INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

10. 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 vehicles 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 2020. 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:

	Year ended December 31,
Provision for Income Taxes	2023		2022		2021
The Company
Current:
U.S. federal income tax expense	$	34,051	$	42,452	$	40,861
State and local income tax expense	13,316		7,614		12,121
Foreign income tax expense	24,029		14,119		11,684
	71,396		64,185		64,666
Deferred:
U.S. federal income tax expense	85,610		10,660		68,201
State and local income tax expense	15,872		2,131		13,040
Foreign income tax expense (benefit)	(3,730)		(5,416)		1,390
	97,752		7,375		82,631
Total:
U.S. federal income tax expense	119,661		53,112		109,062
State and local income tax expense	29,188		9,745		25,161
Foreign income tax expense	20,299		8,703		13,074
Income tax expense	169,148		71,560		147,297
Consolidated Funds
Current:
Foreign income tax expense	3,823		331		88
Income tax expense	3,823		331		88
Total Provision for Income Taxes
Total current income tax expense	75,219		64,516		64,754
Total deferred income tax expense	97,752		7,375		82,631
Income tax expense	$	172,971	$	71,891	$	147,385

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

	Year ended December 31,
	2023	2022	2021
Income tax expense at federal statutory rate	21.0%	21.0%	21.0%
Income passed through to non-controlling interests	(9.6)	(8.9)	(9.2)
State and local taxes, net of federal benefit	1.7	2.2	1.9
Foreign taxes	(0.7)	(1.4)	(0.1)
Permanent items	0.2	0.6	(0.3)
Disallowed executive compensation	0.2	0.1	0.7
Other, net	0.3	0.3	(0.2)
Valuation allowance	(0.1)	0.2	—
Total effective rate	13.0%	14.1%	13.8%

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, 2023 and 2022. Deferred tax assets, net are included within other assets within the Consolidated Statements of Financial Condition.

	As of December 31,
Deferred Tax Assets and Liabilities of the Company	2023		2022
Deferred tax assets
Amortizable tax basis for AOG Unit exchanges	$	205,627	$	124,217
Net operating losses and capital loss carryforwards	1,829		2,192
Other, net	6,511		6,089
Total gross deferred tax assets	213,967		132,498
Valuation allowance	(942)		(2,155)
Total net deferred tax assets	213,025		130,343
Deferred tax liabilities
Investment in partnerships	(191,476)		(61,410)
Total deferred tax liabilities	(191,476)		(61,410)
Deferred tax assets, net	$	21,549	$	68,933

	As of December 31,
Deferred Tax Assets and Liabilities of the Consolidated Funds	2023		2022
Deferred tax assets
Other, net	$	2,598	$	—
Total gross deferred tax assets	2,598		—
Valuation allowance	(2,598)		—
Total deferred tax assets, net	$	—	$	—

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 Consolidated Funds.

As of December 31, 2023 and 2022, the valuation allowance for the Company’s deferred tax assets was $0.9 million and $2.2 million, respectively. The deferred tax assets related to operating losses in foreign jurisdictions and certain capital loss

carryforwards do not meet the more likely than not threshold and have a valuation allowance recorded for the net balance.

As of December 31, 2023, the Company had $10.6 million of net operating loss (“NOL”) carryforwards and other tax attributes related to its Consolidated Funds available to reduce future income taxes for which a full valuation allowance has been provided. The NOLs generally have no expiry.

As of, and for the years ended December 31, 2023, 2022 and 2021, the Company had no significant uncertain tax positions.