The following table contains selected unaudited financial data for each quarter.



	Fourth Quarter			Third Quarter ^(a) (As Restated)		Second Quarter		First Quarter
	(In thousands, except per share amounts)
2018
Revenues	$	65,570		61,161		59,842		57,433
Benefits and expenses	67,598			55,599		63,953		54,854
Federal income tax expense (benefit)	(596		)	12,671		(1,553	)	2,542
Net income (loss)	(1,432		)	(7,109	)	(2,558	)	37
Net income (loss) available to common shareholders	(1,432		)	(7,109	)	(2,558	)	37
Basic & Diluted earnings (losses) per share of Class A common stock	(0.03		)	(0.14	)	(0.05	)	—
Basic & Diluted earnings (losses) per share of Class B common stock	(0.01		)	(0.07	)	(0.03	)	—

^(a) On July 1, 2018, the Company novated all of the international policies issued by CICA to CICA Ltd., a newly established Bermuda entity that began operations in July 2018. While this novation transaction has been eliminated in consolidation of affiliated entities, there are tax effects reflected in the consolidated financial statements as a result of the transaction being executed between our subsidiaries that reside in different tax jurisdictions. CICA Ltd. is considered a controlled foreign corporation for federal tax purposes. As a result, the insurance activity of CICA Ltd. is subject to Subpart F of the IRC and is included in Citizens’s taxable income which generated $18.4 million of federal income tax expense in 2018. In addition, as of July 1, 2018, we implemented a new actuarial valuation software solution that provides enhanced modeling capabilities for ordinary whole life and endowment policies of CICA and CICA Ltd., which are included in the Life Insurance segment. The impact of this system conversion resulted in changes in estimates due to refinements based upon our accounting analysis of the circumstances and reflected as a decrease in reserves of $10.2 million and a decrease in DAC of $4.3 million, before tax.

Subsequent to the issuance of the Company's interim condensed consolidated financial statements as of and for the three and nine months ended September 30, 2018, the Company's management determined the federal income tax expense and the deferred federal income tax liability were overstated by $7.6 million. The Company has restated the Third Quarter amounts presented above to correct the error that is related to accounting for the income tax effects of the novation transaction that was executed on July 1, 2018. As of September 30, 2018, certain temporary differences that existed between U.S. GAAP and tax-basis balances attributable to the Bermuda tax jurisdiction were improperly reported as deferred tax assets and liabilities using the 21% U.S. tax rate as opposed to the 0% Bermuda tax rate.

Federal income tax expense, net income (loss), and net income (loss) available to common shareholders have been restated herein to properly reflect the $7.6 million reduction in federal income tax expense as compared to originally reported amounts. Basic & Diluted earnings (losses) per share of Class A common stock and Class B common stock were adjusted from $(0.30) and $(0.14) to $(0.14) and $(0.07), respectively, to reflect this change.



	Fourth Quarter^(a)			Third Quarter		Second Quarter	First Quarter
	(In thousands, except per share amounts)
2017
Revenues	$	67,863		64,331		60,852	59,581
Benefits and expenses	76,998			61,221		58,756	58,638
Federal income tax expense (benefit)	35,069			(339	)	1,524	(1,113	)
Net income (loss)	(44,204		)	3,449		572	2,056
Net income (loss) available to common shareholders	(44,204		)	3,449		572	2,056
Basic & Diluted earnings (losses) per share of Class A common stock	(0.89		)	0.07		0.01	0.04
Basic & Diluted earnings (losses) per share of Class B common stock	(0.44		)	0.03		0.01	0.02

^(a) Federal income tax expense (benefit), Net income (loss) and Basic and Diluted earnings (loss) per share reflect the effects of the new tax reform re-measurement of $35.7 million. Net income (loss) and Basic and Diluted earnings (loss) per share also reflect the effects of the goodwill impairment of $4.6 million. For more information, please refer to Note 1 and Note 9.