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)

6 Months Ended

Jun. 30, 2022

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):


	June 30, 2022								December 31, 2021
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Assets:

Assets held in rabbi trust	$	9,587	$	—	$	9,587	$	—	$	11,508	$	—	$	11,508	$	—

Cash equivalents (1) :
Commercial paper	$	35,932	$	—	$	35,932	$	—	$	8,948	$	—	$	8,948	$	—
Money market funds		80,910		80,910		—		—		210,985		210,985		—		—

	$	116,842	$	80,910	$	35,932	$	—	$	219,933	$	210,985	$	8,948	$	—


Marketable debt securities, available-for-sale:
Short-term investments:
U.S. treasuries	$	122,482	$	122,482	$	—	$	—	$	35,733	$	35,733	$	—	$	—
Corporate debt		129,707		—		129,707		—		—		—		—		—
ABS and other		851		—		851		—		148,135		—		148,135		—

	$	253,040	$	122,482	$	130,558	$	—	$	183,868	$	35,733	$	148,135	$	—


Long-term investments:
U.S. treasuries	$	40,208	$	40,208	$	—	$	—	$	70,767	$	70,767	$	—	$	—
U.S. government sponsored entities		604		—		604		—		745		—		745		—
Corporate debt		29,857		—		29,857		—		34,013		—		34,013		—
ABS and other		6,919		—		6,919		—		7,085		—		7,085		—

	$	77,588	$	40,208	$	37,380	$	—	$	112,610	$	70,767	$	41,843	$	—


Liabilities:

Contingent consideration	$	7,779	$	—	$	—	$	7,779	$	9,312	$	—	$	—	$	9,312


Deferred consideration	$	6,163	$	—	$	6,163	$	—	$	9,801	$	—	$	9,801	$	—


Deferred compensation liability	$	7,039	$	7,039	$	—	$	—	$	8,001	$	8,001	$	—	$	—

(1)	Included in cash and cash equivalents 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):


	Six Months Ended June 30,
	2022			2021
Beginning balance	$	9,312		$	5,572
Contingent consideration in connection with acquisitions		—			(100	)
Change in fair value of contingent consideration		(493	)		1,345
Payments of contingent consideration		(1,040	)		—

Ending balance	$	7,779		$	6,817

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
June 30, 2022

Valuation Technique

Unobservable inputs

Range (Weighted Average)

(1)

Contingent consideration

7,779

Discounted cash flow

Expected life of cash flows

0.9-5.3 years (3.0 years)

Discount rate

5.8%-6.3%

(6.0%)

Probability of achievement

0.0%-100.0% (98.1%)

Fair Value at
December 31, 2021

Valuation Technique

Unobservable inputs

Range (Weighted Average)

(1)

Contingent consideration

9,312

Discounted cash flow

Expected life of cash flows

1.4-5.8

years (3.4 years)

Discount rate

2.2%-3.5%

(2.9%)

Probability of achievement

29.0%-100.0%

(

95.2%)

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