• Filing Date: 2015-03-10
  • Form Type: 10-K
  • Description: Annual report
v2.4.1.9
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense

A summary of income tax expense is as follows:

 

     Years Ended December 31,  
     2014      2013      2012  

Current:

        

Federal

   $ 36,651       $ 34,372       $ 18,484   

State

     6,222         5,844         3,168   

Foreign

     167         118         137   
  

 

 

    

 

 

    

 

 

 

Total current taxes

  43,040      40,334      21,789   
  

 

 

    

 

 

    

 

 

 

Deferred:

Federal

  (4,060   514      (1,986

State

  (678   43      (380

Foreign

  (4   —        —     
  

 

 

    

 

 

    

 

 

 

Total deferred taxes

  (4,742   557      (2,366
  

 

 

    

 

 

    

 

 

 

Income tax expense

$ 38,298    $ 40,891    $ 19,423   
  

 

 

    

 

 

    

 

 

 

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,  
     2014     2013     2012  
     Amount     %     Amount     %     Amount      %  

Income taxes at statutory rate

   $ 35,337        35.0      $ 37,258        35.0      $ 17,353         35.0   

Increase (decrease) in income taxes resulting from:

             

State income taxes, net of federal tax benefits

     3,601        3.6        3,802        3.6        1,799         3.6   

Other

     (640     (0.7     (169     (0.2     271         0.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income tax expense

$ 38,298      37.9    $ 40,891      38.4    $ 19,423      39.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

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,  
     2014      2013  

Deferred tax assets:

     

Unearned premiums

   $ 11,718       $ 8,829   

Losses and loss adjustment expenses

     866         885   

Organizational costs

     83         95   

Stock-based compensation

     3,081         2,026   

Accrued expenses

     175         163   

Deferred expenses

     —           —     

Unearned revenue

     381         52   

Bad debt reserve

     10         5   
  

 

 

    

 

 

 

Total deferred tax assets

  16,314      12,055   
  

 

 

    

 

 

 

Deferred tax liabilities:

Property and equipment

  (1,604   (1,748

Deferred policy acquisition costs

  (5,959   (5,600

Unrealized net gain on securities available-for-sale

  (418   (700

Basis difference related to convertible senior notes

  (5,110   (6,295

Prepaid expenses

  (464   (296

Other

  (260   (156
  

 

 

    

 

 

 

Total deferred tax liabilities

  (13,815   (14,795
  

 

 

    

 

 

 

Net deferred tax assets (liabilities)

$ 2,499    $ (2,740