Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of the Company's income tax expense for the years ended December 31, 2017, 2016 and 2015 are as follows:



	Year ended December 31,
	2017			2016			2015
	(dollars in thousands)
Current tax expense/(benefit)
Federal	$	421		$	1,268		$	(635	)
State and local	2,034			1,972			313
Foreign	428			262			348
Total	$	2,883		$	3,502		$	26
Deferred tax expense/(benefit)
Federal	$	44,071		$	(22,834	)	$	(37,979	)
State and local	(2,938		)	(1,900		)	(7,420		)
Foreign	37			2,140			(2,123		)
Total	41,170			(22,594		)	(47,522		)
Total Tax expense/(benefit)	$	44,053		$	(19,092	)	$	(47,496	)

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, 2017, 2016, and 2015 are as follows:



	Year ended December 31,
	2017		2016		2015
Pre-tax loss at U.S. statutory rate	35.0	%	35.0	%	35.0	%
Dividend received deduction	(25.9	)	—		—
Bargain purchase gain	(34.8	)	—		—
Basis adjustment on investments	65.2		—		—
Nondeductible expenses	14.2		—		—
Deferred asset recognition	—		—		(323.8	)
Unrecognized gains on foreign subsidiaries	—		38.7		—
Change in valuation allowance	—		(6.7	)	—
Impact of tax law change	669.8		—		(27.9	)
State and foreign tax	25.3		1.3		(39.6	)
Reversal of income attributable to redeemable non-controlling interests	(119.6	)	1.3		(46.5	)
Other, net	3.7		(9.0	)	(11.0	)
Total	632.9	%	60.6	%	(413.8	)%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company's deferred tax assets and liabilities as of December 31, 2017 and 2016 are as follows:



	As of December 31,
	2017			2016
	(dollars in thousands)
Deferred tax assets, net of valuation allowance
Net operating loss	$	78,650		$	126,037
Deferred compensation	39,992			44,966
Goodwill	1,042			4,758
Option liability	5,776			—
Fixed assets	—			3,541
Tax credits	4,419			2,898
Acquired lease liability	3,473			4,111
Other	2,696			2,238
Total deferred tax assets	136,048			188,549
Valuation allowance	(2,103		)	(2,119		)
Deferred tax assets, net of valuation allowance	133,945			186,430
Deferred tax liabilities
Unrealized gains on investments	(7,523		)	(20,774		)
Amortization of bond discount	(6,402		)	—
Other	(3,697		)	—
Total deferred tax liabilities	(17,622		)	(20,774		)
Deferred tax assets/(liabilities), net	$	116,323		$	165,656

Summary of Operating Loss Carryforwards

The Company has the following net operating loss carryforwards at December 31, 2017:



	Federal		New York State		New York City		Hong Kong
Jurisdiction:
Net operating loss (in millions)		$248.4		$93.4		$130.8		$12.8
Year of expiration	2036		2036		2036		Indefinite

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

The components of unrecognized tax benefits are as follows:



	As of December 31,
	2017		2016
	(dollars in thousands)
Beginning balance at January 1	$	—	$	—
Increases due to acquisition	2,847		—
Increases due to current year positions	1,100		—
Ending balance at December 31	$	3,947	$	—