INCOME TAXES

The following table summarizes the provision for income taxes:



	Year Ended December 31,
	2015		2014			2013
Federal:
Current	$	10,143	$	21,633		$	11,413
Deferred	2,103		(996		)	1,026
Provision for Federal income tax expense	12,246		20,637			12,439

State:
Current	2,054		2,945			1,581
Deferred	202		(185		)	125
Provision for State income tax expense	2,256		2,760			1,706
Provision for income taxes	$	14,502	$	23,397		$	14,145

The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows:



	Year Ended December 31,
	2015			2014			2013
Expected income tax expense at federal rate	$	14,671		$	22,545		$	12,070
State tax expense, net of federal deduction benefit	1,023			1,660			1,140
Dividend received deduction	—			(350		)	(47		)
Prior period adjustment	42			—			699
Section 847 payments	(693		)	—			—
Other, net	(541		)	(458		)	283
Reported income tax expense	$	14,502		$	23,397		$	14,145

Deferred income taxes, which are included in other assets or other liabilities as appropriate, reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The table below summarizes the significant components of our net deferred tax liability:



	December 31,
	2015			2014
Deferred tax assets:
Unearned premiums	$	18,182		$	13,483
Tax-related discount on loss reserve	936			671
Bad debt expense	51			13
Other-than-temporary impairment	28			56
Other	432			651
Total deferred tax assets	19,629			14,874
Deferred tax liabilities:
Unrealized gain	(1,019		)	(2,526		)
Deferred acquisitions costs	(18,976		)	(12,128		)
Capitalized software	(251		)	(443		)
Intangible asset	(1,974		)	—
Other	(433		)	(772		)
Total deferred tax liabilities	(22,653		)	(15,869		)
Net deferred tax liability	$	(3,024	)	$	(995	)

In assessing the net realizable value of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

The statute of limitations related to our consolidated Federal income tax returns and our Florida income tax returns expired for all tax years up to and including 2011; therefore, only the 2012 through 2015 tax years remain subject to examination by taxing authorities. No taxing authorities are currently examining any of our federal or state income tax returns.

UPC Insurance's reinsurance affiliate, which is based in the Cayman Islands, made an irrevocable election under section 953(d) of the U.S. Internal Revenue Code of 1986, as amended, to be treated as a domestic insurance company for U.S. Federal income tax purposes. As a result of this election, our reinsurance subsidiary is subject to United States income tax on its worldwide income as if it were a U.S. corporation.

As of December 31, 2015, we have not taken any uncertain tax positions with regard to our tax returns.