Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Provision for Income Tax

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2012			2011			2010
Current tax expense
Federal	$	35,279		$	25,478		$	33,482
State and local		8,062			5,604			8,326
Foreign		2,685			2,335			273
Total current		46,026			33,417			42,081
Deferred tax (benefit) expense
Federal		(2,662	)		5,207			(4,396	)
State and local		(544	)		1,238			(3,397	)
Foreign		(5,251	)		(1,002	)		(273	)
Total deferred		(8,457	)		5,443			(8,066	)
Provision for income taxes	$	37,569		$	38,860		$	34,015

Components of Income before Provision for Income Taxes

The components of Income before provision for income taxes were as follows (in thousands):

	Year Ended December 31,
	2012			2011		2010
US sources	$	87,994		$	94,459	$	85,666
Non-US sources		(13,374	)		1,848		448
Total	$	74,620		$	96,307	$	86,114

Reconciliation of Effective Income Tax Rate to US Federal Income Tax Statutory Rate

The provision for income taxes differs from the amount of income taxes determined by applying the US federal income tax statutory rate to income before provision for income taxes as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Statutory US federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		6.5			4.8			3.8
Foreign income tax		2.1			(0.2	)		(0.2	)
Foreign currency (gain) loss		(0.1	)		0.2			—
Transaction costs		5.5			—			—
Permanent differences and other, net		1.0			1.4			(0.8	)
Reserve for tax contingencies		0.3			(0.8	)		1.7
Effective tax rate		50.3	%		40.4	%		39.5	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities consist of the following (in thousands):

	December 31,
	2012			2011
Deferred tax assets
Share-based compensation	$	10,664		$	12,564
Accrued incentive compensation		14,460			13,404
Accruals and reserves		1,227			1,077
Net operating loss and tax credit carryforwards		15,846			13,231
Deferred compensation plan		4,580			4,771
Deferred revenue		—			2,828
Operating leases and lease incentives		21,911			11,473
Other		3,403			1,225
Total deferred tax assets		72,091			60,573
Valuation allowance		(11,248	)		(7,886	)
Total deferred tax assets, net of valuation allowance		60,843			52,687
Deferred tax liabilities
Deferred incentive compensation		6,974			6,866
Depreciation		9,688			5,565
Goodwill and intangibles		91,085			3,110
Deferred revenue		372			—
Other		82			248
Total deferred tax liabilities		108,201			15,789
Net deferred tax (liabilities) assets	$	(47,358	)	$	36,898

Reconciliation of Beginning and Ending Unrecognized Tax Benefit

A reconciliation of the beginning and ending unrecognized tax benefit is as follows (in thousands):

	December 31,
	2012			2011			2010
Balance at beginning of the year	$	1,132		$	2,563		$	592
Additions based on tax positions related to the current year		23			24			79
Additions for tax positions of prior years		—			210			1,912
Positions assumed in SHL acquisition		3,999
Reductions for tax positions of prior years		—			—			—
Reductions for lapse of statute of limitations		(80	)		(1,665	)		(20	)
Settlements		—			—			—
Balance at end of the year	$	5,074		$	1,132		$	2,563