Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income from Continuing Operations Before Income Taxes

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


	2014		2013		2012
United States	$	50,385	$	41,809	$	37,970
Foreign (Canada)		183		147		187

Total	$	50,568	$	41,956	$	38,157

Income Tax Expense (Benefit) Included in Consolidated Statements of Comprehensive Income

Income tax expense included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012 was as follows (in thousands):


	2014			2013			2012
Continuing operations:
Current:
Federal	$	15,749		$	13,880		$	13,621
Foreign		47			47			47
State and local		1,782			2,311			2,779

Total		17,578			16,238			16,447
Deferred:
Federal		952			(394	)		(1,423	)
State and local		1,624			733			(660	)

Total		2,576			339			(2,083	)

Total income tax expense from continuing operations		20,154			16,577			14,364
Discontinued operations:
Operations of discontinued operations:
Current		51			3,107			4,590
Deferred		(222	)		(653	)		361

Total		(171	)		2,454			4,951
Gain on disposal of discontinued operations:
Current		34			49,973			52
Deferred		—			(776	)		—

Total		34			49,197			52

Total income tax expense from discontinued operations		(137	)		51,651			5,003

Total income tax expense	$	20,017		$	68,228		$	19,367

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):


	2014			2013			2012
Tax at statutory rate (35%)	$	17,699		$	14,684		$	13,355
State taxes (net of federal benefit)		3,361			2,020			970
Business meals and entertainment — non-deductible		667			624			674
Reserves for uncertain tax positions		(1,724	)		(531	)		(432	)
Other, net		151			(220	)		(203	)

Provision for income taxes from continuing operations	$	20,154		$	16,577		$	14,364

Effective income tax rate		39.9	%		39.5	%		37.6	%

Tax Effects of Temporary Differences That Rises to Significant Portions of 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, 2014 and 2013, were as follows (in thousands):


	2014			2013
Deferred tax assets:
Net operating loss carryforwards .	$	973		$	2,026
Allowance for doubtful accounts		3,028			2,663
Employee benefits and compensation		25,238			23,774
Lease costs		3,959			4,398
State tax credit carryforwards		1,496			2,240
Other deferred tax assets		3,175			3,581

Total gross deferred tax assets		37,869			38,682
Less: valuation allowance		(1,079	)		(926	)

Total deferred tax assets, net	$	36,790		$	37,756

Deferred tax liabilities:
Accrued interest	$	5,878		$	8,584
Client list intangible assets		4,016			3,915
Goodwill and other intangibles		22,284			17,876
Contingent purchase price liabilities		3,590			1,977
Other deferred tax liabilities		248			222

Total gross deferred tax liabilities	$	36,016		$	32,574

Net deferred tax asset	$	774		$	5,182

Summary of Reconciliation of 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):


	2014			2013			2012
Balance at January 1	$	5,508		$	3,618		$	3,979
Additions for tax positions of the current year		1,107			2,647			212
Additions for tax positions of prior years		118			—			323
Settlements of prior year positions		(1,343	)		—			—
Lapse of statutes of limitation		(799	)		(757	)		(896	)

Balance at December 31	$	4,591		$	5,508		$	3,618