INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income before Provision for Income Taxes

Income before provision for income taxes shown below was based on the geographic location to which such income was attributed as follows:

	Year Ended December 31,
	2013		2012		2011
Income before income tax expense:
Domestic	$	7,001	$	9,291	$	2,872
Foreign		69,769		56,572		49,920
Total	$	76,770		65,863	$	52,792

	Year Ended December 31,
	2013			2012			2011
Income tax expense/ (benefit) consists of:
Current
Federal	$	6,150		$	6,881		$	4,878
State		310			319			389
Foreign		8,275			7,969			2,483
Deferred
Federal		(668	)		(625	)		(1,629	)
State		14			24			(72	)
Foreign		695			(3,189	)		2,390
Total	$	14,776		$	11,379		$	8,439

Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities were as follows:

	December 31, 2013		December 31, 2012
Deferred tax assets:
Fixed assets	$	732	$	703
Intangible assets		4,532		4,737
Accrued expenses		3,488		4,042
Deferred revenue		2,050		1,583
Stock-based compensation		407		413
Valuation allowance		—		(489	)
Restricted stock options		1,336		1,616
Other assets		680		1,214
Deferred tax assets		13,225		13,819
Deferred tax liabilities:
Fixed assets		804		742
Accrued revenue and expenses		846		737
Deferred intercompany gain		405		405
Equity compensation		1,593		2,431
Other liabilities		254		—
Deferred tax liability		3,902		4,315
Net deferred tax asset	$	9,323	$	9,504

Reconciliation of Effective Income Tax

The provision for income taxes differs from the amount of income tax determined by applying the applicable US statutory federal income tax rate to pretax income as follows:

	Year Ended December 31,
	2013			2012			2011
Statutory federal tax	$	26,102		$	22,393		$	18,482
Increase/ (decrease) in taxes resulting from:
State taxes, net of federal benefit		368			280			266
Provision adjustment for current year uncertain tax position		—			—			178
Effect of permanent differences		2,524			2,177			2,816
Stock-based compensation		1,948			1,165			—
Rate differential between U.S. and foreign		(17,279	)		(14,472	)		(13,297	)
Change in foreign tax rate		(59	)		148			(22	)
Change in valuation allowance		489			(489	)		—
Other		683			177			16
Income tax expense	$	14,776		$	11,379		$	8,439

Unrecognized Tax Benefits

The beginning to ending reconciliation of the gross unrecognized tax benefits were as follows:

	2013		2012		2011
Gross Balance at January 1	$	1,271	$	1,271	$	56
Increases in tax positions in current year		—		—		178
Increases in tax positions in prior year		—		—		1,093
Decreases due to settlement		—		—		(56	)
Balance at December 31	$	1,271	$	1,271	$	1,271