Income taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Reconciliation of Effective Income Tax Rate

The income tax provision shown in the consolidated statements of operations is reconciled to amounts of tax that would have been payable (recoverable) from the application of the federal tax rate to pre-tax profit, as follows:



(Expressed in thousands)
	For the Year Ended December 31,
	2014					2013					2012
	Amount			Percentage		Amount			Percentage		Amount			Percentage
U.S. federal statutory income tax rate	$	9,008		35.0	%	$	15,368		35.0	%	$	(184	)	35.0	%
U.S. state and local income taxes, net of U.S. federal income tax benefits	2,033			7.9	%	2,131			4.9	%	(1,585		)
Unrecognized tax benefit	6			—	%	1,244			2.8	%	1,524
Tax exempt income, net of interest expense	(528		)	-2.0	%	(715		)	-1.6	%	(561		)
Non-deductible regulatory settlements	5,298			20.6	%	—			—	%	306
Business promotion and other non-deductible expenses	655			2.5	%	660			1.5	%	545
Insurance proceeds, non-taxable	(65		)	-0.3	%	(597		)	-1.4	%	(349		)
Adjustment to reflect prior year tax return filings	256			1.0	%	(251		)	-0.6	%	(294		)
Tax rate change on deferred income taxes	241			0.9	%	208			0.5	%	390
Non-U.S. operations	(447		)	-1.7	%	185			0.4	%	678
Other	(282		)	-1.1	%	(477		)	-1.1	%	(146		)
Total income tax expense	$	16,175		62.8	%	$	17,756		40.4	%	$	324		n/m

n/m = not meaningful

Schedule of Current and Deferred Income Tax (Benefit)

Income taxes included in the consolidated statements of operations represent the following:



(Expressed in thousands)
	For the Year Ended December 31,
	2014			2013			2012
Current:
U.S. federal tax (benefit)	$	10,302		$	(2,984	)	$	19,918
State and local tax	1,520			1,885			2,765
Non-U.S. operations	(264		)	116			(61		)
Total Current	11,558			(983		)	22,622
Deferred:
U.S. federal tax (benefit)	1,273			16,658			(17,303		)
State and local tax (benefit)	2,057			2,482			(4,890		)
Non-U.S. operations	1,287			(401		)	(105		)
Total Deferred	4,617			18,739			(22,298		)
Total	$	16,175		$	17,756		$	324

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 31, 2014 and 2013 were as follows:



(Expressed in thousands)
	For the Year Ended December 31,
	2014			2013
Deferred tax assets:
Employee deferred compensation plans	$	30,969		$	31,213
Deferred rent	10,024			10,451
Lease incentive	6,212			6,693
Broker notes	3,460			3,915
Auction rate securities reserve	3,229			3,669
Net operating loss	2,896			4,587
Involuntary conversion	2,033			1,866
Reserve for litigation and legal fees	5,808			1,659
Allowance for doubtful accounts	984			1,002
State and local net operating loss/credit carryforward	357			1,993
Other	2,650			2,757
Total deferred tax assets	68,622			69,805
Valuation allowance	113			138
Deferred tax assets after valuation allowance	68,509			69,667
Deferred tax liabilities:
Goodwill amortization (Section 197)	48,025			43,728
Partnership investments	10,865			12,039
Mortgage servicing rights	12,173			9,889
Company owned life insurance	6,501			5,173
Change in accounting method	2,591			3,895
Book versus tax depreciation differences	982			1,437
Other	469			602
Total deferred tax liabilities	81,606			76,763
Deferred tax liabilities, net	$	(13,097	)	$	(7,096	)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefit follows:



(Expressed in thousands)
	2014		2013			2012
Balance at January 1,	$	1,574	$	5,236		$	2,317
Additions for tax positions of prior years	—		1,168			2,919
Additions for tax positions of current year	9		77			—
Reclass to other tax accounts	—		(4,907		)	—
Balance at December 31,	$	1,583	$	1,574		$	5,236

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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