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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Domestic and 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, 2019, 2018 and 2017 are as follows:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
U.S . (1) |  | $ | 6,774 |  |  | $ | 43,677 |  |  | $ | 72,371 |
Foreign (1) |  |  | (6,653 | ) |  |  | 7,362 |  |  |  | (14,179 | )
Total |  | $ | 121 |  |  | $ | 51,039 |  |  | $ | 58,192 |
(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 27. 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, 2019, 2018 and 2017 as determined in accordance with ASC 740, Income Taxes , are as follows:
|  | Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,311 |  |  | $ | 15,805 |  |  | $ | 19,007 |
State and local |  |  | 2,271 |  |  |  | 3,202 |  |  |  | 2,708 |
Foreign |  |  | (1,687 | ) |  |  | 1,482 |  |  |  | 440 |
|  | $ | 10,895 |  |  | $ | 20,489 |  |  | $ | 22,155 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (246 | ) |  | $ | (5,318 | ) |  | $ | 7,947 |
State and local |  |  | (54 | ) |  |  | (1,077 | ) |  |  | 1,105 |
Foreign |  |  | (49 | ) |  |  | 312 |  |  |  | (214 | )
|  | $ | (349 | ) |  | $ | (6,083 | ) |  | $ | 8,838 |
Income tax expense |  | $ | 10,546 |  |  | $ | 14,406 |  |  | $ | 30,993 |
Reconciliation of Statutory Federal Income Tax Rate and Company's Effective Rate | A reconciliation of the statutory federal income tax expense and the Company’s to tal income tax expense is as follows:
|  | Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Federal income tax expense |  | $ | 25 |  |  | $ | 10,718 |  |  | $ | 20,367 |
Change in valuation allowance—Capital losses (1) |  |  | 7,555 |  |  |  | 794 |  |  |  | — |
Change in valuation allowance—Foreign |  |  | 4,737 |  |  |  | 3,510 |  |  |  | 5,355 |
Decrease in unrecognized tax benefits |  |  | (3,894 | ) |  |  | — |  |  |  | — |
Foreign operations |  |  | (3,561 | ) |  |  | (1,041 | ) |  |  | (165 | )
Loss/(gain) on revaluation of deferred consideration (2) |  |  | 2,378 |  |  |  | (2,570 | ) |  |  | — |
Non-deductible executive compensation |  |  | 1,608 |  |  |  | 4 |  |  |  | — |
Stock-based compensation tax (windfalls)/shortfalls |  |  | 1,198 |  |  |  | (543 | ) |  |  | 1,035 |
Blended state income tax rate, net of federal benefit |  |  | 237 |  |  |  | 1,406 |  |  |  | 2,234 |
Non-deductible acquisition and disposition-related costs |  |  | — |  |  |  | 1,506 |  |  |  | 1,549 |
Other differences, net |  |  | 263 |  |  |  | 622 |  |  |  | 618 |
Income tax expense |  | $ | 10,546 |  |  | $ | 14,406 |  |  | $ | 30,993 |
(1) | The capital loss valuation allowance for the year ended December 31, 2019 is principally arising from the impairment recognized on the Company’s financial interests in AdvisorEngine (Note 8).
(2) | The loss/ ( 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.
Schedule of Income Tax Payments By Jurisdiction | A summary of income taxes paid by jurisdiction for the years ended December 31, 2019, 2018 & 2017 is as follows:
|  | Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Federal |  | $ | 6,990 |  |  | $ | 10,710 |  |  | $ | 28,561 |
State and local |  |  | 1,818 |  |  |  | 2,498 |  |  |  | 4,366 |
Foreign |  |  | 1,252 |  |  |  | 1,190 |  |  |  | 186 |
|  | $ | 10,060 |  |  | $ | 14,398 |  |  | $ | 33,113 |
Summary of Deferred Tax Asset Recorded | A summary of the components of the Company’s deferred tax assets at December 31, 2019 and 2018 is as follows:
|  | December 31, |
|  | 2019 |  |  | 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
NOLs—International |  | $ | 9,336 |  |  | $ | 6,605 |
Capital losses |  |  | 8,226 |  |  |  | 794 |
Operating lease liabilities |  |  | 5,529 |  |  |  | 5,519 |
Accrued expenses |  |  | 4,054 |  |  |  | 2,699 |
Stock-based compensation |  |  | 1,754 |  |  |  | 2,673 |
Goodwill and intangible assets |  |  | 1,671 |  |  |  | 1,841 |
NOLs—U.S. |  |  | 642 |  |  |  | 762 |
Outside basis differences |  |  | 123 |  |  |  | — |
Other |  |  | 218 |  |  |  | 40 |
Deferred tax assets |  |  | 31,553 |  |  |  | 20,933 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Right of use assets—operating leases |  |  | 4,400 |  |  |  | 4,335 |
Fixed assets and prepaid assets |  |  | 1,326 |  |  |  | 1,433 |
Unrealized gains |  |  | 744 |  |  |  | 724 |
Deferred tax liabilities |  |  | 6,470 |  |  |  | 6,492 |
Total deferred tax assets less deferred tax liabilities |  |  | 25,083 |  |  |  | 14,441 |
Less: valuation allowance |  |  | (17,685 | ) |  |  | (7,399 | )
Deferred tax assets, net |  | $ | 7,398 |  |  | $ | 7,042 |
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 |
Decrease—Lapse of statute of limitations |  |  | (4,309 | ) |  |  | (2,999 | ) |  |  | (1,310 | )
Increases |  |  | 416 |  |  |  | — |  |  |  | 416 |
Foreign currency translation (1) |  |  | 1,118 |  |  |  | 896 |  |  |  | 222 |
Balance at December 31, 2019 |  | $ | 32,101 |  |  | $ | 25,998 |  |  | $ | 6,103 |
(1) | The gross unrecognized tax benefits were accrued in British pounds.

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