INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of components of income tax expense (benefit)

The components of the provision (benefit) for income taxes attributable to operations consist of the following (in thousands):



	Year Ended December 31,
	2011			2012			2013
Current:
Federal	$	22,779		$	(2,260	)	$	26,516
State	2,226			1,974			3,996
Foreign	12			55			31
Total current	25,017			(231		)	30,543
Deferred:
Federal	(14,661		)	15,512			(10,919		)
State	(2,425		)	(2,067		)	(1,849		)
Foreign	(18		)	5			28
Total deferred	(17,104		)	13,450			(12,740		)
Total provision for income taxes	$	7,913		$	13,219		$	17,803

Schedule of deferred tax assets and liabilities

The components of deferred tax assets and liabilities consists of the following (in thousands):



	December 31,
	2012			2013
Deferred tax assets:
Reserve for bad debts	$	1,106		$	1,274
Accrued compensation	4,830			6,725
Stock compensation	4,946			13,381
Net operating losses	20,431			17,457
Accrued reserve and other	6,007			4,284
Unrealized loss on securities	928			786
Deferred rent	1,845			4,329
Deferred revenue	1,220			1,538
Deferred gain from sale of building	12,386			11,499
Total deferred tax assets	53,699			61,273

Deferred tax liabilities:
Prepaids	(1,433		)	(1,096		)
Depreciation	(3,676		)	(6,033		)
Intangibles	(62,915		)	(55,284		)
Total deferred tax liabilities	(68,024		)	(62,413		)

Net deferred tax liabilities, prior to valuation allowance	(14,325		)	(1,140		)
Valuation allowance	(10,490		)	(10,936		)
Net deferred tax liabilities	$	(24,815	)	$	(12,076	)

Schedule of effective income tax rate reconciliation

The Company’s provision for income taxes resulted in effective tax rates that varied from the statutory federal income tax rate as follows (in thousands):



	Year Ended December 31,
	2011			2012			2013
Expected federal income tax provision at statutory rate	$	7,899		$	8,097		$	16,638
State income taxes, net of federal benefit	(123		)	(1,360		)	885
Foreign income taxes, net effect	(961		)	(2,971		)	(724		)
Stock compensation	(143		)	(313		)	(116		)
Increase in valuation allowance	643			2,978			588
Nondeductible compensation	448			656			431
Nondeductible transaction costs	—			5,829			—
Other adjustments	150			303			101
Income tax expense, net	$	7,913		$	13,219		$	17,803

Schedule of unrecognized tax benefits

The following tables summarize the activity related to the Company’s unrecognized tax benefits (in thousands):



Unrecognized tax benefit as of December 31, 2010	$	1,766
Increase for current year tax positions	1,243
Increase for prior year tax positions	445
Expiration of the statute of limitation for assessment of taxes	(107		)
Unrecognized tax benefit as of December 31, 2011	3,347
Increase for current year tax positions	792
Decrease for prior year tax positions	(161		)
Expiration of the statute of limitation for assessment of taxes	(69		)
Unrecognized tax benefit as of December 31, 2012	3,909
Increase for current year tax positions	66
Increase for prior year tax positions	2,037
Expiration of the statute of limitation for assessment of taxes	(55		)
Unrecognized tax benefit as of December 31, 2013	$	5,957