• Filing Date: 2014-03-12
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense

A summary of income tax expense is as follows:

 

     Years Ended December 31,  
     2013      2012     2011  

Current:

       

Federal

   $ 34,372       $ 18,484      $ 7,220   

State

     5,844         3,168        1,196   

Foreign

     118         137        9   
  

 

 

    

 

 

   

 

 

 

Total current taxes

     40,334         21,789        8,425   
  

 

 

    

 

 

   

 

 

 

Deferred:

       

Federal

     514         (1,986     (1,715

State

     43         (380     (269
  

 

 

    

 

 

   

 

 

 

Total deferred taxes

     557         (2,366     (1,984
  

 

 

    

 

 

   

 

 

 

Income tax expense

   $ 40,891       $ 19,423      $ 6,441   
  

 

 

    

 

 

   

 

 

 
Summary of the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate

The reasons for the differences between the statutory Federal income tax rate and the effective tax rate are summarized as follows:

 

     Years Ended December 31,  
     2013     2012      2011  
     Amount     %     Amount      %      Amount      %  

Income taxes at statutory rate

   $ 37,258        35.0      $ 17,353         35.0       $ 5,785         35.0   

Increase (decrease) in income taxes resulting from :

               

State income taxes, net of federal tax benefits

     3,802        3.6        1,799         3.6         599         3.6   

Other

     (169     (0.2     271         0.6         57         0.7   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Income tax expense

   $ 40,891        38.4      $ 19,423         39.2       $ 6,441         39.3   
  

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 
Significant Components of Net Deferred Income Tax Asset

Significant components of the Company’s net deferred income tax (liabilities) assets are as follows:

 

     December 31,  
     2013     2012  

Deferred tax assets:

    

Unearned premiums

   $ 8,829      $ 9,149   

Losses and loss adjustment expenses

     885        1,116   

Organizational costs

     95        106   

Stock-based compensation

     2,026        394   

Accrued expenses

     163        40   

Deferred expenses

     —          72   

Unearned revenue

     52        —     

Bad debt reserve

     5        —     
  

 

 

   

 

 

 

Total deferred tax assets

     12,055        10,877   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Property and equipment

     (1,748     (1,519

Deferred policy acquisition costs

     (5,600     (4,027

Unrealized net gain on securities available-for-sale

     (700     (1,017

Basis difference related to convertible senior notes

     (6,295     —     

Prepaid expenses

     (296     (225

Unearned brokerage income

     —          (105

Other

     (156     (136
  

 

 

   

 

 

 

Total deferred tax liabilities

     (14,795     (7,029
  

 

 

   

 

 

 

Net deferred tax (liabilities) assets

   $ (2,740   $ 3,848