Annual report pursuant to section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit)

Income taxes consist of the following:



	Federal			State and Local			Total
2013:
Current	$	403		$	1,492		$	1,895
Deferred	731			223			954
Benefit applied to reduce goodwill	—			77			77
	$	1,134		$	1,792		$	2,926
2012:
Current	$	—		$	514		$	514
Deferred	527			350			877
Benefit applied to reduce goodwill	—			71			71
	$	527		$	935		$	1,462
2011:
Current	$	—		$	311		$	311
Deferred	(14,066		)	(2,524		)	(16,590		)
Benefit applied to reduce goodwill	—			84			84
	$	(14,066	)	$	(2,129	)	$	(16,195	)

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate (34%) to pre-tax income (loss) as a result of the following differences:



	2013			2012			2011
Income (loss) before income taxes	$	2,404		$	(14,892	)	$	(12,302	)
Expense (benefit) under statutory U.S. tax rates	817			(5,063		)	(4,183		)
Increase (decrease) in taxes resulting from:
Increase (decrease) in valuation allowance	(272		)	8,500			(12,600		)
Change in fair value of contingent consideration, not taxable	41			(2,844		)	—
Other nondeductible items	1,085			346			129
State taxes, net of federal benefit	1,183			340			206
Other, net	72			183			253
Income tax expense (benefit)	$	2,926		$	1,462		$	(16,195	)

Schedule of Deferred Tax Assets and Liabilities

Deferred tax amounts are comprised of the following at December 31:



	2013			2012
Deferred tax assets (liabilities):
Net operating loss carryforwards	$	28,806		$	35,241		*
AMT credit carryforward	706			303
Accrued expenses	3,380			1,697
Compensation and benefits	15,167			12,934
Deferred compensation liability	7,299			6,877
Fixed assets	(41		)	384			*
Other	—			18
Unrealized gain	649			936
Intangibles	(20,496		)	(22,807		)	*
Goodwill	(6,578		)	(5,465		)
	28,892			30,118			*
Valuation allowance	(36,391		)	(36,663		)	*
Net deferred taxes	$	(7,499	)	$	(6,545	)

*Includes increases in both deferred tax assets and valuation allowance of $2,656 from amounts previously reported related to fixed assets. In addition, includes adjustments of $2,378 to the net operating loss carryforwards and intangibles.