Note 3. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Disposal Groups, Including Discontinued Operations

The following is a reconciliation of the major line items constituting the pretax profit of discontinued operations for the periods indicated (in thousands):

		Three Months Ended
		March 31,
		2016		2015
Revenue	$	6,406	$	4,122
Selling, general and administrative expenses		(5,564)		(3,113)
Amortization and depreciation		(125)		(172)
Pretax profit of discontinued operations		717		837
Gain on disposal of discontinued operations, pretax		121,317		-
Income from discontinued operations, before income taxes		122,034		837
Income taxes on discontinued operations		8,069		324
Income from discontinued operations	$	113,965	$	513

Total operating cash flows from discontinued operations for the three months ended March 31, 2016 and 2015 amounted to $1,106,000 and $136,000, respectively.  The Company elected to classify the proceeds received from the sale of discontinued operations in the investing activities section of the Condensed Consolidated Statement of Cash Flows.

In connection with the Risk Solutions Sale and Coinsurance Transaction in March 2016, AMIC utilized a significant amount of its Federal NOL carryforwards and made a corresponding adjustment to its valuation allowance (see Note 11) The Company recorded income taxes on discontinued operations of $8,069,000 for the three months ended March 31, 2016, consisting of $5,799,000 of state taxes and $2,270,000 of federal taxes, net of a $38,565,000 decrease in AMIC’s valuation allowance.

The following is a reconciliation of the carrying amounts of major classes of assets and liabilities for discontinued operations for the periods indicated (in thousands):

		March 31, 2016		December 31, 2015
Major classes of assets included in discontinued operations:
Cash	$	-	$	904
Restricted Cash		-		20,358
Intangible assets		-		786
Other assets		-		9,670
Assets attributable to discontinued operations	$	-	$	31,718
Major classes of liabilities included in discontinued operations:
Premium and claim funds payable	$	-	$	20,358
Accounts payable and accrued liabilities		953		3,979
Liabilities attributable to discontinued operations	$	953	$	24,337