INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Before Provision for Taxes

The Income Before Provision for Taxes consists of the following:

	Year Ended December 31,
	2018		2017		2016
Income Before Provision for Taxes
U.S. Domestic Income	$	3,308,202	$	3,956,339	$	2,214,974
Foreign Income		204,739		161,750		166,630
	$	3,512,941	$	4,118,089	$	2,381,604

Provision (Benefit) for Income Taxes

The Provision for Taxes consists of the following:

	Year Ended December 31,
	2018			2017			2016
Current
Federal Income Tax	$	73,525		$	31,457		$	32,383
Foreign Income Tax		42,128			36,083			17,322
State and Local Income Tax		53,961			40,507			32,572
		169,614			108,047			82,277
Deferred
Federal Income Tax		59,924			613,518			42,042
Foreign Income Tax		(2,518	)		(34	)		363
State and Local Income Tax		22,370			21,616			7,680
		79,776			635,100			50,085
Provision for Taxes	$	249,390		$	743,147		$	132,362

Summary of Blackstone's Tax Position

The following table summarizes Blackstone’s tax position:

	Year Ended December 31,
	2018			2017			2016
Income Before Provision for Taxes	$	3,512,941		$	4,118,089		$	2,381,604
Provision for Taxes	$	249,390		$	743,147		$	132,362
Effective Income Tax Rate		7.1	%		18.0	%		5.6	%

Reconciliations of Effective Income Tax Rate to Federal Statutory Tax Rate

The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate:

	Year Ended December 31,
	2018			2017			2016
Statutory U.S. Federal Income Tax Rate		21.0	%		35.0	%		35.0	%
Income Passed Through to Common Unitholders and Non-Controlling Interest Holders (a)		-15.5	%		-25.9	%		-28.6	%
State and Local Income Taxes		1.8	%		1.5	%		1.3	%
Equity-Based Compensation		—			-0.1	%		-0.2	%
Impact of the Tax Reform Bill		—			8.3	%		—
Other		-0.2	%		-0.8	%		-1.9	%
Effective Income Tax Rate		7.1	%		18.0	%		5.6	%

(a) Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling interest holders.

Summary of Tax Effects of Temporary Differences

A summary of the tax effects of the temporary differences is as follows:

	December 31,
	2018		2017
Deferred Tax Assets
Fund Management Fees	$	6,955	$	9,938
Equity-Based Compensation		69,484		54,699
Amortization and Depreciation		768,984		754,924
Net Operating Loss Carry Forward		—		8,885
Total Deferred Tax Assets		845,423		828,446
Deferred Tax Liabilities
Unrealized Gains from Investments		71,472		65,883
Other		34,469		36,593
Total Deferred Tax Liabilities		105,941		102,476
Net Deferred Tax Assets	$	739,482	$	725,970

Blackstone's Unrecognized Tax Benefits Excluding Related Interest and Penalties

Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were:

	December 31,
	2018			2017			2016
Unrecognized Tax Benefits — January 1	$	11,454		$	3,581		$	15,698
Additions based on Tax Positions Related to Current Year		—			—			902
Reductions for Tax Positions of Current Year		—			—			(851	)
Additions for Tax Positions of Prior Years		9,671			11,167			—
Reductions for Tax Positions of Prior Years		(323	)		(1,860	)		(7,837	)
Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations		—			—			(3,774	)
Settlements		—			(1,382	)		(357	)
Exchange Rate Fluctuations		62			(52	)		(200	)
Unrecognized Tax Benefits — December 31	$	20,864		$	11,454		$	3,581