INCOME TAXES AND RELATED PAYMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Income tax expense from operations consisted of the following:  

	Year Ended December 31,
	2019			2018		2017
Current:
U.S. federal income tax	$	(93	)	$	4,645	$	4,085
State and local income tax	1,674			2,934		2,687
Foreign income tax	7,933			7,402		5,907
	$	9,514		$	14,981	$	12,679
Deferred:
U.S. federal income tax	$	519		$	8,934	$	191,488
State and local income tax	(158		)	844		10,928
Foreign income tax	(255		)	20		347
	$	106		$	9,798	$	202,763
Total:
U.S. federal income tax	$	426		$	13,579	$	195,573
State and local income tax	1,516			3,778		13,615
Foreign income tax	7,678			7,422		6,254
Income tax expense	$	9,620		$	24,779	$	215,442

Schedule of Income before Income Tax, Domestic and Foreign

The Company’s income (loss) before income taxes consisted of the following:  

	Year Ended December 31,
	2019		2018		2017
Domestic income (loss) before income taxes	$	380,653	$	467,264	$	894,911
Foreign income (loss) before income taxes	16,305		22,060		10,013
Total income (loss) before income taxes	$	396,958	$	489,324	$	904,924

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective tax rate differed from the federal statutory rate for the following reasons:  

	Year Ended December 31,
	2019		2018		2017
Income tax expense at federal statutory rate	21.00	%	21.00	%	35.00	%
Income passed through	(20.96	)	(17.78	)	(31.61	)
State and local taxes, net of federal benefit	0.45		0.55		0.38
Foreign taxes	1.07		0.57		0.23
Deferred tax adjustment	—		—		19.76
Other, net	0.86		0.72		0.05
Total effective rate	2.42	%	5.06	%	23.81	%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities were as follows:

	As of December 31,
	2019		2018		2017
Deferred tax assets:
Investment in partnerships	$	—	$	210,678	$	191,713
Equity-based compensation expense	—		5,535		3,537
Net operating losses	—		7,393		—
Other (1)	3,096		9,191		9,311
Total deferred tax assets	3,096		232,797		204,561
Total deferred tax liabilities	—		3,697		2,101
Net deferred tax assets before valuation allowance	3,096		229,100		202,460
Valuation allowance	—		—		—
Net deferred tax assets	$	3,096	$	229,100	$	202,460

(1)

As of December 31, 2019, balance of Other of $3,096 relates to deferred tax assets in foreign jurisdictions (relating primarily to fixed assets and accruals).

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of unrecognized tax benefits (excluding interest and penalties thereon):

	Year Ended December 31,
	2019			2018			2017
Unrecognized tax benefits, January 1	$	2,699		$	4,366		$	5,768
Additions for tax positions related to the current year	—			—			350
Additions for tax positions related to prior years	—			—			—
Reductions for tax positions related to prior years (1)	(2,440		)	(18		)	(412		)
Settlements	—			(1,423		)	—
Lapse in statute of limitations	(152		)	(226		)	(1,340		)
Unrecognized tax benefits, December 31	$	107		$	2,699		$	4,366

(1)

Reduction of $2,440 during 2019 relates to the transfer of unrecognized tax benefits to Brookfield.