Income Taxes (Tables)

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Components of income tax

The components of the income tax expense are as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Current Provision:
Unincorporated Business Taxes 1	$	896		$	706		$	1,609		$	702
Local Corporate Tax	—			—			—			—
State Corporate Tax	—			—			—			—
Federal Corporate Tax	—			—			—			—
Total Current Provision	$	896		$	706		$	1,609		$	702
Deferred Provision:
Unincorporated Business Taxes 1	$	(61	)	$	(36	)	$	8		$	22
Local Corporate Tax	137			74			248			157
State Corporate Tax	266			129			498			276
Federal Corporate Tax	887			631			1,610			1,134
Total Deferred Provision	$	1,229		$	798		$	2,364		$	1,589
Change in Valuation Allowance	(2,399		)	(556		)	(3,166		)	(1,781		)
Net Adjustment Related to Change in Effective Tax Rate	$	—		$	286		$	602		$	286
Total Income Tax Expense	$	(274	)	$	1,234		$	1,409		$	796

^{1 During the three months ended March 31, 2013, the operating company recognized a $0.6 million tax benefit associated with the amendment of prior year tax returns to change the methodology for state and local receipts.} 

Deferred tax assets and liabilities

The change in the Company’s deferred tax assets, net of valuation allowance, for the three and six months ended June 30, 2014 is summarized as follows:

	Section 754			Other			Valuation Allowance			Total
	(in thousands)
Balance at December 31, 2013	$	61,628		$	4,657		$	(53,973	)	$	12,312
Deferred Tax (Expense)/Benefit	(1,104		)	(36		)	—			(1,140		)
Unit Exchange	—			—			—			—
Change in Valuation Allowance	—			—			767			767
Net Adjustment to Deferred Tax Asset	$	(6,608	)	$	(351	)	$	6,357		(602		)
Balance at March 31, 2014	$	53,916		$	4,270		$	(46,849	)	$	11,337
Deferred Tax (Expense)/Benefit	(965		)	(266		)	—			(1,231		)
Unit Exchange	—			—			—			—
Change in Valuation Allowance	—			—			2,399			2,399
Net Adjustment to Deferred Tax Asset	$	—		$	—		$	—		$	—
Balance at June 30, 2014	$	52,951		$	4,004		$	(44,450	)	$	12,505

The change in the Company’s deferred tax liabilities, which is included in other liabilities on the Company’s consolidated statements of financial condition, for the three and six months ended June 30, 2014, is summarized as follows:

	Total
	(in thousands)
Balance at December 31, 2013	$	(39	)
Deferred Tax Expense	5
Balance at March 31, 2014	$	(34	)
Deferred Tax Expense	2
Balance at June 30, 2014	$	(32	)

The change in the Company’s deferred tax assets, net of valuation allowance, for the three and six months ended June 30, 2013 is summarized as follows:

	Section 754			Other			Valuation Allowance			Total
	(in thousands)
Balance at December 31, 2012	$	65,069		$	4,536		$	(59,917	)	$	9,688
Deferred Tax (Expense)/Benefit	(907		)	103			—			(804		)
Unit Exchange	5,935			—			(5,140		)	795
Change in Valuation Allowance	—			—			1,225			1,225
Balance at March 31, 2013	$	70,097		$	4,639		$	(63,832	)	$	10,904
Deferred Tax (Expense)/Benefit	(905		)	103			—			(802		)
Change in Effective Rate	(5,272		)	(105		)	5,091			(286		)
Change in Valuation Allowance	—			—			556			556
Balance at June 30, 2013	$	63,920		$	4,637		$	(58,185	)	$	10,372

The change in the Company’s deferred tax liabilities for the three and six months ended June 30, 2013 is summarized as follows:

	Total
	(in thousands)
Balance at December 31, 2012	$	(59	)
Deferred Tax Expense	14
Balance at March 31, 2013	$	(45	)
Deferred Tax Expense	5
Balance at June 30, 2013	$	(40	)