Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of U.S. and foreign income (loss) before income taxes

U.S. and foreign income (loss) before income taxes consist of the following (in thousands):

	2012		2011		2010
United States	$	49,021	$	56,836	$	(2,886)
Foreign		190,574		181,367		180,416
	$	239,595	$	238,203	$	177,530

Schedule of components of income tax provision (benefit)

The income tax provision (benefit) related to income before income taxes consists of the following components (in thousands):

	2012		2011		2010
Current:
U.S. federal statutory tax	$	6,858	$	7,685	$	12,245
State		938		2,767		1,358
Foreign		24,649		27,514		22,367
		32,445		37,966		35,970
Deferred:
U.S. federal statutory tax		7,642		6,218		(3,776)
State		1,380		2,194		(1,926)
Foreign		643		(6,771)		(1,677)
		9,665		1,641		(7,379)
Non-current tax (income) expense		(3,866)		(606)		2,436
	$	38,244	$	39,001	$	31,027

Reconciliation of the U.S. federal statutory income tax rate to effective income tax rate

	2012	2011	2010
U.S. federal statutory tax rate	35.0%	35.0%	35.0%
Foreign earnings, net of foreign taxes	(16.7)	(18.7)	(18.6)
State income taxes, net of U.S. federal income tax benefit	0.6	1.3	0.1
Other permanent differences	(2.9)	(1.2)	1.0
Effective income tax rate	16.0%	16.4%	17.5%

Schedule of net deferred income tax (liabilities) assets

The temporary differences which comprise our net deferred income tax (liabilities) assets are as follows (in thousands):

	As of December 31,
	2012		2011
Gross Deferred Income Tax Assets:
Excess of provision for bad debts over charge-offs	$	4,573	$	4,744
Net operating loss		675		66
Accrued compensation expenses recognized for financial reporting purposes, not currently deductible for tax purposes		14,909		20,099
Accrued expenses		2,069		1,680
Unrealized derivative losses		316		—
Customer deposits		7,545		6,154
Unrealized foreign exchange		914		906
Total gross deferred income tax assets		31,001		33,649
Less: Valuation allowance		—		—
Gross deferred income tax assets, net of valuation allowance		31,001		33,649
Deferred Income Tax Liabilities:
Excess of tax over financial reporting for depreciation of fixed assets		(11,999)		(4,650)
Excess of tax over financial reporting amortization of identifiable intangible assets and goodwill		(23,108)		(15,772)
Prepaid expenses, deductible for tax purposes		(1,719)		(1,204)
Unrealized derivative gains		—		(5,572)
Other		(1,330)		(834)
Gross deferred income tax liabilities		(38,156)		(28,032)
Net deferred income tax (liabilities) assets	$	(7,155)	$	5,617
Reported on the consolidated balance sheets as:
Other current assets for deferred income tax assets, current	$	15,282	$	13,238
Non-current other assets for deferred income tax assets, non-current	$	5,406	$	2,661
Accrued expenses and other current liabilities for deferred income tax liabilities, current	$	6,084	$	1,009
Non-current income tax liabilities, net for deferred income tax liabilities, non-current	$	21,759	$	9,273

Schedule of reconciliation of the total amounts of unrecognized income tax benefits

	2012		2011		2010
Unrecognized tax benefit – opening balance	$	25,574	$	26,293	$	27,158
Gross decreases – tax positions in prior period		(7,659)		—		—
Gross increases – tax positions in current period		5,730		5,890		4,095
Gross decreases – tax positions in current period		—		(64)		(1,629)
Settlements		—		(62)		—
Lapse of statute of limitations		(1,251)		(6,483)		(3,331)
Unrecognized tax benefit – ending balance	$	22,394	$	25,574	$	26,293

Schedule of open tax years by jurisdiction with major uncertain tax positions

Jurisdiction	Examination in progress	Open Tax Year
United States	None	2008-2012
Singapore	None	2009-2012
United Kingdom	None	2007-2012
Brazil	2009	2008-2012
South Korea	None	2007-2012
Netherlands	None	2010-2012
Chile	None	2009-2012
Denmark	None	2004-2012