Note 12. Stockholders' Equity

12 Months Ended

Dec. 31, 2015

Notes

Note 12. Stockholders' Equity

Note 12.          Stockholders’ Equity

Preferred Stock

IHC has 100,000 authorized shares of preferred stock, par value $1.00 per share, none of which was issued as of December 31, 2015 and 2014.

Treasury Stock

In 1991, IHC initiated a program of repurchasing shares of its common stock. In August 2014, the Board of Directors authorized the repurchase of up to 500,000 shares of IHC’s common stock, in addition to prior authorizations, under the 1991 plan. The Company has repurchased 143,307, 296,775 and 334,305 shares in 2015, 2014 and 2013, respectively.  All of the shares repurchased have been either retired, reissued, or have become treasury shares. At December 31, 2015, there were 324,911 shares still authorized to be repurchased under the plan authorized by the Board of Directors.

Accumulated Other Comprehensive Income (Loss)

The components of other comprehensive income (loss) include (i) the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities and (ii) the after-tax unrealized gains and losses on a cash flow hedge.

Changes in the balances for each component of accumulated other comprehensive income (loss), shown net of taxes, for the years indicated were as follows (in thousands):

		Unrealized
		Gains (Losses) on
		Available-for Sale		Cash Flow
		Securities		Hedge		Total
Balance at December 31, 2012	$	15,231	$	(218)	$	15,013
Other comprehensive income (loss) before reclassifications		(14,361)		96		(14,265)
Amounts reclassified from accumulated OCI		(11,826)		-		(11,826)
Net other comprehensive income (loss)		(26,187)		96		(26,091)
Less: Other comprehensive income attributable
to noncontrolling interests		665		-		665
Acquired from noncontrolling interests		(59)		-		(59)
Balance at December 31, 2013		(10,350)		(122)		(10,472)
Other comprehensive income (loss) before reclassifications		15,872		72		15,944
Amounts reclassified from accumulated OCI		(5,251)		-		(5,251)
Net other comprehensive income (loss)		10,621		72		10,693
Less: Other comprehensive loss attributable
to noncontrolling interests		(199)		-		(199)
Balance at December 31, 2014		72		(50)		22
Other comprehensive income (loss) before reclassifications		(299)		43		(256)
Amounts reclassified from accumulated OCI		(3,206)		-		(3,206)
Net other comprehensive income (loss)		(3,505)		43		(3,462)
Less: Other comprehensive loss attributable
to noncontrolling interests		(5)		-		(5)
Acquired from noncontrolling interests		5				5
Balance at December 31, 2015	$	(3,433)	$	(7)	$	(3,440)

Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the years indicated (in thousands):

		2015		2014		2013
Unrealized gains (losses) on available-for-sale securities
reclassified during the period to the following income
statement line items:
Net realized investment gains	$	5,202	$	7,637	$	17,841
Net impairment losses recognized in earnings		(228)		-		-
Income before income tax		4,974		7,637		17,841
Tax effect		1,768		2,386		6,015
Net income	$	3,206	$	5,251	$	11,826