Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of Income Before Provision for Income Taxes

Income before provision for income taxes” as shown in the accompanying Consolidated Statements of Income is comprised of the following (in thousands):

	Year Ended December 31,
	2015		2014		2013
Domestic	$	52,127	$	40,103	$	23,729
Foreign		11,253		13,824		7,367
Total	$	63,380	$	53,927	$	31,096

Schedule of Components of Provision for Income Taxes

Components of the “Provision for income taxes” in the accompanying Consolidated Statements of Income consist of the following (in thousands):

	Year Ended December 31,
	2015		2014		2013
Current
Federal	$	5,451	$	4,304	$	348
Foreign		3,019		3,383		2,068
State and local		1,029		396		26
Total current expense		9,499		8,083		2,442
Deferred expense
Federal		2,333		1,741		366
Foreign		25		(5)		9
State and local		173		129		27
Total deferred expense		2,531		1,865		402
Provision for income taxes	$	12,030	$	9,948	$	2,844

Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate

A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2015	2014	2013
U.S. statutory tax rate	35.0%	35.0%	34.0%
Increase due to state and local taxes, net of federal benefit	2.6%	2.6%	2.6%
Effect of permanent differences	1.0%	0.6%	1.2%
Income attributable to non-controlling interests	-19.6%	-19.8%	-28.7%
Effective tax rate	19.0%	18.4%	9.1%

Summary of Deferred Tax Assets and Liabilities

These temporary differences result in taxable or deductible amounts in future years. Details of the Company’s deferred tax assets and liabilities are summarized as follows (in thousands):

	As of December 31,
	2015		2014
Current deferred tax assets
Compensation and benefits	$	1,280	$	372
Allowance for doubtful accounts		768		489
Accrued liabilities		713		—
Deferred revenue		205		171
Other		366		338
Total current deferred tax assets (a)		3,332		1,370
Long-term deferred tax assets
Goodwill, other intangibles and other assets (b)		95,275		59,124
Imputed interest deduction pursuant to tax receivable agreements		8,380		6,356
Rent liabilities		1,839		1,337
Other		885		636
Total long-term deferred tax assets		106,379		67,453
Long-term deferred tax liabilities
Property and equipment and other long-lived assets		(466)		(367)
Investments in equity method investees		—		(373)
Total long-term deferred tax liabilities		(466)		(740)
Net long-term deferred tax assets		105,913		66,713
Total deferred tax assets and liabilities	$	109,245	$	68,083

(a) Current deferred tax assets are included in “Other current assets” in the accompanying Consolidated Balance Sheets.

Long-term deferred tax assets related to goodwill, other intangibles and other assets and liabilities increased primarily due to the increase in the tax basis of certain intangible assets resulting from RE/MAX Holdings’ increased investment in RMCO from the Secondary Offering. In connection with the Secondary Offering, a long-term deferred tax asset of $43,774,000 was recorded in the accompanying Consolidated Balance Sheets.