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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The components of the provision for income taxes reflected on the consolidated statements of income are set forth below:
 
For The Years Ended December 31,
 
2013
 
2012
 
2011
 
(in thousands)
Current taxes:
 
 
 
 
 
U.S. federal
$
19,782

 
$
34,752

 
$
13,419

State and local
1,709

 
4,747

 
2,848

Foreign
10,743

 
7,116

 
13,357

Total current tax expense
32,234

 
46,615

 
29,624

Deferred taxes:
 
 
 
 
 
U.S. federal
(8,711
)
 
(15,119
)
 
(7,501
)
State and local
(265
)
 
(796
)
 
(617
)
Foreign
1,266

 
(2,317
)
 
2,580

Total deferred tax (benefit) expense
(7,710
)
 
(18,232
)
 
(5,538
)
Total tax expense
$
24,524

 
$
28,383

 
$
24,086

Net Deferred Tax Assets and Liabilities

 
As of December 31,
 
2013
 
2012
 
(in thousands)
Deferred tax assets:
 
 
 
Compensation and benefits
$
39,991

 
$
38,445

Depreciation and amortization
3,077

 
2,883

Unrealized loss on investments
205

 
2,322

Cumulative translation adjustment
5,266

 
—

Operating loss carryforwards
3,447

 
4,310

Capital loss carryforwards
2,845

 
789

Foreign tax credit carryforwards
4,252

 
6,206

Other financial accruals
57

 
168

Valuation allowances
(4,938
)
 
(7,611
)
Total deferred tax assets
54,202

 
47,512

Deferred tax liabilities:
 
 
 
Unrealized gain on investments
—

 
4,302

Depreciation and amortization
—

 
125

Cumulative translation adjustment
—

 
3,726

Intangible asset acquired, net of amortization
—

 
199

Repatriation of foreign earnings
2,159

 
545

Other financial accruals
186

 
348

Total deferred tax liabilities
2,345

 
9,245

Net deferred tax asset
$
51,857

 
$
38,267

Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Income Tax Rate
A reconciliation of the statutory U.S. federal income tax rate of 35.0% to the Company’s effective income tax rate is set forth below:
 
For the Years Ended December 31,
 
2013
 
2012
 
2011
U.S. statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
Increase related to state and local taxes, net of U.S. income tax benefit
1.3

 
3.6

 
2.1

Benefits and taxes related to foreign operations
(4.1
)
 
(1.4
)
 
(3.3
)
Valuation allowances
1.5

 
2.7

 
0.6

Sale of merchant banking business
(0.1
)
 
(0.1
)
 
(0.4
)
Other
0.8

 
0.5

 
1.1

Effective income tax rate
34.4
 %
 
40.3
 %
 
35.1
 %