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

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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


	March 31, 2019								December 31, 2018
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Assets:
Assets held in rabbi trust	$	8,939	$	—	$	8,939	$	—	$	8,268	$	—	$	8,268	$	—

Cash equivalents ⁽¹⁾:
Commercial paper and other	$	4,997	$	—	$	4,997	$	—	$	1,599	$	1,599	$	—	$	—
Money market funds		167,745		167,745		—		—		163,126		163,126		—		—

	$	172,742	$	167,745	$	4,997	$	—	$	164,725	$	164,725	$	—	$	—

Marketable securities, available-for-sale:
Short-term investments:
U.S. treasuries	$	104,074	$	104,074	$	—	$	—	$	121,180	$	121,180	$	—	$	—
U.S. government sponsored entities		—		—		—		—		3,505		—		3,505		—
Corporate debt securities		16,184		—		16,184		—		11,951		—		11,951		—
Asset-backed securities and other		801		—		801		—		800		—		800		—

	$	121,059	$	104,074	$	16,985	$	—	$	137,436	$	121,180	$	16,256	$	—

Long-term investments:
U.S. treasuries	$	33,670	$	33,670	$	—	$	—	$	45,010	$	45,010	$	—	$	—
U.S. government sponsored entities		1,479		—		1,479		—		1,507		—		1,507		—
Corporate debt securities		34,205		—		34,205		—		31,837		—		31,837		—
Asset-backed securities and other		5,690		—		5,690		—		4,855		—		4,855		—

	$	75,044	$	33,670	$	41,374	$	—	$	83,209	$	45,010	$	38,199	$	—

Liabilities:
Contingent consideration ⁽²⁾	$	2,923	$	—	$	—	$	2,923	$	2,875	$	—	$	—	$	2,875

Deferred compensation liability	$	8,843	$	8,843	$	—	$	—	$	7,893	$	7,893	$	—	$	—

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

⁽²⁾	Assuming the achievement of the applicable performance criteria, the Company anticipates these earn-out payments will be made over the next three to seven-year period. A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):

⁽²⁾	Assuming the achievement of the applicable performance criteria, the Company anticipates these earn-out payments will be made over the next three to seven-year period. A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):


	March 31, 2019		December 31, 2018
Beginning balance	$	2,875	$	—
Contingent consideration in connection with acquisitions		—		2,674
Change in fair value of contingent consideration		48		201
Payments of contingent consideration		—		—

Ending balance	$	2,923	$	2,875