• Filing Date: 2017-02-22
  • Form Type: 10-K
  • Description: Annual report
v3.6.0.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense

A summary of income tax expense is as follows:

 

     Years Ended December 31,  
     2016      2015      2014  

Current:

        

Federal

   $ 14,918       $ 34,768       $ 36,651   

State

     2,666         5,856         6,222   

Foreign

     96         68         167   
  

 

 

    

 

 

    

 

 

 

Total current taxes

     17,680         40,692         43,040   
  

 

 

    

 

 

    

 

 

 

Deferred:

        

Federal

     182         (275      (4,060

State

     (9      (46      (678

Foreign

     (18      (40      (4
  

 

 

    

 

 

    

 

 

 

Total deferred taxes

     155         (361      (4,742
  

 

 

    

 

 

    

 

 

 

Income tax expense

   $ 17,835       $ 40,331       $ 38,298   
  

 

 

    

 

 

    

 

 

 
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,  
     2016     2015     2014  
     Amount     %     Amount     %     Amount     %  

Income taxes at statutory rate

   $ 16,395        35.0      $ 37,167        35.0      $ 35,337        35.0   

Increase (decrease) in income taxes resulting from:

            

State income taxes, net of federal tax benefits

     1,710        3.6        3,783        3.6        3,601        3.6   

Other

     (270     (0.5     (619     (0.6     (640     (0.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense

   $ 17,835        38.1      $ 40,331        38.0      $ 38,298        37.9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Significant Components of Net Deferred Income Tax Asset

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

 

     December 31,  
     2016      2015  

Deferred tax assets:

     

Unearned premiums

   $ 9,331       $ 8,794   

Other-than-temporary impairment losses

     1,246         1,839   

Unrealized net losses on available-for-sale securities

     —           1,125   

Basis difference related to partnership investments

     —           662   

Losses and loss adjustment expenses

     986         825   

Organizational costs

     61         72   

Stock-based compensation

     3,388         2,597   

Accrued expenses

     35         317   

Unearned revenue

     489         503   

Bad debt reserve

     3         1   
  

 

 

    

 

 

 

Total deferred tax assets

     15,539         16,735   
  

 

 

    

 

 

 

Deferred tax liabilities:

     

Property and equipment

     (1,792      (1,437

Intangible assets

     (1,890      —     

Deferred policy acquisition costs

     (6,601      (7,371

Unrealized net gain on available-for-sale securities

     (1,659      —     

Basis difference related to convertible senior notes

     (2,519      (4,052

Prepaid expenses

     (412      (347

Other

     (416      (339
  

 

 

    

 

 

 

Total deferred tax liabilities

     (15,289      (13,546
  

 

 

    

 

 

 

Net deferred tax assets

   $ 250       $ 3,189