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

Annual report pursuant to Section 13 and 15(d)

Notes Payable to Former Stockholders

Notes Payable to Former Stockholders

12 Months Ended

Dec. 31, 2015

6.	Notes Payable to Former Stockholders

In conjunction with the Spin-Off and IPO, notes payable to certain former stockholders of MMREIS that were issued in settlement of restricted stock and SARs awards that were redeemed by MMREIS upon the termination of employment by these former stockholders (“the Notes”), which had been previously assumed by MMC, were transferred to the Company. The Notes are unsecured and bear interest at 5% with annual principal and interest installments and a final principal payment due during the second quarter of 2020. During each of the years ended December 31, 2015 and 2014, the Company made total payments on the Notes of $1.5 million (includes principal and interest).

Accrued interest pertaining to the Notes consisted of the following (in thousands):


	December 31,
	2015		2014
Accrued interest ⁽¹⁾	$	367	$	396

⁽¹⁾	Recorded in accounts payable and accrued expenses in the accompanying consolidated balance sheets.

Interest expense pertaining to the Notes consisted of the following (in thousands):


	December 31,
	2015		2014
Interest expense	$	548	$	591

Future minimum principal payments for the Notes for restricted stock and SARs consisted of the following (in thousands):


	December 31, 2015
2016	$	939
2017		985
2018		1,035
2019		1,087
2020		6,564

	$	10,610