Income Taxes and Related Payments (Tables)

3 Months Ended

Mar. 31, 2020

Components of the provision for income taxes

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


	For the Three Months Ended March 31,
	2020		2019
Current:
Federal	$	1,593	$	1,313
State and local	868		515
Foreign	109		121
Total	2,570		1,949
Deferred:
Federal	5,898		6,696
State and local	983		797
Total	6,881		7,493
Income tax expense	$	9,451	$	9,442

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 three months ended March 31, 2020 is summarized as follows:


	Deferred Tax Asset - Amortizable basis		Amounts payable under tax receivable agreements
December 31, 2019	$	408,140	$	375,324
2020 Follow-On Offering	21,424		18,211
2020 Holdings Common Unit Exchanges	14,873		12,642
Amortization	(8,687)		—



March 31, 2020	$	435,750	$	406,177

Components of deferred tax assets

Net deferred tax assets comprise the following:


	As of March 31, 2020		As of December 31, 2019
Deferred tax assets:
Amortizable basis ⁽¹⁾	$	435,750	$	408,140
Other ⁽²⁾	31,223		27,757
Total deferred tax assets	466,973		435,897
Less: valuation allowance ⁽³⁾	—		—
Net deferred tax assets	$	466,973	$	435,897

⁽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.