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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes As a result of the Company's formation and initial public offering, collectively referred to as 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, 2021 and 2020 were $20,980 and $15,346, respectively. 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 years ended December 31, 2021, 2020 and 2019, no additional income tax expense associated with the GILTI provisions has been recognized. The following table presents the U.S. and non-U.S. components of Income before income tax expense:
| For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
U.S. | $ | 832,411 |  |  | $ | 407,015 |  |  | $ | 359,496 |
Non-U.S. | 155,731 |  |  | 71,710 |  |  | 32,986 |
Income before Income Tax Expense(a) | $ | 988,142 |  |  | $ | 478,725 |  |  | $ | 392,482 |
(a)Net of Noncontrolling Interest. The components of the provision for income taxes reflected on the Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 consist of:
| For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | 141,260 |  |  | $ | 73,119 |  |  | $ | 72,712 |
Foreign | 25,643 |  |  | 20,360 |  |  | 6,134 |
State and Local | 52,045 |  |  | 20,848 |  |  | 26,703 |
Total Current | 218,948 |  |  | 114,327 |  |  | 105,549 |
Deferred: |  |  |  |  |
Federal | 25,352 |  |  | 9,640 |  |  | (2,169) |
Foreign | (1,757) |  |  | 3,290 |  |  | (5,022) |
State and Local | 5,483 |  |  | 894 |  |  | (3,312) |
Total Deferred | 29,078 |  |  | 13,824 |  |  | (10,503) |
Total | $ | 248,026 |  |  | $ | 128,151 |  |  | $ | 95,046 |
A reconciliation between the federal statutory income tax rate and the Company's effective income tax rate for the years ended December 31, 2021, 2020 and 2019 is as follows:
| For the Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Reconciliation of Federal Statutory Tax Rates: |  |  |  |  |
U.S. Statutory Tax Rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase Due to State and Local Taxes | 4.6 | % |  | 3.7 | % |  | 4.2 | %
Rate Benefits as a Limited Liability Company/Flow Through | (2.6) | % |  | (2.2) | % |  | (2.5) | %
Foreign Taxes | 0.5 | % |  | (1.1) | % |  | (0.1) | %
Non-Deductible Expenses(1) | 0.3 | % |  | 0.7 | % |  | 1.6 | %
ASU 2016-09 Benefit for Stock Compensation | (1.7) | % |  | — | % |  | (2.7) | %
Valuation Allowances | (0.4) | % |  | 1.8 | % |  | 0.3 | %
Other Adjustments | 0.5 | % |  | (0.2) | % |  | (0.6) | %
Effective Income Tax Rate | 22.2 | % |  | 23.7 | % |  | 21.2 | %
(1)Primarily related to non-deductible share-based compensation expense. The effective tax rate for the years ended December 31, 2021, 2020 and 2019 reflects the application of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" which requires that the tax deduction associated with the appreciation or depreciation in the Company's share price upon vesting of employee share-based awards above or below the original grant price be reflected in income tax expense. The Company's Provision for Income Taxes reflects an additional tax benefit of $18,664 and $12,229 for the years ended December 31, 2021 and 2019, respectively, related to the application of ASU 2016-09, and an additional tax expense of $17 for the year ended December 31, 2020, and resulted in a reduction in the effective tax rate of 1.7 and 2.7 percentage points for the years ended December 31, 2021 and 2019, respectively. The effective tax rate for 2021, 2020 and 2019 also reflects the effect of certain nondeductible expenses, including expenses related to Class E and J LP Units and Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments. Due to the enactment of the Tax Cuts and Jobs Act on December 22, 2017, the previous undistributed earnings of certain foreign subsidiaries are subject to a mandatory deemed repatriation tax. Income taxes paid or payable to foreign jurisdictions partially reduce the repatriation tax as a foreign tax credit, based on a formula that includes earnings of certain foreign subsidiaries. The Company has computed the repatriation tax and determined that it should have sufficient foreign tax credits to offset the estimated charge; any additional liability would be immaterial. 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, 2021 and 2020 were as follows:
| December 31,
| 2021 |  | 2020
Deferred Tax Assets: |  |  |
Depreciation and Amortization | $ | 26,207 |  |  | $ | 24,179 |
Compensation and Benefits | 95,532 |  |  | 90,787 |
Step up in tax basis due to the exchange of LP Units for Class A Shares(1) | 83,313 |  |  | 90,157 |
Step up in tax basis due to the exchange of LP Units for Class A Shares(2) | 44,840 |  |  | 46,215 |
Operating Lease | 81,198 |  |  | 80,446 |
Other | 9,511 |  |  | 21,478 |
Total Deferred Tax Assets | $ | 340,601 |  |  | $ | 353,262 |
Deferred Tax Liabilities: |  |  |
Operating Lease | $ | 62,164 |  |  | $ | 63,460 |
Goodwill, Intangible Assets and Other | 16,289 |  |  | 12,873 |
Total Deferred Tax Liabilities | $ | 78,453 |  |  | $ | 76,333 |
Net Deferred Tax Assets Before Valuation Allowance | 262,148 |  |  | 276,929 |
Valuation Allowance | (14,071) |  |  | (19,067) |
Net Deferred Tax Assets | $ | 248,077 |  |  | $ | 257,862 |
(1)Step-up in the tax basis associated with the exchange of LP Units for holders which have a tax receivable agreement. (2)Step-up in the tax basis associated with the exchange of LP Units for holders which do not have a tax receivable agreement. The $9,785 decrease in net deferred tax assets from December 31, 2020 to December 31, 2021 was primarily attributable to the write-off of deferred tax credits included in Other and the excess amortization over the current year step-up in the basis of the tangible and intangible assets of Evercore LP, as discussed below. In addition, as of December 31, 2021, management weighted both the positive and negative evidence and concluded that it was appropriate to reverse $4,996 of the valuation allowance, primarily related to the $4,601 reversal of deferred New York City unincorporated business tax credits that expired due to the statute of limitations. During 2021, the LP holders exchanged 86 Class A and Class E LP Units for Class A Shares, which resulted in an increase in the tax basis of the tangible and intangible assets of Evercore LP. The exchange of Class E and certain Class A LP Units resulted in a $2,539 step-up in the tax basis of the tangible and intangible assets of Evercore LP and a corresponding increase to Additional Paid-In-Capital on the Company's Consolidated Statement of Financial Condition as of December 31, 2021. Further, there was an exchange of 156 Class A LP Units that triggered an additional liability under the Tax Receivable Agreement that was entered into in 2006 between the Company and the LP Unit holders for the year ended December 31, 2021. 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, Amounts Due Pursuant to Tax Receivable Agreements and Additional Paid-In-Capital increased $5,567, $4,732 and $835, respectively, on the Company's Consolidated Statement of Financial Condition as of December 31, 2021. See Note 15 for further discussion. The Company reported an increase in deferred tax assets of $93 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $783 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2021. The Company reported an increase in deferred tax assets of $458 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $7,772 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the year ended December 31, 2020. A reconciliation of the changes in tax positions for the years ended December 31, 2021, 2020 and 2019 is as follows:
| December 31,
| 2021 |  | 2020 |  | 2019
Beginning unrecognized tax benefit | $ | 376 |  |  | $ | 494 |  |  | $ | — |
Additions for tax positions of prior years | — |  |  | — |  |  | 616 |
Reductions for tax positions of prior years | — |  |  | — |  |  | — |
Lapse of Statute of Limitations | (122) |  |  | (118) |  |  | (122) |
Decrease due to settlement with Taxing Authority | — |  |  | — |  |  | — |
Ending unrecognized tax benefit | $ | 254 |  |  | $ | 376 |  |  | $ | 494 |
The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Consolidated Statements of Operations. As of December 31, 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 $40 and $2, respectively, during the year ended December 31, 2021. In addition, during the year ended December 31, 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. As of December 31, 2020, there were $376 of unrecognized tax benefits that, if recognized, $306 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $59 and $2, respectively, during the year ended December 31, 2020. In 2020, the Company recognized tax benefits of ($42) and ($3) of interest and penalties, respectively, associated with the lapse of the statute of limitations. As of December 31, 2019, there were $494 of unrecognized tax benefits that, if recognized, $402 would affect the effective tax rate. The Company is subject to taxation in the U.S. and various state, local and foreign jurisdictions. The Company and its affiliates are currently under examination by the U.S. Internal Revenue Service for tax year 2019, New York City for tax years 2014 through 2016 and New York State for tax years 2013 through 2015. 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 2016.

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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