7. Income Taxes

The provision for income taxes from continuing operations consists of the following:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(In thousands)
Current:
Federal	$	6,742		$	6,657		$	20,004		$	8,705
State and local		1,823			887			4,717			1,834
Foreign		312			908			602			787

Total current provision		8,877			8,452			25,323			11,326

Deferred:
Federal		(380	)		(232	)		3,885			12,509
State and local		(79	)		(428	)		699			2,486
Foreign		(289	)					(519	)		1

Total deferred provision		(748	)		(660	)		4,065			14,996

Provision for income taxes	$	8,129		$	7,792		$	29,388		$	26,322

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


	As of
	September 30, 2013			December 31, 2012
	(In thousands)
Deferred tax assets and liabilities	$	15,773		$	10,169
Valuation allowance		(11,461	)		(727	)

Deferred tax assets, net	$	4,312		$	9,442

As a result of the October 2013 sale of Greenline Financial Technologies, Inc. (“Greenline”) (see Note 12), the Company recognized a deferred tax asset of approximately $10.8 million in the third quarter of 2013 related to the book and tax basis difference of the investment in Greenline. A full valuation allowance has been established against this deferred tax asset due to the uncertainty in utilizing the capital loss to be generated on the disposition.

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. Examinations of the Company’s federal tax return for 2011 and New York state franchise tax returns for 2007 through 2009 are currently underway. The Company cannot estimate when the examinations will conclude.

Effective January 1, 2013, the Company has determined that unremitted earnings of its foreign subsidiaries will be considered indefinitely reinvested outside of the United States. There were no aggregate unremitted earnings as of December 31, 2012 and the impact of the reinvestment decision was immaterial to the income tax provision for the three and nine months ended September 30, 2013.