Income Taxes

In July 2013, the Company terminated an election to include foreign subsidiaries in its consolidated U.S. federal income tax return and it is the Company's intent to indefinitely reinvest the earnings of these subsidiaries outside the U.S. Under current U.S. income tax law, the undistributed earnings of the foreign subsidiaries will no longer be subject to U.S. federal income tax beginning in July 2013. The Company recognized an estimated non-recurring net income tax benefit of approximately $3,273,000 in the third quarter of 2013 related primarily to changes in deferred tax assets and liabilities, net of certain non-recurring U.S. tax liabilities associated with the terminated election.

The principal current and non-current deferred tax assets and liabilities consist of the following at September 30, 2013, and December 31, 2012 (in thousands):



	September 30, 2013				December 31, 2012
Deferred tax assets:
Depreciation		$	3,953			$	—
Cumulative foreign translation adjustment		3,857				3,447
Deferred cost of goods sold deduction		1,233				—
Interest accrual on forfeited pawn loans		1,029				1,365
Other		2,980				495
Total deferred tax assets		13,052				5,307

Deferred tax liabilities:
Intangible asset amortization		16,593				15,823
Share-based compensation		932				1,101
Other		492				510
Total deferred tax liabilities		18,017				17,434

Net deferred tax liabilities		$	(4,965	)		$	(12,127	)

The net deferred tax liability is classified as follows:
Current deferred tax assets		$	3,348			$	1,148
Non-current deferred income tax liabilities		(8,313		)		(13,275		)
Net deferred tax liabilities		$	(4,965	)		$	(12,127	)