|
Income Taxes (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Income Taxes |
|
| Schedule of components of income (loss) before income taxes |
The components of income (loss) before income taxes were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
|
|
United States |
|
$ |
(218,049 |
) |
$ |
47,874 |
|
$ |
73,130 |
|
|
Foreign |
|
|
6,743 |
|
|
4,883 |
|
|
1,579 |
|
| |
|
|
|
|
|
|
|
|
Total |
|
$ |
(211,306 |
) |
$ |
52,757 |
|
$ |
74,709 |
|
| |
|
|
|
|
|
|
|
|
| Schedule of components of provision for income taxes |
Components of the provision for income taxes were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
|
|
Current: |
|
|
|
|
|
|
|
|
|
|
|
U.S. federal |
|
$ |
(390 |
) |
$ |
11,028 |
|
$ |
11,852 |
|
|
State |
|
|
1,343 |
|
|
5,891 |
|
|
2,593 |
|
|
Foreign |
|
|
6,129 |
|
|
2,312 |
|
|
39 |
|
| |
|
|
|
|
|
|
|
|
Total current |
|
|
7,082 |
|
|
19,231 |
|
|
14,484 |
|
| |
|
|
|
|
|
|
|
|
Deferred: |
|
|
|
|
|
|
|
|
|
|
|
U.S. federal |
|
|
20,339 |
|
|
7,573 |
|
|
15,380 |
|
|
State |
|
|
400 |
|
|
(264 |
) |
|
(457 |
) |
|
Foreign |
|
|
(372 |
) |
|
(320 |
) |
|
— |
|
| |
|
|
|
|
|
|
|
|
Total deferred |
|
|
20,367 |
|
|
6,989 |
|
|
14,923 |
|
| |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
$ |
27,449 |
|
$ |
26,220 |
|
$ |
29,407 |
|
| |
|
|
|
|
|
|
|
|
| Schedule of components of net deferred tax liabilities |
Components of net deferred tax liabilities were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2012 |
|
2011 |
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Accounts receivable allowances |
|
$ |
654 |
|
$ |
800 |
|
|
Unearned revenue |
|
|
— |
|
|
873 |
|
|
Accrued liabilities not yet deductible |
|
|
4,515 |
|
|
3,436 |
|
|
Federal and State net operating loss ("NOL") carryforwards |
|
|
37,252 |
|
|
45,483 |
|
|
Tax credit carryforwards |
|
|
833 |
|
|
167 |
|
|
Stock-based compensation |
|
|
4,221 |
|
|
1,971 |
|
|
Other |
|
|
1,355 |
|
|
1,109 |
|
| |
|
|
|
|
|
|
Total deferred tax assets |
|
|
48,830 |
|
|
53,839 |
|
|
Less valuation allowance |
|
|
(27,897 |
) |
|
(667 |
) |
| |
|
|
|
|
|
|
Deferred tax assets after valuation allowance |
|
|
20,933 |
|
|
53,172 |
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Purchased intangibles |
|
|
(37,658 |
) |
|
(44,548 |
) |
|
Property and equipment |
|
|
(9,014 |
) |
|
(11,680 |
) |
|
Other |
|
|
(1,291 |
) |
|
(1,625 |
) |
| |
|
|
|
|
|
|
Total deferred tax liabilities |
|
|
(47,963 |
) |
|
(57,853 |
) |
| |
|
|
|
|
|
|
Net deferred tax liabilities |
|
$ |
(27,030 |
) |
$ |
(4,681 |
) |
| |
|
|
|
|
|
|
| Schedule of reconciliation to consolidated balance sheet |
Reconciliation to consolidated balance sheet (in thousands):
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2012 |
|
2011 |
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Current |
|
$ |
864 |
|
$ |
4,796 |
|
|
Noncurrent |
|
|
171 |
|
|
— |
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
Current |
|
|
(37 |
) |
|
— |
|
|
Noncurrent |
|
|
(28,028 |
) |
|
(9,477 |
) |
| |
|
|
|
|
|
|
Net deferred tax liabilities |
|
$ |
(27,030 |
) |
$ |
(4,681 |
) |
| |
|
|
|
|
|
|
| Schedule of amounts that would result from applying the federal statutory rate to the entity's income (loss) before income taxes |
Income tax expense differs from the amounts that would result from applying the federal statutory rate to our income (loss) before income taxes as follows (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
|
|
Federal statutory tax rate |
|
|
35 |
% |
|
35 |
% |
|
35 |
% |
|
Expected tax (benefit) expense |
|
$ |
(73,957 |
) |
$ |
18,465 |
|
$ |
26,148 |
|
|
State and foreign income taxes, net of federal (expense) benefit |
|
|
(1,312 |
) |
|
2,955 |
|
|
1,637 |
|
|
Non-deductible compensation |
|
|
3,969 |
|
|
2,830 |
|
|
1,977 |
|
|
Non-deductible business combination transaction costs |
|
|
202 |
|
|
1,998 |
|
|
— |
|
|
Non-deductible goodwill impairment charges |
|
|
67,418 |
|
|
— |
|
|
— |
|
|
Dividend |
|
|
4,484 |
|
|
— |
|
|
— |
|
|
Tax credits |
|
|
(3,025 |
) |
|
— |
|
|
— |
|
|
Change in valuation allowance |
|
|
27,230 |
|
|
— |
|
|
(876 |
) |
|
Change in uncertain tax positions |
|
|
3,582 |
|
|
— |
|
|
— |
|
|
Other |
|
|
(1,142 |
) |
|
(28 |
) |
|
521 |
|
| |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
$ |
27,449 |
|
$ |
26,220 |
|
$ |
29,407 |
|
| |
|
|
|
|
|
|
|
|
| Schedule of expiring of operating loss carryforwards |
Expected future limitations are as follows (in thousands, amounts shown are not tax effected):
|
|
|
|
|
|
Years |
|
Limitation |
|
|
2013 |
|
$ |
11,035 |
|
|
2014 |
|
|
7,238 |
|
|
2015 |
|
|
7,238 |
|
|
2016 |
|
|
7,238 |
|
|
2017 |
|
|
6,571 |
|
|
2018 |
|
|
6,349 |
|
|
2019 |
|
|
6,200 |
|
|
2020 |
|
|
5,324 |
|
|
2021 - 2031 (in total) |
|
|
34,988 |
|
|
| Schedule of change in unrecognized tax benefits |
The change in unrecognized tax benefits for the years ended December 31, 2012, 2011, and 2010 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2012 |
|
2011 |
|
2010 |
|
|
Balance at beginning of year |
|
$ |
100 |
|
$ |
— |
|
$ |
— |
|
|
Additions for tax positions related to the current year |
|
|
— |
|
|
100 |
|
|
— |
|
|
Additions for tax positions related to prior years |
|
|
3,697 |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
Balance at end of year |
|
$ |
3,797 |
|
$ |
100 |
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|