Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of income (loss) before income taxes

Income before income taxes was as follows for the indicated periods:



	Year ended December 31,
	2013		2012		2011

United States	$	15,290	$	25,417	$	11,186
Foreign	5,358		6,598		8,944
Income before income taxes	$	20,648	$	32,015	$	20,130

Schedule of income tax expense

Income tax expense was comprised of the following for the indicated periods:



	Year ended December 31,
	2013			2012		2011

Current:
Federal	$	3,040		$	3,845	$	2,595
State	870			360		1,604
Foreign	1,884			2,176		442
Total current	5,794			6,381		4,641

Deferred:
Federal	328			4,819		1,086
State	1,669			1,198		(552		)
Foreign	(91		)	184		(45		)
Total deferred	1,906			6,201		489

Income tax expense	$	7,700		$	12,582	$	5,130

Reconciliation of income tax expense and rate based on the U.S. statutory rate to the Company’s income tax expense

The following table reconciles income tax expense and rate based on the U.S. statutory rate to the Company’s income tax expense for the indicated periods:



	Year ended December 31,
	2013					2012					2011
	$			%		$			%		$			%

Income tax expense based on the U.S. statutory rate	$	7,227		35.0	%	$	11,205		35.0	%	$	7,046		35.0	%
Effect of charge related to the UK OFT matter	—			—		—			—		(3,381		)	(16.8	)
State income taxes, net of federal tax benefit	1,147			5.6		1,013			3.2		684			3.4
Permanent items	179			0.9		148			0.5		164			0.8
Effect of foreign operations	1,008			4.9		2			—		289			1.4
Net change in uncertain tax positions	(737		)	(3.6	)	(274		)	(0.9	)	(139		)	(0.7	)
Change in valuation allowance - foreign loss deferred tax assets	(898		)	(4.3	)	477			1.5		634			3.2
Federal employer tax credits	(763		)	(3.7	)	—			—		(947		)	(4.7	)
Stock-based compensation	241			1.1		382			1.2		689			3.4
Other	296			1.4		(371		)	(1.2	)	91			0.5
Income tax expense	$	7,700		37.3		$	12,582		39.3		$	5,130		25.5

Schedule of the tax effects of temporary differences that give rise to the Company’s deferred tax accounts

The tax effects of temporary differences that give rise to the Company’s deferred tax accounts were as follows for the indicated periods:



	December 31,
	2013		2012

Deferred tax assets:
Accrued compensation	$	8,597	$	9,264
Reserves and accruals	3,367		2,027
Loss and credit carryforwards	11,132		12,817
Total gross deferred tax assets	23,096		24,108
Less: valuation allowances	5,474		6,362
Net total deferred tax assets	17,622		17,746

Deferred tax liabilities:
Property and equipment depreciation	3,127		3,560
Intangible asset amortization	6,358		4,815
Other	1,147		335
Total deferred tax liabilities	10,632		8,710

Net deferred tax assets	$	6,990	$	9,036

Reconciliation of the beginning and ending amount of gross unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows for the indicated periods:



	Year ended December 31,
	2013			2012			2011

Beginning balance of gross unrecognized tax benefits	$	588		$	1,070		$	1,351
Additions based on tax positions related to the current year	—			—			95
Reductions for the tax positions of prior years	(53		)	(164		)	(11		)
Reductions for settlements and payments	(323		)	(318		)	(118		)
Reductions due to statute expiration	(127		)	—			(247		)
Ending balance of gross unrecognized tax benefits	$	85		$	588		$	1,070