Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017		2016		2015
Domestic	$	78,812	$	51,194	$	51,552
Foreign		11,943		11,305		11,253
Total	$	90,755	$	62,499	$	62,805

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,
	2017		2016		2015
Current
Federal	$	3,568	$	8,002	$	5,451
Foreign		4,345		2,855		3,019
State and local		1,169		943		1,029
Total current expense		9,082		11,800		9,499
Deferred expense
Federal		45,934		3,222		2,333
Foreign		(9)		13		25
State and local		569		238		173
Total deferred expense		46,494		3,473		2,531
Provision for income taxes	$	55,576	$	15,273	$	12,030

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

	Year Ended December 31,
	2017		2016		2015
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
Increase due to state and local taxes, net of federal benefit	2.6		2.6		2.6
Effect of permanent differences	(0.1)		(0.2)		1.2
Income attributable to non-controlling interests	(12.5)		(14.1)		(19.7)
Other	0.2		1.1		0.1
Subtotal	25.2		24.4		19.2
Impact of reduction in TRA liability on non-controlling interests(a)	4.5		-		-
Effect of permanent difference – reduction in TRA liability(b)	(13.6)		-		-
Tax Cuts and Jobs Act rate change(c)	45.1		-		-
	61.2	%	24.4	%	19.2	%

(a) Reflects additional impact of non-controlling interest adjustment being on a larger base of income that includes the gain on reduction in TRA liability.

(b) Reflects the impact of gain on TRA liability reduction, which is not taxable.

(c) Reflects reduction in deferred tax assets and resulting increase in deferred tax expense due to U.S. Federal rate declining from 35% to 21%.

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,
	2017		2016
Long-term deferred tax assets
Goodwill, other intangibles and other assets	$	52,385	$	90,686
Imputed interest deduction pursuant to tax receivable agreements		3,052		8,483
Rent liabilities		1,878		2,037
Compensation and benefits		526		1,606
Allowance for doubtful accounts		687		979
Motto contingent liability		929		1,405
Deferred Revenue		171		—
Other		393		855
Total long-term deferred tax assets		60,021		106,051
Long-term deferred tax liabilities
Property and equipment and other long lived assets		(1,021)		(414)
Total long-term deferred tax liabilities		(1,021)		(414)
Net long-term deferred tax assets		59,000		105,637
Total deferred tax assets and liabilities	$	59,000	$	105,637