Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The provision (benefit) for income taxes consists of the following (in thousands):



	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	20,849		$	9,814		$	1,748
State	3,353			1,447			522
Foreign	2,645			1,465			412
	26,847			12,726			2,682
Deferred:
Federal	5,467			3,759			2,271
State	565			488			—
Foreign	(822		)	(261		)	(212		)
	5,210			3,986			2,059
Change in valuation allowance	246			454			215
	$	32,303		$	17,166		$	4,956

Income (Loss) before Income Tax Provision

Income (loss) before income taxes consists of the following (in thousands):



	Year Ended December 31,
	2012		2011		2010
United States	$	72,184	$	37,405	$	(6,071	)
Foreign	2,772		4,058		1,130
	$	74,956	$	41,463	$	(4,941	)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets (liabilities) are as follows (in thousands):



	December 31, 2012			December 31, 2011
Deferred income tax assets (liabilities):
Current:
Allowance for doubtful accounts	$	1,150		$	1,007
Employee related accruals	3,419			2,923
State taxes	1,064			534
Workers’ compensation and medical malpractice loss reserves	4,683			4,277
Prepaid insurance	(631		)	(319		)
Other	462			849
	10,147			9,271
Non-current:
Intangibles	(23,662		)	(15,559		)
Depreciation expense	(4,449		)	(3,867		)
Stock-based compensation	2,852			3,428
Net operating loss carryforwards	1,191			1,054
Other	1,975			758
	(22,093		)	(14,186		)
Valuation allowance	(916		)	(670		)
Total net deferred income tax liability	$	(12,862	)	$	(5,585	)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the amount computed by applying the U.S. federal statutory tax rate of 35.0 percent for 2012, 35.0 percent for 2011, and 34.0 percent for 2010 to income before income taxes and the income tax provision is as follows (in thousands):



	Year Ended December 31,
	2012		2011			2010
Income tax provision at the statutory rate	$	26,235	$	14,512		$	(1,680	)
State income taxes, net of federal benefit	2,952		1,527			460
Impairment of goodwill	—		—			5,236
Permanent difference – disallowed meals and entertainment expenses	1,822		1,093			614
Permanent difference – settlement of earn-out	—		(445		)	—
Valuation allowance related to foreign jurisdictions	246		454			215
Income tax contingency	276		(91		)	(16		)
Foreign tax rate differential	14		(222		)	(181		)
Other	758		338			308
	$	32,303	$	17,166		$	4,956

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands):



	Year Ended December 31,
	2012			2011			2010
Unrecognized Tax Benefit beginning of year	$	251		$	358		$	397
Gross decreases - tax positions in prior year	(34		)	—			(39		)
Reductions for tax positions as a result of a lapse of the applicable statute of limitations	—			(107		)	—
Gross increases - tax positions in prior year	159			—			—
Unrecognized Tax Benefit end of year	$	376		$	251		$	358