Quarterly report pursuant to sections 13 or 15(d)

Income Taxes

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Income Taxes
 3 Months Ended
Mar. 31, 2012
Income Taxes
6. Income Taxes

Income tax expense was $608 and $346 for the three months ended March 31, 2012 and 2011, respectively. The primary components of income tax expense were the tax effects of goodwill, which is amortized for income tax purposes, of $488 and $207 for the three months ended March 31, 2012 and 2011, respectively. The balance of the tax provision principally represents state and city income taxes for each of the periods presented. The tax rate for the periods presented represents the actual effective tax rate for such periods, which the Company believes represents the best estimate of the annual effective tax rate. The statutory income tax rate for the 2012 period differs from the effective tax rate, primarily as a result of the change in fair value of contingent consideration not subject to income tax and the increase in the valuation allowance attributable to the pre-tax loss as adjusted for permanent differences.