XML 35 R24.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Income Taxes
6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

Note 18 – Income Taxes

The Company's Provision (Benefit) for Income Taxes was $5,977 and $10,235 for the three and six months ended June 30, 2011, respectively, and ($1,698) and $2,961 for the three and six months ended June 30, 2010, respectively. The effective tax rate was 53% and 45% for the three and six months ended June 30, 2011, respectively, and 52% and 40% for the three and six months ended June 30, 2010, respectively. The effective tax rate for 2011 and 2010 reflects the effect of certain compensation transactions as well as the noncontrolling interest associated with LP Units. The effective tax rate for 2010 also reflected the effect of losses in certain foreign jurisdictions for which no income tax benefits are anticipated.

The Company reported a decrease in deferred tax assets of ($1,508) associated with changes in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2011.

As of June 30, 2011, there was $1,981 of unrecognized tax benefits that, if recognized, would affect the effective tax rate. The Company does not anticipate a significant change in unrecognized tax positions as a result of the settlement of income tax audits for examining the Company's income tax returns during the upcoming year.

The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations. Related to the unrecognized tax benefits, the Company accrued interest of $36 and $72 during the three and six months ended June 30, 2011, respectively, and had recognized a liability for penalties of $561 and interest of $789 at June 30, 2011.

As a result of the Company's offering of common stock which occurred during the second quarter of 2011, Deferred Tax Assets – Non-Current and Amounts Due Pursuant to Tax Receivable Agreements increased $47,481 and $40,360, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2011. See Note 12 for further information.