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Income Taxes and Related Payments (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of the provision for income taxes

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

			For the Years Ended December 31,
Current:			2024						2023						2022
Federal			$	35,838					$	21,776					$	25,903
State and local			10,581						6,580						6,870
Foreign			303						1,036						521
Total			46,722						29,392						33,294
Deferred:
Federal			37,517						36,128						25,670
State and local			6,662						6,368						4,486
Total			44,179						42,496						30,156
Income tax expense			$	90,901					$	71,888					$	63,450

Reconciliation of effective tax rate

The provision for income taxes differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate to income before provision for income taxes as follows:

			For the Years Ended December 31,
			2024						2023						2022
U.S. federal statutory rate			21.0		%				21.0		%				21.0		%
State and local taxes, net of federal tax effect			3.4						3.4						3.7
Excess tax benefits on share-based compensation			(1.0)						(0.9)						(1.7)
Rate benefit from the flow through entity			(4.3)						(4.9)						(2.8)
Unrecognized tax benefits			0.3						—						(0.1)
Limits on executive compensation			1.1						0.6						0.4
Other			0.1						(0.5)						(0.2)
Effective tax rate			20.6		%				18.7		%				20.3		%

Schedule of DTA and TRA Payable

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 years ended December 31, 2024 and 2023 is summarized as follows:

			Deferred Tax Asset - Amortizable Basis						Amounts Payable Under TRAs
December 31, 2022			$	426,468					$	398,789
2023 Holdings Common Unit Exchanges			1,789						1,521
Amortization			(43,832)						—
Payments under TRAs (1)			—						(35,757)
Change in estimate			(2)						(505)
December 31, 2023			$	384,423					$	364,048
2024 Holdings Common Unit Exchanges			15,963						13,568
Amortization			(45,608)						—
Payments under TRAs (1)			—						(36,659)
Change in estimate			(5)						504
December 31, 2024			$	354,773					$	341,461
(1) Interest payments of $0.3 million and $0.2 million were paid in addition to these TRA payments for the years ended December 31, 2024 and 2023, respectively.

Components of deferred tax assets

Net deferred tax assets comprise the following:

			As of December 31, 2024						As of December 31, 2023
Deferred tax assets:
Amortizable basis (1)			$	354,773					$	384,423
Other (2)			54,613						52,106
Total deferred tax assets			409,386						436,529
Less: valuation allowance (3)			—						—
Net deferred tax assets			$	409,386					$	436,529
(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 Artisan’s investment in Holdings, related primarily to incentive compensation plan deduction timing differences. 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.

Schedule of Unrecognized Tax Benefits Roll Forward

The change in the Company’s gross unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022 is summarized as follows:

			For the Years Ended December 31,
			2024						2023						2022
Balance at beginning of year			$	173					$	147					$	1,085
Additions for tax positions of prior years			1,219						—						117
Reductions for tax positions of prior years			(27)						—						(476)
Tax positions related to the current year			211						26						30
Settlements with taxing authorities			—						—						(609)
Balance at end of year			$	1,576					$	173					$	147

If recognized, $1.4 million and $0.2 million of the benefits recorded as of December 31, 2024 and 2023, respectively, would favorably impact the effective tax rate in future periods. The total amount of unrecognized tax benefits is currently not expected to significantly increase or decrease within the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Accrued interest on uncertain tax positions was $0.2 million and less than $0.1 million as of December 31, 2024 and 2023, respectively, and is excluded from the unrecognized tax benefits total above. The gross unrecognized tax benefit is recorded within accounts payable, accrued expenses, and other in the Company's Consolidated Statements of Financial Condition.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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