Income taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Provision/benefit for income taxes

The provision for income taxes consist of the following for 2012, 2011, and 2010:

(in thousands)	2012			2011			2010
Current Income Tax (Expense) Benefit
Federal	$	—		$	—		$	—
State and local	(107		)	29			(236		)
Foreign	(252		)	(262		)	(154		)
Total current income tax expense	(359		)	(233		)	(390		)
Deferred Income Tax Expense
Federal	(1,061		)	(1,149		)	(1,133		)
State and local	(182		)	(198		)	(194		)
Total deferred income tax expense	(1,243		)	(1,347		)	(1,327		)
Income tax provision	$	(1,602	)	$	(1,580	)	$	(1,717	)

Reconciliation of the federal income tax provision

A reconciliation of the federal income tax provision at the statutory rate to the effective rate for 2012, 2011, and 2010 is as follows:

(in thousands)	2012			2011			2010
Computed tax benefit at the federal statutory rate of 35%	$	19,069		$	4,879		$	2,757
State income taxes, net of federal benefit	(57		)	(50		)	(130		)
Non-deductible compensation	(537		)	(30		)	(532		)
Non-deductible expense	(131		)	(132		)	(156		)
Non-deductible goodwill impairment	(15,490		)	—			—
Tax on foreign income	(252		)	(262		)	(154		)
Valuation allowance	(4,186		)	(6,090		)	(3,681		)
Other	(18		)	105			179
Income tax provision	$	(1,602	)	$	(1,580	)	$	(1,717	)
Effective tax rate	2.9		%	11.3		%	21.8		%

Significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2012 and 2011 were as follows:

(in thousands)	2012			2011
Deferred Tax Assets
Provision for doubtful accounts	$	1,020		$	955
Accrued rent	1,748			1,688
Reserve for newsstand returns	139			52
Accrued compensation	11,161			9,620
Deferred revenue	1,165			131
NOL/credit carryforwards	59,868			56,777
Depreciation	6,071			5,778
Amortization of intangible assets	7,756			8,987
Other	242			482
Total deferred tax assets	89,170			84,470
Deferred Tax Liabilities
Prepaid expenses	(293		)	(624		)
Amortization of intangible assets	(7,117		)	(5,874		)
Total deferred tax liabilities	(7,410		)	(6,498		)
Valuation allowance	(88,877		)	(83,846		)
Net Deferred Tax Liability	$	(7,117	)	$	(5,874	)

Reconciliation of the Company's total gross unrecognized tax benefits

Following is a reconciliation of the Company’s total gross unrecognized tax benefits for 2012 and 2011.

(in thousands)	2012		2011
Gross balance at January 1	$	50	$	213
Additions based on tax positions related to the current year	—		—
Additions for tax positions of prior years	—		16
Reductions for tax positions of prior years	—		—
Settlements	—		(179		)
Reductions due to lapse of applicable statute of limitations	—		—
Gross balance at December 31	50		50
Interest and penalties	22		22
Balance including interest and penalties at December 31	$	72	$	72