Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company has determined its interim tax provision projecting an estimated annual effective tax rate.

A reconciliation of the statutory federal tax rate to the Company’s effective income tax rate is as follows:

	Six Months Ended   June 30,
	2022		2021
Statutory U.S. federal income tax rate	21.0	%	21.0	%
State and local income taxes, net of federal benefit	4.5	%	4.5	%
Internal revenue code section 162 limitations	1.5	%	0.9	%
Other	(1.8)	%	—	%
Unconsolidated effective income tax rate	25.2	%	26.4	%
Impact attributable to redeemable noncontrolling interest(a)	7.3	%	(0.8)	%
Effective income tax rate	32.5	%	25.6	%

(a) The provision for income taxes includes the impact of the operations of the Consolidated Funds, which are not subject to federal income taxes. Accordingly, a portion of the Company’s earnings are not subject to corporate tax levels.

Absent the impact attributable to redeemable noncontrolling interest, the estimated unconsolidated effective income tax rate would have been 25.2% for the six months ended June 30, 2022. The Company's actual effective tax rate for fiscal year ending December 31, 2022 could be materially different from the projected rate as of June 30, 2022.

The net temporary differences incurred to date will reverse in future periods as the Company generates taxable earnings. The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets recorded. The Company records a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2022 and December 31, 2021, no valuation allowance was deemed necessary.

FASB ASC 740, Income Taxes, prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.  The Company recognizes tax benefits related to positions taken, or expected to be taken, on its tax returns, only if the positions are more likely than not sustainable. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements. The Company did not record an accrual for tax-related uncertainties or unrecognized tax positions as of June 30, 2022 or December 31, 2021.

The Company did not recognize any interest and penalties during the six months ended June 30, 2022