INCOME TAXES	3 Months Ended
Mar. 31, 2016
INCOME TAXES
INCOME TAXES	14. INCOME TAXES Prior to the Company's reorganization and IPO of Moelis & Company, the Company had been primarily subject to the New York City unincorporated business tax ("UBT") and certain other foreign, state and local 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 the noncontrolling interest holders, which is made up of individual partners and members and have historically not been reflected in the condensed consolidated statements of financial condition. In connection with the Company's reorganization and IPO, the Company became 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 taxes and effective tax rate were $5,444 and 18% and $4,300 and 18% for the three months ended March 31, 2016 and 2015, respectively. The income tax provision for the aforementioned periods primarily reflects the Company's allocable share of earnings from Group LP at prevailing U.S. federal, state and local corporate income tax rates and the effect of the allocable earnings to noncontrolling interests being subject to UBT and certain other foreign, state and local taxes. The Company recorded a decrease in the net deferred tax asset of $222 for the three months ended March 31, 2016, which was primarily attributable to the effect of an increase in deferred compensation net of a decrease in the deferred tax asset from the amortization of step-up in tax basis in Group LP assets resulting from the previous exchange of Class A partnership units in Group LP for Class A common stock.

INCOME TAXES

3 Months Ended

Mar. 31, 2016

14. INCOME TAXES

Prior to the Company's reorganization and IPO of Moelis & Company, the Company had been primarily subject to the New York City unincorporated business tax ("UBT") and certain other foreign, state and local 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 the noncontrolling interest holders, which is made up of individual partners and members and have historically not been reflected in the condensed consolidated statements of financial condition. In connection with the Company's reorganization and IPO, the Company became 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 taxes and effective tax rate were $5,444 and 18% and $4,300 and 18% for the three months ended March 31, 2016 and 2015, respectively. The income tax provision for the aforementioned periods primarily reflects the Company's allocable share of earnings from Group LP at prevailing U.S. federal, state and local corporate income tax rates and the effect of the allocable earnings to noncontrolling interests being subject to UBT and certain other foreign, state and local taxes.

The Company recorded a decrease in the net deferred tax asset of $222 for the three months ended March 31, 2016, which was primarily attributable to the effect of an increase in deferred compensation net of a decrease in the deferred tax asset from the amortization of step-up in tax basis in Group LP assets resulting from the previous exchange of Class A partnership units in Group LP for Class A common stock.