Quarterly report pursuant to Section 13 or 15(d)

Selected Balance Sheet Data (Tables)

v3.19.3
Selected Balance Sheet Data (Tables)
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Assets
Other assets consisted of the following (in thousands):
 
Current
   
Non-Current
 
 
September 30,
2019
   
December 31,
2018
   
September 30,
2019
   
December 31,
2018
 
MSRs, net of amortization
  $
    $
—  
    $
2,039
    $
2,209
 
Due from independent contractors, net 
(1) (2)
   
2,381
     
3,831
     
48,911
     
27,157
 
Security deposits
   
     
—  
     
1,313
     
1,196
 
Employee notes receivable 
(3)
   
150
     
156
     
373
     
370
 
Customer trust accounts and other
   
9,821
     
2,381
     
796
     
846
 
                                 
  $
12,352
    $
6,368
    $
53,432
    $
31,778
 
                                 
(1)
Represents amounts advanced, notes receivable and other receivables due from the Company’s investment sales and financing professionals. The notes receivable along with interest are typically collected from future commissions and are generally due in one to five years.
(2)
Includes allowance for doubtful accounts related to current receivables of $404 and $514 as of September 30, 2019 and December 31, 2018, respectively. The Company recorded a provision for bad debt expense of $88 and $81 and
wrote-off
$82 and $17 of these receivables for the three months ended September 30, 2019 and 2018, respectively. The Company recorded a provision for bad debt expense of $75 and $52 and
wrote-off
$185 and $72 of these receivables for the nine months ended September 30, 2019 and 2018, respectively. Any cash receipts on notes are applied first to unpaid principal balance prior to any income being recognized.
(3)
Reduction of accrued bonuses and other employee related expenses in settlement of employee notes receivable were $60 and $192 for the nine months ended September 30, 2019 and 2018, 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):
 
September 30,
2019
   
December 31,
2018
 
Beginning balance
  $
2,209
    $
—  
 
Additions from acquisition
   
     
2,121
 
Additions
   
243
     
391
 
Amortization
   
(413
)    
(303
)
                 
Ending balance
  $
2,039
    $
2,209
 
                 
Components of Deferred Compensation and Commissions
Deferred compensation and commissions consisted of the following (in thousands):
 
Current
   
Non-Current
 
 
September 30,
2019
   
December 31,
2018
   
September 30,
2019
   
December 31,
2018
 
Stock appreciation rights (“SARs”) liability 
(1)
  $
1,895
    $
1,810
    $
18,082
    $
19,299
 
Commissions payable to investment sales and financing professionals
   
29,118
     
44,812
     
16,858
     
23,983
 
Deferred compensation liability 
(1)
   
1,437
     
1,288
     
6,755
     
6,605
 
                                 
  $
32,450
    $
47,910
    $
41,695
    $
49,887
 
                                 
(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):
                                 
 
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
 
2019
   
2018
   
2019
   
2018
 
Increase in the carrying value of the assets held in the rabbi trust 
(1)
  $
  31
    $
  266
    $
  959
    $
  456
 
                                 
Increase in the net carrying value of the deferred compensation obligation 
(2)
  $
31
    $
267
    $
943
    $
455
 
                                 
 
 
 
 
 
 
 
 
 
 
(1)
Recorded in other income (expense), net in the condensed consolidated statements of net and comprehensive income.
 
 
 
 
 
 
 
 
 
 
(2)
Recorded in selling, general and administrative expense in the condensed consolidated statements of net and comprehensive income.
 
 
Summary of Deferred Rent and Other Liabilities
Deferred rent and other liabilities consisted of the following (in thousands):
                 
 
Non-Current
 
 
September 30,
2019
   
December 31,
2018
 
Deferred rent 
(1)
  $
    $
5,445
 
Contingent consideration and other 
(2)
   
2,001
     
2,054
 
                 
  $
2,001
    $
7,499
 
                 
 
 
 
 
 
 
 
 
 
 
(1)
The Company does not have deferred rent in 2019 due to adoption of the new lease standard on January 1, 2019.
 
 
 
 
 
 
 
 
 
 
(2)
The current portions of contingent consideration in the amounts of $853 and $821 as of September 30, 2019 and December 31, 2018, respectively, are included in accounts payable and other liabilities in the condensed consolidated balance sheets.