Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense

The components of income tax expense from continuing operations are as follows:



	Year Ended December 31,
(Dollars in thousands)	2015			2014			2013
Current:
Federal	$	33,818		$	37,331		$	20,468
State	7,030			8,117			3,795
Foreign	58			161			183
	40,906			45,609			24,446
Deferred:
Federal	(11,620		)	(8,641		)	(1,582		)
State	(1,901		)	(1,317		)	(4,041		)
Foreign	556			335			1,567
	(12,965		)	(9,623		)	(4,056		)

Total income tax expense from continuing operations	$	27,941		$	35,986		$	20,390

Total income tax benefit from discontinued operations	$	—		$	—		$	(2,935	)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of federal income taxes at statutory rates to the Company’s effective tax rates from continuing operations is as follows:



	Year Ended December 31,
(Dollars in thousands)	2015			2014			2013
Federal income tax expense at statutory rates	$	30,248		$	38,609		$	26,464
Increase/(reduction) in taxes resulting from:
State income taxes, net of federal tax benefit	3,155			3,857			2,785
Net tax-exempt interest income	(4,299		)	(3,693		)	(3,917		)
Foreign jurisdictions tax rate differential	191			(63		)	(185		)
Change in valuation allowance	—			—			(4,182		)
Income attributable to noncontrolling interests	(2,243		)	(3,903		)	(1,888		)
Other, net	889			1,179			1,313
Total income tax expense from continuing operations	$	27,941		$	35,986		$	20,390

Schedule of Net Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the same items for income tax reporting purposes. The net deferred income tax assets included in other assets on the consolidated statements of financial condition consisted of the following items:



	December 31,			December 31,
(Dollars in thousands)	2015			2014
Deferred tax assets:
Deferred compensation	$	74,127		$	56,893
Net operating loss carry forwards	3,947			4,854
Liabilities/accruals not currently deductible	5,454			1,601
Other	5,175			2,930
Total deferred tax assets	88,703			66,278
Valuation allowance	(159		)	(159		)

Deferred tax assets after valuation allowance	88,544			66,119

Deferred tax liabilities:
Goodwill amortization	16,951			15,028
Unrealized gains on firm investments	2,917			3,221
Fixed assets	1,189			945
Other	677			1,074

Total deferred tax liabilities	21,734			20,268

Net deferred tax assets	$	66,810		$	45,851

Changes in Amount of 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, 2012	$	290
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	2,000
Reductions for tax positions of prior years	(90		)
Settlements	—
Balance at December 31, 2013	$	2,200
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	123
Reductions for tax positions of prior years	—
Settlements	—
Balance at December 31, 2014	$	2,323
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(2,000		)
Settlements	(200		)
Balance at December 31, 2015	$	123