Income taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Reconciliation of Effective Income Tax Rate

The income tax provision shown in the consolidated statements of operations is reconciled to amounts of tax that would have been payable (recoverable) from the application of the federal tax rate to pre-tax profit, as follows:


(Expressed in thousands)
	For the Year Ended December 31,
	2013						2012						2011
	Amount			Percentage			Amount			Percentage			Amount			Percentage
U.S. federal statutory income tax rate	$	15,368			35.0	%	$	(184	)		35.0	%	$	6,246			35.0	%
U.S. state and local income taxes, net of U.S. federal income tax benefits		2,131			4.9	%		(1,585	)					840			4.7	%
Unrecognized tax benefit		1,244			2.8	%		1,524						—			0.0	%
Tax exempt income, net of interest expense		(715	)		-1.6	%		(561	)					(647	)		-3.6	%
Business promotion and other non-deductible expenses		660			1.5	%		851						620			3.5	%
Insurance proceeds, non-taxable		(597	)		-1.4	%		(349	)					(821	)		-4.6	%
Adjustment to reflect prior year tax return filings		(251	)		-0.6	%		(294	)					(552	)		-3.1	%
Tax rate change on deferred income taxes		208			0.5	%		390						(734	)		-4.1	%
Non-U.S. operations		185			0.4	%		678						348			1.9	%
Other		(477	)		-1.1	%		(146	)					(69	)		-0.4	%

Total income tax expense	$	17,756			40.4	%	$	324			n/m		$	5,231			29.3	%

n/m = not meaningful

Schedule of Current and Deferred Income Tax (Benefit)

Income taxes included in the consolidated statements of operations represent the following:


(Expressed in thousands)
	For the Year Ended December 31,
	2013			2012			2011
Current:
U.S. federal tax (benefit)	$	(2,984	)	$	19,918		$	5,312
State and local tax		1,885			2,765			19
Non-U.S. operations		116			(61	)		113

		(983	)		22,622			5,444

Deferred:
U.S. federal tax (benefit)		16,658			(17,303	)		143
State and local tax (benefit)		2,482			(4,890	)		(1,029	)
Non-U.S. operations		(401	)		(105	)		673

		18,739			(22,298	)		(213	)

	$	17,756		$	324		$	5,231

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities at December 31, 2013 and 2012 were as follows:


(Expressed in thousands)
	For the Year Ended December 31,
	2013			2012
Deferred tax assets:
Employee deferred compensation plans	$	31,117		$	22,819
Deferred rent		10,451			9,948
Lease incentive		6,693			—
Broker notes		3,915			3,842
Auction rate securities reserve		3,669			3,115
State and local net operating loss/credit carryforward		1,993			750
Involuntary conversion		1,866			1,686
Reserve for litigation and legal fees		1,659			17,019
Allowance for doubtful accounts		1,002			941
Other		2,757			1,318

Total deferred tax assets		65,122			61,438

Deferred tax liabilities:
Goodwill amortization (Section 197)		43,728			39,391
Partnership investments		12,039			6,273
Mortgage servicing rights		9,889			6,679
Company owned life insurance		5,173			1,638
Change in accounting method		3,895			—
Book versus tax depreciation differences		1,374			(5,931	)
Other		603			921

Total deferred tax liabilities		76,701			48,971

U.S. deferred tax assets (liabilities), net		(11,579	)		12,467
Non U.S. deferred tax assests (liabilities), net		4,483			3,873

Deferred tax assets (liabilities), net	$	(7,096	)	$	16,340

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefit follows:


(Expressed in thousands)
	2013			2012		2012
Balance at January 1,	$	5,236		$	2,317	$	—
Additions for tax positions of prior years		1,168			2,919		2,317
Additions for tax positions of current year		77			—		—
Reclass to other tax accounts		(4,907	)		—		—

Balance at December 31,	$	1,574		$	5,236	$	2,317

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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