Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

The components of the Company’s income (loss) before income taxes are as follows:

The components of the Company’s income tax expense (benefit) are as follows:



	Year Ended December 31,
	2013		2012			2011
Continuing operations:
Current
Federal	$	—	$	411,767		$	(29,716	)
State	540,266		811,760			355,142
Foreign	415,806		1,561,492			632,415
	956,072		2,785,019			957,841
Deferred
Federal	37,821,541		(4,048,064		)	444,193
State	5,133,844		(5,251,385		)	681,076
Foreign	299,091		364,541			(13,663		)
Total	43,254,476		(8,934,908		)	1,111,606
	$	44,210,548	$	(6,149,889	)	$	2,069,447
The total income tax provision is summarized as follows:
Continuing operations	$	44,210,548	$	(6,149,889	)	$	2,069,447
Discontinued operations	2,121,941		(9,496,992		)	2,063,050
	$	46,332,489	$	(15,646,881	)	$	4,132,497

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31,
	2013			2012
Current deferred tax assets (liabilities):
Accrued other and prepaid expenses	$	2,591,944		$	2,302,277
Accrued settlement charge	283,534			—
Allowance for doubtful accounts	649,790			808,466
Assets held for sale	—			2,826,663
Other	468,082			597,237
Gross deferred tax assets	3,993,350			6,534,643
Valuation allowance	(4,528,177		)	(551,160		)
Deferred tax assets (liabilities)	(534,827		)	5,983,483
Non-current deferred tax (liabilities) and assets:
Amortization	(1,313,863		)	4,377,573
Depreciation	(383,895		)	(1,631,495		)
Identifiable intangibles	(2,237,409		)	(2,409,238		)
Net operating loss carryforwards	32,531,221			23,616,558
Accrued professional liability	(117,842		)	293,815
Accrued workers’ compensation	675,201			768,617
Tax on unrepatriated earnings	(453,298		)	(1,860,656		)
Share-based compensation	1,610,346			2,120,269
Other	313,898			966,361
Gross deferred tax assets	30,624,359			26,241,804
Valuation allowance	(47,473,410		)	(3,481,752		)
Deferred tax (liabilities) assets	(16,849,051		)	22,760,052
Net deferred taxes	$	(17,383,878	)	$	28,743,535

The reconciliation of income tax computed at the U. S. federal statutory rate to income tax expense (benefit) is as follows:



	Year Ended December 31,
	2013			2012			2011
Tax at U.S. statutory rate	$	(3,513,812	)	$	(9,413,200	)	$	1,266,166
State taxes, net of federal benefit	(190,656		)	(1,226,475		)	(64,608		)
Non-deductible meals and entertainment	449,780			961,933			290,280
Foreign tax expense	554,314			(221,897		)	(162,448		)
Valuation allowances	48,556,357			(43,657		)	367,068
Uncertain tax positions	(257,488		)	647,720			174,045
Deferred tax rate differential	312			150,583			(107,057		)
Deferred tax write-offs (a)	221,028			—			301,765
Audit settlements	160,026			—			(391,822		)
Tax on unrepatriated earnings	(1,464,728		)	2,004,596			—
Tax on repatriated earnings	—			519,072			—
Tax true ups and other	(304,585		)	471,436			396,058
Total income tax expense (benefit)	$	44,210,548		$	(6,149,889	)	$	2,069,447

_______________


(a)	During 2013 and 2011, the Company recorded deferred tax expense related to an overstatement of deferred tax assets for share-based payments related to prior periods of approximately $221,000 and $302,000, respectively.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is approximately as follows:



	2013			2012
Balance at January 1	$	5,204,000		$	4,500,000
Additions based on tax positions related to the current year	496,000			852,000
Additions based on tax positions related to prior years	681,000			152,000
Reductions based on settlements of tax positions related to the prior year	(292,000		)	(30,000		)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations	(1,076,000		)	(263,000		)
Other	(27,000		)	(7,000		)
Balance at December 31	$	4,986,000		$	5,204,000