NOTE S TO CON SOL I DAT ED FI NA NCI A L STATEM ENTS DE C E M BER 3 1 , 2 0 1 3 AN D 201 2 (Dollars In Thousands Unless Otherwise Noted)
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31 are as follows: 2013
2012
$ 5,026 1,858 1,501 714 807 217
$ 4,784 2,273 1,711 1,313 603 353
10,123
11,037
(4,598) (33,555) (559) (1,274)
(4,663) (21,434) (343) (965)
Total deferred income tax liability
(39,986)
(27,405)
Net deferred income tax liability
$(29,863)
$(16,368)
Security Group: Deferred income tax asset components: Accrued expenses Deferred rent Inventories and accounts receivable Investment in VIS LLC Interest rate swap Intangible assets
$ 2,682 64 1,154 491 231 18,940
$ 2,569 22 1,295 — 433 16,716
23,562
21,035
(4,516) (4,485)
(5,467) (4,165)
(9,001)
(9,632)
Insurance Group: Deferred income tax asset components: Unearned premiums and advance premiums Unpaid losses and loss adjustment expenses Other-than-temporary impairments Accrued pension liability Deferred compensation Other Total deferred income tax asset Deferred income tax liability components: Deferred acquisition costs Unrealized investment gains Unrealized investment gains on convertible securities Other
Total deferred tax asset Deferred income tax liability components: Unbilled revenue Property and equipment Total deferred income tax liability Net deferred income tax asset
$14,561
$11,403
In assessing the realizability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The amount of the deferred income tax asset considered realizable; however, could be reduced in the near term if estimates of future taxable income or statutory tax rates are
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