• Filing Date: 2018-03-07
  • Form Type: 10-K
  • Description: Annual report
v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense

A summary of income tax expense is as follows:

 

     Years Ended December 31,  
     2017      2016      2015  

Current:

        

Federal

   $ (3,933    $ 14,918      $ 34,768  

State

     34        2,666        5,856  

Foreign

     81        96        68  
  

 

 

    

 

 

    

 

 

 

Total current taxes

     (3,818      17,680        40,692  
  

 

 

    

 

 

    

 

 

 

Deferred:

        

Federal

     (4,144      182        (275

State

     (757      (9      (46

Foreign

     (12      (18      (40
  

 

 

    

 

 

    

 

 

 

Total deferred taxes

     (4,913      155        (361
  

 

 

    

 

 

    

 

 

 

Income tax (benefit) expense

   $ (8,731    $ 17,835      $ 40,331  
  

 

 

    

 

 

    

 

 

 
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,  
     2017      2016     2015  
     Amount     %      Amount     %     Amount     %  

Income taxes at statutory rate

   $ (5,468     35.0      $ 16,395       35.0     $ 37,167       35.0  

Increase (decrease) in income taxes resulting from:

             

State income taxes, net of federal tax benefits

     (657     4.2        1,710       3.6       3,783       3.6  

Effects of tax rate changes

     (1,400     9.0        —         —         —         —    

Share-based compensation

     (705     4.5        —         —         —         —    

Other

     (501     3.2        (270     (0.5     (619     (0.6
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Income tax (benefit) expense

   $ (8,731     55.9      $ 17,835       38.1     $ 40,331       38.0  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
Significant Components of Net Deferred Income Tax Asset

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

 

     December 31,  
     2017      2016  

Deferred tax assets:

     

Unearned premiums

   $ 5,753      $ 9,331  

Other-than-temporary impairment losses

     386        1,246  

Losses and loss adjustment expenses

     3,154        986  

Organizational costs

     90        61  

Stock-based compensation

     2,455        3,388  

Accrued expenses

     —          35  

Unearned revenue

     339        489  

State net operating losses

     333        —    

State capital loss carryforwards

     175        65  

Bad debt reserve

     2        3  
  

 

 

    

 

 

 

Total deferred tax assets

     12,687        15,604  
  

 

 

    

 

 

 

Deferred tax liabilities:

     

Property and equipment

     (1,517      (1,857

Intangible assets

     (1,541      (1,890

Deferred policy acquisition costs

     (4,365      (6,601

Unrealized net gain on available-for-sale securities

     (1,907      (1,659

Basis difference related to partnership investments

     (599      (5

Basis difference related to convertible senior notes

     (4,099      (2,519

Prepaid expenses

     (312      (412

Accrued expenses

     (37      —    

Other

     (200      (411
  

 

 

    

 

 

 

Total deferred tax liabilities

     (14,577      (15,354
  

 

 

    

 

 

 

Net deferred tax (liabilities) assets

   $ (1,890    $ 250