Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Income Tax Expense (Benefit), Continuing Operations [Abstract]

Components Of Income Tax Expense

The income tax (benefit) expense consisted of the following components:

	Year Ended December 31,
	2015			2014		2013
	(Amounts in thousands)
Federal
Current	$	21,942		$	44,469	$	30,266
Deferred	(25,594		)	20,444		(14,970		)
	$	(3,652	)	$	64,913	$	15,296
State
Current	$	943		$	4,421	$	5,234
Deferred	(1,203		)	142		(577		)
	$	(260	)	$	4,563	$	4,657
Total
Current	$	22,885		$	48,890	$	35,500
Deferred	(26,797		)	20,586		(15,547		)
Total	$	(3,912	)	$	69,476	$	19,953

Reconciliation Of Income Taxes

The income tax (benefit) expense reflected in the consolidated statements of operations is reconciled to the federal income tax (benefit) expense on income before income taxes based on a statutory rate of 35% as shown in the table below:

	Year Ended December 31,
	2015			2014			2013
	(Amounts in thousands)
Computed tax expense at 35%	$	24,699		$	86,598		$	46,234
Tax-exempt interest income	(26,993		)	(27,839		)	(26,381		)
Dividends received deduction	(1,613		)	(2,027		)	(2,239		)
State tax expense	(287		)	3,872			4,944
Nondeductible expenses	575			9,900			190
Other, net	(293		)	(1,028		)	(2,795		)
Income tax (benefit) expense	$	(3,912	)	$	69,476		$	19,953

Deferred Tax Assets And Liabilities

ignificant components of the Company’s net deferred tax assets and liabilities:

	December 31,
	2015			2014
	(Amounts in thousands)
Deferred tax assets:
20% of net unearned premium	$	75,406		$	71,907
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes	9,518			11,100
Write-down of impaired investments	857			942
Tax credit carryforward	36,349			31,198
Expense accruals	11,264			13,395
Other deferred tax assets	9,596			7,448
Total gross deferred tax assets	142,990			135,990
Deferred tax liabilities:
Deferred acquisition costs	(70,617		)	(69,021		)
Tax liability on net unrealized gain on securities carried at fair value	(23,095		)	(47,333		)
Tax depreciation in excess of book depreciation	(10,742		)	(9,414		)
Undistributed earnings of insurance subsidiaries	(4,022		)	(4,486		)
Tax amortization in excess of book amortization	(2,514		)	(1,982		)
Other deferred tax liabilities	(8,769		)	(9,087		)
Total gross deferred tax liabilities	(119,759		)	(141,323		)
Net deferred tax assets (liabilities)	$	23,231		$	(5,333	)

Summary Of Unrecognized Tax Benefits

reconciliation of the beginning and ending balances of unrecognized tax benefits:

	December 31,
	2015			2014
	(Amounts in thousands)
Balance at January 1	$	12,612		$	10,784
Additions based on tax positions related to:
Current year	932			2,277
Prior years	(1,379		)	(258		)
Additions (reductions) as a result of lapse of the applicable statute of limitations	—			(191		)
Balance at December 31	$	12,165		$	12,612