Marcus & Millichap, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Assets and liabilities at Fair Value on Recurring Basis

Assets and liabilities carried at fair value on a recurring basis consisted of the following (in thousands):


	September 30, 2024								December 31, 2023
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Assets:
Assets held in rabbi trust	$	12,181	$	—	$	12,181	$	—	$	10,838	$	—	$	10,838	$	—
Convertible notes	$	5,698	$	—	$	—	$	5,698	$	5,081	$	—	$	—	$	5,081
Cash equivalents (1):
Commercial paper	$	68,459	$	—	$	68,459	$	—	$	27,998	$	—	$	27,998	$	—
Money market funds	32,061		32,061		—		—		68,364		68,364		—		—
	$	100,520	$	32,061	$	68,459	$	—	$	96,362	$	68,364	$	27,998	$	—
Marketable debt securities, available-for-sale:
Short-term investments:
U.S. treasuries	$	16,808	$	16,808	$	—	$	—	$	91,840	$	91,840	$	—	$	—
Corporate debt	109,275		—		109,275		—		77,041		—		77,041		—

	$	126,083	$	16,808	$	109,275	$	—	$	168,881	$	91,840	$	77,041	$	—
Long-term investments:
U.S. treasuries	$	808	$	808	$	—	$	—	$	9,852	$	9,852	$	—	$	—
U.S. government sponsored entities	1,001		—		1,001		—		1,040		—		1,040		—
Corporate debt	36,413		—		36,413		—		44,565		—		44,565		—
ABS and other	11,986		—		11,986		—		12,002		—		12,002		—
	$	50,208	$	808	$	49,400	$	—	$	67,459	$	9,852	$	57,607	$	—
Liabilities:
Contingent consideration	$	5,118	$	—	$	—	$	5,118	$	5,482	$	—	$	—	$	5,482
Deferred consideration	$	407	$	—	$	407	$	—	$	1,571	$	—	$	1,571	$	—
Deferred compensation liability	$	10,089	$	10,089	$	—	$	—	$	8,356	$	8,356	$	—	$	—

(1)Included in cash, cash equivalents, and restricted cash on the accompanying condensed consolidated balance sheets.

Schedule of Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis

A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):


	Nine Months Ended September 30,
	2024		2023
Beginning balance	$	5,482	$	7,067

Change in fair value of contingent consideration(1)	(364)		(202)
Payments of contingent consideration	—		(1,060)
Ending balance	$	5,118	$	5,805

(1)Includes immaterial impact of foreign currency translation.

Fair Value Liabilities Measured On Recurring Basis Valuation Techniques

Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial liabilities measured at fair value on a recurring basis consisted of the following (dollars in thousands):


	Fair Value at September 30, 2024		Valuation Technique	Unobservable inputs	Range (Weighted Average)(1)
Contingent consideration	$	5,118	Discounted cash flow	Expected life of cash flows	0-3.1	(0.7)
				Discount rate	0.0%-5.6%	(4.7%)
				Probability of achievement	11.4%-100.0%	(98.3%)

	Fair Value at December 31, 2023		Valuation Technique	Unobservable inputs	Range (Weighted Average)(1)
Contingent consideration	$	5,482	Discounted cash flow	Expected life of cash flows	0.8-3.8 years	(1.4 years)
				Discount rate	5.3%-6.4%	(6.1%)
				Probability of achievement	11.1%-100.0%	(96.5%)

(1)Unobservable inputs were weighted by the relative fair value of the instruments.