Note 10 - Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Provision [Table Text Block]

The components of our consolidated income tax provision from continuing operations are as follows:



	Year Ended December 31,
(In thousands)	2019		2018			2017
Current provision (benefit)	$	19,522	$	(42,398	)	$	59,122
Deferred provision	157,162		120,573			166,527
Total income tax provision	$	176,684	$	78,175		$	225,649

Reconciliation of Taxes at Statutory Rate to Provision (Benefit) for Income Taxes [Table Text Block]

The reconciliation of taxes computed at the statutory tax rate of 21% in 2019 and 2018 and 35% in 2017 to the provision for income taxes is as follows:



	Year Ended December 31,
(In thousands)	2019			2018			2017
Provision for income taxes computed at the statutory tax rate	$	178,289		$	143,679		$	121,358
Change in tax resulting from:
Repurchase premium on convertible notes	—			—			(96		)
State tax provision (benefit), net of federal impact	(293		)	5,570			(15,641		)
Valuation allowance	1,941			(1,856		)	18,197
Remeasurement of net deferred tax assets due to the TCJA	—			—			102,617
Impact related to settlement of IRS Matter	—			(73,585		)	—
Other, net	(3,253		)	4,367			(786		)
Provision for income taxes	$	176,684		$	78,175		$	225,649

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

The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as follows:



	December 31,
(In thousands)	2019			2018
Deferred tax assets:
Accrued expenses	$	11,642		$	17,487
Unearned premiums	34,394			34,686
Differences in fair value of financial instruments	—			1,115
Net unrealized loss on investments	—			16,297
State income taxes	65,917			67,069
Loss reserves	1,920			1,044
Goodwill and intangibles	36,282			35,068
Deferred policy acquisition and ceding commission costs	11,190			15,288
Share-based compensation	11,238			10,776
Lease liability	13,293			—
Other	11,188			13,091
Total deferred tax assets	197,064			211,921
Deferred tax liabilities:
Differences in fair value of financial instruments	5,708			—
Net unrealized gain on investments	29,303			—
Depreciation	12,803			12,201
Contingency reserve	137,983			—
Other	15,914			3,581
Total deferred tax liabilities	201,711			15,782
Less: Valuation allowance	66,437			64,496
Net deferred tax asset (liability)	$	(71,084	)	$	131,643

Reconciliation of Unrecognized Tax Benefits [Table Text Block]

A reconciliation of the beginning and ending unrecognized tax benefits is as follows:



	Year Ended December 31,
(In thousands)	2019		2018
Balance at beginning of period	$	33,552	$	123,951
Tax positions related to the current year:
Increases	3,215		5,058
Tax positions related to prior years:
Increases	441		26,465
Decreases	—		(43,146		)
Settlements with taxing authorities	—		(52,353		)
Lapses of applicable statute of limitation	—		(26,423		)
Balance at end of period	$	37,208	$	33,552