Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
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,
 
 
2013
 
2012
 
2011
 
 
(in thousands)
Domestic
 
$
19,230

 
$
9,151

 
$
(926
)
Foreign
 
1,252

 
251

 
(515
)
Total
 
$
20,482

 
$
9,402

 
$
(1,441
)
(Benefit) Provision for Income Taxes
Our provision (benefit) for income taxes consisted of the following components:
 
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
 
(in thousands)
Current:
 
 
 
 
 
 
Federal
 
$

 
$

 
$

State
 
1,886

 
1,568

 
225

Foreign
 
421

 
27

 
70

Total current taxes
 
2,307

 
1,595

 
295

Deferred:
 
 
 
 
 
 
Federal
 
(1,832
)
 
3,192

 
299

State
 
(619
)
 
(574
)
 
(626
)
Foreign
 
(66
)
 
6

 
(178
)
Total deferred taxes
 
(2,517
)
 
2,624

 
(505
)
Total income tax provision (benefit)
 
$
(210
)
 
$
4,219

 
$
(210
)
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,
 
 
2013
 
2012
 
2011
 
 
(in thousands)
Expense derived by applying the Federal income tax rate to income (loss) before taxes
 
$
7,169

 
$
3,291

 
$
(504
)
State income tax, net of federal benefit
 
607

 
445

 
146

Foreign income tax
 
(170
)
 
(55
)
 
215

Change in valuation allowance
 
(9,087
)
 

 
(660
)
Benefits of assets not previously recognized
 

 

 
(97
)
Nondeductible expenses
 
644

 
612

 
674

Fair value adjustment on stock acquisition
 
487

 
(251
)
 

Stock-based compensation
 
139

 
171

 
137

Tax credits
 

 

 
53

Changes in tax rates
 

 

 
(138
)
Other
 
1

 
6

 
(36
)
 
 
$
(210
)
 
$
4,219

 
$
(210
)
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,
 
 
2013
 
2012
 
 
(in thousands)
Deferred tax assets:
 
 
 
 
Reserves, deferred revenue and accrued liabilities
 
$
6,303

 
$
7,215

Stock-based compensation
 
10,873

 
7,401

Net operating loss carryforwards
 
16,106

 
23,139

Total gross deferred tax assets
 
33,282

 
37,755

Deferred tax asset valuation allowance
 
(43
)
 
(9,216
)
Total deferred tax assets
 
33,239

 
28,539

Deferred tax liabilities:
 
 
 
 
Property, equipment and software
 
(5,408
)
 
(3,820
)
Other
 
(2,055
)
 
(1,711
)
Intangible assets
 
(23,871
)
 
(23,020
)
Total deferred tax liabilities
 
(31,334
)
 
(28,551
)
Net deferred tax assets (liabilities)
 
$
1,905

 
$
(12
)