Income Taxes (Table)

12 Months Ended

Dec. 31, 2014

Income Taxes

Schedule of components of income tax expense (benefit)

        Income tax expense (benefit) consisted of the following components (dollars in thousands):

	2014			2013		2012
Current:
Federal	$	4,802		$	2,628	$	416
State		4,823			1,634		782
Foreign		9,449			4,657		3,362
		19,074			8,919		4,560
Deferred:
Federal		(4,701	)		1,606		(19,423	)
State		1,026			992		(7,565	)
Foreign		(1,304	)		453		(168	)
		(4,979	)		3,051		(27,156	)
Total	$	14,095		$	11,970	$	(22,596	)

Summary of income (loss) before income taxes

        Income (loss) before income taxes consisted of the following (dollars in thousands):

	2014		2013		2012
U.S.	$	15,779	$	15,687	$	(248,101	)
Foreign		49,208		27,368		(22,354	)
Total	$	64,987	$	43,055	$	(270,455	)

Significant components of deferred income tax assets and liabilities

The tax effects of temporary differences that gave rise to the net deferred tax assets (liabilities) at December 31 were as follows (dollars in thousands):

	2014			2013
Deferred tax assets:
Compensation and benefits	$	17,252		$	12,844
Net operating loss and capital loss carryover		16,949			17,121
Share-based compensation		7,719			6,959
Allowance for doubtful accounts		452			889
Tax benefits on uncertain tax positions		3,507			2,697
Goodwill and other intangibles		16,256			21,138
Other		8,568			9,757
Total deferred tax assets		70,703			71,405
Less: valuation allowance		20,400			20,541
Total deferred tax assets, net of valuation allowance		50,303			50,864
Deferred tax liabilities:
Depreciation		(1,575	)		(3,916	)
Capitalized software		(11,870	)		(12,838	)
Other		(352	)		(343	)
Total deferred tax liabilities		(13,797	)		(17,097	)
Net deferred tax assets	$	36,506		$	33,767

Summary of net operating loss carry forwards and respective expiration period

        Net operating loss carry forwards expire as follows (dollars in thousands):

	Amount		Years remaining
Hong Kong and Australia	$	74,937	Indefinite
	$	74,937

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

        The effective tax rate varied from the U.S. federal statutory income tax rate due to the following:

	2014			2013			2012
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		5.5			3.9			1.8
Foreign tax impact, net		(12.8	)		(6.4	)		(3.6	)
Non-deductible costs *		0.9			1.0			(24.3	)
Other, net		(6.9	)		(5.7	)		(0.5	)
Effective income tax rate		21.7	%		27.8	%		8.4	%

* Non-deductible costs in 2012 include goodwill impairment charges.

Reconciliation of the beginning and ending balances of unrecognized tax benefits

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

Uncertain Tax Benefits	2014			2013			2012
Balance, January 1	$	13,074		$	13,726		$	14,542
Additions based on tax positions related to the current year		309			404			568
Additions based on tax positions of prior years		3,681			434			857
Reductions for tax positions of prior years		(84	)		(148	)		(2,024	)
Reductions due to settlements with taxing authorities		(1,108	)		(124	)		(217	)
Reductions due to expiration of statute of limitations		(1,477	)		(1,218	)		—
Balance, December 31	$	14,395		$	13,074		$	13,726