| Significant Accounting Policies | Significant Accounting Policies Revision of Previously Issued Financial Statements for Correction of Immaterial Errors During the three months ended September 30, 2016, the Company identified an error related to the accounting treatment of its investments in common shares of the BDCs. In September 2015, the Company began purchasing common stock in the BDCs and treated such shares as available-for-sale securities under ASC Topic 320, Investments - Debt and Equity Securities . In 2016, the Company made substantial additional purchases of the common stock of the BDCs. As a result, the Company revisited its accounting method for the shares held. The Company determined that it does exert significant influence over the BDCs and accordingly, its investments in the BDCs should have been accounted for as equity method investments under ASC Topic 323, Investments - Equity Method and Joint Ventures, since inception. The Company assessed the materiality of these errors on its prior quarterly and annual financial statements, assessing materiality both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108 and concluded that the errors were not material to any of its previously issued financial statements. However, in order to correctly present the shares as an equity method investment in the appropriate period, management revised previously issued financial statements. The Company also corrected immaterial out-of-period adjustments that had been previously reported. Set forth below is a summary of the amounts and financial statement line items impacted by these revisions for the periods presented in this Form 10-Q. Three Months Ended June 30, 2016 Consolidated Statement of Operations: As previously reported Adjustments As revised Income from equity method investments $ — $ 1,110,217 $ 1,110,217 Other income (expense), net 1,571,903 (1,546,728 ) 25,175 Total other income, net 10,608,494 (436,511 ) 10,171,983 Income before provision for income taxes 11,643,558 (436,511 ) 11,207,047 Provision for income taxes 7,237,303 (122,427 ) 7,114,876 Net income 4,406,255 (314,084 ) 4,092,171 Net income attributable to non-controlling interests (3,629,933 ) 385,308 (3,244,625 ) Net income attributable to Fifth Street Asset $ 776,322 $ 71,224 $ 847,546 Net income per share attributable to Fifth Street Asset Management Inc. - Basic $ 0.13 $ 0.02 $ 0.15 Net income per share attributable to Fifth Street Asset Management Inc. - Diluted $ 0.07 $ — $ 0.07 Six Months Ended June 30, 2016 Consolidated Statement of Operations: As previously reported Adjustments As revised Income from equity method investments $ — $ 1,978,326 $ 1,978,326 Other income (expense), net 1,783,490 (2,328,275 ) (544,785 ) Total other expense, net (3,316,468 ) (349,949 ) (3,666,417 ) Income (loss) before provision for income taxes 278,488 (349,949 ) (71,461 ) Provision for income taxes 6,971,891 (119,788 ) 6,852,103 Net loss (6,693,403 ) (230,161 ) (6,923,564 ) Net loss attributable to non-controlling interests 6,230,340 308,825 6,539,165 Net loss attributable to Fifth Street Asset $ (463,063 ) $ 78,664 $ (384,399 ) Net loss per share attributable to Fifth Street Asset Management Inc. - Basic $ (0.08 ) $ 0.01 $ (0.07 ) Net loss per share attributable to Fifth Street Asset Management Inc. - Diluted $ (0.10 ) $ — $ (0.10 ) Three Months Ended June 30, 2016 Consolidated Statement of Comprehensive Income (Loss): As previously reported Adjustments As revised Net income $ 4,406,255 $ (314,084 ) $ 4,092,171 Adjustment for change in fair value of available-for-sale securities (1,423,276 ) 1,423,276 — Tax effect of adjustment for change in fair value of available-for-sale securities 20,304 (20,304 ) — Total comprehensive income 3,003,283 1,088,888 4,092,171 Less: Comprehensive income attributable to non-controlling interests (2,374,581 ) (870,044 ) (3,244,625 ) Comprehensive income attributable to Fifth Street Asset Management Inc. $ 628,702 $ 218,844 $ 847,546 Six Months Ended June 30, 2016 Consolidated Statement of Comprehensive Income (Loss): As previously reported Adjustments As revised Net loss $ (6,693,403 ) $ (230,161 ) $ (6,923,564 ) Adjustment for change in fair value of available-for-sale securities (7,119,228 ) 7,119,228 — Tax effect of adjustment for change in fair value of available-for-sale securities 284,010 (284,010 ) — Total comprehensive loss (13,528,621 ) 6,605,057 (6,923,564 ) Less: Comprehensive loss attributable to non-controlling interests 12,518,400 (5,979,235 ) 6,539,165 Comprehensive loss attributable to Fifth Street Asset Management Inc. $ (1,010,221 ) $ 625,822 $ (384,399 ) Six Months Ended June 30, 2016 Consolidated Statement of Cash Flows: As previously reported Adjustments As revised Cash flows from operating activities Net loss $ (6,693,403 ) $ (230,161 ) $ (6,923,564 ) Distributions of earnings from equity method investments — 1,700,636 1,700,636 Deferred taxes 6,990,955 (119,788 ) 6,871,167 Income from equity method investments (25,728 ) (1,978,326 ) (2,004,054 ) Net cash used in operating activities (5,487,912 ) (627,639 ) (6,115,551 ) Cash flows from investing activities Purchases of equity method investments — (26,925,757 ) (26,925,757 ) Purchases of available-for-sale securities (26,925,757 ) 26,925,757 — Distributions from equity method investments — 627,639 627,639 Net cash used in investing activities (19,577,470 ) 627,639 (18,949,831 ) Net decrease in cash and cash equivalents (8,568,646 ) — (8,568,646 ) Cash and cash equivalents, beginning of period 17,185,204 — 17,185,204 Cash and cash equivalents, end of period $ 8,616,558 $ — $ 8,616,558 Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments of a normal recurring nature considered necessary for the fair presentation of the consolidated financial statements have been made. All significant intercompany transactions and balances have been eliminated in consolidation. For the periods presented herein, total comprehensive income (loss) is equivalent to net income (loss), and accordingly, no statements of comprehensive income (loss) are presented. Principles of Consolidation The consolidated financial statements include the accounts of the Company and entities in which it, directly or indirectly, is determined to have a controlling financial interest under ASC Topic 810, as amended by ASU No. 2015-02. Under the variable interest model, the Company determines whether, if by design, an entity has equity investors who lack substantive participating or kick-out rights. If equity investors do not have such rights, the entity is considered a variable interest entity ("VIE") and must be consolidated by its primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Company holds a variable interest is a VIE and (b) whether the Company's involvement, through holding interests directly or indirectly in the entity, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Under the consolidation guidance, the Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion continually. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Company, affiliates of the Company or third parties) or amendments to the governing documents of the respective investment funds could affect an entity's status as a VIE or the determination of the primary beneficiary. At each reporting date, the Company assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. For equity investments where the Company does not control the investee, and where it is not the primary beneficiary of a VIE, but can exert significant influence over the financial and operating policies of the investee, the Company follows the equity method of accounting. The evaluation of whether the Company exerts control or significant influence over the financial and operational policies of its investees requires significant judgment based on the facts and circumstances surrounding each individual investment. Factors considered in these evaluations may include the type of investment, the legal structure of the investee, the terms and structure of the investment agreement, including investor voting or other rights, the terms of the Company's investment advisory agreement or other agreements with the investee, any influence the Company may have on the governing board of the investee, the legal rights of other investors in the entity pursuant to the fund’s operating documents and the relationship between the Company and other investors in the entity. Consolidated Variable Interest Entities Fifth Street Holdings FSAM is the sole general partner of Fifth Street Holdings and, as such, it operates and controls all of the business and affairs of Fifth Street Holdings and its wholly-owned subsidiaries. Under ASC 810, Fifth Street Holdings meets the definition of a VIE because the limited partners do not hold substantive kick-out or participating rights. Since FSAM has the obligation to absorb expected losses and the right to receive benefits that could be significant to Fifth Street Holdings and is the sole general partner, FSAM is considered to be the primary beneficiary of Fifth Street Holdings. The assets of Fifth Street Holdings can be used to settle the obligations of FSAM based on the discretion of FSAM in its capacity as the general partner of Fifth Street Holdings. As a result, the Company consolidates the financial results of Fifth Street Holdings and its wholly-owned subsidiaries and records the economic interests in Fifth Street Holdings held by the limited partners other than FSAM as "Non-controlling interests" on the Consolidated Statements of Financial Condition and "Net (income) loss attributable to non-controlling interests" on the Consolidated Statements of Operations. Voting Interest Entities Entities that are not VIEs are generally evaluated under the voting interest model. The Company consolidates voting interest entities that it controls through a majority voting interest or through other means. Unconsolidated Variable Interest Entities As of June 30, 2017, the Company held interests in certain VIEs that were not consolidated because the Company was not deemed the primary beneficiary. The Company's interest in such entities generally is in the form of direct interests and fixed fee arrangements. The maximum exposure to loss represents the potential loss of assets by the Company relating to these non-consolidated entities. The Company's interests in these non-consolidated VIEs and their respective maximum exposure to loss relating to non-consolidated VIEs as of June 30, 2017 is $23,312,226 , which represents the fair value of the Company's investments for unconsolidated VIEs at such date. CLOs In February 2015, the Company closed a securitization of the senior secured loans warehoused in Fifth Street Senior Loan Fund I, LLC ("CLO I"). In September 2015, Fifth Street Senior Loan II, LLC merged into Fifth Street SLF II Ltd. ("CLO II"), and the Company closed a securitization of the senior secured loans previously warehoused in Fifth Street Senior Loan Fund II, LLC. CLO Management, a wholly owned-consolidated subsidiary of Fifth Street Holdings, is the collateral manager of CLO I and CLO II (collectively referred to as the "CLOs"), and as such, it operates and controls all of the business and affairs of the CLOs. Under ASC 810, the CLOs meet the definition of a VIE because the total equity at risk is not sufficient to finance their activities. The Company determined that it did not have an obligation to absorb expected losses that could be significant to the CLOs. Therefore, the Company is not considered to be the primary beneficiary of the CLOs and, accordingly, does not consolidate their financial results. As of June 30, 2017 , investments held by the Company in the senior secured and subordinated notes of the CLOs are included within "Assets held for sale" at fair value on the Consolidated Statement of Financial Condition. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions affecting amounts reported in the consolidated financial statements and accompanying notes. The most significant of these estimates are related to: (i) the valuation of equity-based compensation, (ii) the estimate of future taxable income, which impacts the carrying amount of the Company’s deferred income tax assets, (iii) the determination of net tax benefits in connection with the Company's tax receivable agreements, (iv) the valuation of the Company's investments, (v) the measurement of asset and liabilities associated with exit and disposal activities related to the abandonment of office space, (vi) the calculation of interest income accreted on beneficial interests in CLOs and (vii) the accretion of the residual excess of the Company's share of FSC and FSFR's net assets over its cost basis. These estimates are based on the information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ materially from those estimates under different assumptions and conditions. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash and cash equivalents with high-credit quality financial institutions. For the six months ended June 30, 2017 and 2016, substantially all revenues and receivables were earned or derived from advisory or administrative services provided to the BDCs and other affiliated entities. The Company is dependent on its chief executive officer, Leonard M. Tannenbaum, who holds approximately 86% of the combined voting power of the Company through his ownership of shares of common stock. If for any reason the services of the Company's chief executive officer were to become unavailable, there could be a material adverse effect on the Company's operations, liquidity and profitability. Fair Value Measurements The carrying amounts of cash, management fees receivable, performance fees receivable, prepaid expenses, insurance recovery receivable, due from/to affiliates, accounts payable and accrued expenses, accrued compensation and benefits, income taxes payable, legal settlement payable and dividends payable approximate fair value due to the immediate or short-term maturity of these financial instruments. Cash and Cash Equivalents Cash equivalents include short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. The Company places its cash and cash equivalents with U.S. financial institutions and, at times, amounts may exceed federally insured limits. The Company monitors the credit standing of these financial institutions. Equity Method Investments Investments over which the Company exercises significant influence, but which do not meet the requirements for consolidation, are accounted for using the equity method of accounting, whereby the Company records its share of the underlying income or losses of equity method investees. The Company did not elect the fair value option on its equity method investments. Investments in equity method investees consists of the Company's general partner interests in FSOF and investments in FSC and FSFR common stock. The Company exercises significant influence with respect to FSOF and the BDCs as a result of its management contracts with them, and specifically with respect to the BDCs, its inclusion of its employees on the board of directors. Beneficial Interest in CLOs Beneficial interests in CLOs meet the definition of a debt security under ASC Topic 325-40, Beneficial Interest in Securitized Financial Assets . Income from the beneficial interest in CLOs is recorded using the effective interest method based upon an estimation of an effective yield to maturity utilizing assumed cash flows. The Company monitors the expected residual payments, and effective yield is determined and updated periodically, as needed. Any distributions received from the beneficial interests in CLOs in excess of the calculated income using the effective yield are treated as a reduction of the cost. As of June 30, 2017, beneficial interests in CLOs were classified as "Assets held for sale" on the Consolidated Statement of Financial Condition. The Company earned interest income of $299,613 and $629,456 , respectively, from beneficial interests in CLOs, for the three and six months ended June 30, 2017 and $356,131 and $695,725 , respectively, for the three and six months ended June 30, 2016. Fair Value Option The Company has elected the fair value option, upon initial recognition, for all beneficial interests in CLOs. There were $134,249 and $328,519 of unrealized gains, respectively, recorded on beneficial interests in CLOs for the three and six months ended June 30, 2017 . There were $480,037 and $( 368,227 ) of unrealized gains (losses), respectively, recorded on beneficial interests in CLOs for the three and six months ended June 30, 2016. The fair value option permits the irrevocable election of fair value on an instrument-by-instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The Company believes that by electing the fair value option for these financial instruments, it provides consistent measurement with its peers in the asset management industry. Changes in the fair value of these assets and liabilities and related interest income/expense are recorded within "Other income (expense)" in the Consolidated Statements of Operations. Refer to Note 4 for a description of valuation methodologies for the beneficial interests in CLOs. Derivative Instruments Derivative instruments include warrant and swap contracts issued in connection with the RiverNorth settlement. The derivative instruments are not designated as hedging instruments and are carried at fair value. Changes in fair value are recorded within "Unrealized gain (loss) on derivatives" and upon settlement of a derivative instrument, the Company records a "Realized gain (loss) on derivatives" in the Consolidated Statements of Operations. See Note 3 for quantitative disclosures regarding derivative instruments. Fixed Assets Fixed assets consist of furniture, fixtures and equipment (including automobiles, computer hardware and purchased software), software developed for internal use and leasehold improvements, and are recorded at cost, less accumulated depreciation and amortization. Depreciation of furniture, fixtures and equipment is computed using the straight-line method over the estimated useful lives of the respective assets ( three to eight years). Software developed for internal use, which is amortized over three years , consists of costs incurred during the application development stage of software developed for the Company's proprietary use and includes costs of Company personnel who are directly associated with the development. Amortization of improvements to leased properties is computed using the straight-line method based upon the initial term of the applicable lease or the estimated useful life of the improvements, whichever is shorter, and ranges from five to 10 years. Routine expenditures for repairs and maintenance are charged to expense when incurred. Major betterments and improvements are capitalized. Upon retirement or disposition of fixed assets, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in the Consolidated Statements of Operations. The Company evaluates fixed assets for impairment whenever events or changes in circumstances indicate that an asset's carrying value may not be fully recovered. Deferred Financing Costs Deferred financing costs, which consist of fees and expenses paid in connection with the closing of Fifth Street Holdings' credit facility, are capitalized at the time of payment. Deferred financing costs are amortized using the straight line method over the term of the credit facility and are included in interest expense on the Consolidated Statements of Operations. In connection with an amendment to the Company's credit facility on June 30, 2017 (See Note 8), the Company wrote off $208,000 of deferred financing costs and reclassified the remaining balance to credit facility payable on the Consolidated Statement of Financial Condition. Assets Held for Sale and Related Liabilities In connection with the sale of CLO Management (as discussed in Note 14), the Company classified all CLO Management's assets and liabilities as held for sale as of June 30, 2017. The following table presents the aggregate carrying amounts of the assets and liabilities classified as held for sale on the Consolidated Statement of Financial Condition as of June 30, 2017: Assets Cash and cash equivalents $ 332 Beneficial interests in CLOs at fair value (cost: $23,901,522) (See Note 4) 23,246,607 Due from affiliates 82,667 Total assets $ 23,329,606 Liabilities Accounts payable and accrued expenses (1) $ 1,042,950 Risk Retention Term Loan 12,972,565 Total liabilities $ 14,015,515 (1) As of June 30, 2017, in accordance with ASC Topic 360, the disposal group is recorded at fair value less costs to sell, which includes $940,297 of estimated costs to sell CLO Management. Deferred Rent The Company recognizes rent expense on a straight-line basis over the expected lease term. Within the provisions of certain leases, there are free rent periods and escalations in payments over the base lease term. The effects of these items have been reflected in rent expense on a straight-line basis over the expected lease term. Landlord contributions and tenant allowances are included in the straight-line calculations and are being deferred over the lease term and are reflected as a reduction in rent expense. Revenue Recognition The Company has three principal sources of revenues: management fees, performance fees and other fees. These revenues are derived from the Company's agreements with the funds it manages, primarily the BDCs. The investment advisory agreements on which revenues are based are generally renewable on an annual basis by the general partner or the board of directors of the respective funds. Management Fees Management fees are generally based on a defined percentage of fair value of assets, total commitments, invested capital, net asset value, net investment income, total assets or principal amount of the investment portfolios managed by the Company. All management fees are earned from affiliated funds of the Company. The contractual terms of management fees vary by fund structure and investment strategy and range from 0.40% to 1.75% for base management fees, which are asset or capital-based. Management fees from affiliates also include quarterly incentive fees on the net investment income from the BDCs ("Part I Fees"). Part I Fees are generally equal to 20.0% of the BDCs' net investment income (before Part I Fees and performance fees payable based on capital gains), subject to fixed "hurdle rates" or preferred returns, as defined in the applicable investment advisory agreement. No fees are recognized until the BDCs' net investment income exceeds the applicable hurdle rate, with a "catch-up" provision that serves to ensure the Company receives 20.0% of the BDCs' net investment income from the first dollar earned. Such fees are classified as management fees as they are paid quarterly, predictable and recurring in nature, not subject to repayment (or clawback) and cash settled each quarter. Management fees from affiliates are recognized as revenue in the period investment advisory services are rendered, subject to the Company's assessment of collectability. On March 20, 2017, Fifth Street Management entered into a new investment advisory agreement with FSC, which, effective as of January 1, 2017, (i) decreased the quarterly preferred return to 1.75% on the income portion of the incentive fee and (ii) implemented a total return requirement that may decrease the incentive fee payable to Fifth Street Management by 25% per quarter to the extent that FSC’s cumulative incentive fees over a lookback period of up to 12 quarters exceed 20.0% of FSC's cumulative net increase in net assets resulting from operations. Performance Fees Performance fees are earned from the funds managed by the Company based on the performance of the respective funds. The contractual terms of performance fees vary by fund structure and investment strategy and are generally 15.0% to 20.0% of investment performance. The Company has elected to adopt Method 2 of ASC Topic 605-20, Revenue Recognition for Revenue Based on a Formula . Under this method, the Company recognizes revenue based on the respective fund's performance during the period, subject to certain hurdles or benchmarks. The performance fees for any period are based upon an assumed liquidation of the fund's net assets on the reporting date, and distribution of the net proceeds in accordance with the fund's income allocation provisions. The performance fees may be subject to reversal to the extent that the performance fees recorded exceed the amount due to the general partner or investment manager based on a fund's cumulative investment returns. Performance fees related to the BDCs ("Part II Fees") are calculated and payable in arrears as of the end of each fiscal year of the BDCs and equal 20.0% of the BDCs' realized capital gains, if any, on a cumulative basis since inception, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid Part II fees. Other Fees The Company also provides administrative services to the Fifth Street Funds. These fees are reported within Revenues - Other fees in the Consolidated Statements of Operations. These fees generally represent reimbursable compensation, overhead and other expenses incurred by the Company on behalf of the funds. The Company is considered the principal under these arrangements and is required to record the expense and related reimbursement revenue on a gross basis. Compensation and Benefits Compensation generally includes salaries, bonuses, severance and equity-based compensation charges. Bonuses are accrued over the service period to which they relate. Retention Bonus Agreements The Company has entered into retention bonus agreements in the amount of $2,652,000 with certain key employees. Included in compensation expense for the three and six months ended June 30, 2017 is $124,566 and $798,880 of amortization related to these agreements, respectively and $383,189 for the three months ended June 30, 2016. There were no retention bonuses forfeited during the six months ended June 30, 2017. Severance Agreements The Company has entered into various severance and change in control agreements with certain key employees, which provide for the payment of severance and other benefits to each participant in the event of a termination without cause or for good reason, and in certain cases, the payment of a cash bonus upon the occurrence of a change in control event. The amounts of such payments and benefits vary by employee. The Company records expenses related to such severance and change in control agreements by employee if, and when, a termination or change in control event occurs. Included in compensation expense for the three and six months ended June 30, 2017 is $1,337,941 and $1,452,407 , respectively, related to these severance arrangements. Included in compensation expense for the three and six months ended June 30, 2016 is $361,733 and $701,554 , respectively, related to these severance arrangements. Equity-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic 718, Compensation – Stock Compensation. Under the fair value recognition provision of this guidance, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period. The Company recognizes expense related to equity-based compensation transactions in which it receives employee services in exchange for: (a) equity instruments of the Company or (b) liabilities that are based on the fair value of the Company's equity instruments. Equity-based compensation expense represents expenses associated with: (i) granting of Part I Fee-sharing arrangements prior to the Reorganization; (ii) conversion of and acceleration in vesting of interests in Predecessor in connection with the Reorganization; and (iii) granting of restricted stock units, options to purchase shares of FSAM Class A common stock and stock appreciation rights granted. The value of the award is amortized on a straight-line basis over the requisite service period and is included within "Compensation and benefits" (except for grants to non-employees which are included in "General, administrative and other expenses") in the Company’s Consolidated Statements of Operations. Effective January 1, 2016, the Company elected to early adopt Accounting Standards Update ("ASU") 2016-09. The primary impact of the Company's adoption was limited to the accounting for forfeitures of certain stock based awards, which is adopted on a modified retrospective basis. Upon adoption, the Company no longer estimates forfeitures. Rather, the Company has elected to account for forfeitures as they occur. The Company records deferred tax assets or liabilities for equity compensation plan awards based on deductions for income tax purposes of stock-based compensation recognized at the statutory tax rate in the jurisdiction in which the Company is expected to receive a tax deduction. In addition, differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported on the Company's income tax returns are recorded as an adjustment to the provision (benefit) for income taxes on the Consolidated Statements of Operations. Income Taxes Fifth Street Holdings complies with the requirements of the Internal Revenue Code ("IRC") that are applicable to limited partnerships, which allow for the complete pass-through of taxable income or losses to Fifth Street Holdings limited partners, including FSAM, who are individually responsible for any federal tax consequences. The tax provision includes the income tax obligation related to FSAM's allocated portion of Fifth Street Holdings' income, which is net of any tax incurred at Fifth Street Holdings' subsidiaries that are subject to income tax. Also, as a result of the Reorganization, certain subsidiaries were converted from pass-through entities to taxable entities. Accordingly, the portion of the Company's subsidiaries' earnings attributable to non-controlling interests are subject to tax when reported as a component of the non-controlling interests' taxable income on their individual tax returns. The Company accounts for income taxes under the asset and liability method prescribed by ASC Topic 740, Income Taxe |
