Income Taxes

A reconciliation of the provision for income taxes with the amount computed by applying the statutory federal income tax rate to income before provision for income taxes for the periods presented is as follows (in thousands, except percentages):



	Three Months Ended March 31,
	2014					2013
Income from continuing operations before income taxes, net of amounts attributable to noncontrolling interests	$	108,978				$	15,650
Pre-tax income attributable to pass-through subsidiaries	(105,310		)			(24,143		)
Pre-tax income (loss) attributable to taxable subsidiaries	3,668					(8,493		)
Federal provision at statutory tax rate (35%)	1,284			35.0	%	(2,972		)	35.0	%
State and local taxes, net of federal benefit	402			11.0	%	(157		)	1.8	%
Recognition of deferred revenue as a result of the CPA^®:16 Merger ^(a)	3,827			104.3	%	—			—	%
Amortization of intangible assets	161			4.4	%	121			(1.4	)%
Other	40			1.1	%	13			(0.2	)%
Tax provision — taxable subsidiaries	5,714			155.8	%	(2,995		)	35.2	%
Deferred foreign taxes ^(b)	(5,532		)			—
Current foreign taxes	373					1,462
Other state and local taxes	1,666					325
Total provision	$	2,221				$	(1,208	)

__________


(a)	Represents income tax expense due to a permanent difference from the recognition of deferred revenue as a result of the accelerated vesting of shares previously issued by CPA^®:16 – Global for asset management and performance fees and the payment of deferred acquisition fees in connection with the CPA^®:16 Merger.


(b)	Represents deferred tax benefit associated with basis differences on certain foreign properties acquired.

Our tax returns are subject to audit by taxing authorities. Such audits can often take years to complete and settle. The tax years 2008 through 2014 remain open to examination by the major taxing jurisdictions to which we are subject.