• Filing Date: 2019-03-08
  • Form Type: 10-K
  • Description: Annual report
v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Summary of Income Tax Expense
A summary of income tax expense is as follows:

 
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
$
7,443
 
 
$
(3,933
)
 
$
14,918
 
State
 
 
1,490
 
 
 
34
 
 
 
2,666
 
Foreign
 
 
104
 
 
 
81
 
 
 
96
 
Total current taxes
 
 
9,037
 
 
 
(3,818
)
 
 
17,680
 
Deferred:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
(245
)
 
 
(4,144
)
 
 
182
 
State
 
 
392
 
 
 
(757
)
 
 
(9
)
Foreign
 
 
(7
)
 
 
(12
)
 
 
(18
)
Total deferred taxes
 
 
140
 
 
 
(4,913
)
 
 
155
 
Income tax (benefit) expense
 
$
9,177
 
 
$
(8,731
)
 
$
17,835
 
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,
 
 
 
2018
 
 
2017
 
 
2016
 
 
 
Amount
 
 
%
 
 
Amount
 
 
%
 
 
Amount
 
 
%
 
Income taxes at statutory rate
 
$
5,649
 
 
 
21.0
 
 
$
(5,468
)
 
 
35.0
 
 
$
16,395
 
 
 
35.0
 
Increase (decrease) in income taxes resulting from:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State income taxes, net of federal tax benefits
 
 
1,303
 
 
 
4.8
 
 
 
(657
)
 
 
4.2
 
 
 
1,710
 
 
 
3.6
 
Effects of tax rate changes
 
 
 
 
 
 
 
 
(1,400
)
 
 
9.0
 
 
 
 
 
 
 
Share-based compensation
 
 
2,156
 
 
 
8.0
 
 
 
(705
)
 
 
4.5
 
 
 
 
 
 
 
Other
 
 
69
 
 
 
0.3
 
 
 
(501
)
 
 
3.2
 
 
 
(270
)
 
 
(0.5
)
Income tax (benefit) expense
 
$
9,177
 
 
 
34.1
 
 
$
(8,731
)
 
 
55.9
 
 
$
17,835
 
 
 
38.1
 
Significant Components of Net Deferred Income Tax Asset
Significant components of the Company’s net deferred income tax assets are as follows:
 
 
 
December 31,
 
 
 
2018
 
 
2017
 
Deferred tax assets:
 
 
 
 
 
 
 
 
Unearned premiums
 
$
5,455
 
 
$
5,753
 
Losses and loss adjustment expenses
 
 
3,001
 
 
 
3,154
 
Stock-based compensation
 
 
716
 
 
 
2,455
 
Net unrealized investment losses
 
 
1,641
 
 
 
 
Other-than-temporary impairment losses
 
 
6
 
 
 
386
 
Organizational costs
 
 
76
 
 
 
90
 
Accrued expenses
 
 
78
 
 
 
 
Unearned revenue
 
 
231
 
 
 
339
 
State net operating losses
 
 
 
 
 
333
 
State capital loss carryforwards
 
 
 
 
 
175
 
Bad debt reserve
 
 
20
 
 
 
2
 
Other
 
 
26
 
 
 
 
Total deferred tax assets
 
 
11,250
 
 
 
12,687
 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities:
 
 
 
 
 
 
 
 
Property and equipment
 
 
(1,430
)
 
 
(1,517
)
Intangible assets
 
 
(1,841
)
 
 
(1,541
)
Deferred policy acquisition costs
 
 
(4,347
)
 
 
(4,365
)
Net unrealized investment gains
 
 
 
 
 
(1,907
)
Basis difference related to partnership investments
 
 
(1,193
)
 
 
(599
)
Basis difference related to convertible senior notes
 
 
(2,429
)
 
 
(4,099
)
Prepaid expenses
 
 
(394
)
 
 
(312
)
Accrued expenses
 
 
 
 
 
(37
)
Other
 
 
(684
)
 
 
(200
)
Total deferred tax liabilities
 
 
(12,318
)
 
 
(14,577
)
Net deferred tax liabilities
 
$
(1,068
)
 
$
(1,890
)