Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

6. Income Taxes

The provision for income taxes consists of the following:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012		2011
	(In thousands)
Current:
Federal	$	6,642		$	26		$	7,653	$	26
State and local		892			1,053			1,764		2,973
Foreign		908			536			787		1,043
Total current provision		8,442			1,615			10,204		4,042
Deferred:
Federal		(271	)		6,459			12,747		15,824
State and local		(392	)		869			2,600		3,821
Foreign		(52	)		(91	)		2		19
Total deferred provision		(715	)		7,237			15,349		19,664
Provision for income taxes	$	7,727		$	8,852		$	25,553	$	23,706

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

	As of
	September 30, 2012			December 31, 2011
	(In thousands)
Deferred tax assets and liabilities	$	7,030		$	8,376
Valuation allowance		(328	)		(287	)
Deferred tax assets, net	$	6,702		$	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.