Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes

6. Income Taxes

The provision for income taxes consists of the following:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Current:
Federal	$	3,565		$	—
State and local		1,170			246
Foreign		(90	)		(206	)
Total current provision		4,645			40
Deferred:
Federal		3,545			4,460
State and local		872			1,784
Foreign		193			602
Total deferred provision		4,610			6,846
Provision for income taxes	$	9,255		$	6,886

The following is a summary of the Company’s net deferred tax assets:

	As of
	March 31, 2012			December 31, 2011
	(In thousands)
Deferred tax assets and liabilities	$	5,977		$	8,376
Valuation allowance		(293	)		(287	)
Deferred tax assets, net	$	5,684		$	8,089

Through December 31, 2010, the tax benefit on a portion of the tax deduction generated on the exercise of warrants in prior years had not yet been recorded. During the first quarter of 2011, the Company recognized the remaining portion of the tax benefit, amounting to $4.2 million, as an increase to additional paid-in-capital due to the expected utilization of the related tax loss carryforwards of $10.4 million.

The Company or one of its subsidiaries files U.S. federal, state and foreign income tax returns. No income tax returns have been audited, with the exception of New York city (through 2003) and state (through 2006) and Connecticut state (through 2003) tax returns. An examination of the Company’s New York state franchise tax returns for 2007 through 2009 is currently underway. The Company cannot estimate when the examination will conclude.

During the first quarter of 2011, the Company reached a settlement for a reimbursement claim on previously paid sales tax amounting to approximately $0.7 million. This amount has been reflected as a reduction of general and administrative expenses in the Consolidated Statements of Operations.