Mercury Insurance 2015 Annual Report Download - page 87
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75
The following table presents the estimated future amortization expense related to other intangible assets as of December 31,
2015:
Year Ending December 31, Amortization Expense
(Amounts in thousands)
2016 $ 6,077
2017 5,349
2018 5,335
2019 4,906
2020 758
Thereafter 7,877
Total $ 30,302
10. Income Taxes
Income tax provision
The Company and its subsidiaries file a consolidated federal income tax return. 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
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 Income Taxes
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between
the financial reporting basis and the respective tax basis of the Company’s assets and liabilities, and expected benefits of utilizing
net operating loss, capital loss, and tax-credit carryforwards. The ultimate realization of deferred tax assets is dependent upon