INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of income before income taxes

	Year Ended December 31,
	2012		2011		2010
	(in thousands)
Income before income taxes
United States	$	32,148	$	18,406	$	23,880
Foreign		3,258		2,501		2,690
Total	$	35,406	$	20,907	$	26,570

Schedule of provision for income taxes

	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Provision for income taxes
Currently payable income taxes
Federal	$	9,447		$	3,062		$	6,247
State		1,221			2,408			5,366
Foreign		838			927			1,115
Total		11,506			6,397			12,728
Deferred income taxes
Federal		946			2,333			1,325
State		619			323			(1,368	)
Foreign		(92	)		(226	)		(44	)
Total		1,473			2,430			(87	)
Provision for income taxes	$	12,979		$	8,827		$	12,641

Schedule of reconciliation of the provision for income taxes at the statutory rate to the provision for income taxes at effective rate

	Year Ended December 31,
	2012			2011			2010
	(in thousands)
Computed at the statutory rate	$	12,392		$	7,318		$	9,300
Change in taxes resulting from:
State income taxes, net of federal tax effect		1,136			1,747			2,599
Non-deductible compensation		19			20			587
Permanent differences		578			450			178
Foreign tax and change in foreign valuation allowance		(394	)		(175	)		129
Research and development credits		(239	)		(490	)		(437	)
Other		(513	)		(43	)		285
Provision for income taxes	$	12,979		$	8,827		$	12,641

Schedule of tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities

	December 31,
	2012			2011
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	1,524		$	1,686
Share-based compensation		9,711			9,655
Intangible assets		2,483			959
Deferred rent		799			1,075
Accrued liabilities		2,574			3,324
Foreign loss carryforwards		69			140
State net operating loss carryforwards		631			798
Valuation allowances		(101	)		(172	)
Total deferred tax assets		17,690			17,465
Deferred tax liabilities:
Prepaid expenses		(2,740	)		(1,548	)
Intangible assets		(35,523	)		(31,971	)
Property and equipment and software development costs		(13,817	)		(16,730	)
Deferred debt discharge income		(3,300	)		(3,285	)
Other		(318	)		(466	)
Total deferred tax liabilities		(55,698	)		(54,000	)
Net deferred tax liability	$	(38,008	)	$	(36,535	)

Schedule of net deferred tax liability

	December 31,
	2012			2011
	(in thousands)
Other current assets	$	3,235		$	5,948
Other long-term assets		166			74
Long-term deferred income tax liability		(41,409	)		(42,557	)
Net deferred tax liability	$	(38,008	)	$	(36,535	)

Summary of the activity related to gross unrecognized tax benefits excluding interest and penalties

 The following table summarizes the activity related to our gross unrecognized tax benefits excluding interest and penalties (in thousands):

	2012			2011			2010
Unrecognized Tax Benefits as of January 1	$	4,164		$	2,255		$	6,574
Gross increases for prior year tax positions		1,266			1,844			952
Gross decreases for prior year tax positions		—			(3	)		(836	)
Gross increase for current year tax positions		323			363			368
Settlements		(755	)		(23	)		(4,005	)
Lapse of statute of limitations		(359	)		(272	)		(798	)
Unrecognized Tax Benefits at December 31	$	4,639		$	4,164		$	2,255