XML 79 R24.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2012
Income Taxes | 16. Income Taxes Significant components of deferred tax assets and liabilities are as follows:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | 9,204 |  |  | $ | 8,886 |
Accrued vacation and bonus |  |  | 8,016 |  |  |  | 6,631 |
Deferred rent |  |  | 16,137 |  |  |  | 17,354 |
Share-based compensation |  |  | 23,730 |  |  |  | 25,948 |
Notes receivable from employees |  |  | 27,791 |  |  |  | 27,900 |
State net operating loss carryforward & credits |  |  | 1,921 |  |  |  | 2,943 |
Foreign net operating loss carryforward |  |  | 7,976 |  |  |  | 2,585 |
Foreign tax credits |  |  | 1,253 |  |  |  | — |
Future foreign tax credit asset |  |  | 8,406 |  |  |  | 8,603 |
Other — net |  |  | 4,783 |  |  |  | 5,291 |
Total deferred tax assets |  |  | 109,217 |  |  |  | 106,141 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Revenue recognition |  |  | (19,706 | ) |  |  | (33,462 | )
Property, equipment and capitalized software |  |  | (819 | ) |  |  | (1,383 | )
Goodwill and other intangible asset amortization |  |  | (188,737 | ) |  |  | (169,471 | )
Deferred compensation |  |  | (152 | ) |  |  | — |
Discount on long term debt |  |  | — |  |  |  | (1,264 | )
Total deferred tax liabilities |  |  | (209,414 | ) |  |  | (205,580 | )
Valuation allowance |  |  | (1,939 | ) |  |  | (886 | )
Net deferred tax assets (liabilities) |  | $ | (102,136 | ) |  | $ | (100,325 | )
As of December 31, 2012, we have not provided for deferred taxes on $1.8 million of the undistributed non-U.S. subsidiary earnings that are considered permanently invested. If these earnings were repatriated, we do not anticipate that there would be any additional U.S. tax liability as foreign tax credits would offset the U.S. tax liability. At December 31, 2012 and 2011, the Company believed certain deferred tax assets associated with foreign net operating loss and foreign tax credit carryforwards, which can be carried forward for periods ranging from 20 years to indefinite, would expire unused based on updated forward-looking financial information. Therefore, valuation allowances of $1.9 million and $0.9 million were recorded against the Company’s net deferred tax assets at December 31, 2012 and 2011, respectively. We have not established a valuation allowance for any of our other deferred assets as we expect that future taxable income as well as the reversal of temporary differences will enable us to fully utilize our deferred tax assets. The components of “Income before income tax provision” from continuing operations are as follows:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Domestic |  | $ | 40,275 |  |  | $ | 123,439 |  |  | $ | 81,371 |
Foreign |  |  | (37,161 | ) |  |  | 29,688 |  |  |  | 26,020 |
|  | $ | 3,114 |  |  | $ | 153,127 |  |  | $ | 107,391 |
The components of the income tax provision from continuing operations are as follows:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 21,172 |  |  | $ | 30,048 |  |  | $ | 17,310 |
State |  |  | 6,268 |  |  |  | 5,844 |  |  |  | 906 |
Foreign |  |  | 7,021 |  |  |  | 5,977 |  |  |  | 7,468 |
|  |  | 34,461 |  |  |  | 41,869 |  |  |  | 25,684 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7,553 |  |  | $ | 11,858 |  |  | $ | 14,439 |
State |  |  | (719 | ) |  |  | 564 |  |  |  | 3,614 |
Foreign |  |  | (1,195 | ) |  |  | (5,067 | ) |  |  | (2,330 | )
|  |  | 5,639 |  |  |  | 7,355 |  |  |  | 15,723 |
Income tax provision |  | $ | 40,100 |  |  | $ | 49,224 |  |  | $ | 41,407 |
Our income tax provision from continuing operations resulted in effective tax rates that varied from the statutory federal income tax rate as follows:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Income tax expense at federal statutory rate |  | $ | 1,090 |  |  | $ | 53,595 |  |  | $ | 37,587 |
State income taxes, net of federal benefit |  |  | 3,607 |  |  |  | 4,166 |  |  |  | 3,895 |
Benefit from lower foreign tax rates |  |  | (5,357 | ) |  |  | (7,115 | ) |  |  | (2,246 | )
Non-deductible goodwill impairment |  |  | 38,635 |  |  |  | — |  |  |  | — |
Other expenses not deductible for tax purposes |  |  | 3,682 |  |  |  | 2,791 |  |  |  | 3,158 |
Changes in contingent consideration |  |  | (1,151 | ) |  |  | (2,367 | ) |  |  | — |
Other adjustments, net |  |  | (406 | ) |  |  | (1,846 | ) |  |  | (987 | )
|  | $ | 40,100 |  |  | $ | 49,224 |  |  | $ | 41,407 |
We file numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many city, state and foreign jurisdictions. We are no longer subject to U.S. federal income tax examinations for years prior to 2008 and are no longer subject to state and local or foreign tax examinations by tax authorities for years prior to 2007. In addition, open tax years related to state and foreign jurisdictions remain subject to examination but are not considered material to our financial position, results of operations or cash flows. Our liability for uncertain tax positions was $3.8 million and $2.9 million at December 31, 2012 and 2011, respectively. Interest and penalties related to uncertain tax positions are classified as operating expenses and are excluded from the income tax provision. At December 31, 2012, our accrual for the payment of tax-related interest and penalties was not material. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. Although the timing of the resolution and closure of such examinations is not certain, the Company believes it is reasonably possible that tax audit resolutions could reduce its unrecognized tax benefits by approximately $1.8 million in the next 12 months.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -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 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration