Income Taxes

A reconciliation of the provision for income taxes with the amount computed by applying the statutory federal income tax rate to income before provision for income taxes for the periods presented is as follows (in thousands, except percentages):



	Six Months Ended June 30,
	2014					2013
Income from continuing operations before income taxes, net of amounts attributable to noncontrolling interests	$	160,097				$	53,651
Pre-tax income attributable to pass-through subsidiaries	(151,203		)			(62,144		)
Pre-tax income (loss) attributable to taxable subsidiaries	8,894					(8,493		)
Federal provision at statutory tax rate (35%)	3,113			35.0	%	(2,972		)	35.0	%
State and local taxes, net of federal benefit	978			11.0	%	(157		)	1.8	%
Recognition of deferred revenue as a result of the CPA^®:16 Merger ^(a)	4,848			54.5	%	—			—	%
Amortization of intangible assets	—			—	%	121			(1.4	)%
Interest	1,739			19.6	%	—			—	%
Other	536			6.0	%	(1,120		)	13.2	%
Tax provision — taxable subsidiaries	11,214			126.1	%	(4,128		)	48.6	%
Deferred foreign tax benefit ^(b)	(6,427		)			—
Current foreign taxes	4,422					1,462
Other state and local taxes	1,084					325
Total provision (benefit)	$	10,293				$	(2,341	)

__________


(a)	Represents income tax expense due to a permanent difference from the recognition of deferred revenue as a result of the accelerated vesting of shares previously issued by CPA^®:16 – Global for asset management and performance fees and the payment of deferred acquisition fees in connection with the CPA^®:16 Merger.


(b)	Represents deferred tax benefit associated with basis differences on certain foreign properties acquired.

Our tax returns are subject to audit by taxing authorities. Such audits can often take years to complete and settle. The tax years 2008 through 2014 remain open to examination by the major taxing jurisdictions to which we are subject.