Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income from continuing operations before income taxes

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

	2012		2011		2010
United States	$	50,216	$	46,790	$	44,993
Foreign (Canada)		187		177		179
Total	$	50,403	$	46,967	$	45,172

Income tax expense (benefit) included in the consolidated statements of comprehensive income

Income tax expense (benefit) included in the consolidated statements of comprehensive income for the years ended December 31, 2012, 2011 and 2010 was as follows (in thousands):

	2012			2011			2010
Continuing operations:
Current:
Federal	$	17,613		$	17,645		$	15,789
Foreign		47			34			68
State and local		3,414			3,709			3,232
Total		21,074			21,388			19,089
Deferred:
Federal		(1,116	)		(2,580	)		(2,137	)
State and local		(630	)		(425	)		65
Total		(1,746	)		(3,005	)		(2,072	)
Total income tax expense from continuing operations		19,328			18,383			17,017
Discontinued operations:
Operations of discontinued operations:
Current		(38	)		(472	)		(1,733	)
Deferred		25			106			(7	)
Total		(13	)		(366	)		(1,740	)
Gain (loss) on disposal of discontinued operations:
Current		53			193			(812	)
Total income tax expense (benefit) from discontinued operations		40			(173	)		(2,552	)
Total income tax expense	$	19,368		$	18,210		$	14,465

Provision for income taxes attributable to income from continuing operations

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):

	2012			2011			2010
Tax at statutory rate (35%)	$	17,641		$	16,438		$	15,810
State taxes (net of federal benefit)		1,637			2,044			1,875
Business meals and entertainment — non-deductible		717			659			627
Reserves for uncertain tax positions		(432	)		(844	)		(1,284	)
Other, net		(235	)		86			(11	)
Provision for income taxes from continuing operations	$	19,328		$	18,383		$	17,017
Effective income tax rate		38.3	%		39.1	%		37.7	%

Tax effects of temporary differences that rises to significant portions of the deferred tax assets and deferred tax liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011, were as follows (in thousands):

	2012			2011
Deferred tax assets:
Net operating loss carryforwards .	$	2,430		$	2,807
Allowance for doubtful accounts		2,799			2,484
Employee benefits and compensation		24,635			20,773
Lease costs		3,703			3,667
State tax credit carryforwards		2,357			2,443
Installment sales		—			1,166
Other deferred tax assets		2,243			2,104
Total gross deferred tax assets		38,167			35,444
Less: valuation allowance		(1,237	)		(2,363	)
Total deferred tax assets, net	$	36,930		$	33,081
Deferred tax liabilities:
Property and equipment depreciation	$	—		$	434
Accrued interest		9,633			10,611
Client list amortization		6,425			6,070
Goodwill and other intangibles		12,512			7,897
Contingent purchase price liabilities		2,476			1,818
Other deferred tax liabilities		361			88
Total gross deferred tax liabilities	$	31,407		$	26,918
Net deferred tax asset	$	5,523		$	6,163

Summary of reconciliation of the beginning and ending amount of unrecognized tax benefits

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

	2012			2011			2010
Balance at January 1	$	3,979		$	4,794		$	6,103
Additions for tax positions of the current year		212			188			725
Additions for tax positions of prior years		323			103			—
Reclassification from other balance sheet accounts		—			—			—
Reductions for tax positions of prior years		—			(260	)		—
Settlements		—			—			(217	)
Lapse of statutes of limitation		(896	)		(846	)		(1,817	)
Balance at December 31	$	3,618		$	3,979		$	4,794