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Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The Company's Provision for Income Taxes was $22,459 and $40,751 for the three and six months ended June 30, 2017, respectively, and $30,676 and $40,410 for the three and six months ended June 30, 2016, respectively. The effective tax rate was 46% and 25% for the three and six months ended June 30, 2017, respectively, and 48% and 49% for the three and six months ended June 30, 2016, respectively. The effective tax rate for the three and six months ended June 30, 2017 reflects the application of ASU 2016-09, which was adopted effective January 1, 2017. ASU 2016-09 requires that the tax deduction associated with the appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price be reflected in income tax expense. The application of ASU 2016-09 resulted in excess tax benefits from the delivery of Class A Shares under share-based payment arrangements of ($23,172) being recognized in the Company's Provision for Income Taxes for the six months ended June 30, 2017 and resulted in a reduction in the effective tax rate of 14 percentage points for the six months ended June 30, 2017. The effective tax rate for 2017 and 2016 also reflects the effect of certain nondeductible expenses, including expenses related to Class E LP Units and Class G and H LP Interests, as well as the noncontrolling interest associated with LP Units and other adjustments. In addition, the effective tax rate for the three and six months ended June 30, 2017 was impacted by a valuation allowance on deferred tax assets related to Evercore Brazil.
The Company reported a decrease in deferred tax assets of $205 associated with changes in Unrealized Gain (Loss) on Marketable Securities and a decrease of $629 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2017. The Company reported an increase in deferred tax assets of $290 associated with changes in Unrealized Gain (Loss) on Marketable Securities and an increase of $4,549 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2016.
As of June 30, 2017, the Company had no unrecognized tax benefits.
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.