INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

12. INCOME TAXES

The Company’s effective income tax rate is dependent on many factors, including the estimated nature and amounts of income and expenses allocated to the non-controlling interests without being subject to federal, state and local income taxes at the corporate level. Additionally, the Company’s effective tax rate is influenced by the amount of income tax provision recorded for any affiliated funds and co-investment entities that are consolidated in the Company's consolidated financial statements.

The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by U.S. federal, state, local and foreign tax authorities. With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for any years prior to 2016. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s consolidated financial statements.

The provision for income taxes attributable to the Company and the Consolidated Funds, consisted of the following:

	For the Year Ended December 31,
Provision for Income Taxes	2021		2020		2019
The Company
Current:
U.S. federal income tax expense	$	40,861	$	23,845	$	32,012
State and local income tax expense	12,121		6,714		6,940
Foreign income tax expense	11,684		9,141		6,103
	64,666		39,700		45,055
Deferred:
U.S. federal income tax expense	68,201		12,451		8,820
State and local income tax expense	13,040		1,952		1,001
Foreign income tax expense (benefit)	1,390		772		(1,970)
	82,631		15,175		7,851
Total:
U.S. federal income tax expense	109,062		36,296		40,832
State and local income tax expense	25,161		8,666		7,941
Foreign income tax expense	13,074		9,913		4,133
Income tax expense	147,297		54,875		52,906
Consolidated Funds
Current:
Foreign income tax expense (benefit)	88		118		(530)
Income tax expense (benefit)	88		118		(530)
Total Provision for Income Taxes
Total current income tax expense	64,754		39,818		44,525
Total deferred income tax expense	82,631		15,175		7,851
Income tax expense	$	147,385	$	54,993	$	52,376

The effective income tax rate differed from the federal statutory rate for the following reasons:

	For the Year Ended December 31,
	2021		2020		2019
Income tax expense at federal statutory rate	21.0	%	21.0	%	21.0	%
Income passed through to non-controlling interests	(9.2)		(8.2)		(10.4)
State and local taxes, net of federal benefit	1.9		1.8		1.9
Foreign taxes	(0.1)		0.3		0.3
Permanent items	(0.3)		(0.5)		(0.4)
Disallowed executive compensation	0.7		—		—
Other, net	(0.2)		(0.2)		(0.1)
Valuation allowance	—		0.3		—
Total effective rate	13.8	%	14.5	%	12.3	%

Deferred Taxes

The income tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows as of December 31, 2021 and 2020. Deferred tax assets, net are included within other assets on the Consolidated Statements of Financial Condition.

	As of December 31,
Deferred Tax Assets and Liabilities of the Company	2021		2020
Deferred tax assets
Amortizable tax basis for AOG unit exchanges	$	108,644	$	67,571
Net operating losses	1,292		1,292
Other, net	6,101		6,563
Total gross deferred tax assets	116,037		75,426
Valuation allowance	(1,010)		(1,010)
Total deferred tax assets, net	115,027		74,416
Deferred tax liabilities
Investment in partnerships	(75,629)		(4,390)
Total deferred tax liabilities	(75,629)		(4,390)
Net deferred tax assets	$	39,398	$	70,026

In assessing the realizability of deferred tax assets, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred taxes are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located. Valuation allowances are provided to reduce the amounts of deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts.

The Company’s income tax provision includes corporate income taxes and other entity level income taxes, as well as income taxes incurred by certain affiliated funds that are consolidated in these financial statements.

As of December 31, 2021 and 2020, the valuation allowance for deferred tax assets is $1.0 million. The deferred tax assets related to operating losses in foreign jurisdictions do not meet the more likely than not threshold and have a valuation allowance recorded for the net balance.

As of, and for the three years ended December 31, 2021, 2020 and 2019, the Company had no significant uncertain tax positions.