Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income tax expense for the years ended December 31, 2012, 2011 and 2010 were as follows (in thousands):



	2012		2011		2010
U.S.	$	16,682	$	7,252	$	23,108
Foreign	9,116		8,072		373
	$	25,798	$	15,324	$	23,481

Schedule of Components of Income Tax Expense (Benefit)

The deferred tax provision results from changes in the Company’s deferred tax assets (future deductible amounts) and tax liabilities (future taxable amounts), which are presented in the table below:



	Current		Deferred			Total
	(In thousands)
2012:
Federal	$	7,692	$	(640	)	$	7,052
State	952		(204		)	748
Foreign	610		(810		)	(200		)
	$	9,254	$	(1,654	)	$	7,600
2011:
Federal	$	10,820	$	(357	)	$	10,463
State	591		1			592
Foreign	950		—			950
	$	12,361	$	(356	)	$	12,005
2010:
Federal	$	8,512	$	(1,102	)	$	7,410
State	2,458		(174		)	2,284
Foreign	630		—			630
	$	11,600	$	(1,276	)	$	10,324

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for years ended December 31, 2012, 2011 and 2010 differed from the amounts computed by applying the U.S. federal statutory tax rate applicable to the Company’s level of pretax income as a result of the following (in thousands):



	2012			2011			2010
Federal tax at statutory rates	$	9,029		$	5,363		$	8,218
State taxes, net of federal income tax benefit	489			385			1,488
Foreign losses not benefited	—			—			500
Change of valuation allowance	(2,453		)	(1,235		)	—
Unexchanged promotional merger shares	1,050			7,000			—
Non-deductible expenses and other	(515		)	492			118
Total income tax expense	$	7,600		$	12,005		$	10,324

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities as of December 31, 2012 and 2011 are as follows (in thousands):



	2012			2011
Deferred tax assets:
Foreign net operating loss carryforwards	$	1,936		$	4,762
State income taxes	565			651
Accruals and allowances	697			500
Stock based compensation	1,094			618
Capital loss	1,754			1,754
Deferred revenue	790			631
Deferred rent	302			219
Property, equipment and intangible assets	7			—
Total deferred tax assets	7,145			9,135
Valuation allowance	(2,886		)	(6,516		)
Total deferred tax assets net of valuation allowance	4,259			2,619
Deferred tax liabilities:
US tax on undistributed earnings	(355		)	(251		)
Property, equipment and intangible assets	—			(270		)
Total deferred tax liabilities	(355		)	(521		)
Net deferred tax assets	$	3,904		$	2,098

Schedule of Unrecognized Tax Benefits Roll Forward

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




Unrecognized tax benefits balance at January 1, 2010	$	2,003
Increase related to prior year tax positions	—
Decrease related to prior year tax positions	(224		)
Increase related to current year tax positions	—
Settlements	(413		)
Lapse of statute of limitations	—

Unrecognized tax benefits balance at December 31, 2010	1,366
Increase related to prior year tax positions	510
Decrease related to prior year tax positions	—
Increase related to current year tax positions	—
Settlements	(42		)
Lapse of statute of limitations	—

Unrecognized tax benefits balance at December 31, 2011	1,834
Increase related to prior year tax positions	47
Decrease related to prior year tax positions	(9		)
Increase related to current year tax positions	7,851
Settlements	(251		)
Lapse of statute of limitations	(107		)

Unrecognized tax benefits balance at December 31, 2012	$	9,365