Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Components of Income before Income Taxes

For financial reporting purposes, income before income taxes includes the following components (in thousands):

		September 30,		September 30,		September 30,
	Years Ended December 31,
	2011		2010		2009
United States	$	47,099	$	44,400	$	22,020
Foreign		17,214		4,302		11,088
Total	$	64,313	$	48,702	$	33,108

Expense (Benefit) for Income Taxes

The expense (benefit) for income taxes consists of the following (in thousands):

		September 30,		September 30,			September 30,
	Years Ended December 31,
	2011		2010			2009
Federal
Current	$	4,150	$	1,812		$	9,964
Deferred		6,456		12,352			(3,259	)
Total		10,606		14,164			6,705
State
Current		1,649		1,685			1,415
Deferred		621		(725	)		(2,356	)
Total		2,270		960			(941	)
Foreign
Current		5,149		6,366			6,465
Deferred		436		17			1,253
Total		5,585		6,383			7,718
Total	$	18,461	$	21,507		$	13,482

Summary of Differences Between Income Tax Expense (Benefit) Computed at Statutory Federal Income Tax Rate and per Consolidated Statements of Income

Differences between the income tax expense (benefit) computed at the statutory federal income tax rate and per the consolidated statements of income are summarized as follows (in thousands):

		September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			2010			2009
Tax expense at federal rate of 35%	$	22,510		$	17,045		$	11,588
State income taxes, net of federal benefit		1,475			695			(293	)
Change in valuation allowance		251			(1,587	)		(723	)
Foreign tax rate differential		(1,572	)		1,304			3,499
Tax reserve increase (decrease)		(1,882	)		328			(840	)
Effect of intellectual property transfer		(2,100	)		2,200			2,200
Tax effect of foreign operations		373			919			(742	)
Other		(594	)		603			(1,207	)
Income tax provision	$	18,461		$	21,507		$	13,482

Deferred Tax Assets and Liabilities Result from Differences in Timing of Recognition of Certain Income and Expense Items for Tax and Financial Accounting Purposes

The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):

		September 30,			September 30,
	December 31,
	2011			2010
Current net deferred tax assets:
Allowance for uncollectible accounts	$	1,184		$	1,414
Deferred revenue		9,170			4,622
Alliance deferred costs		8,287			(203	)
Deferred acquisition costs		2,480			—
Compensation		6,364			6,268
Other		999			1,250
Total current deferred tax assets		28,484			13,351
Less: valuation allowance		(2,540	)		(1,034	)
Net current deferred tax assets	$	25,944		$	12,317
Noncurrent net deferred tax assets:
Noncurrent deferred tax assets
Foreign tax credits	$	2,260		$	6,706
General business credits		125			1,246
Stock based compensation		12,785			9,921
Foreign net operating loss carryforwards		3,217			4,612
Capital loss carryforwards		3,221			3,259
Deferred revenue		3,913			8,394
Alliance deferred costs		87			9,962
U.S. net operating loss carryforwards		1,783			—
Other		209			276
Total noncurrent deferred tax assets		27,600			44,376
Noncurrent deferred tax liabilities
Depreciation and amortization		(8,539	)		(9,415	)
Total noncurrent deferred tax liabilities		(8,539	)		(9,415	)
Less: valuation allowance		(5,595	)		(6,818	)
Net noncurrent deferred tax assets	$	13,466		$	28,143

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):

		September 30,			September 30,			September 30,
	2011			2010			2009
Balance of unrecognized tax benefits at beginning of year	$	8,414		$	10,916		$	11,535
Increases for tax positions of prior years		—			398			5,469
Decreases for tax positions of prior years		(310	)		—			(4,327	)
Increases for tax positions established for the current period		750			421			19
Decreases for settlements with taxing authorities		(36	)		(3,000	)		(299	)
Reductions resulting from lapse of applicable statute of limitation		(4,678	)		(308	)		(1,602	)
Adjustment resulting from foreign currency translation		(128	)		(13	)		121
Balance of unrecognized tax benefits at end of year	$	4,012		$	8,414		$	10,916