Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of Income (Loss) Before Income Tax Expense

The following table presents the U.S. and non-U.S. components of Income (Loss) before income tax expense:



	For the Years Ended December 31,
	2013		2012		2011
U.S.	$	89,821	$	45,226	$	37,681
Non-U.S.	28,735		14,571		(7,039		)
Income before Income Tax Expense (a)	$	118,556	$	59,797	$	30,642


(a)	From continuing operations, net of Noncontrolling Interest from continuing operations.

Components of Provision for Income Taxes Reflected on Consolidated Statements of Operations

The components of the provision for income taxes from continuing operations reflected on the Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011 consist of:



	For the Years Ended December 31,
	2013		2012			2011
Current:
Federal	$	24,607	$	24,956		$	2,367
Foreign	11,982		6,007			4,447
State and Local	7,541		7,912			4,942
Total Current	44,130		38,875			11,756
Deferred:
Federal	5,992		(2,458		)	11,368
Foreign	4,733		(4,756		)	(1,129		)
State and Local	8,834		(753		)	729
Total Deferred	19,559		(7,967		)	10,968
Total	$	63,689	$	30,908		$	22,724

Reconciliation Between Statutory Federal Income Tax Rate and Effective Tax Rate

A reconciliation between the statutory federal income tax rate from continuing operations and the Company’s effective tax rate for the years ended December 31, 2013, 2012 and 2011 is as follows:



	For the Years Ended December 31,
	2013		2012		2011
Reconciliation of Federal Statutory Tax Rates:
U.S. Statutory Tax Rate	35.0	%	35.0	%	35.0	%
Increase (Decrease) Due to State and Local Taxes	5.3	%	6.8	%	13.1	%
Rate Benefits as a Limited Liability Company/Flow Through	(7.0	)%	(6.9	)%	(5.7	)%
Foreign Taxes	3.2	%	2.2	%	4.3	%
Non-Deductible Expenses (1)	3.4	%	9.4	%	17.1	%
Valuation Allowances	—	%	(2.0	)%	(0.9	)%
Write Down of Deferred Tax Asset	6.8	%	1.6	%	—	%
Other Adjustments	(0.7	)%	(2.2	)%	(1.0	)%
Effective Income Tax Rate	46.0	%	43.9	%	61.9	%


(1)	Primarily related to non-deductible share-based compensation expense.

Details of Deferred Tax Assets and Liabilities

Details of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 were as follows:



	December 31,
	2013		2012
Current Deferred Tax Assets:
Step up in tax basis due to the exchange of LP Units for Class A Shares	$	11,271	$	9,214
Total Current Deferred Tax Asset	$	11,271	$	9,214
Long-term Deferred Tax Assets:
Depreciation and Amortization	$	20,604	$	14,673
Compensation and Benefits	31,735		25,958
Step up in tax basis due to the exchange of LP Units for Class A Shares	192,811		181,783
Other	21,396		17,043
Total Long-term Deferred Tax Assets	$	266,546	$	239,457
Long-term Deferred Tax Liabilities:
Goodwill, Investments and Other	$	14,933	$	10,008
Total Long-term Deferred Tax Liabilities	$	14,933	$	10,008
Net Long-term Deferred Tax Assets Before Valuation Allowance	$	251,613	$	229,449
Valuation Allowance	—		—
Net Long-term Deferred Tax Assets	$	251,613	$	229,449

Reconciliation of Changes in Tax Positions

A reconciliation of the changes in tax positions for the years ended December 31, 2013, 2012 and 2011 is as follows:



	December 31,
	2013		2012			2011
Beginning unrecognized tax benefit	$	98	$	1,109		$	2,012
Additions for tax positions of prior years	526		—			98
Lapse of Statute of Limitations	—		(1,011		)	(1,001		)
Ending unrecognized tax benefit	$	624	$	98		$	1,109

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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