Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of income before income taxes

Income before income taxes and noncontrolling interest is as follows for the years ended December 31, 2021, 2020, and 2019:

	Years Ended December 31,
	2021		2020		2019
(in thousands)
U.S. operations	$	804,358	$	1,214,282	$	(103,080)
Non-U.S. operations	192,546		168,555		(12,902)
	$	996,904	$	1,382,837	$	(115,982)

Summary of provision for income taxes

The provision for income taxes consists of the following for the years ended December 31, 2021, 2020, and 2019:

	Years Ended December 31,
(in thousands)	2021		2020		2019
Current provision (benefit)
Federal	$	80,203	$	148,034	$	(1,861)
State and Local	24,282		52,040		4,362
Foreign	29,790		37,474		3,675
Deferred provision (benefit)
Federal	30,519		26,255		(13,422)
State and Local	4,984		(2,580)		(1,455)
Foreign	(108)		701		(3,576)
Provision for income taxes	$	169,670	$	261,924	$	(12,277)

Schedule of reconciliation of the tax provision at U.S. Federal Statutory Rate to the provision for income taxes

The reconciliation of the tax provision at the U.S. federal statutory rate to the provision for income taxes for the

years ended December 31, 2021, 2020, and 2019 is as follows:

	Years Ended December 31,
	2021		2020		2019
(in thousands, except percentages)
Tax provision at the U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
Less: rate attributable to noncontrolling interest	(7.7)	%	(7.5)	%	(8.1)	%
State and local taxes, net of federal benefit	3.0	%	3.4	%	2.4	%
Non-deductible expenses, net	0.1	%	0.1	%	(1.4)	%
Excess tax benefit(deficiency) from share based compensation	(0.2)	%	—	%	(2.3)	%
Foreign taxes	3.0	%	2.8	%	(0.1)	%
Foreign tax credits	(1.8)	%	(0.9)	%	—	%
Other, net	(0.4)	%	—	%	(0.9)	%
Effective tax rate	17.0	%	18.9	%	10.6	%

Schedule of components of deferred tax assets and liabilities

The components of the deferred tax assets and liabilities as of December 31, 2021, and 2020 are as follows:

	December 31,
(in thousands)	2021		2020
Deferred income tax assets
Tax Receivable Agreement	$	180,376	$	199,107
Share-based compensation	15,934		17,140
Intangibles	2,061		2,563
Fixed assets and other	12,989		37,100
Tax credits and net operating loss carryforwards	58,801		60,597
Less: Valuation allowance on net operating loss carryforwards and tax credits	(58,602)		(60,385)
Total deferred income tax assets	$	211,559	$	256,122
Deferred income tax liabilities
Intangibles	$	53,106	$	63,052
Total deferred income tax liabilities	$	53,106	$	63,052

Summary of reconciliation of the beginning and ending amount of unrecognized tax benefits

The table below presents the changes in the liability for unrecognized tax benefits. This liability is included in Accounts payable and accrued expenses and other liabilities on the Consolidated Statements of Financial Condition.

(in thousands)
Balance at December 31, 2018	$	7,328
Increase from ITG Acquisition	2,713
Decreases based on tax positions related to prior period	(1,263)
Increase based on tax positions related to current period	—
Balance at December 31, 2019	8,778
Decreases based on tax positions related to prior period	(311)
Increase based on tax positions related to current period	110
Balance at December 31, 2020	8,577
Decreases based on tax positions related to prior period	(2,300)
Increase based on tax positions related to current period	20
Balance at December 31, 2021	$	6,297