Income Taxes:

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



	For the Years Ended December 31,
	2012		2011		2010
Domestic	$	245,252	$	257,656	$	235,892
Foreign	76,339		49,539		26,480
Income before provision for income taxes	$	321,591	$	307,195	$	262,372

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



	For the Years Ended December 31,
	2012			2011			2010
Current tax provision
Federal	$	94,423		$	39,517		$	19,619
State	10,046			2,953			4,993
Foreign	18,952			10,193			4,078
Deferred tax provision (benefit)
Federal	(582		)	54,980			55,335
State	(2,045		)	4,413			2,393
Foreign	(3,189		)	1,209			4,269
Change in valuation allowance	(3		)	(6,974		)	465
	$	117,602		$	106,291		$	91,152

The Company’s effective rate differed from the statutory rate as follows:



	For the Years Ended December 31,
	2012		2011		2010
United States federal income tax rate	35.0	%	35.0	%	35.0	%
State taxes	3.5		2.8		2.9
Nondeductible stock-based compensation	1.3		0.8		0.1
United States federal and state research and development credits	(0.6	)	(2.4	)	(2.6	)
Change in state tax rates	(0.4	)	(0.1	)	0.5
Foreign earnings	(3.5	)	(2.2	)	(0.4	)
Expiration of capital loss carryforward	—		2.1		—
Disallowed officer compensation	0.6		—		—
Other	0.7		0.9		(1.0	)
Change in the deferred tax asset valuation allowance	—		(2.3	)	0.2
	36.6	%	34.6	%	34.7	%

The components of the net deferred tax asset and the related valuation allowance were as follows (in thousands):



	December 31,
	2012			2011
Net operating loss and credit carryforwards	$	15,655		$	9,323
Depreciation and amortization	5,495			30,702
Compensation costs	45,974			35,959
Other	18,542			15,530
Deferred tax assets	85,666			91,514
Acquired intangible assets	(26,293		)	(16,972		)
Internal-use software capitalized	(24,301		)	(24,165		)
Impairment loss on marketable securities	—			(15		)
Deferred tax liabilities	(50,594		)	(41,152		)
Valuation allowance	(430		)	(433		)
Net deferred tax assets	$	34,642		$	49,929

As of December 31, 2012, the Company had United States federal NOL carryforwards of approximately $16.1 million related to acquisitions made during 2012, which expire at various dates through 2026. As of December 31, 2011, the Company had utilized all of its United States federal NOL carryforwards that were held as of December 31, 2010. As of December 31, 2012 and 2011, the Company had state NOL carryforwards of approximately $48.2 million and $51.4 million, respectively, which expire at various dates through 2024. The Company also had foreign NOL carryforwards of approximately $1.0 million and $0.7 million as of December 31, 2012 and 2011, respectively. The majority of the foreign NOL carryforwards have no expiration dates. As of December 31, 2012 and 2011, the Company had United States federal and state research and development tax credit carryforwards of $1.7 million and $6.5 million, respectively, which will expire at various dates through 2026. As of December 31, 2012 and 2011, the Company had foreign tax credit carryforwards of $4.3 million, which will expire at various dates through 2020. As of December 31, 2012 and 2011, the Company has recorded a valuation allowance on certain NOL carryforwards of $0.4 million for each period. During the three month period ended December 31, 2012, the Company corrected errors in its reported income tax expense attributable to prior fiscal periods. The correction reduced income tax expense by $5.3 million for the three months ended December 31, 2012.

As of December 31, 2012, unrepatriated earnings of non-U.S. subsidiaries totaled $142.2 million. No provision for U.S. income and foreign withholding taxes has been made for unrepatriated foreign earnings because it is expected that such earnings will be reinvested indefinitely. If these earnings were distributed to the United States in the form of dividends or otherwise, it would be included in the Company's U.S. taxable income. Determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable.

The Company's income tax return for the 2010 tax year is currently under audit by the Internal Revenue Service. In addition, certain state tax and foreign tax returns for the 2008 through 2010 tax years are currently under audit by those jurisdictions. The Company does not expect the results of these examinations will have a material effect on its financial condition or results of operations.

The following is a roll-forward of the Company’s unrecognized tax benefits (in millions):



	For the Years Ended December 31,
	2012			2011
Unrecognized tax benefits — at beginning of year	$	12.5		$	10.8
Gross increases — tax positions of prior periods	12.2			—
Gross increases — current-period tax positions	2.3			2.8
Gross decreases — tax positions of prior periods	(6.0		)	(0.8		)
Gross decreases — settlements	—			(0.3		)
Unrecognized tax benefits — at end of year	$	21.0		$	12.5

As of December 31, 2012 and 2011, the Company had approximately $26.9 million and $17.2 million, respectively, of total unrecognized tax benefits, including $5.9 million and $4.7 million, respectively, of accrued interest and penalties. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. If recognized, all amounts of unrecognized tax benefits would have resulted in a reduction of income tax expense, impacting the effective income tax rate.

As of December 31, 2012, the Company believes it is reasonably possible that approximately $3.7 million of its unrecognized tax benefits, each of which are individually insignificant and include research and development credits and transfer pricing adjustments, may be recognized by the end of 2013 as a result of ongoing audits.

Generally, all tax years are open for examination by the United States federal and state taxing jurisdictions to which the Company is subject due to net operating losses and the limited number of prior year audits by taxing jurisdictions. In our major foreign jurisdictions, tax years after 2009 are open for examination by those jurisdictions.