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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Components Of Income Before Income Taxes

The components of income before income taxes, equity in earnings and extraordinary item are as follows:

		Year Ended December 31,
		2012				2011				2010
		(in thousands)
Domestic		$	20,609			$	16,178			$	20,867
Foreign			(535	)			648				(1,199	)
Total income before income taxes, equity in earnings and extraordinary income		$	20,074			$	16,826			$	19,668

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes (before equity in earnings) consists of:

		Year Ended December 31,
		2012				2011				2010
		(in thousands)
Current:
Federal		$	6,691			$	4,657			$	4,269
State and local			761				2,063				1,437
Foreign			503				618				565
Deferred			(2,747	)			(1,216	)			(1,669	)
Income tax provision		$	5,208			$	6,122			$	4,602

Significant Components of Deferred Income Tax Assets

Significant components of the Company’s deferred income tax assets are as follows:

		December 31,
		2012				2011
		(in thousands)
Deferred income tax assets:
Deferred rent expense		$	4,407			$	3,038
Translation adjustment			1,116				2,205
Stock options			3,660				2,743
Inventory			1,381				1,624
Operating loss carry-forward			1,797				2,120
Accounts receivable allowances			106				270
Accrued compensation			669				580
Other			1,915				674
Total deferred income tax assets		$	15,051			$	13,254

Significant Components of Net Deferred Income Tax Asset (Liability)

Significant components of the Company’s net deferred income tax asset (liability) are as follows:

		December 31,
		2012				2011
		(in thousands)
Deferred income tax liabilities:
Depreciation and amortization		$	(5,945	)		$	(4,867	)
Intangibles			(4,645	)			(6,679	)
Equity in earnings			(3,080	)			(998	)
Other			(167	)			(535	)
Total deferred income tax liabilities			(13,837	)			(13,079	)
Net deferred income tax asset			1,214				175
Valuation allowance			(1,182	)			(3,085	)
Net deferred income tax asset (liability)		$	32			$	(2,910	)

Difference between Provision for Income Taxes and Amount Computed by Applying Federal Statutory Rates

The provision for income taxes (before equity in earnings) differs from the amounts computed by applying the applicable federal statutory rates as follows:

		Year Ended December 31,
		2012				2011				2010
Provision for federal income taxes at the statutory rate			35.0	%			35.0	%			35.0	%
Increases (decreases):
State and local income taxes, net of Federal income tax benefit			3.2				6.4				5.6
Foreign rate differences			(1.8	)			—				—
Non-deductible stock options			—				0.1				1.2
Non-deductible expenses			1.2				3.4				0.1
Valuation allowance			—				(8.2	)			(19.8	)
Reduction of deferred tax liabilities related to the prior year			(11.6	)			—				—
Other			(0.1	)			(0.3	)			1.3
Provision for income taxes			25.9	%			36.4	%			23.4	%

Estimated Values of Gross Uncertain Tax Positions

The estimated values of the Company’s gross uncertain tax positions at December 31, 2012, 2011 and 2010 are liabilities of $301,000, $134,000 and $356,000, respectively, and consist of the following:

		Year Ended December 31,
		2012				2011				2010
		(in thousands)
Balance at January 1		$	(134	)		$	(356	)		$	(335	)
Additions based on tax positions related to the current year			—				—				—
Additions for tax positions of prior years			(167	)			(76	)			(200	)
Reductions for tax position of prior years			—				—				—
Settlements			—				298				179
Balance at December 31		$	(301	)		$	(134	)		$	(356	)

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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.

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-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.

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