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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2011
Components of Income Tax Expense

The components of income tax expense are as follows:

 

     Year Ended December 31,  
(Dollars in thousands)    2011     2010      2009  

Current:

       

Federal

   $ (6,203   $ 11,474       $ 19,420   

State

     27        3,860         2,636   

Foreign

            142         308   
  

 

 

   

 

 

    

 

 

 
     (6,176     15,476         22,364   
  

 

 

   

 

 

    

 

 

 

Deferred:

       

Federal

     13,924        15,973         2,825   

State

     2,491        1,469         1,810   

Foreign

     637        436         (816
  

 

 

   

 

 

    

 

 

 
     17,052        17,878         3,819   
  

 

 

   

 

 

    

 

 

 

Total income tax expense

   $ 10,876      $ 33,354       $ 26,183   
  

 

 

   

 

 

    

 

 

 
Reconciliation of Federal Income Taxes at Statutory Rates to Effective Tax Rates

A reconciliation of federal income taxes at statutory rates to the Company’s effective tax rates for the fiscal years ended December 31, is as follows:

 

(Dollars in thousands)    2011     2010     2009  

Federal income tax expense/(benefit) at statutory rates

   $ (31,389   $ 20,050      $ 19,814   

Increase/(reduction) in taxes resulting from:

      

Goodwill impairment

     40,440                 

State income taxes, net of federal tax benefit

     1,250        3,136        3,091   

Net tax-exempt interest income

     (3,308     (2,065     (2,914

Foreign jurisdictions tax rate differential

     1,955        1,118        1,294   

Change in valuation allowance

     868        3,373        2,370   

Restricted stock deferred tax asset write-off

     557        5,799        1,279   

Loss/(income) attributable to noncontrolling interests

     (512     151        (21

Other, net

     1,015        1,792        1,270   
  

 

 

   

 

 

   

 

 

 

Total income tax expense

   $ 10,876      $ 33,354      $ 26,183   
  

 

 

   

 

 

   

 

 

 
Net Deferred Tax Asset Included in Other Assets on Consolidated Statements of Financial Condition

The net deferred tax asset included in other assets on the consolidated statements of financial condition consisted of the following items at December 31:

 

(Dollars in thousands)    2011     2010  

Deferred tax assets:

    

Deferred compensation

   $ 41,746      $ 55,041   

Net operating loss carry forwards

     11,703        10,876   

Liabilities/accruals not currently deductible

     1,989        3,206   

Pension and retirement costs

     314        259   

Other

     5,101        5,379   
  

 

 

   

 

 

 

Total deferred tax assets

     60,853        74,761   

Valuation allowance

     (9,247     (8,373
  

 

 

   

 

 

 

Deferred tax assets after valuation allowance

     51,606        66,388   
  

 

 

   

 

 

 

Deferred tax liabilities:

    

Goodwill amortization

     3,340        2,725   

Unrealized gains on firm investments

     1,444        655   

Fixed assets

     1,444        125   

Other

     298        703   
  

 

 

   

 

 

 

Total deferred tax liabilities

     6,526        4,208   
  

 

 

   

 

 

 

Net deferred tax assets

   $ 45,080      $ 62,180   
  

 

 

   

 

 

 
Reconciliation Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

(Dollars in thousands)       

Balance at December 31, 2008

   $ 10,200   

Additions based on tax positions related to the current year

       

Additions for tax positions of prior years

       

Reductions for tax positions of prior years

     (100

Settlements

     (500
  

 

 

 

Balance at December 31, 2009

   $ 9,600   

Additions based on tax positions related to the current year

       

Additions for tax positions of prior years

       

Reductions for tax positions of prior years

     (30

Settlements

     (60
  

 

 

 

Balance at December 31, 2010

   $ 9,510   

Additions based on tax positions related to the current year

       

Additions for tax positions of prior years

       

Reductions for tax positions of prior years

     (595

Settlements

       
  

 

 

 

Balance at December 31, 2011

   $ 8,915