Income Taxes and Related Payments (Tables)

12 Months Ended

Dec. 31, 2014

Components of the provision for income taxes

Components of the provision for income taxes consist of the following:



	For the Year Ended December 31,
	2014			2013		2012
Current:
Federal	$	27,094		$	13,816	$	—
State and local	3,982			2,719		—
Foreign	184			471		1,047
Total	31,260			17,006		1,047
Deferred:
Federal	21,402			9,089		—
State and local	(3,833		)	295		—
Total	17,569			9,384		—
Income tax expense	$	48,829		$	26,390	$	1,047

Reconciliation of effective tax rate

The provision for income taxes from operations differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate to income before provision for income taxes as follows:



	For the Period from January 1, 2014 through December 31, 2014		For the Period from March 12, 2013 through December 31, 2013
U.S. Federal Statutory Rate	35.0	%	35.0	%
Non-deductible share-based compensation	3.1		2.6
Rate benefit from the flow through entity	(20.8	)	(27.4	)
Other	(0.3	)	1.4
Effective Tax Rate	17.0	%	11.6	%

Components of deferred tax assets

Net deferred tax assets comprise the following:



	As of December 31, 2014		As of December 31, 2013
Deferred tax assets:
Amortizable basis ⁽¹⁾	$	551,952	$	183,858
Other ⁽²⁾	10,444		4,049
Total deferred tax assets	562,396		187,907
Less: valuation allowance ⁽³⁾	—		—
Net deferred tax assets	$	562,396	$	187,907
⁽¹⁾ Represents the unamortized step-up of tax basis from the merger described above, the purchase of common and preferred units by APAM, and the exchange of common and preferred units for Class A common shares of APAM.
⁽²⁾ Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets.
⁽³⁾ Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required.