Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

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,
	2019		2018		2017
U.S.	$	359,496	$	449,171	$	379,407
Non-U.S.	32,986		36,589		4,489
Income before Income Tax Expense(a)	$	392,482	$	485,760	$	383,896

(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, 2019, 2018 and 2017 consist of:

	For the Years Ended December 31,
	2019			2018			2017
Current:
Federal	$	72,712		$	80,690		$	85,371
Foreign	6,134			7,360			9,796
State and Local	26,703			24,451			14,955
Total Current	105,549			112,501			110,122
Deferred:
Federal	(2,169		)	(4,771		)	150,800
Foreign	(5,022		)	(61		)	(3,464		)
State and Local	(3,312		)	851			984
Total Deferred	(10,503		)	(3,981		)	148,320
Total	$	95,046		$	108,520		$	258,442

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, 2019, 2018 and 2017 is as follows:

	For the Years Ended December 31,
	2019		2018		2017
Reconciliation of Federal Statutory Tax Rates:
U.S. Statutory Tax Rate	21.0	%	21.0	%	35.0	%
Increase Due to State and Local Taxes	4.2	%	3.6	%	3.1	%
Rate Benefits as a Limited Liability Company/Flow Through	(2.5	)%	(2.6	)%	(2.3	)%
Foreign Taxes	(0.1	)%	0.2	%	(1.1	)%
Non-Deductible Expenses(1)	1.6	%	1.2	%	1.6	%
ASU 2016-09 Benefit for Stock Compensation	(2.7	)%	(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	%	0.3	%	1.1	%
Other Adjustments	(0.6	)%	0.1	%	0.1	%
Effective Income Tax Rate	21.2	%	19.7	%	59.1	%

(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, 2019 and 2018 were as follows:

	December 31,
	2019			2018
Deferred Tax Assets:
Depreciation and Amortization	$	37,912		$	33,738
Compensation and Benefits	85,567			61,541
Step up in tax basis due to the exchange of LP Units for Class A Shares(1)	99,979			111,108
Step up in tax basis due to the exchange of LP Units for Class A Shares(2)	41,286			37,079
Operating Lease(3)	58,497			—
Other	20,617			24,720
Total Deferred Tax Assets	$	343,858		$	268,186
Deferred Tax Liabilities:
Operating Lease(3)	$	46,682		$	—
Goodwill, Intangible Assets and Other	19,012			18,873
Total Deferred Tax Liabilities	$	65,694		$	18,873
Net Deferred Tax Assets Before Valuation Allowance	278,164			249,313
Valuation Allowance	(9,573		)	(8,221		)
Net Deferred Tax Assets	$	268,591		$	241,092

(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.

(3)

As discussed in Note 3, in 2019, the Company adopted ASU 2016-02 using the modified retrospective approach as of the date of adoption, which resulted in the recognition of operating lease right-of-use assets and lease liabilities.

Summary of Income Tax Contingencies

A reconciliation of the changes in tax positions for the years ended December 31, 2019, 2018 and 2017 is as follows:

	December 31,
	2019			2018		2017
Beginning unrecognized tax benefit	$	—		$	—	$	—
Additions for tax positions of prior years	616			—		—
Reductions for tax positions of prior years	—			—		—
Lapse of Statute of Limitations	(122		)	—		—
Decrease due to settlement with Taxing Authority	—			—		—
Ending unrecognized tax benefit	$	494		$	—	$	—