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 |
|
|
|
|
|
|
|