14. INCOME TAXES

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their bases for income tax purposes.  The deferred tax expense for the years ended December 31, 2015 and 2014, also includes additional deferred tax expense of $1,694 and $1,147 for discrete items.  There was no deferred tax expense for discrete items during the year ended December 31, 2013. The discrete items are primarily attributable to the decrease of deferred tax assets at Silvercrest due to a reduction in the future statutory corporate tax rates and changes in methods of apportioning income in New York City.

As of December 31, 2015 and 2014, the Company had a net deferred tax asset of $21,269 and $22,835, respectively.  As of December 31, 2015, the net deferred tax asset of $21,269, which is recorded as a net non-current deferred tax asset of $21,498 specific to Silvercrest, consists primarily of assets related to temporary differences between the financial statement and tax bases of intangibles related to its acquisition of partnership units of SLP, a net non-current deferred tax liability of $108 specific to SLP which consists primarily of liabilities related to differences between the financial statement and tax bases of intangible assets, and a non-current deferred tax liability of $121 related to the corporate activity of SFS which is primarily related to temporary differences between the financial statement and tax bases of intangible assets.  As of December 31, 2014, the net deferred tax asset of $22,835, which is recorded as a net non-current deferred tax asset of $23,000 specific to Silvercrest, consists primarily of assets related to temporary differences between the financial statement and tax bases of intangibles related to its acquisition of partnership units of SLP, a net non-current deferred tax liability of $64 specific to SLP which consists primarily of liabilities related to differences between the financial statement and tax bases of intangible assets, and a non-current deferred tax liability of $101 related to the corporate activity of SFS which is primarily related to temporary differences between the financial statement and tax bases of intangible assets.

A summary of deferred tax assets and liabilities as follows:

The following table reconciles the provision for income taxes to the U.S. Federal statutory tax rate:

As of December 31, 2015, the Company had tax refunds receivable of $1,611 which consisted of federal and state and local tax refunds of $1,063 and $548, respectively.  At December 31, 2014, the Company had tax refunds receivable of $1,073, which consisted of federal and state and local tax refunds of $930 and $143, respectively.

Of the total net deferred taxes at December 31, 2015 and 2014, $95 and $61, respectively, of the net deferred tax liabilities relate to non-controlling interests. These amounts are included in deferred tax and other liabilities on the Consolidated Statement of Financial Position, respectively.  

In the normal course of business, the Company is subject to examination by federal, state, and local tax regulators. As of December 31, 2015, the Company’s U.S. federal income tax returns for the years 2012 through 2014 are open under the normal three-year statute of limitations and therefore subject to examination.

The guidance for accounting for uncertainty in income taxes prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company does not believe that it has any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months.  Furthermore, the Company does not have any material uncertain tax positions at December 31, 2015 and 2014.