Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

13.INCOME TAXES

The Company’s operations are comprised of entities that are organized as limited liability companies and limited partnerships. For U.S. federal income tax purposes, taxes related to income earned by these entities represent obligations of their interest holders, except for certain other foreign, state, and local entity-level taxes (for example, the New York City Unincorporated Business Tax (“UBT”)). In addition, the Company is subject to U.S. corporate federal, state, and local income tax on its allocable share of results of operations from Group LP.

The Company’s provision for income tax and effective tax rate were an expense of $15,296 and 25.9% and $27,778 and 23.0% for the three months ended June 30, 2022 and 2021, respectively. The Company's provision for income tax and effective tax rate were an expense of $28,894 and 19.7% and $27,602 and 14.0% for the six months ended June 30, 2022 and 2021, respectively. The income tax provision for the aforementioned periods primarily reflects the Company’s allocable share of earnings from Group LP at the prevailing U.S. federal, state, and local corporate income tax rates offset by the effect of the excess tax benefit recognized in connection with the delivery of equity-based compensation at an appreciated price above the grant date price for such equity. The excess tax benefit for the three months ended June 30, 2022 and 2021 were $95 and $170, respectively, and $8,646 and $17,712 for the six months ended June 30, 2022 and 2021, respectively.