Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The income before provision for income taxes and provision for income taxes are as follows:



	Years Ended December 31,
(in thousands)	2019			2018			2017
Income before provision for income taxes - U.S. ⁽¹⁾	$	171,497		$	132,838		$	149,338
Income before provision for income taxes - Non-U.S.	16,052			10,941			11,062
Total income before provision for income taxes	$	187,549		$	143,779		$	160,400
_________________________ (1) Included income of $12.4 million, loss of $4.4 million and income of $547,000 attributable to third-party interests for the years ended December 31, 2019, 2018 and 2017, respectively.

Current tax expense:
U.S. federal	$	30,818		$	26,223		$	58,082
State and local	7,627			7,378			8,155
Non-U.S.	2,024			2,029			1,991
	40,469			35,630			68,228
Deferred tax (benefit) expense:
U.S. federal	(133		)	(748		)	(428		)
State and local	(74		)	(281		)	(412		)
Non-U.S.	303			(344		)	526
	96			(1,373		)	(314		)
Provision for income taxes	$	40,565		$	34,257		$	67,914

Significant components of the Company’s net deferred income tax asset consist of the following:



	At December 31,
(in thousands)	2019			2018
Deferred income tax assets (liabilities):
Stock-based compensation	$	5,310		$	4,915
Realized losses on investments	4,218			1,539
Dividend equivalents on unvested restricted stock units	1,725			1,734
Net unrealized (gains) losses on investments	(1,632		)	2,512
Deferred compensation	290			78
Deferred rent	1,205			1,452
Other	(824		)	(760		)
Subtotal	10,292			11,470
Less: valuation allowance	(3,201		)	(4,270		)
Deferred income tax asset—net	$	7,091		$	7,200

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:



(in thousands)	Liability for Unrecognized Tax Benefits
Gross unrecognized tax benefits balance at January 1, 2017	$	7,852
Addition for tax positions of current year	1,724
Addition for tax positions of prior years	6,624
Reduction of tax positions from prior years	(3,794		)
Gross unrecognized tax benefits balance at December 31, 2017	$	12,406
Addition for tax positions of current year	2,233
Reduction of tax positions from prior years	(2,602		)
Gross unrecognized tax benefits balance at December 31, 2018	$	12,037
Addition for tax positions of current year	2,430
Addition for tax positions of prior years	133
Reduction of tax positions from prior years	(1,720		)
Gross unrecognized tax benefits balance at December 31, 2019	$	12,880

A reconciliation of the Company’s statutory federal income tax rate and the effective tax rate is as follows:



	Years Ended December 31,
	2019		2018		2017
U.S. statutory tax rate	21.0	%	21.0	%	35.0	%
State and local income taxes, net of federal income taxes	3.4	%	3.8	%	3.1	%
Unrecognized tax benefit adjustments	(1.0	)%	(1.0	)%	(1.9	)%
Foreign operations tax differential	(0.5	)%	0.3	%	(1.4	)%
Non-deductible (gains) losses on investments	(1.6	)%	0.2	%	0.2	%
Non-taxable (gains) losses on investments	0.9	%	0.1	%	(0.2	)%
Tax Act	—	%	(0.1	)%	8.0	%
Other	1.0	%	(1.2	)%	(0.3	)%
Effective income tax rate	23.2	%	23.1	%	42.5	%

The transition tax liability is as follows: