Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Loss Before Income Taxes

Components of loss before income taxes in 2013, 2012, and 2011 are as follows:

	Years Ended December 31,
	2013			2012			2011
United States	$	(39,888	)	$	(32,231	)	$	(7,976	)
Foreign		3,794			7,502			6,110
	$	(36,094	)	$	(24,729	)	$	(1,866	)

Provision for Income Taxes

The provision for income taxes consists of the following in 2013, 2012 and 2011:

	Years Ended December 31,
	2013			2012		2011
Current:
Federal	$	-		$	-	$	(4,191	)
State		588			482		(287	)
Foreign		-			28		35
Total current		588			510		(4,443	)
Deferred:
Federal		1,054			925		5,636
State		(89	)		279		425
Foreign		1,336			2,377		2,047
Total deferred		2,301			3,581		8,108
Total provision	$	2,889		$	4,091	$	3,665

Reconciliation of Actual Income Taxes

Actual income taxes varied from the expected income taxes (computed by applying the statutory income tax rate of 35% for the years ended December 31, 2013, 2012, and 2011 to income before income taxes) as a result of the following:

	Years Ended December 31,
	2013			2012			2011
Expected tax benefit	$	(12,633	)	$	(8,655	)	$	(653	)
Total increase (decrease) in income taxes resulting from:
Change in valuation allowance allocated to income tax expense		16,223			13,987			10,641
Acquisition costs		(293	)		309			(684	)
State and local income taxes, net of federal income tax benefit		(8	)		(672	)		(212	)
Foreign income tax rate differential		(426	)		(723	)		(463	)
Change in unrecognized tax benefits		359			167			(4,669	)
Other		(333	)		(322	)		(295	)
Actual income tax expense (benefit)	$	2,889		$	4,091		$	3,665

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are presented as follows:

	December 31,
	2013			2012
Deferred tax assets:
Accrued compensation	$	1,354		$	162
Bad Debt		2,977			3,844
Depreciation		1,780			2,703
Research and experimentation credit carryforwards		6,951			6,951
Other credit carryforwards		1,566			1,566
Domestic loss carryforwards		125,143			115,421
Foreign loss carryforwards		7,240			8,007
Nonqualified stock options		6,667			5,374
Other		4,249			5,576
Total gross deferred tax assets		157,927			149,604
Less: asset valuation allowance		(136,364	)		(121,117	)
Net deferred tax asset		21,563			28,487
Deferred tax liabilities:
Software development costs and intangible assets		(5,656	)		(7,572	)
Intangibles—customer contracts & tradenames		(5,977	)		(8,680	)
Other		(5,101	)		(5,105	)
Total gross deferred liabilities		(16,734	)		(21,357	)
Net deferred tax asset	$	4,829		$	7,130
Included on balance sheet:
Current assets: deferred income taxes	$	1,915		$	3,135
Non–current asset: deferred income taxes		6,979			7,041
Non–current liabilities: deferred income taxes		(4,065	)		(3,046	)
Net deferred income taxes	$	4,829		$	7,130

Reconciliation of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits in 2013, 2012 and 2011:

	December 31,
	2013		2012		2011
Balance at January 1	$	2,109	$	1,862	$	6,703
Gross increases - tax positions in current year		-		55		-
Gross increases - tax positions in prior year		123		192		-
Gross decreases - tax positions in prior year		-		-		(12	)
Decreases due to statute expirations		-		-		(4,829	)
Balance at December 31	$	2,232	$	2,109	$	1,862