Marcus & Millichap, Inc. Annual report pursuant to Section 13 and 15(d)

Selected Balance Sheet Data (Tables)

Selected Balance Sheet Data (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Allowance for Credit Losses for Advances and Loans and Commissions Receivable

Allowance for credit losses for advances and loans and commissions receivable consisted of the following (in thousands):


	Advances and Loans			Commissions Receivable			Total
Beginning balance as of January 1, 2020	$	512		$	32	(1)	$	544
Credit loss expense		126			62			188
Write-offs		(75	)		—			(75	)

Ending balance as of December 31, 2020	$	563		$	94		$	657

(1)	Includes cumulative-effect adjustment related to the adoption of ASU 2016-13.


	Advances and Loans			Commissions Receivable		Total
Beginning balance as of January 1, 2019	$	514		$	—	$	514
Credit loss expense		114			—		114
Write-offs		(116	)		—		(116	)

Ending balance as of December 31, 2019	$	512		$	—	$	512

Schedule of Other Assets

Other Assets

Other assets consisted of the following (in thousands):


	Current December 31,				Non-Current December 31,
	2020		2019		2020		2019
MSRs, net of amortization	$	—	$	—	$	1,897	$	2,002
Security deposits		—		—		1,461		1,345
Employee notes receivable (1)		185		65		246		323
Customer trust accounts and other		4,526		3,120		572		677

	$	4,711	$	3,185	$	4,176	$	4,347

(1)	Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable were $0 a nd $60 for the years ended December 31, 2020 and 2019, respectively. See Note 9 – “Related-Party Transactions” for additional information.

Summary of Net Change in Carrying Value of MSRs

The net change in the carrying value of MSRs consisted of the following (in thousands):


	December 31,
	2020			2019
Beginning balance	$	2,002		$	2,209
Additions		441			337
Amortization		(546	)		(544	)

Ending balance	$	1,897		$	2,002

Schedule of Deferred Compensation and Commissions

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


	Current December 31,				Non-Current December 31,
	2020		2019		2020		2019
SARs liability (1)	$	2,162	$	2,080	$	16,671	$	18,122
Commissions payable to investment sales and financing professionals		54,082		40,235		15,306		20,818
Deferred compensation liability (1)		1,519		1,553		6,768		6,688
Other		343		433		—		—

	$	58,106	$	44,301	$	38,745	$	45,628

(1)

The SARs and deferred compensation liability become subject to payout as a result of a participant no longer being considered as a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to the participants within the next twelve months have been classified as current.

Summary of Net Change in Carrying Value of Assets Held in Rabbi Trust and Deferred Compensation Liability

The net change in the carrying value of the assets held in the rabbi trust and the net change in the carrying value of the deferred compensation liability, each exclusive of additional contributions, distributions and trust expenses consisted of the following (in thousands):


	Years Ended December 31,
	2020		2019		2018
Increase (decrease) in the carrying value of the assets held in the rabbi trust (1)	$	1,042	$	1,353	$	(326	)

Increase (decrease) in the net carrying value of the deferred compensation obligation (2)	$	799	$	1,293	$	(306	)

(1)	Recorded in other income (expense), net in the consolidated statements of net and comprehensive income.

(2)	Recorded in selling, general and administrative expense in the consolidated statements of net and comprehensive income.

Summary of Other Liabilities

Other liabilities consisted of the following (in thousands):


	Non-Current
	December 31,
	2020		2019
Deferred consideration (1)(2)	$	8,582	$	830
Contingent consideration (1)(2)		4,219		2,709
Other		1,015		—

	$	13,816	$	3,539

(1)

The current portions of deferred consideration in the amounts of $6,666 and $560 as of December 31, 2020 and 2019, respectively, are included in accounts payable and other liabilities in the consolidated balance sheets. The current portions of contingent consideration in the amounts of $1,353 and $678 as of December 31, 2020 and 2019, respectively, are included in accounts payable and other liabilities in the consolidated balance sheets.

(2)	Deferred consideration in the aggregate amount of $1,401 as of December 31, 2019 was reclassified from contingent consideration during the year ended December 31, 2020 and of this amount, $560 and $841 pertained to the current and non-current portions, respectively.