shares | $ 2.9 | $ 2.3 | ||||
Compensation costs | 4.4 | 4 | $ 1 | |||
Tax benefits related to vesting of awards | 1 | $ 0.3 | $ 0.3 | |||
Compensation costs not yet recognized | $ 4.7 | |||||
Compensation costs not yet recognized, period for recognition | 1 year 8 months 12 days | |||||
Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted and immediately vested in relation to the annual director retainer compensation (in shares) | 18,000 | 22,000 | 18,000 | |||
Fair value of vested shares | $ 0.7 | $ 0.7 | $ 0.5 | |||
Time-Based Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | 3 years | 3 years | |||
Performance-Based Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | 3 years | 3 years | |||
Time Based Restricted Stock And Performance Based Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate fair values at grant date | $ 4.4 | $ 4 | $ 2.2 | |||
Share-based incentives, shares issued | 119,000 | 125,000 | 84,000 | |||
Average grant price (in usd per share) | $ 37.16 | $ 32.24 | $ 26.01 |
Share-based incentives - Summar
Share-based incentives - Summary of the Restricted Common Stock Award Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Shares | |
Nonvested balance at January 1, 2015 (in shares) | shares | 205,119 |
Granted (in shares) | shares | 118,506 |
Adjustment for performance-based shares (in shares) | shares | 19,610 |
Vested (in shares) | shares | (78,115) |
Forfeited (in shares) | shares | (12,930) |
Nonvested balance at December 31, 2015 (in shares) | shares | 252,190 |
Weighted-Average Grant-Date Fair Value per Share ($) | |
Nonvested balance at January 1, 2015 (in usd per share) | $ / shares | $ 29.78 |
Granted (in usd per share) | $ / shares | 37.16 |
Adjustment for performance-based shares (in usd per share) | $ / shares | 37.18 |
Vested (in usd per share) | $ / shares | 25.78 |
Forfeited (in usd per share) | $ / shares | 31.43 |
Nonvested balance at December 31, 2015 (in usd per share) | $ / shares | $ 34.88 |
Earnings per share - Basic and
Earnings per share - Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator (in usd): | |||||||||||
Net (loss) income attributable to Stewart | $ (6,204) | $ 29,753 | $ 63,026 | ||||||||
Interest expense, net of tax effects | 0 | 1,006 | 1,408 | ||||||||
If-converted net (loss) income attributable to Stewart | $ (6,204) | $ 30,759 | $ 64,434 | ||||||||
Denominator (000) (shares): | |||||||||||
Basic average shares outstanding | 23,544 | 22,778 | 22,096 | ||||||||
Average number of dilutive shares relating to convertible senior notes | 0 | 1,641 | 2,467 | ||||||||
Diluted average shares outstanding | 23,544 | 24,710 | 24,741 | ||||||||
Basic (loss) earnings per share attributable to Stewart (usd per share) | $ (0.26) | $ 1.31 | $ 2.85 | ||||||||
Diluted (loss) earnings per share attributable to Stewart (usd per share) | $ 0.11 | $ (0.58) | $ 0.72 | $ (0.52) | $ 0.49 | $ 0.97 | $ 0.27 | $ (0.54) | $ (0.26) | $ 1.24 | $ 2.60 |
Employee Stock Option | |||||||||||
Denominator (000) (shares): | |||||||||||
Dilutive average number of shares relating to share-based payment arrangements | 0 | 2 | 0 | ||||||||
Restricted Stock | |||||||||||
Denominator (000) (shares): | |||||||||||
Dilutive average number of shares relating to share-based payment arrangements | 0 | 289 | 178 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||
Total amount of Premiums for assumed and ceded risks as a percentage of consolidated title revenue (less than) | 1.00% | 1.00% | 1.00% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Lease expense | $ 42.9 | $ 42.6 | $ 39.2 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 45,133 |
2,017 | 37,585 |
2,018 | 30,838 |
2,019 | 22,517 |
2,020 | 12,585 |
2021 and after | 18,360 |
Future minimum payments, total | $ 167,018 |
Contingent Liabilities and Co82
Contingent Liabilities and Commitments - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loss Contingencies [Line Items] | ||||
Contingent liability | $ 462,622 | $ 495,395 | $ 506,888 | $ 520,375 |
Guarantee of indebtedness, relating to unused letters of credit | 5,600 | |||
Escrow Account Deposit | ||||
Loss Contingencies [Line Items] | ||||
Contingent liability | 1,300,000 | |||
Exchange Traded Funds | ||||
Loss Contingencies [Line Items] | ||||
Contingent liability | $ 1,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - segment | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | ||
Mortgage services revenue of the largest customer, percentage | 41.10% | 51.40% | 74.50% |
Segment information - Summary o
Segment information - Summary of Segmental Revenues and Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 497,403 | $ 555,704 | $ 531,906 | $ 448,872 | $ 522,319 | $ 508,097 | $ 446,838 | $ 393,576 | $ 2,033,885 | $ 1,870,830 | $ 1,927,980 |
Impairment of goodwill | 35,749 | 0 | 0 | ||||||||
Depreciation and amortization | 30,298 | 24,226 | 17,920 | ||||||||
Income (loss) before taxes and noncontrolling interests | 9,693 | 51,812 | 101,065 | ||||||||
Operating Segments | Title | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,805,267 | 1,660,001 | 1,792,210 | ||||||||
Impairment of goodwill | 0 | ||||||||||
Depreciation and amortization | 8,545 | 7,059 | 5,957 | ||||||||
Income (loss) before taxes and noncontrolling interests | 225,238 | 184,016 | 211,240 | ||||||||
Operating Segments | Mortgage Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 212,934 | 194,018 | 121,945 | ||||||||
Impairment of goodwill | 35,749 | ||||||||||
Depreciation and amortization | 13,074 | 9,540 | 4,634 | ||||||||
Income (loss) before taxes and noncontrolling interests | (56,645) | 6,364 | 12,609 | ||||||||
Operating Segments | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 15,684 | 16,811 | 13,825 | ||||||||
Impairment of goodwill | 0 | ||||||||||
Depreciation and amortization | 8,679 | 7,627 | 7,329 | ||||||||
Income (loss) before taxes and noncontrolling interests | $ (158,900) | $ (138,568) | $ (122,784) |
Segment information - Revenues
Segment information - Revenues Generated in Domestic and Foreign Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | $ 497,403 | $ 555,704 | $ 531,906 | $ 448,872 | $ 522,319 | $ 508,097 | $ 446,838 | $ 393,576 | $ 2,033,885 | $ 1,870,830 | $ 1,927,980 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 1,925,865 | 1,751,458 | 1,811,714 | ||||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | $ 108,020 | $ 119,372 | $ 116,266 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)company | Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 217,722 | $ 251,868 | $ 231,838 |
Series of Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Number of companies acquired | company | 3 | ||
Aggregate purchase price | $ 40,000 | ||
Goodwill | $ 20,000 | ||
Purchase adjustment due to remeasurement of assumed liabilities related to acquisitions | $ 5,300 |
Other comprehensive (loss) in87
Other comprehensive (loss) income - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Foreign currency translation adjustments, before-tax amount | $ (16,022) | $ (10,405) | $ (10,349) |
Foreign currency translation adjustments, tax | (4,877) | (2,840) | (3,530) |
Foreign currency translation adjustments, net-of-tax amount | (11,145) | (7,565) | (6,819) |
Change in unrealized gains (losses) on investments, before-tax amount | (5,757) | 15,066 | (11,203) |
Change in unrealized gains (losses) on investments, tax | (2,016) | 5,273 | (3,921) |
Change in unrealized gains (losses) on investments, net-of-tax amount | (3,741) | 9,793 | (7,282) |
Less: reclassification adjustment for gains included in net earnings, before-tax amount | (2,501) | (853) | (2,463) |
Less: reclassification adjustment for gains included in net earnings, tax | (875) | (298) | (862) |
Less: reclassification adjustment for gains included in net earnings, net-of-tax amount | (1,626) | (555) | (1,601) |
Net unrealized gains (losses), before-tax amount | (8,258) | 14,213 | (13,666) |
Net unrealized gains (losses), tax | (2,891) | 4,975 | (4,783) |
Net unrealized gains (losses), net-of-tax amount | (5,367) | 9,238 | (8,883) |
Other comprehensive income (loss), before-tax amount | (24,280) | 3,808 | (24,015) |
Other comprehensive income (loss), tax | (7,768) | 2,135 | (8,313) |
Other comprehensive (loss) income, net of taxes | $ (16,512) | $ 1,673 | $ (15,702) |
Exit activities (Details)
Exit activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Employee termination benefits | $ 658,266 | $ 624,326 | $ 571,026 |
Payments for employee termination benefits | 300 | ||
Early lease termination costs | 1,000 | ||
Accelerated depreciation of assets | 30,298 | $ 24,226 | $ 17,920 |
Exit Plan Out Of Delinquent Loan Servicing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs recorded | 3,500 | ||
Employee Severance | Exit Plan Out Of Delinquent Loan Servicing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee termination benefits | 1,100 | ||
Accelerated Depreciation of Assets | Exit Plan Out Of Delinquent Loan Servicing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation of assets | 1,400 | ||
Minimum | Exit Plan Out Of Delinquent Loan Servicing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Delinquent loan servicing exit, estimated total charge to be incurred | 5,000 | ||
Maximum | Exit Plan Out Of Delinquent Loan Servicing Operations | |||
Restructuring Cost and Reserve [Line Items] | |||
Delinquent loan servicing exit, estimated total charge to be incurred | $ 7,000 |
Quarterly financial informati89
Quarterly financial information (unaudited) - Revenues Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 497,403 | $ 555,704 | $ 531,906 | $ 448,872 | $ 522,319 | $ 508,097 | $ 446,838 | $ 393,576 | $ 2,033,885 | $ 1,870,830 | $ 1,927,980 |
Net (loss) earnings attributable to Stewart | $ 2,605 | $ (13,467) | $ 17,106 | $ (12,448) | $ 11,863 | $ 23,717 | $ 6,279 | $ (12,106) | $ (6,204) | $ 29,753 | $ 63,026 |
Diluted (loss) earnings per share attributable to Stewart (usd per share) | $ 0.11 | $ (0.58) | $ 0.72 | $ (0.52) | $ 0.49 | $ 0.97 | $ 0.27 | $ (0.54) | $ (0.26) | $ 1.24 | $ 2.60 |
Schedule I - Parent Company F90
Schedule I - Parent Company Financial Information - Statements of Operations and Retained Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||||||||||
Investment income | $ 16,850 | $ 16,806 | $ 15,492 | ||||||||
Other losses | (1,369) | 6,744 | (1,066) | ||||||||
Total revenues | $ 497,403 | $ 555,704 | $ 531,906 | $ 448,872 | $ 522,319 | $ 508,097 | $ 446,838 | $ 393,576 | 2,033,885 | 1,870,830 | 1,927,980 |
Expenses | |||||||||||
Employee costs | 658,266 | 624,326 | 571,026 | ||||||||
Other operating expenses, including $276 each year to affiliates | 381,954 | 347,276 | 280,258 | ||||||||
Depreciation and amortization | 30,298 | 24,226 | 17,920 | ||||||||
Interest | 2,096 | 3,236 | 2,956 | ||||||||
Total expenses | 2,024,192 | 1,819,018 | 1,826,915 | ||||||||
Income (loss) before taxes and (loss) income from subsidiaries | 9,693 | 51,812 | 101,065 | ||||||||
Income tax expense | 5,650 | 13,503 | 28,481 | ||||||||
Net (loss) income attributable to Stewart | 2,605 | $ (13,467) | $ 17,106 | (12,448) | 11,863 | $ 23,717 | $ 6,279 | (12,106) | (6,204) | 29,753 | 63,026 |
Retained earnings at beginning of year | 479,733 | 479,733 | |||||||||
Cash dividends on Common Stock | (18,010) | (2,334) | (2,159) | ||||||||
Retained earnings at end of year | 455,519 | 479,733 | 455,519 | 479,733 | |||||||
Stewart Information Services Corporation - Parent Company | |||||||||||
Revenues | |||||||||||
Investment income | 15,000 | 25,087 | 0 | ||||||||
Other losses | 0 | (869) | (3,164) | ||||||||
Other income | 922 | 90 | 263 | ||||||||
Total revenues | 15,922 | 24,308 | (2,901) | ||||||||
Expenses | |||||||||||
Employee costs | 156 | 1,110 | (91) | ||||||||
Other operating expenses, including $276 each year to affiliates | 7,617 | 3,806 | 1,329 | ||||||||
Depreciation and amortization | 162 | 421 | 527 | ||||||||
Interest | 1,726 | 2,054 | 2,494 | ||||||||
Total expenses | 9,661 | 7,391 | 4,259 | ||||||||
Income (loss) before taxes and (loss) income from subsidiaries | 6,261 | 16,917 | (7,160) | ||||||||
Income tax expense | 0 | 1 | 24 | ||||||||
(Loss) income from subsidiaries | (12,465) | 12,837 | 70,210 | ||||||||
Net (loss) income attributable to Stewart | (6,204) | 29,753 | 63,026 | ||||||||
Retained earnings at beginning of year | $ 479,733 | $ 452,314 | 479,733 | 452,314 | 391,447 | ||||||
Cash dividends on Common Stock | (18,010) | (2,334) | (2,159) | ||||||||
Retained earnings at end of year | $ 455,519 | $ 479,733 | $ 455,519 | $ 479,733 | $ 452,314 |
Schedule I - Parent Company F91
Schedule I - Parent Company Financial Information - Statements of Operations and Retained Earnings (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||
Other operating expenses | $ 381,954 | $ 347,276 | $ 280,258 |
Affiliates | |||
Schedule of Condensed Consolidating Statement of Operations [Line Items] | |||
Other operating expenses | $ 276 | $ 276 | $ 276 |
Schedule I - Parent Company F92
Schedule I - Parent Company Financial Information - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 179,067 | $ 200,558 | $ 194,289 | $ 208,538 |
Receivables: | ||||
Notes - due from subsidiaries | 3,744 | 4,031 | ||
Other, including $120 and $4, respectively, from affiliates | 49,453 | 60,654 | ||
Allowance for uncollectible amounts | (9,833) | (9,193) | ||
Total receivables | 81,671 | 98,674 | ||
Property and equipment, at cost: | ||||
Furniture and equipment | 214,350 | 215,344 | ||
Accumulated depreciation | (169,870) | (171,914) | ||
Total property and equipment, at cost | 71,369 | 75,353 | ||
Title plant, at cost | 75,743 | 76,779 | ||
Investments in subsidiaries, on an equity-method basis | 9,628 | 9,880 | ||
Goodwill | 217,722 | 251,868 | 231,838 | |
Other assets | 43,237 | 46,510 | ||
Total assets | 1,321,587 | 1,392,478 | ||
Liabilities | ||||
Notes payable | 102,399 | 71,180 | ||
Accounts payable and accrued liabilities, including $4 and $0, respectively, to affiliates | 118,082 | 111,965 | ||
Total Liabilities | $ 684,459 | $ 692,025 | ||
Contingent liabilities and commitments | ||||
Stockholders’ equity | ||||
Additional paid-in capital | $ 156,692 | $ 179,205 | ||
Retained earnings | 455,519 | 479,733 | ||
Accumulated other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (13,360) | (2,215) | ||
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) | ||
Total stockholders’ equity | 637,128 | 700,453 | 663,089 | 580,372 |
Liabilities and Equity, Total | 1,321,587 | 1,392,478 | ||
Common Stock | ||||
Stockholders’ equity | ||||
Common Stock | 22,643 | 23,308 | ||
Class B Common Stock | ||||
Stockholders’ equity | ||||
Common Stock | 1,050 | 1,050 | ||
Stewart Information Services Corporation - Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 832 | 15,210 | 4,196 | 10,725 |
Receivables: | ||||
Notes - due from subsidiaries | 68,382 | 46,885 | ||
Other, including $120 and $4, respectively, from affiliates | 1,093 | 497 | ||
Allowance for uncollectible amounts | (7) | (10) | ||
Total receivables | 69,468 | 47,372 | ||
Property and equipment, at cost: | ||||
Furniture and equipment | 2,893 | 2,893 | ||
Accumulated depreciation | (2,625) | (2,463) | ||
Total property and equipment, at cost | 268 | 430 | ||
Title plant, at cost | 48 | 48 | ||
Investments in subsidiaries, on an equity-method basis | 653,519 | 688,858 | ||
Goodwill | 8,470 | 8,470 | ||
Other assets | 17,457 | 16,499 | ||
Total assets | 750,062 | 776,887 | ||
Liabilities | ||||
Notes payable | 98,000 | 60,000 | ||
Accounts payable and accrued liabilities, including $4 and $0, respectively, to affiliates | 22,781 | 23,702 | ||
Total Liabilities | 120,781 | 83,702 | ||
Contingent liabilities and commitments | 0 | 0 | ||
Stockholders’ equity | ||||
Additional paid-in capital | 156,692 | 179,205 | ||
Retained earnings | 455,519 | 479,733 | $ 452,314 | $ 391,447 |
Accumulated other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (13,360) | (2,215) | ||
Unrealized investment gains | 9,403 | 14,770 | ||
Treasury stock – 352,161 common shares, at cost | (2,666) | (2,666) | ||
Total stockholders’ equity | 629,281 | 693,185 | ||
Liabilities and Equity, Total | 750,062 | 776,887 | ||
Stewart Information Services Corporation - Parent Company | Common Stock | ||||
Stockholders’ equity | ||||
Common Stock | 22,643 | 23,308 | ||
Stewart Information Services Corporation - Parent Company | Class B Common Stock | ||||
Stockholders’ equity | ||||
Common Stock | $ 1,050 | $ 1,050 |
Schedule I - Parent Company F93
Schedule I - Parent Company Financial Information - Balance Sheets (Parenthetical) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Trade and other | $ 49,453,000 | $ 60,654,000 |
Accounts payable and accrued liabilities | $ 118,082,000 | $ 111,965,000 |
Treasury stock, common shares | 352,161 | 352,161 |
Common Stock | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 22,643,255 | 23,307,909 |
Common stock, shares outstanding | 22,291,094 | 22,955,748 |
Class B Common Stock | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 1,500,000 | 1,500,000 |
Common stock, shares issued | 1,050,012 | 1,050,012 |
Common stock, shares outstanding | 1,050,012 | 1,050,012 |
Affiliates | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Trade and other | $ 120,000 | $ 4,000 |
Accounts payable and accrued liabilities | 4,000 | 0 |
Stewart Information Services Corporation - Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Trade and other | 1,093,000 | 497,000 |
Accounts payable and accrued liabilities | $ 22,781,000 | $ 23,702,000 |
Treasury stock, common shares | 352,161 | 352,161 |
Stewart Information Services Corporation - Parent Company | Common Stock | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 22,643,255 | 23,307,909 |
Common stock, shares outstanding | 22,291,094 | 22,955,748 |
Stewart Information Services Corporation - Parent Company | Class B Common Stock | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 1,500,000 | 1,500,000 |
Common stock, shares issued | 1,050,012 | 1,050,012 |
Common stock, shares outstanding | 1,050,012 | 1,050,012 |
Subsidiaries | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Undistributed earnings | $ 514,522 | $ 544,997 |
Schedule I - Parent Company F94
Schedule I - Parent Company Financial Information - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of net earnings to cash used by operating activities: | |||||||||||
Net (loss) income | $ 2,605 | $ (13,467) | $ 17,106 | $ (12,448) | $ 11,863 | $ 23,717 | $ 6,279 | $ (12,106) | $ (6,204) | $ 29,753 | $ 63,026 |
Add (deduct): | |||||||||||
Depreciation and amortization | 30,298 | 24,226 | 17,920 | ||||||||
Other losses | 1,369 | (6,744) | 1,066 | ||||||||
Increase in receivables – net | 13,267 | 9,397 | (5,796) | ||||||||
(Increase) decrease in other assets – net | 3,073 | (1,878) | (1,467) | ||||||||
Increase in payables and accrued liabilities – net | 2,088 | (6,854) | (8,100) | ||||||||
Losses (income) from subsidiaries | (3,579) | (3,442) | (4,137) | ||||||||
Other – net | 5,668 | 448 | 281 | ||||||||
Cash provided by operating activities | 80,514 | 63,989 | 87,187 | ||||||||
Investing activities: | |||||||||||
Collections on notes receivables | 1,302 | 386 | 2,666 | ||||||||
Cash used by investing activities | (68,791) | (78,557) | (78,363) | ||||||||
Financing activities: | |||||||||||
Proceeds from notes payable | 52,651 | 120,273 | 11,146 | ||||||||
Payments on notes payable | (22,494) | (60,838) | (12,199) | ||||||||
Repurchases of Common Stock | (27,950) | (22,048) | 0 | ||||||||
Other – net | 168 | (21) | 48 | ||||||||
Cash (used) provided by financing activities | (25,550) | 26,026 | (18,196) | ||||||||
(Decrease) increase in cash and cash equivalents | (21,491) | 6,269 | (14,249) | ||||||||
Cash and cash equivalents at beginning of year | 200,558 | 194,289 | 200,558 | 194,289 | 208,538 | ||||||
Cash and cash equivalents at end of year | 179,067 | 200,558 | 179,067 | 200,558 | 194,289 | ||||||
Supplemental information: | |||||||||||
Income taxes paid | 14,982 | (106) | 18,032 | ||||||||
Interest paid | 1,873 | 2,616 | 2,202 | ||||||||
Stewart Information Services Corporation - Parent Company | |||||||||||
Reconciliation of net earnings to cash used by operating activities: | |||||||||||
Net (loss) income | (6,204) | 29,753 | 63,026 | ||||||||
Add (deduct): | |||||||||||
Depreciation and amortization | 162 | 421 | 527 | ||||||||
Other losses | 0 | 869 | 3,164 | ||||||||
Increase in receivables – net | (22,096) | (47,232) | (95) | ||||||||
(Increase) decrease in other assets – net | (558) | (828) | 2,413 | ||||||||
Increase in payables and accrued liabilities – net | 21,136 | 12,395 | 3,335 | ||||||||
Losses (income) from subsidiaries | 12,465 | (12,837) | (70,210) | ||||||||
Other – net | (26,244) | (31,824) | (3,945) | ||||||||
Cash provided by operating activities | (21,339) | (49,283) | (1,785) | ||||||||
Investing activities: | |||||||||||
Dividends from subsidiaries | 15,000 | 25,000 | 0 | ||||||||
Proceeds from the sale of property and equipment –net | 0 | 0 | 5 | ||||||||
Collections on notes receivables | 0 | 0 | 1 | ||||||||
Cash used by investing activities | 15,000 | 25,000 | 6 | ||||||||
Financing activities: | |||||||||||
Proceeds from notes payable | 45,000 | 60,000 | 0 | ||||||||
Payments on notes payable | (7,000) | 0 | 0 | ||||||||
Dividends paid | (18,010) | (2,334) | (2,159) | ||||||||
Repurchases of Common Stock | (27,950) | (22,048) | 0 | ||||||||
Purchase of remaining interest of consolidated subsidiary | (209) | (321) | (1,442) | ||||||||
Settlement of convertible debt | 0 | 0 | (1,149) | ||||||||
Other – net | 130 | 0 | 0 | ||||||||
Cash (used) provided by financing activities | (8,039) | 35,297 | (4,750) | ||||||||
(Decrease) increase in cash and cash equivalents | (14,378) | 11,014 | (6,529) | ||||||||
Cash and cash equivalents at beginning of year | $ 15,210 | $ 4,196 | 15,210 | 4,196 | 10,725 | ||||||
Cash and cash equivalents at end of year | $ 832 | $ 15,210 | 832 | 15,210 | 4,196 | ||||||
Supplemental information: | |||||||||||
Income taxes paid | 1 | 24 | 34 | ||||||||
Interest paid | $ 1,681 | $ 546 | $ 4 |
Schedule I - Parent Company F95
Schedule I - Parent Company Financial Information - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest paid | $ 1,873 | $ 2,616 | $ 2,202 |
Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest paid | $ 1,700 |
Schedule II - VALUATION AND Q96
Schedule II - VALUATION AND QUALIFYING ACCOUNTS (Detail) - Stewart Information Services Corporation and subsidiaries - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Estimated title losses | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 495,395 | $ 506,888 | $ 520,375 |
Additions charged to costs and expenses | 106,265 | 81,305 | 106,318 |
Additions charged to other accounts | 0 | 2,268 | 0 |
Deductions | 139,038 | 95,066 | 119,805 |
Balance At end of period | 462,622 | 495,395 | 506,888 |
Valuation allowance for deferred tax assets | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 2,564 | 6,971 | 12,136 |
Additions charged to costs and expenses | (347) | (4,407) | (5,165) |
Additions charged to other accounts | 0 | 0 | 0 |
Balance At end of period | 2,217 | 2,564 | 6,971 |
Allowance for uncollectible amounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 9,193 | 9,871 | 12,823 |
Additions charged to costs and expenses | 3,396 | 1,977 | 2,063 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | 2,756 | 2,655 | 5,015 |
Balance At end of period | $ 9,833 | $ 9,193 | $ 9,871 |