Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of income tax expense

The income tax expense for the years ended December 31, 2012, 2011 and 2010 is as follows (in thousands):

	December 31,
	2012			2011			2010
Current tax expense:
Federal	$	33,456		$	25,229		$	19,956
State		5,696			6,131			4,311
		39,152			31,360			24,267
Deferred tax expense/(benefit):
Federal		(6,085	)		1,971			2,191
State		(238	)		(153	)		125
		(6,323	)		1,818			2,316
Total income tax expense	$	32,829		$	33,178		$	26,583

Schedule of reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense

A reconciliation of the income tax expense calculated using the applicable federal statutory rates to the actual income tax expense for the years ended December 31, 2012, 2011 and 2010 is as follows (in thousands):

	December 31,
	2012		%		2011		%		2010		%
Computed at federal statutory rate	$	29,171		35.0	$	28,337		35.0	$	23,336		35.0
State and local tax expense, net of federal benefit		3,548		4.3		3,907		4.8		2,894		4.3
Other, net		110		0.1		934		1.2		353		0.6
Total income tax expense	$	32,829		39.4	$	33,178		41.0	$	26,583		39.9

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

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

	December 31,
	2012			2011
Deferred tax assets:
Allowance for doubtful accounts and deferred revenue	$	422		$	883
Restructuring cost		142			157
Goodwill and other intangibles		7,261			5,957
Accounts receivables		5,043			4,308
Net operating loss carry forwards		52			136
Deferred stock compensation		5,311			5,588
Deferred rent		226			454
Other		1,410			1,483
Total deferred tax assets before valuation allowance		19,867			18,966
Less valuation allowance		(81	)		(81	)
Total deferred tax assets after valuation allowance		19,786			18,885
Deferred tax liabilities:
Goodwill and other intangibles		72,106			81,689
Capitalized software cost		2,946			2,107
Property and equipment		7,937			7,251
Total deferred tax liabilities		82,989			91,047
Total net deferred tax (liabilities)/assets	$	(63,203	)	$	(72,162	)
Net current deferred tax assets/ (liabilities)	$	(2,398	)	$	2,198
Net non-current deferred tax liabilities		(60,805	)		(74,360	)
Total net deferred (liabilities)/tax assets	$	(63,203	)	$	(72,162	)