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Income Taxes
9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company's Provision for Income Taxes was $59,712 and $137,871 for the three and nine months ended September 30, 2021, respectively, and $15,677 and $51,042 for the three and nine months ended September 30, 2020, respectively. The effective tax rate was 24.0% and 21.0% for the three and nine months ended September 30, 2021, respectively, and 23.5% and 24.5% for the three and nine months ended September 30, 2020, respectively. The effective tax rate reflects net excess tax benefits and deficiencies associated with the appreciation or depreciation of the Company's share price upon vesting of employee share-based awards above or below the original grant price. The Company's Provision for Income Taxes for the nine months ended September 30, 2021 reflects an additional deduction of $17,422 and resulted in a reduction in the effective tax rate of 3 percentage points, and for the nine months ended September 30, 2020, reflects an additional tax expense of $100 and resulted in an increase in the effective tax rate of 0.05 percentage points related to the effect of share price changes upon vesting of share-based awards. The effective tax rate for 2021 and 2020 also reflects the effect of certain nondeductible expenses, including expenses related to Class J LP Units and Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.
Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred. For the three and nine months ended September 30, 2021 and 2020, no additional
income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company’s effective tax rate for the year.
The Company reported an increase in deferred tax assets of $111 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $1,345 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2021. The Company reported an increase in deferred tax assets of $525 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $1,244 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2020.
The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations. As of September 30, 2021, there were $254 of unrecognized tax benefits that, if recognized, $206 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $10 and $1, respectively, during the three months ended September 30, 2021. In addition, during the three months ended September 30, 2021, $122 of unrecognized tax benefits were recognized by the Company as a result of a lapse in the statute of limitations, of which $99 affected the effective tax rate. In addition, the Company also recognized a tax benefit for accrued interest and penalties of $43 and $3, respectively, associated with the lapse in the statute of limitations