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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes As a result of the Reorganization, the operating business entities of the Company were restructured and a portion of the Company’s income is subject to U.S. federal, state, local and foreign income taxes and is taxed at the prevailing corporate tax rates. Taxes Payable as of December 31, 2013 and 2012 were $4,713 and $20,304, respectively. The following table presents the U.S. and non-U.S. components of Income (Loss) before income tax expense:
| For the Years Ended December 31,
| 2013 |  | 2012 |  | 2011
U.S. | $ | 89,821 |  |  | $ | 45,226 |  |  | $ | 37,681 |
Non-U.S. | 28,735 |  |  | 14,571 |  |  | (7,039 | )
Income before Income Tax Expense (a) | $ | 118,556 |  |  | $ | 59,797 |  |  | $ | 30,642 |
(a) | From continuing operations, net of Noncontrolling Interest from continuing operations.
The components of the provision for income taxes from continuing operations reflected on the Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011 consist of:
| For the Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
Federal | $ | 24,607 |  |  | $ | 24,956 |  |  | $ | 2,367 |
Foreign | 11,982 |  |  | 6,007 |  |  | 4,447 |
State and Local | 7,541 |  |  | 7,912 |  |  | 4,942 |
Total Current | 44,130 |  |  | 38,875 |  |  | 11,756 |
Deferred: |  |  |  |  |
Federal | 5,992 |  |  | (2,458 | ) |  | 11,368 |
Foreign | 4,733 |  |  | (4,756 | ) |  | (1,129 | )
State and Local | 8,834 |  |  | (753 | ) |  | 729 |
Total Deferred | 19,559 |  |  | (7,967 | ) |  | 10,968 |
Total | $ | 63,689 |  |  | $ | 30,908 |  |  | $ | 22,724 |
A reconciliation between the statutory federal income tax rate from continuing operations and the Company’s effective tax rate for the years ended December 31, 2013, 2012 and 2011 is as follows:
| For the Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Reconciliation of Federal Statutory Tax Rates: |  |  |  |  |
U.S. Statutory Tax Rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Increase (Decrease) Due to State and Local Taxes | 5.3 | % |  | 6.8 | % |  | 13.1 | %
Rate Benefits as a Limited Liability Company/Flow Through | (7.0 | )% |  | (6.9 | )% |  | (5.7 | )%
Foreign Taxes | 3.2 | % |  | 2.2 | % |  | 4.3 | %
Non-Deductible Expenses (1) | 3.4 | % |  | 9.4 | % |  | 17.1 | %
Valuation Allowances | — | % |  | (2.0 | )% |  | (0.9 | )%
Write Down of Deferred Tax Asset | 6.8 | % |  | 1.6 | % |  | — | %
Other Adjustments | (0.7 | )% |  | (2.2 | )% |  | (1.0 | )%
Effective Income Tax Rate | 46.0 | % |  | 43.9 | % |  | 61.9 | %
(1) | Primarily related to non-deductible share-based compensation expense.
Undistributed earnings of certain foreign subsidiaries totaled approximately $4,476 as of December 31, 2013. Deferred taxes have not been provided on the undistributed earnings of certain foreign subsidiaries, as the Company considers these amounts to be indefinitely reinvested to finance international growth and expansion. As of December 31, 2013, unrecognized net deferred tax liability attributable to those reinvested earnings would have aggregated approximately $1,288. In the event that such amounts were ever remitted, loaned to the Company, or if the stock in the foreign subsidiary was sold, these earnings could become subject to U.S. Federal tax and an income tax provision, if any, would be recognized at that time. Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Statements of Financial Condition. These temporary differences result in taxable or deductible amounts in future years. Details of the Company’s deferred tax assets and liabilities as of December 31, 2013 and 2012 were as follows:
| December 31,
| 2013 |  | 2012
Current Deferred Tax Assets: |  |  |
Step up in tax basis due to the exchange of LP Units for Class A Shares | $ | 11,271 |  |  | $ | 9,214 |
Total Current Deferred Tax Asset | $ | 11,271 |  |  | $ | 9,214 |
Long-term Deferred Tax Assets: |  |  |
Depreciation and Amortization | $ | 20,604 |  |  | $ | 14,673 |
Compensation and Benefits | 31,735 |  |  | 25,958 |
Step up in tax basis due to the exchange of LP Units for Class A Shares | 192,811 |  |  | 181,783 |
Other | 21,396 |  |  | 17,043 |
Total Long-term Deferred Tax Assets | $ | 266,546 |  |  | $ | 239,457 |
Long-term Deferred Tax Liabilities: |  |  |
Goodwill, Investments and Other | $ | 14,933 |  |  | $ | 10,008 |
Total Long-term Deferred Tax Liabilities | $ | 14,933 |  |  | $ | 10,008 |
Net Long-term Deferred Tax Assets Before Valuation Allowance | $ | 251,613 |  |  | $ | 229,449 |
Valuation Allowance | — |  |  | — |
Net Long-term Deferred Tax Assets | $ | 251,613 |  |  | $ | 229,449 |
The increase in net deferred tax assets from December 31, 2012 to December 31, 2013 was primarily attributable to an increase in the tax basis of the tangible and intangible assets of Evercore LP, which resulted from the 2013 LP Unit exchanges. During 2013, the LP holders exchanged 1,930 LP Units for Class A Shares, which resulted in an increase in the tax basis of the tangible and intangible assets of Evercore LP. Further, the exchange of 1,377 of such LP Units triggered an additional liability under the tax receivable agreement that was entered into in 2006 between the Company and the LP Unit holders. The agreement provides for a payment to the LP Unit holders of 85% of the cash tax savings (if any), resulting from the increased tax benefits from the exchange and for the Company to retain 15% of such benefits. Accordingly, Deferred Tax Assets – Non-Current, Amounts Due Pursuant to Tax Receivable Agreements and Additional Paid-In-Capital increased $31,534, $26,804 and $4,730, respectively, on the Company’s Consolidated Statement of Financial Condition as of December 31, 2013. See Note 14 for further discussion. Additionally, the increase in net deferred tax assets from December 31, 2012 to December 31, 2013 was also attributable to an increase of $5,777 in compensation benefit and an increase of $5,931 related to the depreciation of fixed assets and amortization of intangible assets. The Company reported an increase in deferred tax assets of $182 associated with changes in Unrealized Gain (Loss) on Marketable Securities and a decrease of $307 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2013. The Company reported a decrease in deferred tax assets of $111 associated with changes in Unrealized Gain (Loss) on Marketable Securities and a decrease of $1,870 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2012. In 2012, the Company has concluded that it is more likely than not to utilize its deferred tax asset and has reversed its valuation allowance. This determination was based on the impact of the strong positive evidence in the period related to the 2012 earnings and increases in projections of future income on management’s weighing of the positive and negative evidence. The Company’s net operating loss and tax credit carryforwards primarily relate to carryforwards of $2,398 in the UK at December 31, 2013, which may be carried forward indefinitely, subject to various limitations. A reconciliation of the changes in tax positions for the years ended December 31, 2013, 2012 and 2011 is as follows:
| December 31,
| 2013 |  | 2012 |  | 2011
Beginning unrecognized tax benefit | $ | 98 |  |  | $ | 1,109 |  |  | $ | 2,012 |
Additions for tax positions of prior years | 526 |  |  | — |  |  | 98 |
Lapse of Statute of Limitations | — |  |  | (1,011 | ) |  | (1,001 | )
Ending unrecognized tax benefit | $ | 624 |  |  | $ | 98 |  |  | $ | 1,109 |
Included in the balance of unrecognized tax benefits at December 31, 2013, are $474 of tax benefits that, if recognized, would affect the effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. The Company recognized $166 of interest and penalties during the year ended December 31, 2013. The Company has $215 accrued for the payment of interest and penalties as of December 31, 2013. The Company recognized $16 of interest and penalties during the year ended December 31, 2012. The Company has $49 accrued for the payment of interest and penalties as of December 31, 2012. In 2012, the Company recognized tax benefits of ($603) for penalties and interest associated with the lapse of the statute of limitations The Company does not anticipate a significant change in unrecognized tax positions as a result of the settlement of income tax audits or lapses in the statute of limitations during the next year. The Company is subject to taxation in the U.S. and various state, local and foreign jurisdictions. The Company’s tax years for 2010 to present are subject to examination by the taxing authorities. The Company is currently under examination by New York City for tax years 2008 through 2010. With a few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2010.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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