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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
__________________________
FORM 10-Q
__________________________
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from___________to___________
Commission File Number: 001-36155
__________________________
MARCUS & MILLICHAP, INC.
(Exact name of registrant as specified in its Charter)
__________________________
Delaware35-2478370
(State or Other Jurisdiction of
Incorporation or Organization)		(I.R.S. Employer
Identification No.)
23975 Park Sorrento, Suite 400
Calabasas, California
91302
(Address of Principal Executive Offices)(Zip Code)
(818) 212-2250
(Registrant’s telephone number, including area code)
__________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per share
MMI
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by checkmark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter time period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Number of shares of common stock, par value $0.0001 per share, of the registrant issued and outstanding as of October 31, 2022 was 39,365,723 shares.

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MARCUS & MILLICHAP, INC.
TABLE OF CONTENTS
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for shares and par value)
September 30, 2022
(unaudited)		December 31,
2021
Assets
Current assets:
Cash and cash equivalents$270,864 $382,140 
Commissions receivable11,768 17,230 
Prepaid expenses8,665 13,220 
Income tax receivable3,253 — 
Marketable debt securities, available-for-sale (includes amortized cost of $213,042 and $183,915 at September 30, 2022 and December 31, 2021, respectively, and $0 allowance for credit losses)
211,759 183,868 
Advances and loans, net3,484 6,403 
Other assets, current5,964 5,270 
Total current assets515,757 608,131 
Property and equipment, net26,823 23,192 
Operating lease right-of-use assets, net83,972 81,528 
Marketable debt securities, available-for-sale (includes amortized cost of $94,727 and $111,858 at September 30, 2022 and December 31, 2021, respectively, and $0 allowance for credit losses)
89,329 112,610 
Assets held in rabbi trust9,222 11,508 
Deferred tax assets, net37,883 33,736 
Goodwill and other intangible assets, net57,092 48,105 
Advances and loans, net164,640 113,242 
Other assets, non-current15,170 13,146 
Total assets$999,888 $1,045,198 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses$10,237 $15,487 
Deferred compensation and commissions62,547 114,685 
Income tax payable— 17,853 
Operating lease liabilities18,683 18,973 
Accrued bonuses and other employee related expenses34,572 49,848 
Other liabilities, current20,603 8,784 
Total current liabilities146,642 225,630 
Deferred compensation and commissions55,825 53,536 
Operating lease liabilities62,837 58,334 
Other liabilities, non-current10,623 11,394 
Total liabilities275,927 348,894 
Commitments and contingencies— — 
Stockholders’ equity:
Preferred stock, $0.0001 par value:
Authorized shares – 25,000,000; issued and outstanding shares – none at September 30, 2022 and December 31, 2021, respectively
— — 
Common stock, $0.0001 par value:
Authorized shares – 150,000,000; issued and outstanding shares – 39,797,423 and 39,692,373 at September 30, 2022 and December 31, 2021, respectively
4 4 
Additional paid-in capital128,174 121,844 
Retained earnings599,710 573,546 
Accumulated other comprehensive (loss) income(3,927)910 
Total stockholders’ equity723,961 696,304 
Total liabilities and stockholders’ equity$999,888 $1,045,198 
See accompanying notes to condensed consolidated financial statements.
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MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Revenues:
Real estate brokerage commissions$292,889 $299,759 $934,483 $715,458 
Financing fees28,099 29,391 91,363 75,448 
Other revenues2,852 3,233 13,415 10,400 
Total revenues323,840 332,383 1,039,261 801,306 
Operating expenses:
Cost of services217,360 219,194 670,170 506,882 
Selling, general and administrative73,004 64,673 227,380 178,147 
Depreciation and amortization2,924 2,850 10,167 8,806 
Total operating expenses293,288 286,717 907,717 693,835 
Operating income30,552 45,666 131,544 107,471 
Other income, net978 323 967 2,737 
Interest expense(229)(144)(547)(436)
Income before provision for income taxes31,301 45,845 131,964 109,772 
Provision for income taxes9,939 11,921 35,651 29,304 
Net income$21,362 $33,924 $96,313 $80,468 
Earnings per share:
Basic$0.53 $0.85 $2.40 $2.02 
Diluted$0.53 $0.84 $2.39 $2.00 
Weighted average common shares outstanding:
Basic40,08639,94040,03839,859
Diluted40,30240,24140,35840,148
See accompanying notes to condensed consolidated financial statements.





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MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(Unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Net income$21,362 $33,924 $96,313 $80,468 
Other comprehensive loss:
Marketable debt securities, available-for-sale:
Change in net unrealized (losses) gains(1,541)(240)(5,456)(715)
Less: reclassification adjustment for net losses (gains) included in other income, net7 23 (70)26 
Net change, net of tax of $(522) and $(1,888) for the three and nine months ended September 30, 2022, and $(75) and $(239) for the three and nine months ended September 30, 2021, respectively
(1,534)(217)(5,526)(689)
Foreign currency translation gain (loss), net of tax of $0 for each of the three and nine months ended September 30, 2022 and 2021, respectively
569 192 689 (138)
Total other comprehensive loss(965)(25)(4,837)(827)
Comprehensive income$20,397 $33,899 $91,476 $79,641 
See accompanying notes to condensed consolidated financial statements.
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MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except for shares)
(Unaudited)
Three Months Ended September 30, 2022
Preferred StockCommon StockAdditional
Paid-in
Capital 		Retained
Earnings		Accumulated
Other
Comprehensive
Loss 		Total
SharesAmountSharesAmount
Balance at June 30, 2022— $— 39,964,292 $4 $123,767 $596,361 $(2,962)$717,170 
Net and comprehensive income (loss)— — — — — 21,362 (965)20,397 
Dividend— — — — — (10,436)— (10,436)
Stock-based award activity       
Stock-based compensation— — — — 4,544 — — 4,544 
Issuance of common stock for vesting of restricted stock units— — 63,397 — — — — — 
Shares withheld related to net share settlement of stock-based awards— — (3,471)— (137)— — (137)
Repurchases of common stock— — (226,795)— — (7,577)— (7,577)
Balance as of September 30, 2022— $— 39,797,423 $4 $128,174 $599,710 $(3,927)$723,961 
Three Months Ended September 30, 2021
Preferred StockCommon StockAdditional
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total
SharesAmountSharesAmount
Balance at June 30, 2021—$— 39,578,360$4 $117,457 $477,620 $1,772 $596,853 
Net and comprehensive income (loss)— — — — — 33,924 (25)33,899 
Stock-based award activity
Stock-based compensation— — — — 2,703 — — 2,703 
Issuance of common stock for settlement of deferred stock units— — 60,373 — — — — — 
Issuance of common stock for vesting of restricted stock units— — 58,411 — — — — — 
Shares withheld related to net share settlement of stock-based awards— — (30,359)— (1,186)— — (1,186)
Balance as of September 30, 2021—$— 39,666,785$4 $118,974 $511,544 $1,747 $632,269 
See accompanying notes to condensed consolidated financial statements.
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MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except for shares)
(Unaudited)
Nine Months Ended September 30, 2022
Preferred StockCommon StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total
SharesAmountSharesAmount
Balance at December 31, 2021—$— 39,692,373$4 $121,844 $573,546 $910 $696,304 
Net and comprehensive income (loss)— — — — — 96,313 (4,837)91,476 
Dividends— — —  — (62,572)— (62,572)
Stock-based award activity
Stock-based compensation— — — — 12,675 — — 12,675 
Shares issued pursuant to employee stock purchase plan— — 11,089 — 414 — — 414 
Issuance of common stock for settlement of deferred stock units— — 166,449 — — — — — 
Issuance of common stock for vesting of restricted stock units— — 275,631 — — — — — 
Issuance of common stock for unvested restricted stock awards— — 11,494 — — — — — 
Shares withheld related to net share settlement of stock-based awards— — (161,491)— (8,176)— — (8,176)
Issuance of common stock for stock settled deferred consideration— — 28,673 — 1,417 — — 1,417 
Repurchases of common stock— — (226,795)— — (7,577)— (7,577)
Balance as of September 30, 2022—$— 39,797,423$4 $128,174 $599,710 $(3,927)$723,961 

Nine Months Ended September 30, 2021
Preferred StockCommon StockAdditional
Paid-In
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Total
SharesAmountSharesAmount
Balance at December 31, 2020—$— 39,401,976$4 $113,182 $431,076 $2,574 $546,836 
Net and comprehensive income (loss)—— —— — 80,468 (827)79,641 
Stock-based award activity       
Stock-based compensation—— —— 7,653 — — 7,653 
Shares issued pursuant to employee stock purchase plan—— 11,635— 369 — — 369 
Issuance of common stock for settlement of deferred stock units—— 60,373— — — — — 
Issuance of common stock for vesting of restricted stock units—— 241,726— — — — — 
Issuance of common stock for unvested restricted stock awards—— 12,492— — — — — 
Shares withheld related to net share settlement of stock-based awards—— (88,898)— (3,230)— — (3,230)
Issuance of common stock for stock settled deferred consideration—— 27,481— 1,000 — — 1,000 
Balance as of September 30, 2021—$— 39,666,785$4 $118,974 $511,544 $1,747 $632,269 
See accompanying notes to condensed consolidated financial statements.
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MARCUS & MILLICHAP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended September 30,
20222021
Cash flows from operating activities
Net income$96,313 $80,468 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization10,167 8,806 
Noncash lease expense17,840 17,773 
Credit loss recovery— 25 
Stock-based compensation12,675 7,653 
Deferred taxes, net(2,256)(2,847)
Unrealized foreign exchange losses (gains)1,600 (298)
Net realized gains on marketable debt securities, available-for-sale(87)(78)
Other non-cash items(1,459)361 
Changes in operating assets and liabilities:
Commissions receivable4,891 (5,297)
Prepaid expenses4,544 925 
Advances and loans(49,171)(2,434)
Other assets(4,472)(1,076)
Accounts payable and accrued expenses(4,942)4,020 
Income tax receivable/payable(21,106)1,932 
Accrued bonuses and other employee related expenses(15,239)11,223 
Deferred compensation and commissions(45,481)(4,499)
Operating lease liabilities(14,598)(15,889)
Other liabilities(994)(1,175)
Net cash (used in) provided by operating activities(11,775)99,593 
Cash flows from investing activities
Acquisition of businesses, net of cash received(12,500)229 
Purchases of marketable debt securities, available-for-sale(276,708)(291,063)
Proceeds from sales and maturities of marketable debt securities, available-for-sale266,481 248,540 
Purchases of securities, held-to-maturity— (9,500)
Issuances of employee notes receivable(71)(40)
Payments received on employee notes receivable71 290 
Purchase of property and equipment(8,564)(4,238)
Net cash used in investing activities(31,291)(55,782)
Cash flows from financing activities
Taxes paid related to net share settlement of stock-based awards(8,176)(3,230)
Proceeds from issuance of shares pursuant to employee stock purchase plan414 369 
Dividends paid(50,161)— 
Principal payments on stock appreciation rights liability(1,761)(1,481)
Principal payments on deferred and contingent consideration(2,431)(1,739)
Cash paid for stock repurchases(5,659)— 
Net cash used in financing activities(67,774)(6,081)
Effect of currency exchange rate changes on cash and cash equivalents(436)125 
Net (decrease) increase in cash and cash equivalents(111,276)37,855 
Cash and cash equivalents at beginning of period382,140 243,152 
Cash and cash equivalents at end of period$270,864 $281,007 
Supplemental cash flow disclosures:  
Interest paid during the period$599 $734 
Income taxes paid, net$58,572 $30,168 
Supplemental disclosures of noncash investing and financing activities:  
Unpaid purchases of property and equipment$892 $786 
Right-of-use assets obtained in exchange for operating lease liabilities$20,799 $19,008 
Issuance of stock for the settlement of deferred consideration$1,417 $1,000 
Measurement period adjustment of acquisition related contingent consideration$— $(100)
See accompanying notes to condensed consolidated financial statements.
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MARCUS & MILLICHAP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.    Description of Business, Basis of Presentation and Recent Accounting Pronouncements
Description of Business
Marcus & Millichap, Inc. (the “Company,” “Marcus & Millichap,” or “MMI”), a Delaware corporation, is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of September 30, 2022, MMI operates 82 offices in the United States and Canada through its wholly-owned subsidiaries, including the operations of Marcus & Millichap Capital Corporation.
Reorganization and Initial Public Offering
MMI was formed in June 2013 in preparation for Marcus & Millichap Company (“MMC”) to spin-off its majority-owned subsidiary, Marcus & Millichap Real Estate Investment Services, Inc. (“MMREIS”). Prior to the initial public offering (“IPO”) of MMI, all of the preferred and common stockholders of MMREIS (including MMC and employees of MMREIS) contributed all of their outstanding shares to MMI, in exchange for new MMI common stock. As a result, MMREIS became a wholly-owned subsidiary of MMI. Thereafter, MMC distributed 80.0% of the shares of MMI common stock to MMC’s shareholders and exchanged the remaining portion of its shares of MMI common stock for cancellation of indebtedness of MMC. MMI completed its IPO in November 2013.
Basis of Presentation
The financial information presented in the accompanying unaudited condensed consolidated financial statements, has been prepared in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements and notes include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the condensed consolidated financial position, results of operations and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto, including the Company’s accounting policies for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed on March 1, 2022 with the SEC. The results of the three months and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, for other interim periods or for future years.
The Company reclassified certain items previously included within accounts payable and other liabilities to other liabilities, current in the December 31, 2021 condensed consolidated balance sheet to conform with current period presentation.
Consolidation
The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents, investments in marketable debt securities, available-for-sale, security deposits and commissions receivable, net. Cash and cash equivalents are placed with high-credit quality financial institutions and invested in high-
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MARCUS & MILLICHAP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
credit quality money market funds and commercial paper. Concentrations and ratings of marketable debt securities, available-for-sale are limited by the approved investment policy.
To reduce its credit risk, the Company monitors the credit standing of the financial institutions money market funds that represent amounts recorded as cash and cash equivalents. The Company historically has not experienced any significant losses related to cash and cash equivalents.
In September 2021, the Company entered into a Strategic Alliance (“Strategic Alliance”) with M&T Realty Capital Corporation (“MTRCC”) pursuant to which the Company has agreed to provide loan opportunities that may be funded through MTRCC’s Delegated Underwriting and Servicing Agreement (“DUS Agreement”) with the Federal National Mortgage Association (“Fannie Mae”) and which requires MTRCC to guarantee a portion of each loan funded. On a loan-by-loan basis, the Company, at its option, can indemnify a portion of MTRCC’s guarantee obligation of loan opportunities presented to and closed by MTRCC though the DUS Agreement. The Company manages and limits the concentration of risk related to the guarantees assumed by monitoring the underlying property type, geographic location, credit of the borrowers, underlying debt service coverage, and loan to value ratios.
The Company derives its revenues from a broad range of real estate investors, owners, and users in the United States and Canada, none of which individually represents a significant concentration of credit risk. The Company maintains allowances, as needed, for estimated credit losses based on management’s assessment of the likelihood of collection. For the three and nine months ended September 30, 2022 and 2021, no transaction represented 10% or more of total revenues. Further, while one or more transactions may represent 10% or more of commissions receivable at any reporting date, amounts due are typically collected within 10 days of settlement and, therefore, do not expose the Company to significant credit risk.
During the three and nine months ended September 30, 2022, the Company’s Canadian operations represented 1.5% and 2.0% of total revenues. During both the three and nine months ended September 30, 2021, the Company’s Canadian operations represented approximately 2.2% of total revenues.
During each of the three and nine months ended September 30, 2022 and 2021, no office represented 10% or more of total revenues.
Revenue Recognition
The Company generates real estate brokerage commissions by acting as a broker for real estate owners or investors seeking to buy or sell interests in commercial properties and generates financing fees from securing financing on purchase transactions, from refinancing its clients’ existing mortgage debt and other ancillary fees associated with financing activities, including, but not limited to, mortgage servicing, debt and equity advisory services, loan sales, due diligence services, guarantee fees, loan performance fees and other consulting. The Company’s contracts, except as noted below, do not contain multiple-element arrangements, variable consideration, financing components, significant noncash consideration, licenses, long-term contracts with customers or other items affecting the transaction price.
Real Estate Brokerage Commissions
Contracts for representing buyers and sellers of real estate are usually negotiated on a transaction-by-transaction basis. The consideration associated with the successful outcome remains constrained until the completion of a transaction which, in almost all cases, is at the close of escrow. At that time, the Company recognizes revenue related to the transaction. The Company’s fee agreements do not include terms or conditions that require the Company to perform any service or fulfill any obligation once the transaction closes.
Financing Fees
Contracts for representing potential borrowers are usually negotiated on a transaction-by-transaction basis. The consideration associated with the successful outcome remains constrained until the completion of a transaction which, in almost all cases, is at the time the loan closes. At that time, the Company recognizes revenue related to the transaction. The Company’s fee arrangements, with certain exceptions, do not include terms or conditions that require the Company to perform any service or fulfill any obligation once the loan closes.
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MARCUS & MILLICHAP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Loan Performance Fees - For loans originated through the Strategic Alliance with MTRCC, the Company receives variable consideration in the form of loan performance fees based on a portion of the servicing fees expected to be received under the servicing contract for servicing the loan. As the Company is not obligated to perform any servicing functions and has no further obligations related to the transaction giving rise to the loan performance fees, the estimated value of the loan performance fees to be received is recorded at the time the loan closes and are collected over the estimated term of the related loan. Any changes in the estimate of loan performance fees to be received are recorded in revenue in the period the estimate changes.
Guarantee Obligations - For certain loans originated through the Strategic Alliance with MTRCC, the Company may agree, at its option, to indemnify MTRCC for a portion of MTRCC’s obligations for loans sold to Fannie Mae. For these loans, the Company allocates a portion of the transaction price and records a loan guarantee obligation based on its fair value. Revenue for this stand ready obligation is recorded on a straight-line basis over the term of the estimated guarantee period and is recorded in financing fees in the condensed consolidated statements of net income. The guarantee obligation is capped at 16.7% of the unpaid principal balance in excess of the collateral securing such loan. For these loans, the Company also records an allowance for loss-sharing obligations based on the unpaid balance of the loan for its portion of the obligation guaranteed to MTRCC.
Mortgage Servicing - The Company recognizes mortgage servicing revenues upon the acquisition of a servicing contract. The Company records servicing fees when earned provided the loans are current and the debt service payments are made by the borrowers.
Other Revenues
Other revenues include fees generated from consulting and advisory services, as well as referral fees from other real estate brokers, and are recognized when services are provided, or upon closing of the transaction.
Recent Accounting Pronouncements
Pending Adoption
In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 is effective for all entities upon issuance and may be applied prospectively to contract modifications through December 31, 2022. The Company's Amended and Restated Credit Agreement (see Note 12 – “Commitments and Contingencies”) no longer references LIBOR. As the Company had not drawn on its Credit Agreement, we determined that the adoption of ASU 2020-04 did not have an impact on the condensed consolidated financial statements.
2.    Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
September 30,
2022		December 31,
2021
Computer software and hardware equipment$40,725 $33,819 
Furniture, fixtures and equipment26,130 24,511 
Less: accumulated depreciation and amortization(40,032)(35,138)
$26,823 $23,192 
Depreciation expense for property and equipment was $1.7 million and $1.8 million for the three months ended September 30, 2022 and 2021, respectively, and $5.4 million for each of the nine months ended September 30, 2022 and 2021.
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MARCUS & MILLICHAP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3.    Investments in Marketable Debt Securities, Available for Sale
Amortized cost, allowance for credit losses, gross unrealized gains (losses) in accumulated other comprehensive (loss) income and fair value of marketable debt securities, available-for-sale, by type of security consisted of the following (in thousands):
September 30, 2022
Amortized
Cost		Allowance
for Credit
Losses		Gross
Unrealized
Gains		Gross
Unrealized
Losses 		Fair
Value
Short-term investments:
U.S. treasuries$122,550 $— $— $(1,140)$121,410 
Corporate debt89,638 — 1 (132)89,507 
Asset-backed securities (“ABS”) and other854 — — (12)842 
$213,042 $— $1 $(1,284)$211,759 
Long-term investments:
U.S. treasuries$44,315 $— $— $(1,434)$42,881 
U.S. government sponsored entities619 — — (76)543 
Corporate debt42,885 — 3 (3,326)39,562 
ABS and other6,908 — — (565)6,343 
$94,727 $— $3 $(5,401)$89,329 
December 31, 2021
Amortized
Cost		Allowance
for Credit
Losses		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Short-term investments:
U.S. treasuries$35,767 $— $— $(34)$35,733 
Corporate debt148,148 — 22 (35)148,135 
$183,915 $— $22 $(69)$183,868 
Long-term investments:    
U.S. treasuries$70,902 $— $128 $(263)$70,767 
U.S. government sponsored entities726 — 22 (3)745 
Corporate debt33,197 — 962 (146)34,013 
ABS and other7,033 — 82 (30)7,085 
$111,858 $— $1,194 $(442)$112,610 
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MARCUS & MILLICHAP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Company’s investments in marketable debt securities, available-for-sale, that have been in a continuous unrealized loss position, for which an allowance for credit losses has not been recorded, by type of security consisted of the following (in thousands):
September 30, 2022
Less than 12 months 12 months or greater Total
Fair
Value		Gross
Unrealized
Losses 		Fair
Value		Gross
Unrealized
Losses 		Fair
Value		Gross
Unrealized
Losses
U.S. treasuries$143,148 $(2,042)$20,766 $(532)$163,914 $(2,574)
U.S. government sponsored entities453 (55)88 (21)541 (76)
Corporate debt110,806 (2,793)4,454 (665)115,260 (3,458)
ABS and other6,950 (534)212 (43)7,162 (577)
$261,357 $(5,424)$25,520 $(1,261)$286,877 $(6,685)