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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2011
Components of Income before Income Taxes | For financial reporting purposes, income before income taxes includes the following components (in thousands):
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
United States |  | $ | 47,099 |  |  | $ | 44,400 |  |  | $ | 22,020 |
Foreign |  |  | 17,214 |  |  |  | 4,302 |  |  |  | 11,088 |
Total |  | $ | 64,313 |  |  | $ | 48,702 |  |  | $ | 33,108 |
Expense (Benefit) for Income Taxes | The expense (benefit) for income taxes consists of the following (in thousands):
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Federal |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 4,150 |  |  | $ | 1,812 |  |  | $ | 9,964 |
Deferred |  |  | 6,456 |  |  |  | 12,352 |  |  |  | (3,259 | )
Total |  |  | 10,606 |  |  |  | 14,164 |  |  |  | 6,705 |
State |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 1,649 |  |  |  | 1,685 |  |  |  | 1,415 |
Deferred |  |  | 621 |  |  |  | (725 | ) |  |  | (2,356 | )
Total |  |  | 2,270 |  |  |  | 960 |  |  |  | (941 | )
Foreign |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 5,149 |  |  |  | 6,366 |  |  |  | 6,465 |
Deferred |  |  | 436 |  |  |  | 17 |  |  |  | 1,253 |
Total |  |  | 5,585 |  |  |  | 6,383 |  |  |  | 7,718 |
Total |  | $ | 18,461 |  |  | $ | 21,507 |  |  | $ | 13,482 |
Summary of Differences Between Income Tax Expense (Benefit) Computed at Statutory Federal Income Tax Rate and per Consolidated Statements of Income | Differences between the income tax expense (benefit) computed at the statutory federal income tax rate and per the consolidated statements of income are summarized as follows (in thousands):
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | Years Ended December 31, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Tax expense at federal rate of 35% |  | $ | 22,510 |  |  | $ | 17,045 |  |  | $ | 11,588 |
State income taxes, net of federal benefit |  |  | 1,475 |  |  |  | 695 |  |  |  | (293 | )
Change in valuation allowance |  |  | 251 |  |  |  | (1,587 | ) |  |  | (723 | )
Foreign tax rate differential |  |  | (1,572 | ) |  |  | 1,304 |  |  |  | 3,499 |
Tax reserve increase (decrease) |  |  | (1,882 | ) |  |  | 328 |  |  |  | (840 | )
Effect of intellectual property transfer |  |  | (2,100 | ) |  |  | 2,200 |  |  |  | 2,200 |
Tax effect of foreign operations |  |  | 373 |  |  |  | 919 |  |  |  | (742 | )
Other |  |  | (594 | ) |  |  | 603 |  |  |  | (1,207 | )
Income tax provision |  | $ | 18,461 |  |  | $ | 21,507 |  |  | $ | 13,482 |
Deferred Tax Assets and Liabilities Result from Differences in Timing of Recognition of Certain Income and Expense Items for Tax and Financial Accounting Purposes | The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial accounting purposes. The sources of these differences at each balance sheet date are as follows (in thousands):
|  |  | September 30, |  |  |  | September 30, |
|  | December 31, |
|  | 2011 |  |  | 2010 |
Current net deferred tax assets: |  |  |  |  |  |  |  |
Allowance for uncollectible accounts |  | $ | 1,184 |  |  | $ | 1,414 |
Deferred revenue |  |  | 9,170 |  |  |  | 4,622 |
Alliance deferred costs |  |  | 8,287 |  |  |  | (203 | )
Deferred acquisition costs |  |  | 2,480 |  |  |  | — |
Compensation |  |  | 6,364 |  |  |  | 6,268 |
Other |  |  | 999 |  |  |  | 1,250 |
Total current deferred tax assets |  |  | 28,484 |  |  |  | 13,351 |
Less: valuation allowance |  |  | (2,540 | ) |  |  | (1,034 | )
Net current deferred tax assets |  | $ | 25,944 |  |  | $ | 12,317 |
Noncurrent net deferred tax assets: |  |  |  |  |  |  |  |
Noncurrent deferred tax assets |  |  |  |  |  |  |  |
Foreign tax credits |  | $ | 2,260 |  |  | $ | 6,706 |
General business credits |  |  | 125 |  |  |  | 1,246 |
Stock based compensation |  |  | 12,785 |  |  |  | 9,921 |
Foreign net operating loss carryforwards |  |  | 3,217 |  |  |  | 4,612 |
Capital loss carryforwards |  |  | 3,221 |  |  |  | 3,259 |
Deferred revenue |  |  | 3,913 |  |  |  | 8,394 |
Alliance deferred costs |  |  | 87 |  |  |  | 9,962 |
U.S. net operating loss carryforwards |  |  | 1,783 |  |  |  | — |
Other |  |  | 209 |  |  |  | 276 |
Total noncurrent deferred tax assets |  |  | 27,600 |  |  |  | 44,376 |
Noncurrent deferred tax liabilities |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (8,539 | ) |  |  | (9,415 | )
Total noncurrent deferred tax liabilities |  |  | (8,539 | ) |  |  | (9,415 | )
Less: valuation allowance |  |  | (5,595 | ) |  |  | (6,818 | )
Net noncurrent deferred tax assets |  | $ | 13,466 |  |  | $ | 28,143 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 is as follows (in thousands):
|  |  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
Balance of unrecognized tax benefits at beginning of year |  | $ | 8,414 |  |  | $ | 10,916 |  |  | $ | 11,535 |
Increases for tax positions of prior years |  |  | — |  |  |  | 398 |  |  |  | 5,469 |
Decreases for tax positions of prior years |  |  | (310 | ) |  |  | — |  |  |  | (4,327 | )
Increases for tax positions established for the current period |  |  | 750 |  |  |  | 421 |  |  |  | 19 |
Decreases for settlements with taxing authorities |  |  | (36 | ) |  |  | (3,000 | ) |  |  | (299 | )
Reductions resulting from lapse of applicable statute of limitation |  |  | (4,678 | ) |  |  | (308 | ) |  |  | (1,602 | )
Adjustment resulting from foreign currency translation |  |  | (128 | ) |  |  | (13 | ) |  |  | 121 |
Balance of unrecognized tax benefits at end of year |  | $ | 4,012 |  |  | $ | 8,414 |  |  | $ | 10,916 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 9 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 2 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Topic 740 -SubTopic 10 -Publisher FASB -Number -Article -Subparagraph -Name Accounting Standards Codification -Paragraph 12 -Section 50 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References No definition available. + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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