Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income from Continuing Operations Before Income Taxes

For financial reporting purposes, income from continuing operations before income taxes includes the following components (in thousands):


	2013		2012		2011
United States	$	41,280	$	36,636	$	31,106
Foreign (Canada)		147		187		177

Total	$	41,427	$	36,823	$	31,283

Income Tax Expense (Benefit) Included in Consolidated Statements of Comprehensive Income

Income tax expense included in the consolidated statements of comprehensive income for the years ended December 31, 2013, 2012 and 2011 was as follows (in thousands):


	2013			2012			2011
Continuing operations:
Current:
Federal	$	13,695		$	13,124		$	12,788
Foreign		47			47			34
State and local		2,357			2,983			3,095

Total		16,099			16,154			15,917
Deferred:
Federal		(394	)		(1,423	)		(3,261	)
State and local		733			(660	)		(512	)

Total		339			(2,083	)		(3,773	)

Total income tax expense from continuing operations		16,438			14,071			12,144
Discontinued operations:
Operations of discontinued operations:
Current		3,246			4,883			4,999
Deferred		(653	)		361			874

Total		2,593			5,244			5,873
Gain on disposal of discontinued operations:
Current		49,973			52			193
Deferred		(776	)		—			—

Total		49,197			52			193

Total income tax expense from discontinued operations		51,790			5,296			6,066

Total income tax expense	$	68,228		$	19,367		$	18,210

Provision for Income Taxes Attributable to Income from Continuing Operations

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):


	2013			2012			2011
Tax at statutory rate (35%)	$	14,499		$	12,888		$	10,949
State taxes (net of federal benefit)		2,066			1,176			1,343
Business meals and entertainment — non-deductible		624			674			610
Reserves for uncertain tax positions		(531	)		(432	)		(844	)

Other, net		(220	)		(235	)		86

Provision for income taxes from continuing operations	$	16,438		$	14,071		$	12,144

Effective income tax rate		39.7	%		38.2	%		38.8	%

Tax Effects of Temporary Differences That Rises to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012, were as follows (in thousands):


	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	2,026		$	2,370
Allowance for doubtful accounts		2,663			2,771
Employee benefits and compensation		23,774			23,967
Lease costs		4,398			3,539
State tax credit carryforwards		2,240			2,258
Other deferred tax assets		3,581			2,598

Total gross deferred tax assets		38,682			37,503
Less: valuation allowance		(926	)		(1,138	)

Total deferred tax assets, net	$	37,756		$	36,365

Deferred tax liabilities:
Accrued interest	$	8,584		$	9,633
Client list intangible assets		3,915			6,425
Goodwill and other intangibles		17,876			8,987
Contingent purchase price liabilities		1,977			2,476
Other deferred tax liabilities		222			361

Total gross deferred tax liabilities	$	32,574		$	27,882

Net deferred tax asset	$	5,182		$	8,483

Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2013			2012			2011
Balance at January 1	$	3,618		$	3,979		$	4,794
Additions for tax positions of the current year		2,647			212			188
Additions for tax positions of prior years		—			323			103
Reductions for tax positions of prior years		—			—			(260	)
Lapse of statutes of limitation		(757	)		(896	)		(846	)

Balance at December 31	$	5,508		$	3,618		$	3,979