The timing of claims payments is estimated and is not set contractually. Nonetheless, based on historical claims experience, the Company anticipates the above payment patterns. Changes in future claims settlement patterns, judicial decisions, legislation, economic conditions and other factors could affect the timing and amount of actual claims payments. The timing and amount of payments in connection with employee benefit plans are based on the Company’s current estimates and require the use of significant assumptions. Changes in significant assumptions could affect the amount and timing of employee benefit plan payments. See Note 13 Employee Benefit Plans to the consolidated financial statements for additional discussion of management’s significant assumptions. The Company is not able to reasonably estimate the timing of payments, or the amount by which the liability for the Company’s uncertain tax positions will increase or decrease over time; therefore the liability of $12.8 million has not been included in the contractual obligations table. See Note 11 Income Taxes to the consolidated financial statements for additional discussion of the Company’s liability for uncertain tax positions.
Title plants and other indexes at December 31, 2017 and 2016 included title plants of $526.2 million and $529.2 million and capitalized real estate data of $42.3 million and $35.1 million, respectively. Title plants are carried at original cost, with the costs of daily maintenance (updating) charged to expense as incurred. Because properly maintained title plants have indefinite lives and do not diminish in value with the passage of time, no provision has been made for depreciation or amortization. The Company analyzes its title plants at least annually for impairment. This analysis includes, but is not limited to, the effects of obsolescence, duplication, demand and other economic factors. Capitalized real estate data is initially recorded at cost and is amortized using the straight-line method over estimated useful lives of 3 to 15 years.
The Company’s finite-lived intangible assets consist of customer relationships, noncompete agreements, trademarks, internal-use software licenses and patents. These assets are amortized on a straight-line basis over their useful lives ranging from 1 to 20 years and are subject to impairment assessments when there is an indication of a triggering event or abandonment. The Company’s indefinite-lived other intangible assets consist of licenses which are not amortized but rather assessed for impairment by comparing the fair values to carrying amounts at least annually, and when an indicator of potential impairment has occurred.
In March 2016, the FASB issued updated guidance intended to simplify and improve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of such awards as either equity or liabilities and classification on the statement of cash flows. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016. While the adoption of this guidance did have an impact on the Company’s effective income tax rate for 2017, it did not have a material impact on the Company’s consolidated financial statements. See Note 11 Income Taxes for further discussion of the Company’s effective income tax rates. Beginning in 2017, excess tax benefits from share-based compensation are presented in the consolidated statements of cash flows in cash flows from operating activities within net change in income tax accounts.
Investments totaling $131.0 million and $125.8 million were on deposit with state treasurers in accordance with statutory requirements for the protection of policyholders at December 31, 2017 and 2016, respectively.
Other provisions of the Tax Reform Act that are not expected to materially impact the Company’s consolidated financial statements include, among others, the elimination of the performance-based exception to the limitation on the deduction of certain executive compensation in excess of $1.0 million, elimination of the tax deduction for entertainment expenses, a limitation on the deductibility of net interest expense, the repeal of the corporate alternative minimum tax, changes to net operating loss rules, and various international provisions; all effective for years beginning after 2017. In addition, for years beginning after 2017, the computation of tax-basis discounted unpaid loss reserves for title insurance companies is modified to incorporate a discount rate based on a corporate bond yield curve and extended loss payment patterns. While this change is likely to reduce future tax deductions claimed by the Company in connection with its title insurance loss reserves, no material impact to its consolidated financial statements is expected.