Income Taxes and Related Payments (Tables)

6 Months Ended

Jun. 30, 2019

Components of the provision for income taxes

Components of the provision for income taxes consist of the following:



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Current:
Federal	$	3,073	$	4,589	$	4,386	$	8,738
State and local	800		828		1,315		1,595
Foreign	107		115		228		232
Total	3,980		5,532		5,929		10,565
Deferred:
Federal	6,706		5,769		13,402		12,249
State and local	798		686		1,595		1,458
Total	7,504		6,455		14,997		13,707
Income tax expense	$	11,484	$	11,987	$	20,926	$	24,272

Schedule of Other Assets and Other Liabilities

The change in the Company’s deferred tax assets related to the tax benefits described above and the change in corresponding amounts payable under the TRAs for the six months ended June 30, 2019 is summarized as follows:



	Deferred Tax Asset - Amortizable basis			Amounts payable under tax receivable agreements
December 31, 2018	$	404,715		$	369,355
2019 Holdings Common Unit Exchanges	10,464			8,894
Amortization	(15,480		)	—
Payments under TRA	—			(19,009		)
June 30, 2019	$	399,699		$	359,240

Components of deferred tax assets

Net deferred tax assets comprise the following:



	As of June 30, 2019		As of December 31, 2018
Deferred tax assets:
Amortizable basis ⁽¹⁾	$	399,699	$	404,715
Other ⁽²⁾	25,485		24,413
Total deferred tax assets	425,184		429,128
Less: valuation allowance ⁽³⁾	—		—
Net deferred tax assets	$	425,184	$	429,128
⁽¹⁾ Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements.
⁽²⁾ Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets. These future tax benefits are not subject to the TRA agreements.
⁽³⁾ Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required.