Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Components of income tax expense

	2011			2010			2009
Current:
Federal	$	(1,160	)	$	18,524		$	14,946
State		1,282			5,026			3,160
Foreign		5,632			6,118			7,010
		5,754			29,668			25,116
Deferred:
Federal		(25,146	)		(4,289	)		7,224
State		(8,409	)		(766	)		664
Foreign		962			740			613
		(32,593	)		(4,315	)		8,501
Total	$	(26,839	)	$	25,353		$	33,617

Summary of income before income taxes

	2011			2010		2009
U.S.	$	(222,337	)	$	45,000	$	74,102
Foreign		15,709			4,333		2,349
Total	$	(206,628	)	$	49,333	$	76,451

Significant components of deferred income tax assets and liabilities

	2011			2010
Deferred tax assets:
Compensation and benefits	$	9,565		$	13,999
Net operating loss and capital loss carry forward		15,810			14,804
Share-based compensation		12,430			12,455
Allowance for doubtful accounts		663			569
Tax benefits on uncertain tax positions		2,846			2,459
Goodwill and other intangibles		2,370			—
Depreciation		—			1,868
Other		8,914			4,373
Total deferred tax assets		52,598			50,527
Less: valuation allowance		16,279			12,674
Total deferred tax assets, net of valuation allowance		36,319			37,853
Deferred tax liabilities:
Goodwill and other intangibles		—			(29,615	)
Depreciation		(2,038	)		—
Capitalized software		(17,769	)		(20,122	)
Other		(738	)		(1,328	)
Total deferred tax liabilities		(20,545	)		(51,065	)
Net deferred tax assets (liabilities)	$	15,774		$	(13,212	)

Summary of net operating loss carry forwards and respective expiration period

	Amount		Years remaining
Hong Kong, Australia and Ireland operating losses	$	64,638	Indefinite
United States		3,937	18 years
	$	68,575

Reconciliation of the U.S. federal statutory income tax rate and actual effective tax rate on earnings

	2011			2010			2009
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of U.S. federal income tax effect		2.2			6.0			3.9
Foreign tax impact, net		(0.9	)		9.8			5.9
Non-deductible costs *		(23.7	)		1.1			—
Other, net		0.4			(0.5	)		(0.8	)
Effective income tax rate		13.0	%		51.4	%		44.0	%

*

Non-deductible costs reflect the goodwill impairment charge incurred in 2011 and a portion of Majestic acquisition costs incurred in 2010.

Reconciliation of the beginning and ending balances of unrecognized tax benefits

Uncertain Tax Benefits	2011			2010			2009
Balance, January 1	$	12,380		$	10,999		$	18,376
Additions based on tax positions related to the current year		2,402			2,088			2,551
Additions based on tax positions of prior years		647			897			731
Reductions for tax positions of prior years		(42	)		(35	)		(678	)
Reductions due to settlements with taxing authorities		(516	)		(758	)		(9,767	)
Reductions due to expiration of statute of limitations		(329	)		(811	)		(214	)
Balance, December 31	$	14,542		$	12,380		$	10,999