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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes. The provision (benefit) for income taxes consists of the following (in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
Current: |  |  |  |  |  |
Federal |  | $ | 20,849 |  |  | $ | 9,814 |  |  | $ | 1,748 |
State |  | 3,353 |  |  | 1,447 |  |  | 522 |
Foreign |  | 2,645 |  |  | 1,465 |  |  | 412 |
|  | 26,847 |  |  | 12,726 |  |  | 2,682 |
Deferred: |  |  |  |  |  |  |  |
Federal |  | 5,467 |  |  | 3,759 |  |  | 2,271 |
State |  | 565 |  |  | 488 |  |  | — |
Foreign |  | (822 | ) |  | (261 | ) |  | (212 | )
|  | 5,210 |  |  | 3,986 |  |  | 2,059 |
Change in valuation allowance |  | 246 |  |  | 454 |  |  | 215 |
|  | $ | 32,303 |  |  | $ | 17,166 |  |  | $ | 4,956 |
Income (loss) before income taxes consists of the following (in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
United States |  | $ | 72,184 |  |  | $ | 37,405 |  |  | $ | (6,071 | )
Foreign |  | 2,772 |  |  | 4,058 |  |  | 1,130 |
|  | $ | 74,956 |  |  | $ | 41,463 |  |  | $ | (4,941 | )
The components of deferred tax assets (liabilities) are as follows (in thousands):
|  | December 31, 2012 |  | December 31, 2011
Deferred income tax assets (liabilities): |  |  |  |
Current: |  |  |  |
Allowance for doubtful accounts |  | $ | 1,150 |  |  | $ | 1,007 |
Employee related accruals |  | 3,419 |  |  | 2,923 |
State taxes |  | 1,064 |  |  | 534 |
Workers’ compensation and medical malpractice loss reserves |  | 4,683 |  |  | 4,277 |
Prepaid insurance |  | (631 | ) |  | (319 | )
Other |  | 462 |  |  | 849 |
|  | 10,147 |  |  | 9,271 |
Non-current: |  |  |  |  |
Intangibles |  | (23,662 | ) |  | (15,559 | )
Depreciation expense |  | (4,449 | ) |  | (3,867 | )
Stock-based compensation |  | 2,852 |  |  | 3,428 |
Net operating loss carryforwards |  | 1,191 |  |  | 1,054 |
Other |  | 1,975 |  |  | 758 |
|  | (22,093 | ) |  | (14,186 | )
Valuation allowance |  | (916 | ) |  | (670 | )
Total net deferred income tax liability |  | $ | (12,862 | ) |  | $ | (5,585 | )
The reconciliation between the amount computed by applying the U.S. federal statutory tax rate of 35.0 percent for 2012, 35.0 percent for 2011, and 34.0 percent for 2010 to income before income taxes and the income tax provision is as follows (in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
Income tax provision at the statutory rate |  | $ | 26,235 |  |  | $ | 14,512 |  |  | $ | (1,680 | )
State income taxes, net of federal benefit |  | 2,952 |  |  | 1,527 |  |  | 460 |
Impairment of goodwill |  | — |  |  | — |  |  | 5,236 |
Permanent difference – disallowed meals and entertainment expenses |  | 1,822 |  |  | 1,093 |  |  | 614 |
Permanent difference – settlement of earn-out |  | — |  |  | (445 | ) |  | — |
Valuation allowance related to foreign jurisdictions |  | 246 |  |  | 454 |  |  | 215 |
Income tax contingency |  | 276 |  |  | (91 | ) |  | (16 | )
Foreign tax rate differential |  | 14 |  |  | (222 | ) |  | (181 | )
Other |  | 758 |  |  | 338 |  |  | 308 |
|  | $ | 32,303 |  |  | $ | 17,166 |  |  | $ | 4,956 |
As of December 31, 2012, the Company had no federal net operating losses, state net operating losses of approximately $9.5 million and foreign net operating losses of approximately $3.1 million. The state net operating losses can be carried forward up to 20 years and begin expiring in 2013. The foreign net operating losses in the United Kingdom can be carried forward indefinitely and the net operating losses in Spain can be carried forward up to 18 years beginning from the first period of profits. The Company has recorded a valuation allowance of approximately $0.9 million and $0.7 million at December 31, 2012 and December 31, 2011, respectively, related to net operating loss carryforwards. At December 31, 2012, the Company had accumulated net foreign earnings of $13.0 million. The Company did not provide deferred taxes on the excess of the financial reporting over the tax basis in its investment in foreign subsidiaries since the Company intends to permanently reinvest the undistributed earnings of its foreign subsidiaries. The determination of additional deferred taxes that have not been provided is not practicable. The Company had gross deferred tax assets of $17.7 million and $14.4 million and gross deferred tax liabilities of $30.5 million and $19.9 million at December 31, 2012 and 2011, respectively. The Company receives a tax deduction for stock-based awards upon exercise of a non-qualified stock options or as the result of disqualifying dispositions made by directors, officers and employees. A disqualifying disposition occurs when stock acquired through the exercise of incentive stock options or the Employee Stock Purchase Plan is disposed of prior to the required holding period. The Company also receives a tax deduction upon the vesting of restricted stock units or restricted stock awards. The Company received tax deductions of $22.8 million and $7.5 million, respectively, from stock-based awards in 2012 and 2011. As of December 31, 2012, the Company had $0.4 million of gross unrecognized tax benefits, which includes penalties and interest, all of which was carried in other long-term liabilities. If the Company’s positions are sustained by the taxing authority in favor of the Company, the entire $0.4 million would reduce the Company’s effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. The amount of interest and penalties recognized in the financial statements is not significant. The following is a reconciliation of the total amounts of unrecognized tax benefits (in thousands):
|  | Year Ended December 31,
|  | 2012 |  | 2011 |  | 2010
Unrecognized Tax Benefit beginning of year |  | $ | 251 |  |  | $ | 358 |  |  | $ | 397 |
Gross decreases - tax positions in prior year |  | (34 | ) |  | — |  |  | (39 | )
Reductions for tax positions as a result of a lapse of the applicable statute of limitations |  | — |  |  | (107 | ) |  | — |
Gross increases - tax positions in prior year |  | 159 |  |  | — |  |  | — |
Unrecognized Tax Benefit end of year |  | $ | 376 |  |  | $ | 251 |  |  | $ | 358 |
The Company believes that there will be no significant increases or decreases to unrecognized tax benefits within the next twelve months. The Company is subject to taxation in the United States and various states and foreign jurisdictions. The IRS has examined and concluded all tax matters for years through 2009.

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- 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
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