Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of the Company's income tax expense for the years ended December 31, 2016, 2015 and 2014 are as follows:



	Year ended December 31,
	2016			2015			2014
	(dollars in thousands)
Current tax expense/(benefit)
Federal	$	1,268		$	(635	)	$	2,247
State and local	1,972			313			573
Foreign	262			348			341
Total	$	3,502		$	26		$	3,161
Deferred tax expense/(benefit)
Federal	$	(22,834	)	$	(37,979	)	$	(99,284	)
State and local	(1,900		)	(7,420		)	(28,825		)
Foreign	2,140			(2,123		)	4
Total	(22,594		)	(47,522		)	(128,105		)
Total Tax expense/(benefit)	$	(19,092	)	$	(47,496	)	$	(124,944	)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliations of the Company's federal statutory rate to the effective income tax rate for the years ended December 31, 2016, 2015, and 2014 are as follows:



	Year ended December 31,
	2016		2015		2014
Pre-tax loss at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Deferred asset recognition	—		(323.8	)	—
Unrecognized gains on foreign subsidiaries	38.7		—		—
Change in valuation allowance	(6.7	)	—		(252.7	)
Impact of change in NY tax law	—		(27.9	)	—
State and foreign tax	1.3		(39.6	)	5.8
Minority interest reversal	1.3		(46.5	)	(9.4	)
Other, net	(9.0	)	(11.0	)	5.3
Total	60.6	%	(413.8	)%	(216.0	)%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company's deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows:



	As of December 31,
	2016			2015
	(dollars in thousands)
Deferred tax assets, net of valuation allowance
Net operating loss	$	126,037		$	110,904
Deferred compensation	44,966			65,162
Goodwill	4,758			7,009
Fixed assets	3,541			2,003
Tax credits	2,898			1,630
Acquired lease liability	4,111			4,843
Other	2,238			2,317
Total deferred tax assets	188,549			193,868
Valuation allowance	(2,119		)	—
Deferred tax assets, net of valuation allowance	186,430			193,868
Deferred tax liabilities
Basis difference on investments	—			(15,352		)
Unrealized gains on investments	(20,774		)	(34,613		)
Intangible assets	—			(296		)
Other	—			(47		)
Total deferred tax liabilities	(20,774		)	(50,308		)
Deferred tax assets/(liabilities), net	$	165,656		$	143,560

Summary of Operating Loss Carryforwards

The Company has the following net operating loss carryforwards at December 31, 2016:



	Federal		California		Massachusetts		Illinois		New York State		New York City		Hong Kong
Jurisdiction:
Net operating loss (in millions)		$296.7		$61.8		$31.5		$12.3		$95.6		$142.8		$12.8
Year of expiration	2036		2036		2036		2028		2036		2036		Indefinite