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Segment Financial Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Financial Information

NOTE 20.    Segment Financial Information:

The Company consists of the following reportable segments and a corporate function:

 

•

The Company’s title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally.  This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; provides products, services and solutions designed to mitigate risk or otherwise facilitate real estate transactions, many of which products, services and solutions involve the use of real property-related data; maintains, manages and provides access to title plant data and records; and provides appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, evidence of title, and banking, trust and wealth management services.  The Company, through its principal title insurance subsidiary and such subsidiary’s affiliates, transacts its title insurance business through a network of direct operations and agents.  Through this network, the Company issues policies in the 49 states that permit the issuance of title insurance policies, the District of Columbia and certain United States territories.  The Company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in other countries, including Canada, the United Kingdom, Australia, South Korea and various other established and emerging markets.

 

•

The Company’s specialty insurance segment issues property and casualty insurance policies and sells home warranty products.  The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage.  This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 47 states.  The majority of policy liability is in the western United States, including approximately 59% in California.  In certain markets it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance.  The home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period.  This business currently operates in 36 states and the District of Columbia.

The corporate function consists primarily of certain financing facilities as well as the corporate services that support the Company’s business operations. Eliminations consist of inter-segment revenues and related expenses included in the results of the operating segments.

Selected financial information about the Company’s operations, by segment, for the years ended December 31, 2019, 2018 and 2017, is as follows:

 

Revenues

 

 

Depreciation
and
amortization

 

 

Equity in
earnings of

affiliates, net

 

 

Income (loss)
before
income taxes

 

 

Assets

 

 

Investments
in equity

method

affiliates

 

 

Capital
expenditures

 

 

(in thousands)

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title Insurance and Services

$

5,675,952

 

 

$

121,643

 

 

$

2,836

 

 

$

912,213

 

 

$

10,349,145

 

 

$

51,928

 

 

$

100,826

 

Specialty Insurance

 

505,890

 

 

 

7,225

 

 

 

—

 

 

 

66,576

 

 

 

639,763

 

 

 

—

 

 

 

9,676

 

Corporate

 

21,896

 

 

 

153

 

 

 

—

 

 

 

(73,771

)

 

 

575,051

 

 

 

—

 

 

 

—

 

Eliminations

 

(1,677

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(44,792

)

 

 

—

 

 

 

—

 

 

$

6,202,061

 

 

$

129,021

 

 

$

2,836

 

 

$

905,018

 

 

$

11,519,167

 

 

$

51,928

 

 

$

110,502

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title Insurance and Services

$

5,282,781

 

 

$

119,053

 

 

$

2,717

 

 

$

655,003

 

 

$

9,613,658

 

 

$

54,674

 

 

$

112,726

 

Specialty Insurance

 

469,342

 

 

 

6,721

 

 

 

—

 

 

 

26,999

 

 

 

600,268

 

 

 

—

 

 

 

12,791

 

Corporate

 

(3,115

)

 

 

153

 

 

 

—

 

 

 

(72,464

)

 

 

431,222

 

 

 

—

 

 

 

—

 

Eliminations

 

(1,164

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(14,513

)

 

 

—

 

 

 

—

 

 

$

5,747,844

 

 

$

125,927

 

 

$

2,717

 

 

$

609,538

 

 

$

10,630,635

 

 

$

54,674

 

 

$

125,517

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title Insurance and Services

$

5,293,156

 

 

$

121,540

 

 

$

3,785

 

 

$

642,364

 

 

$

8,669,936

 

 

$

56,583

 

 

$

128,751

 

Specialty Insurance

 

465,020

 

 

 

6,351

 

 

 

—

 

 

 

36,908

 

 

 

592,405

 

 

 

—

 

 

 

7,913

 

Corporate

 

15,326

 

 

 

162

 

 

 

—

 

 

 

(233,941

)

 

 

429,128

 

 

 

—

 

 

 

—

 

Eliminations

 

(1,139

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(118,247

)

 

 

—

 

 

 

—

 

 

$

5,772,363

 

 

$

128,053

 

 

$

3,785

 

 

$

445,331

 

 

$

9,573,222

 

 

$

56,583

 

 

$

136,664

 

 

 

Direct

premiums

and escrow

fees

 

 

Agent

premiums

 

 

Information

and other

 

 

Net

investment

income

 

 

Net realized

investment

gains (losses)

 

 

Total

Revenues

 

2019

(in thousands)

 

Title Insurance and Services

$

2,188,056

 

 

$

2,373,140

 

 

$

776,124

 

 

$

282,910

 

 

$

55,722

 

 

$

5,675,952

 

Specialty Insurance

 

471,217

 

 

 

—

 

 

 

12,742

 

 

 

11,249

 

 

 

10,682

 

 

 

505,890

 

 

$

2,659,273

 

 

$

2,373,140

 

 

$

788,866

 

 

$

294,159

 

 

$

66,404

 

 

$

6,181,842

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title Insurance and Services

$

2,052,951

 

 

$

2,284,906

 

 

$

770,725

 

 

$

223,318

 

 

$

(49,119

)

 

$

5,282,781

 

Specialty Insurance

 

454,718

 

 

 

—

 

 

 

11,802

 

 

 

10,190

 

 

 

(7,368

)

 

 

469,342

 

 

$

2,507,669

 

 

$

2,284,906

 

 

$

782,527

 

 

$

233,508

 

 

$

(56,487

)

 

$

5,752,123

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Title Insurance and Services

$

2,022,384

 

 

$

2,360,659

 

 

$

766,018

 

 

$

137,439

 

 

$

6,656

 

 

$

5,293,156

 

Specialty Insurance

 

439,470

 

 

 

—

 

 

 

11,259

 

 

 

9,713

 

 

 

4,578

 

 

 

465,020

 

 

$

2,461,854

 

 

$

2,360,659

 

 

$

777,277

 

 

$

147,152

 

 

$

11,234

 

 

$

5,758,176

 

Revenues from external customers allocated between domestic and foreign operations, by segment, for the years ended December 31, 2019, 2018 and 2017, are as follows:

 

Year Ended December 31,

 

 

2019

 

 

2018

 

 

2017

 

 

Domestic

 

 

Foreign

 

 

Domestic

 

 

Foreign

 

 

Domestic

 

 

Foreign

 

 

(in thousands)

 

Title Insurance and Services

$

5,374,624

 

 

$

300,685

 

 

$

4,984,617

 

 

$

298,059

 

 

$

5,011,990

 

 

$

281,090

 

Specialty Insurance

 

505,890

 

 

 

—

 

 

 

469,342

 

 

 

—

 

 

 

465,020

 

 

 

—

 

 

$

5,880,514

 

 

$

300,685

 

 

$

5,453,959

 

 

$

298,059

 

 

$

5,477,010

 

 

$

281,090

 

Long-lived assets allocated between domestic and foreign operations, by segment, as of December 31, 2019, 2018 and 2017, are as follows:

 

December 31,

 

 

2019

 

 

2018

 

 

2017

 

 

Domestic

 

 

Foreign

 

 

Domestic

 

 

Foreign

 

 

Domestic

 

 

Foreign

 

 

(in thousands)

 

Title Insurance and Services

$

982,397

 

 

$

65,625

 

 

$

994,023

 

 

$

61,615

 

 

$

975,443

 

 

$

59,960

 

Specialty Insurance

 

7,479

 

 

 

—

 

 

 

65,644

 

 

 

—

 

 

 

57,762

 

 

 

—

 

 

$

989,876

 

 

$

65,625

 

 

$

1,059,667

 

 

$

61,615

 

 

$

1,033,205

 

 

$

59,960