XML 66 R47.htm IDEA: XBRL DOCUMENT v3.24.0.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income (loss) before tax consists of the following (in millions):

			Year Ended December 31,
			2023						2022
United States			$	(274.0)					$	(333.5)
Foreign			1.4						1.4
Loss before income taxes attributable to Hippo			$	(272.6)					$	(332.1)
Income before tax attributable to noncontrolling interests			10.1						6.9
Loss before income taxes			$	(262.5)					$	(325.2)

Schedule of Effective Income Tax Rate Reconciliation

The components of the total provision for income taxes are as follows (in millions):

			Year Ended December 31,
			2023						2022
Loss before income taxes attributable to Hippo			$	(272.6)					$	(332.1)
Income tax benefit from statutory rate			(57.2)						(69.8)
Effect of:
Meals, entertainment & parking			0.2						0.2
Deferred compensation			7.4						6.6
State taxes			(9.1)						(9.0)
Goodwill impairment			—						8.0
Increase in valuation allowance			64.2						66.8
Foreign taxes			0.1						1.2
Other			(5.1)						(2.7)
Income taxes expense			$	0.5					$	1.3

Schedule of Components of Income Tax Provision

The components of the provision for income taxes are as follows (in millions):

			Year Ended December 31,
			2023						2022
Income tax applicable to:
Current
Federal			$	—					$	—
State			0.4						0.1
Foreign			0.8						1.2
Total current provision			$	1.2					$	1.3
Deferred
Federal			$	—					$	—
State			—						—
Foreign			(0.7)						—
Total deferred provision			$	(0.7)					$	—
Total provision for income taxes			$	0.5					$	1.3

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in millions):

			As of December 31,
			2023						2022
Deferred tax assets:
Net operating loss carryforward			$	171.6					$	127.7
Intangible assets			10.2						8.5
Research and development credit			10.5						6.7
Deferred compensation			9.7						6.2
Unearned premium reserve			4.1						1.6
Loss reserve discount			1.1						0.8
Unrealized losses			2.0						1.7
Lease liability			3.5						5.6
Deferred revenue			5.9						4.3
Capitalized software			13.7						5.8
Other accruals			3.2						0.7
Total deferred tax assets			$	235.5					$	169.6
Valuation allowance			(226.0)						(161.5)
Total deferred income tax assets			$	9.5					$	8.1
Deferred tax liabilities
Property and equipment			$	0.9					$	0.5
Provision for commission slide and cancellation			—						0.2
Deferred acquisition costs			5.0						1.7
Right-of-use asset			2.4						5.4
Other			0.4						0.3
Total deferred tax liabilities			$	8.7					$	8.1
Deferred income tax assets, net			$	0.8					$	—

Schedule of Unrecognized Tax Benefits Roll Forward

Below is a reconciliation of unrecognized tax benefits (in millions):

									Year Ended December 31,
															2023						2022
Beginning unrecognized tax benefits															$	2.9					$	1.1
Increases related to tax positions from prior years															0.8						0.7
Increases related to tax positions taken in the current year															1.4						1.1
Ending unrecognized tax benefits															$	5.1					$	2.9

Schedule of Operating Loss Carryforwards

Components of the NOL carryforwards are as follows (in millions):

									Indefinite
			20-year Carryforward						Carryforward
			Expires in 2035 - 2043						Period						Total
U.S. Federal			$	175.3		0			$	544.5					$	719.8
U.S. State			326.7						—						326.7
Balance as of December 31, 2023			$	502.0					$	544.5					$	1,046.5

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 9
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-9

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 2
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-2

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 12
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-12

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(1)(Note 1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 217
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482663/740-10-55-217

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-3

+ Details

Name:	us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration