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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Foreign Components of Income Before Income tax Expense

The U.S. and foreign components of income before income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows:

		Year Ended December 31,
		2018				2017				2016
U.S(1).		$	43,677			$	72,371			$	68,063
Foreign(1)			7,362				(14,179	)			(12,501	)
Total		$	51,039			$	58,192			$	55,562

(1) Represents the pre-tax results of the Company’s U.S. and foreign subsidiaries, not the results of the U.S. and International Business segments which are separately disclosed in Note 26. The segment results are prepared based upon the way management reviews performance.

Components of Current and Deferred Income Tax Expense

The components of current and deferred income tax expense included in the Consolidated Statement of Operations for years ended December 31, 2018, 2017 and 2016 as determined in accordance with ASC 740, Income Taxes, are as follows:

		Year Ended December 31,
		2018				2017				2016
Current:
Federal		$	15,805			$	19,007			$	14,515
State and local			3,202				2,708				1,425
Foreign			1,482				440				567
		$	20,489			$	22,155			$	16,507
Deferred:
Federal		$	(5,318	)		$	7,947			$	10,629
State and local			(1,077	)			1,105				2,296
Foreign			312				(214	)			(25	)
		$	(6,083	)		$	8,838			$	12,900
Income tax expense		$	14,406			$	30,993			$	29,407

Reconciliation of Statutory Federal Income Tax Rate and Company's Effective Rate

A reconciliation of the statutory federal income tax rate and the Company’s effective rate is as follows:

		December 31,
		2018				2017				2016
Federal statutory rate			21.0	%			35.0	%			35.0	%
Change in valuation allowance—Foreign			6.9	%			9.2	%			8.2	%
Non-deductible acquisition-related costs			3.0	%			2.7	%			—
Blended state income tax rate, net of federal benefit			2.8	%			3.8	%			4.2	%
Change in valuation allowance—Capital losses			1.6	%			—				—
Gain on revaluation of deferred consideration(1)			(5.0	%)			—				—
Foreign operations			(2.1	%)			—				—
Stock-based compensation tax (windfalls)/shortfalls			(1.1	%)			1.8	%			—
Re-measurement of net deferred tax assets—Rate change			—				0.8	%			—
Acquisition expense			—				—				4.1	%
Goodwill impairment			—				—				1.2	%
Other differences, net			1.1	%			—				0.2	%
Effective rate			28.2	%			53.3	%			52.9	%

(1)  The gain on revaluation is not adjusted for income taxes as the obligation was assumed by a wholly-owned subsidiary that is based in Jersey, a jurisdiction where the Company is subject to a zero percent tax rate.

Summary of Deferred Tax Asset Recorded

A summary of the components of the Company’s deferred tax assets at December 31, 2018 and 2017 is as follows:

		December 31,
		2018				2017
Deferred tax assets:
NOLs—Foreign		$	6,605			$	3,841
Stock-based compensation			2,673				1,474
Accrued expenses			2,699				526
Goodwill and intangible assets			1,841				—
Deferred rent liability			1,184				1,257
Capital losses			794				—
NOLs—U.S.			762				909
Other			40				416
Deferred tax assets			16,598				8,423
Deferred tax liabilities:
Fixed assets and prepaid assets			1,433				1,498
Unrealized gains			724				1,646
Goodwill and intangible assets			—				388
Deferred tax liabilities			2,157				3,532
Total deferred tax assets less deferred tax liabilities			14,441				4,891
Less: valuation allowance			(7,399	)			(3,841	)
Deferred tax assets, net		$	7,042			$	1,050

Schedule of Changes in Balance of Gross Unrecognized Tax Benefits

The table below sets forth the aggregate changes in the balance of gross unrecognized tax benefits:

		Total				Unrecognized Tax Benefits				Interest and Penalties
Balance on January 1, 2018		$	—			$	—			$	—
Accrued in connection with the ETFS Acquisition			38,488				31,317				7,171
Increases			346				—				346
Foreign currency translation(1)			(3,958	)			(3,216	)			(742	)
Balance at December 31, 2018		$	34,876			$	28,101			$	6,775

(1) The gross unrecognized tax benefits were accrued in British pounds sterling.

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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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