Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income Before Provision for Income Taxes

Income before the provision for income taxes as shown in the accompanying Consolidated Statements of Income and Comprehensive Income is as follows (in thousands):

	Year Ended December 31,
	2013		2012		2011
Domestic	$	23,729	$	29,964	$	19,358
Foreign		7,367		5,498		7,063
Total	$	31,096	$	35,462	$	26,421

Schedule of Components of Provision for Income Taxes

Components of the provision for income taxes consist of the following (in thousands):

	Year Ended December 31,
	2013		2012		2011
Current
Federal	$	348	$	-	$	-
Foreign		2,068		2,053		2,137
State and local		26		-		-
Total current expense		2,442		2,053		2,137
Deferred expense
Federal		366		-		-
Foreign		9		85		35
State and local		27		-		-
Total deferred expense		402		85		35
Provision for income tax expense	$	2,844	$	2,138	$	2,172

Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate

A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2013			2012			2011
U.S. statutory tax rate		34.0	%		34.0	%		34.0	%
Increase due to state and local taxes, net of federal benefit		2.6	%		2.5	%		2.3	%
Effect of permanent differences		1.2	%		0.0	%		0.0	%
Income attributable to non-controlling interests		(28.7	)%		(30.5	)%		(28.1	)%
Effective tax rate		9.1	%		6.0	%		8.2	%

Summary of Deferred Tax Assets and Liabilities

These temporary differences result in taxable or deductible amounts in future years. Details of the Company’s deferred tax assets and liabilities are summarized as follows (in thousands):

	As of December 31,
	2013			2012
Current deferred tax assets
Compensation and benefits	$	557		$	-
Allowance for doubtful accounts		456			-
Deferred revenue		239			-
Other		151			-
Total current deferred tax assets*		1,403			-
Long-term deferred tax assets
Goodwill and other intangibles		66,494			12
Rent liabilities		1,301			-
Other		516			84
Total long-term deferred tax assets		68,311			96
Long-term deferred tax liabilities
Property and equipment and other long-lived assets		(377	)		(405	)
Investments in equity method investees		(338	)		-
Total long-term deferred tax liabilities		(715	)		(405	)
Net long-term deferred tax assets		67,596			(309	)
Total deferred tax assets and liabilities	$	68,999		$	(309	)

* Current deferred tax assets are included in “Other current assets” in the accompanying Consolidated Balance Sheets.