Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense (benefit) consists of the following:



(in thousands)	Years ended December 31,
	2018			2017

Current income tax expense	$	423		$	628
Deferred income tax benefit	(108		)	(17,316		)
Income tax expense (benefit)	$	315		$	(16,688	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income tax expense (benefit) varies from the amount that would result by applying the applicable U.S. corporate income tax rate of 21% in 2018 and 34% in 2017 to loss from continuing operations before income tax expense (benefit). The following table summarizes the differences:



(in thousands)	Years ended December 31,
	2018			2017
Income tax benefit at U.S. statutory income tax rate	$	(4,609	)	$	(4,255	)
Tax Act adjustment	(82		)	(18,052		)
Valuation allowance	4,562			3,169
Indefinite life intangibles	92			1,173
Change in unrecognized tax benefits	233			490
Compensation	(470		)	403
Investment income	747			—
Other	(158		)	384
Income tax expense (benefit) for continuing operations	$	315		$	(16,688	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented as follows:



(in thousands)	December 31,
	2018			2017
Deferred income tax assets:
Losses carried forward	$	180,012		$	185,574
Unpaid loss and loss adjustment expenses and unearned premiums	1,670			1,513
Intangible assets	2,538			2,484
Debt issuance costs	1,017			988
Investments	841			758
Deferred rent	727			807
Deferred revenue	783			183
Other	693			21
Valuation allowance	(171,456		)	(173,965		)
Deferred income tax assets	$	16,825		$	18,363
Deferred income tax liabilities:
Indefinite life intangibles	$	(16,660	)	$	(16,436	)
Depreciation and amortization	(16,121		)	(16,971		)
Fair value of debt	(6,528		)	(5,894		)
Land	(4,435		)	(4,435		)
Investments	(168		)	(1,853		)
Deferred acquisition costs	(1,450		)	(1,328		)
Other	—			(209		)
Deferred income tax liabilities	$	(45,362	)	$	(47,126	)
Net deferred income tax liabilities	$	(28,537	)	$	(28,763	)

Summary of Operating Loss Carryforwards [Table Text Block]

Amounts, originating dates and expiration dates of the KAI Tax Group's consolidated U.S. net operating loss carryforwards, totaling $845.7 million, are as follows:



Year of net operating loss	Expiration date	Net operating loss (in thousands)
2007	2027	53,909
2008	2028	53,696
2009	2029	506,552
2010	2030	85,215
2011	2031	42,189
2012	2032	32,152
2013	2033	29,913
2014	2034	6,932
2016	2036	15,517
2017	2037	19,628

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending unrecognized tax benefits, exclusive of interest and penalties, is as follows:



(in thousands)	December 31,
	2018		2017
Unrecognized tax benefits - beginning of year	$	1,367	$	1,274
Gross additions - current year tax positions	—		—
Gross additions - prior year tax positions	14		93
Gross reductions - prior year tax positions	—		—
Gross reductions - settlements with taxing authorities	—		—
Impact due to expiration of statute of limitations	—		—
Unrecognized tax benefits - end of year	$	1,381	$	1,367