Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Income before Income Tax, Domestic and Foreign

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



	For the Years Ended December 31,
	2018		2017		2016
U.S.	$	449,171	$	379,407	$	204,920
Non-U.S.	36,589		4,489		21,911
Income before Income Tax Expense^(a)	$	485,760	$	383,896	$	226,831


(a)	Net of Noncontrolling Interest.

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes reflected on the Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 consist of:



	For the Years Ended December 31,
	2018			2017			2016
Current:
Federal	$	80,690		$	85,371		$	79,596
Foreign	7,360			9,796			10,832
State and Local	24,451			14,955			18,832
Total Current	112,501			110,122			109,260
Deferred:
Federal	(4,771		)	150,800			11,510
Foreign	(61		)	(3,464		)	(1,439		)
State and Local	851			984			(28		)
Total Deferred	(3,981		)	148,320			10,043
Total	$	108,520		$	258,442		$	119,303

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the federal statutory income tax rate and the Company's effective income tax rate for the years ended December 31, 2018, 2017 and 2016 is as follows:



	For the Years Ended December 31,
	2018		2017		2016
Reconciliation of Federal Statutory Tax Rates:
U.S. Statutory Tax Rate	21.0	%	35.0	%	35.0	%
Increase Due to State and Local Taxes	3.6	%	3.1	%	4.8	%
Rate Benefits as a Limited Liability Company/Flow Through	(2.6	)%	(2.3	)%	(5.9	)%
Foreign Taxes	0.2	%	(1.1	)%	0.7	%
Non-Deductible Expenses⁽¹⁾	1.2	%	1.6	%	9.9	%
ASU 2016-09 Benefit for Stock Compensation	(4.2	)%	(5.5	)%	—	%
Tax Cuts and Jobs Act - Reduction to Tax Receivable Agreement Liability	—	%	(5.6	)%	—	%
Tax Cuts and Jobs Act - Primarily Related to the Re-measurement of Net Deferred Tax Assets	0.1	%	32.7	%	—	%
Valuation Allowances	0.3	%	1.1	%	—	%
Other Adjustments	0.1	%	0.1	%	—	%
Effective Income Tax Rate	19.7	%	59.1	%	44.5	%


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

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Statements of Financial Condition. These temporary differences result in taxable or deductible amounts in future years. Details of the Company's deferred tax assets and liabilities as of December 31, 2018 and 2017 were as follows:



	December 31,
	2018			2017
Deferred Tax Assets:
Depreciation and Amortization	$	33,738		$	26,319
Compensation and Benefits	61,541			46,697
Step up in tax basis due to the exchange of LP Units for Class A Shares⁽¹⁾	111,108			106,360
Step up in tax basis due to the exchange of LP Units for Class A Shares⁽²⁾	37,079			25,883
Other	24,720			20,282
Total Deferred Tax Assets	$	268,186		$	225,541
Deferred Tax Liabilities:
Goodwill, Intangible Assets and Other	$	18,873		$	20,241
Total Deferred Tax Liabilities	$	18,873		$	20,241
Net Deferred Tax Assets Before Valuation Allowance	$	249,313		$	205,300
Valuation Allowance	(8,221		)	(6,406		)
Net Deferred Tax Assets	$	241,092		$	198,894


(1)	Step-up in the tax basis associated with the exchange of LP Units for holders which have a tax receivable agreement.


(2)	Step-up in the tax basis associated with the exchange of LP Units for holders which do not have a tax receivable agreement.