Note 7. Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income was $17.1 million for the three months ended June 30, 2018, compared to $17.4 million for the three months ended June 30, 2017. Comprehensive income was $27.4 million for the six months ended June 30, 2018, compared to $31.9 million for the same period in 2017. The difference between net income as reported and comprehensive income was due to changes in unrealized gains and losses, net of tax on available-for-sale debt securities.

Comprehensive income includes net income plus unrealized gains (losses) on our available-for-sale debt securities, net of tax. In reporting comprehensive income on a net basis in the statements of comprehensive income, we used a 21 percent tax rate in 2018 and a 35 percent tax rate in 2017. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income for each period presented in the interim financial statements.

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)
Beginning balance	$	(2,236	)	$	460		$	3,612		$	(492	)
Other comprehensive income (loss) before reclassification		(449	)		2,038			(5,863	)		3,094
Amounts reclassified from accumulated other comprehensive income		602			(82	)		168			(186	)
Net current period other comprehensive income (loss)		153			1,956			(5,695	)		2,908
Ending balance	$	(2,083	)	$	2,416		$	(2,083	)	$	2,416

The sale or other-than-temporary impairment of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to current period net income. The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table.

Component of Accumulated Other	Three Months Ended						Six Months Ended						Affected line item in the
Comprehensive Income	June 30,						June 30,						statement of income
	2018			2017			2018			2017
	(in thousands)
Unrealized gains (losses) on available-for-sale securities	$	(762	)	$	126		$	(466	)	$	286		Net realized losses on investments
		(762	)		126			(466	)		286		Income before income taxes
		160			(44	)		44			(100	)	Income tax expense
	$	(602	)	$	82		$	(422	)	$	186		Net income