3.	Selected Balance Sheet Data

Commissions Receivable, Net

Commissions receivable, net consisted of the following (in thousands):

 

		March 31, 2014				December 31, 2013
Commissions due from buyer/seller		$	2,296			$	3,241
Due from independent contractors (1)			1,094				973
Less allowance for doubtful accounts			(81	)			(99	)
		$	3,309			$	4,115

 

(1)	The Company’s sales and financing professionals.

The following table presents the changes in the allowance for doubtful accounts (in thousands):

 

		March 31, 2014				March 31, 2013
Balance at beginning of period		$	(99	)		$	(129	)
Recoveries (provision) for losses on commissions receivable			18				—
Write-off of uncollectible commissions receivable			—				—
Balance at end of period		$	(81	)		$	(129	)

Other Assets

Other assets consisted of the following (in thousands):

 

		March 31, 2014				December 31, 2013
Commission notes receivable		$	27			$	82
Due from independent contractors (1)			511				566
Security deposits			1,052				1,126
Other			1,450				1,372
		$	3,040			$	3,146

 

(1)	The Company’s sales and financing professionals.

 

Deferred Compensation and Commissions

Deferred compensation and commissions consisted of the following (in thousands):

 

		March 31, 2014				December 31, 2013
SARs liability		$	20,221			$	19,970
Commissions payable			5,136				8,623
Deferred compensation liability			3,653				3,584
		$	29,010			$	32,177

SARs Liability

Prior to the IPO, certain current employees of MMI were granted stock appreciation rights (“SARs”) under a stock-based compensation program assumed by MMC (“Program”). The SARs agreements were revised and the MMC liability of $20.0 million for the SARs was frozen at March 31, 2013, and was ultimately transferred to MMI through a capital contribution. The SARs liability will be settled with each participant in installments upon retirement or departure. Under the revised agreements, MMI is required to accrue interest on the outstanding balance beginning on January 1, 2014 at a rate based on the 10-year treasury note plus 2%. The rate resets annually. The rate at March 31, 2014 was 5.03%, and MMI recorded interest expense related to this liability of $0.2 million for the three months ended March 31, 2014.

Commissions Payable

Certain investment sales professionals have the ability to earn additional commissions after meeting certain annual revenue thresholds. These commissions are recognized as cost of services in the period in which they are earned. The Company has the ability to defer payment of certain commissions, at its election, for up to three years. Commissions payable that are not expected to be paid within twelve months are classified as long-term liabilities in the accompanying condensed consolidated balance sheets.

Deferred Compensation Liability

A select group of management is eligible to participate in a Deferred Compensation Plan. The plan is a 409A plan and permits the participant to defer compensation up to limits as determined by the plan. The Company chose to fund the Deferred Compensation Plan through variable life insurance policies purchased for the participants’ benefit. The Deferred Compensation Plan is managed by a third-party institutional fund manager, and the deferred compensation and investment earnings are held as a Company asset in a rabbi trust, which is recorded in investments held in rabbi trust account caption in the accompanying condensed consolidated balance sheets. The assets in the trust are restricted unless the Company becomes insolvent, as defined in the Deferred Compensation Plan, in which case the trust assets are subject to the claims of MMI’s creditors. The Company may also, in its sole and absolute discretion, elect to withdraw at any time all or a portion of the trust assets by an amount by which the fair market value of the trust assets exceeds 110% of the aggregate amount credited to the Deferred Compensation Plan’s participants’ accounts.

The net change in the carrying value of the investment assets and the related obligation are recorded in other income, net and selling, general, and administrative expense, respectively in the condensed consolidated statements of net and comprehensive income and were not material during the three months ended March 31, 2014 and 2013.

Other Liabilities

Other liabilities consisted of the following (in thousands):

 

		March 31, 2014				December 31, 2013
Long term deferred rent		$	2,650			$	2,952
Accrued legal			1,351				1,351
Other			31				68
		$	4,032			$	4,371