Quarterly report pursuant to Section 13 or 15(d)

Selected Balance Sheet Data

v2.4.0.8
Selected Balance Sheet Data
6 Months Ended
Jun. 30, 2014
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Selected Balance Sheet Data
3. Selected Balance Sheet Data

Commissions and Other Receivables, Net

Commissions and other receivables, net consisted of the following (in thousands):

 

     June 30,
2014
    December 31,
2013
 

Commissions due from buyer/seller

   $ 3,993      $ 3,241   

Due from independent contractors (1)

     1,907        973   

Less: allowance for doubtful accounts

     (73     (99
  

 

 

   

 

 

 
   $ 5,827      $ 4,115   
  

 

 

   

 

 

 

 

(1)  Represents commissions due from the Company’s sales and financing professionals.

The following table presents the changes in the allowance for doubtful accounts for the six months ended June 30, 2014 and 2013 (in thousands):

 

     June 30,
2014
    June 30,
2013
 

Balance at beginning of period

   $ (99   $ (129

Reduction (provision) for bad debt expense

     26        —     

Write-off of uncollectible commissions receivable

     —          —     
  

 

 

   

 

 

 

Balance at end of period

   $ (73   $ (129
  

 

 

   

 

 

 

Other Assets

Other assets consisted of the following (in thousands):

 

     June 30,
2014
     December 31,
2013
 

Commission notes receivable

   $ 40       $ 82   

Due from independent contractors (1)

     514         566   

Security deposits

     1,153         1,126   

Other

     2,213         1,372   
  

 

 

    

 

 

 
   $ 3,920       $ 3,146   
  

 

 

    

 

 

 

 

(1)  Represents amounts advanced on behalf of the Company’s sales and financing professionals.

 

Deferred Compensation and Commissions

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

 

     June 30,
2014
     December 31,
2013
 

SARs liability

   $ 20,472       $ 19,970   

Commissions payable

     6,196         8,623   

Deferred compensation liability

     3,800         3,584   
  

 

 

    

 

 

 
   $ 30,468       $ 32,177   
  

 

 

    

 

 

 

SARs Liability

Prior to the IPO, certain 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 January 2, 2014 was 5.03%, and MMI recorded interest expense related to this liability of $251,000 and $502,000 for the three and six months ended June 30, 2014, respectively.

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.

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 elected 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 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 and six months ended June 30, 2014 and 2013.

 

Other Liabilities

Other liabilities consisted of the following (in thousands):

 

     June 30,
2014
     December 31,
2013
 

Long term deferred rent

   $ 2,465       $ 2,952   

Accrued legal

     2,849         1,351   

Other

     36         68   
  

 

 

    

 

 

 
   $ 5,350       $ 4,371