Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Domestic and Foreign Components of Income (Loss) before Provision for Income Taxes

The domestic and foreign components of income (loss) before provision for income taxes were as follows:

 

     Year Ended December 31,  
     2012      2011     2010  
     (in thousands)  

Domestic

   $ 9,151       $ (926   $ 119   

Foreign

     251         (515     667   
  

 

 

    

 

 

   

 

 

 

Total

   $ 9,402       $ (1,441   $ 786   
  

 

 

    

 

 

   

 

 

 

 

(Benefit) Provision for Income Taxes

Our provision (benefit) for income taxes consisted of the following components:

 

     Year Ended December 31,  
     2012     2011     2010  
     (in thousands)  

Current:

      

Federal

                     

State

   $ 1,568      $ 225      $ 384   

Foreign

     27        70        405   
  

 

 

   

 

 

   

 

 

 

Total current taxes

     1,595        295        789   

Deferred:

      

Federal

     3,192        299        263   

State

     (574     (626     (15

Foreign

     6        (178     (318
  

 

 

   

 

 

   

 

 

 

Total deferred taxes

     2,624        (505     (70
  

 

 

   

 

 

   

 

 

 

Total income tax provision (benefit)

   $ 4,219      $ (210   $ 719   
  

 

 

   

 

 

   

 

 

 
Reconciliation of Income Tax (Benefit) Expense Computed at Federal Statutory Tax Rate to Actual Income Tax (Benefit) Expense

The reconciliation of our income tax expense (benefit) computed at the U.S. federal statutory tax rate to the actual income tax expense (benefit) is as follows:

 

     Year Ended December 31,  
     2012     2011     2010  
     (in thousands)  

Expense derived by applying the Federal income tax rate to income (loss) before taxes

   $ 3,291      $ (504   $ 275   

State income tax, net of federal benefit

     445        146        202   

Foreign income tax

     (55     215        (78

Change in valuation allowance

            (660     2,343   

Benefits of assets not previously recognized

            (97     (2,343

Nondeductible expenses

     361        674        337   

Stock-based compensation

     171        137          

Tax credits

            53        (87

Changes in tax rates

            (138     33   

Other

     6        (36     37   
  

 

 

   

 

 

   

 

 

 
   $ 4,219      $ (210   $ 719   
  

 

 

   

 

 

   

 

 

 
Components of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:

 

     December 31,  
     2012     2011  
     (in thousands)  

Deferred tax assets:

    

Stock-based compensation

   $ 7,401      $ 6,945   

Reserves and accrued liabilities

     7,215        6,579   

Net operating loss carryforwards

     23,139        31,604   
  

 

 

   

 

 

 

Total gross deferred tax assets

     37,755        45,128   

Deferred tax asset valuation allowance

     (9,216     (9,229
  

 

 

   

 

 

 

Deferred tax assets

     28,539        35,899   

Deferred tax liabilities:

    

Property, equipment, and software

     (3,820     (5,448

Other

     (1,711     (1,664

Intangible assets

     (23,020     (25,976
  

 

 

   

 

 

 

Total deferred tax liabilities

     (28,551     (33,088
  

 

 

   

 

 

 

Net deferred tax assets/(liabilities)

   $ (12   $ 2,811