CNS AR24 Digital - Book - Page 74
COHEN & STEERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS4(Continued)
Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor
purchases shares of an open-end fund. For all periods presented, a portion of the distribution fee revenue recognized in the
period may relate to performance obligations satisfied (or partially satisfied) in prior periods. Service fee agreements include
a single performance obligation as the services provided are not separately identifiable and are accounted for as a series
satisfied over time using a time-based method (days elapsed). Additionally, distribution and service fees represent variable
consideration, as fees are based on average assets under management which fluctuate daily.
Distribution and Service Fee Expense4Distribution and service fee expense includes distribution fees, shareholder
servicing fees and intermediary assistance payments.
Distribution fees represent payments made to qualified intermediaries for assistance in connection with the distribution
of certain open-end funds' shares and for other expenses such as advertising, printing and distribution of prospectuses to
investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written
agreements complying with Rule 12b-1 of the Investment Company Act of 1940. Distribution fees are based on average daily
net assets under management of certain share classes of certain of the funds.
Shareholder servicing fees represent payments made to qualified intermediaries for shareholder account service and
maintenance. These services are provided pursuant to written agreements with such qualified institutions. Shareholder
servicing fees are generally based on average daily net assets under management.
Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution,
shareholder servicing as well as marketing and support of certain open-end funds and are incremental to those described
above. Intermediary assistance payments are generally based on average daily net assets under management.
Stock-based Compensation4The Company recognizes compensation expense for the grant-date fair value of restricted
stock unit awards to certain employees. This expense is recognized over the period during which employees are required to
provide service. Forfeitures are recorded as incurred. Any change to the key terms of an employee9s award subsequent to the
grant date is evaluated and, if necessary, accounted for as a modification. If the modification results in the remeasurement of
the fair value of the award, the remeasured compensation cost is recognized over the remaining service period.
Income Taxes4The Company records the current and deferred tax consequences of all transactions that have been
recognized in the consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax
assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are
expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets
to an amount that more likely than not will be realized. Deferred tax liabilities are recognized for temporary differences that
will result in taxable income in future years at tax rates that are expected to apply in those years.
The calculation of tax liabilities involves uncertainties in the application of complex tax laws and regulations across the
Company's global operations. A tax benefit from an uncertain tax position is recognized when it is more likely than not that
the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the
basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the
provision for income taxes in the consolidated statements of operations.
Earnings Per Share4Basic earnings per share is calculated by dividing net income attributable to common
stockholders by the weighted average shares outstanding. Diluted earnings per share is calculated by dividing net income
attributable to common stockholders by the total weighted average shares of common stock outstanding and common stock
equivalents determined using the treasury stock method. Common stock equivalents are comprised of dilutive potential shares
from restricted stock unit awards and are excluded from the computation if their effect is anti-dilutive.
Currency Translation and Transactions4Assets and liabilities of subsidiaries having non-U.S. dollar functional
currencies are translated at exchange rates at the applicable consolidated statement of financial condition date. Revenue and
expenses of such subsidiaries are translated at average exchange rates during the period.
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