Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 14, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MMI | ' | ' |
Entity Registrant Name | 'Marcus & Millichap, Inc. | ' | ' |
Entity Central Index Key | '0001578732 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 36,600,897 | ' |
Entity Public Float | ' | ' | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $100,952 | $3,107 |
Commissions receivable, net of allowance for doubtful accounts of $99 and $129 at December 31, 2013 and 2012, respectively | 4,115 | 5,764 |
Employee notes receivable | 229 | 807 |
Prepaid expenses and other current assets | 5,204 | 2,903 |
Deferred tax assets, net | 8,663 | ' |
Total current assets | 119,163 | 12,581 |
Prepaid rent | 4,999 | 2,855 |
Investments held in rabbi trust account | 4,067 | 2,905 |
Property and equipment, net of accumulated depreciation of $19,412 and $17,917 at December 31, 2013 and 2012, respectively | 8,560 | 6,688 |
Due from affiliates | ' | 60,389 |
Employee notes receivable | 189 | 350 |
Deferred tax assets, net | 27,185 | ' |
Other assets | 3,146 | 3,965 |
Total assets | 167,309 | 89,733 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 6,911 | 14,350 |
Accounts payable and accrued expenses - related party | 506 | ' |
Income tax payable | 6,459 | ' |
Notes payable to former stockholders | 851 | ' |
Commissions payable | 25,086 | 22,584 |
Accrued employee expenses | 16,947 | 17,519 |
Total current liabilities | 56,760 | 54,453 |
Deferred compensation and commissions | 32,177 | 9,121 |
Notes payable to former stockholders | 11,504 | ' |
Other liabilities | 4,371 | 4,529 |
Total liabilities | 104,812 | 68,103 |
Stockholders' equity: | ' | ' |
Preferred stock, value | ' | ' |
Common stock, value | 4 | ' |
Additional paid-in capital | 70,445 | 24,718 |
Stock notes receivable from employees | -13 | -150 |
Accumulated deficit | -7,939 | -3,182 |
Total stockholders' equity | 62,497 | 21,630 |
Total liabilities and stockholders' equity | 167,309 | 89,733 |
Series A redeemable preferred stock [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, value | ' | 10 |
Common Stock, $1.00 par value [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, value | ' | $234 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $99 | $129 |
Accumulated depreciation | $19,412 | $17,917 |
Preferred stock, par value | $0.00 | $0 |
Preferred stock, shares authorized | 25,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, Shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0 |
Common stock, shares authorized | 150,000,000 | 0 |
Common stock, shares issued | 36,600,897 | 0 |
Common stock, shares outstanding | 36,600,897 | 0 |
Series A redeemable preferred stock [Member] | ' | ' |
Preferred stock, par value | $0 | $10 |
Preferred stock, shares authorized | 0 | 1,000 |
Preferred stock, shares issued | 0 | 1,000 |
Preferred stock, Shares outstanding | 0 | 1,000 |
Preferred stock, redemption value per share | $0 | $10 |
Common Stock, $1.00 par value [Member] | ' | ' |
Common stock, par value | $0 | $1 |
Common stock, shares authorized | 0 | 1,000,000 |
Common stock, shares issued | 0 | 233,739 |
Common stock, shares outstanding | 0 | 233,739 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues: | ' | ' | ' | |
Real estate brokerage commissions | $393,203 | $351,407 | $245,333 | |
Financing fees | 25,921 | 21,132 | 16,522 | |
Other revenues | 16,771 | 13,177 | 12,850 | |
Total revenues | 435,895 | 385,716 | 274,705 | |
Operating expenses: | ' | ' | ' | |
Cost of services | 264,637 | 230,248 | 162,478 | |
Selling, general, and administrative expense | 115,661 | 103,479 | 85,801 | |
Depreciation and amortization expense | 3,043 | 2,981 | 2,971 | |
Stock-based and other compensation in connection with IPO | 31,268 | ' | ' | |
Total operating expenses | 414,609 | 336,708 | 251,250 | |
Operating income | 21,286 | 49,008 | 23,455 | |
Other income, net | 655 | 433 | 350 | |
Income before provision for income taxes | 21,941 | 49,441 | 23,805 | |
Provision for income taxes | 13,735 | 21,507 | 10,355 | |
Net income (loss) | 8,206 | 27,934 | 13,450 | |
Less Net loss attributable to Marcus & Millichap Real Estate Investment Services, Inc. prior to initial public offering on October 31, 2013 | -1,045 | ' | ' | |
Net income attributable to Marcus & Millichap, Inc. subsequent to initial public offering | $9,251 | ' | ' | |
Earnings per share: | ' | ' | ' | |
Basic | $0.24 | [1] | ' | ' |
Diluted | $0.24 | [1] | ' | ' |
Weighted average common shares outstanding: | ' | ' | ' | |
Basic | 38,787 | [1] | ' | ' |
Diluted | 38,815 | [1] | ' | ' |
[1] | Earnings per share information has not been presented for periods prior to the IPO on October 31, 2013. |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Series A Redeemable Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Stock Notes Receivable From Employees [Member] | Retained Earnings (Accumulated Deficit) [Member] |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2010 | $21,698 | $10 | $234 | $18,820 | ($82) | $2,716 |
Beginning Balance, Shares at Dec. 31, 2010 | ' | 1,000 | 234,187 | ' | ' | ' |
Net income (loss) | 13,450 | ' | ' | ' | ' | 13,450 |
Series A preferred dividends declared and paid | -16,526 | ' | ' | ' | ' | -16,526 |
Deemed capital contribution (distribution) from MMC | 1,610 | ' | ' | 1,610 | ' | ' |
Issuance of restricted stock, value | ' | ' | 6 | 157 | -163 | ' |
Issuance of restricted stock, Shares | ' | ' | 6,462 | ' | ' | ' |
Payments on stock notes receivable from employees | 56 | ' | ' | ' | 56 | ' |
Cancelled and repurchased shares, value | -131 | ' | -10 | -164 | 43 | ' |
Cancelled and repurchased shares, Shares | ' | ' | -10,410 | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 20,157 | 10 | 230 | 20,423 | -146 | -360 |
Ending Balance, Shares at Dec. 31, 2011 | ' | 1,000 | 230,239 | ' | ' | ' |
Net income (loss) | 27,934 | ' | ' | ' | ' | 27,934 |
Series A preferred dividends declared and paid | -30,756 | ' | ' | ' | ' | -30,756 |
Deemed capital contribution (distribution) from MMC | 4,209 | ' | ' | 4,209 | ' | ' |
Issuance of restricted stock, value | ' | ' | 4 | 86 | -90 | ' |
Issuance of restricted stock, Shares | ' | ' | 3,500 | ' | ' | ' |
Payments on stock notes receivable from employees | 86 | ' | ' | ' | 86 | ' |
Ending Balance at Dec. 31, 2012 | 21,630 | 10 | 234 | 24,718 | -150 | -3,182 |
Ending Balance, Shares at Dec. 31, 2012 | ' | 1,000 | 233,739 | ' | ' | ' |
Net loss attributable to Marcus & Millichap Real Estate Investment Services, Inc. prior to initial public offering offering on October 31, 2013 | -1,045 | ' | ' | ' | ' | -1,045 |
Series A preferred dividends declared and paid | -37,681 | ' | ' | -24,718 | ' | -12,963 |
Deemed capital contribution (distribution) from MMC | -3,291 | ' | ' | -3,291 | ' | ' |
Issuance of restricted stock, value | ' | ' | 1 | 20 | -21 | ' |
Issuance of restricted stock, Shares | ' | ' | 750 | ' | ' | ' |
Payments on stock notes receivable from employees | 158 | ' | ' | ' | 158 | ' |
Stock-based compensation | 30,886 | ' | ' | 30,886 | ' | ' |
Stock-based compensation, Shares | ' | ' | 69,583 | ' | ' | ' |
Exchange of MMREIS Series A redeemable preferred and common stock for MMI common Stock | ' | -10 | -231 | 241 | ' | ' |
Exchange of MMREIS Series A redeemable preferred and common stock for MMI common Stock, Shares | ' | -1,000 | 32,123,412 | ' | ' | ' |
Issuance of common stock, net of issuance costs | 42,313 | ' | ' | 42,313 | ' | ' |
Issuance of common stock, net of issuance costs, Shares | ' | ' | 4,173,413 | ' | ' | ' |
Ending Balance at Oct. 31, 2013 | 52,970 | ' | 4 | 70,169 | -13 | -17,190 |
Ending Balance, Shares at Oct. 31, 2013 | ' | ' | 36,600,897 | ' | ' | ' |
Net income attributable to Marcus & Millichap, Inc. subsequent to initial public offering | 9,251 | ' | ' | ' | ' | 9,251 |
Stock-based compensation | 276 | ' | ' | 276 | ' | ' |
Ending Balance at Dec. 31, 2013 | $62,497 | ' | $4 | $70,445 | ($13) | ($7,939) |
Ending Balance, Shares at Dec. 31, 2013 | ' | ' | 36,600,897 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $8,206 | $27,934 | $13,450 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization expense | 3,043 | 2,981 | 2,971 |
Provision for bad debt expense | 23 | 157 | 311 |
Stock-based compensation | 33,817 | 4,209 | 1,610 |
Deferred taxes, net | -9,276 | ' | ' |
Other non-cash items | 67 | 19 | 35 |
Changes in operating assets and liabilities: | ' | ' | ' |
Commissions receivable | 1,679 | -3,614 | 738 |
Prepaid expenses and other current assets | -2,301 | -644 | -460 |
Prepaid rent | -2,144 | 103 | 668 |
Investments in rabbi trust account | -1,162 | -497 | 240 |
Other assets | 765 | 530 | -1,694 |
Due to (from) affiliates | 60,389 | -19,884 | -1,513 |
Accounts payable and accrued expenses | -8,043 | 6,791 | 3,239 |
Accounts payable and accrued expenses - related party | 506 | ' | ' |
Income tax payable | 6,459 | ' | ' |
Commissions payable | 2,502 | 9,004 | -5,511 |
Accrued employee expenses | -572 | 7,831 | 686 |
Deferred compensation and commissions | 3,086 | 2,495 | 899 |
Other liabilities | -100 | -2,061 | 2,147 |
Net cash provided by operating activities | 96,944 | 35,354 | 17,816 |
Cash flows from investing activities | ' | ' | ' |
Payments on employee notes receivable | 1,173 | 458 | 550 |
Issuances of employee notes receivable | -434 | -706 | -310 |
Purchase of property and equipment | -4,795 | -4,563 | -3,083 |
Proceeds from sale of property and equipment | 32 | 174 | 172 |
Net cash used in investing activities | -4,024 | -4,637 | -2,671 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from initial public offering, net of issuance costs | 42,506 | ' | ' |
Payments on obligations under capital leases | -58 | -98 | -318 |
Dividends paid to MMC | -37,681 | -30,756 | -16,526 |
Repayment of stock notes receivable from employees | 158 | 86 | 56 |
Repurchase of shares | ' | ' | -131 |
Net cash provided by (used) in financing activities | 4,925 | -30,768 | -16,919 |
Net increase (decrease) in cash and cash equivalents | 97,845 | -51 | -1,774 |
Cash and cash equivalents at beginning of period | 3,107 | 3,158 | 4,932 |
Cash and cash equivalents at end of period | 100,952 | 3,107 | 3,158 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Interest paid during the period | 1 | 4 | 12 |
Income taxes paid to MMC | 29,702 | 17,880 | 9,440 |
Supplemental disclosures of noncash investing and financing activities | ' | ' | ' |
Deferred offering costs included in accounts payable and other accrued expenses | 193 | ' | ' |
Property and equipment included in accounts payable and accrued expenses | 216 | ' | ' |
Issuance of restricted stock for notes receivable | 21 | 90 | 163 |
Assets acquired under capital lease | ' | ' | 121 |
Deemed capital (distribution) contribution from MMC | ($3,291) | $4,209 | $1,610 |
Description_of_Business_Basis_
Description of Business, Basis of Presentation and Recent Accounting Pronouncements | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Description of Business, Basis of Presentation and Recent Accounting Pronouncements | ' | |
1 | Description of business, basis of presentation and recent accounting pronouncements | |
Description of business | ||
Marcus and Millichap Real Estate Investment Services, Inc. (“MMREIS”) was incorporated in 1976 in the state of Delaware and prior to the completion of its initial public offering (the “IPO”), MMREIS was majority-owned by Marcus & Millichap Company (“MMC”) and all of the Company’s preferred and common stock outstanding was held by MMC and its affiliates or officers and employees of MMREIS. In June 2013, in preparation for the spin-off of its real estate investment services business, or the Spin-Off, MMC formed Marcus & Millichap, Inc., (the “Company”, “Marcus & Millichap”, or “MMI”). On October 30, 2013 and prior to the IPO, the stockholders of MMREIS contributed all of their outstanding shares to the Company, in exchange for MMI common stock, and MMREIS became MMI’s wholly-owned subsidiary. Thereafter, on October 31, 2013, MMC distributed 80.0% of the shares of MMI common stock to MMC’s shareholders and exchanged the remaining portion of its shares of MMI common stock for cancellation of indebtedness. | ||
On November 5, 2013, the Company completed its IPO of 6,900,000 shares of common stock at a price to the public of $12.00 per share. The Company’s shares, which commenced trading on October 31, 2013, are traded on the New York Stock Exchange. See Note 7 – “Stockholders’ Equity” for additional information. | ||
The Company is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. | ||
Basis of Presentation | ||
The Company’s consolidated financial statements for the years ended December 31, 2013, 2012 and 2011 have been prepared in accordance with US generally accepted accounting principles (“GAAP”). In accordance with ASC 805-50-30-6, Business Combinations, since MMI and MMREIS were affiliates under common control, the assets and liabilities of MMREIS were recorded at carryover basis at the Spin-Off date. The historical financial statements of MMREIS, as the Company’s predecessor, have been presented as the historical financial statements of the Company for all periods prior to the Spin-Off from the beginning of the earliest period presented. | ||
Consolidation | ||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Concentration of Credit Risk | ||
Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents, due from affiliates, and receivables. Cash is placed with high-credit quality financial institutions. To reduce its credit risk, the Company monitors the credit standing of the financial institutions that hold the Company’s cash and cash equivalents. The Company historically has not experienced any losses in its cash and cash equivalents or due from affiliates. The Company maintains allowances for estimated credit losses based on management’s assessment of the likelihood of collection. As of December 31, 2013 and 2012, no individual accounted for 10% or more of commissions or notes receivable. | ||
The Company derives its revenues from a broad range of real estate investors, owners, and users in the United States and Canada, none of which individually represents a significant concentration of credit risk. For the twelve months ended December 31, 2013 and 2012, no individual customer represented 10% or more of total revenues. | ||
The Company performs ongoing credit evaluations of its customers and debtors and requires collateral on a case-by-case basis. | ||
Reclassifications | ||
Certain prior-period amounts in these notes to consolidated financial statements have been reclassified to conform to the current period presentation. These changes had no impact on the previously reported consolidated results of operations or stockholders’ equity. | ||
Segment Reporting | ||
ASC 280, Segment Reporting, establishes standards for reporting information on operating segments in interim and annual financial statements. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses whose separate financial information is available and is evaluated regularly by the Chief Operating Decision Maker (CODM) or decision making group, to perform resource allocations and performance assessments. The CODM is the Chief Executive Officer and Chief Financial Officer. The CODM reviews financial information presented on an office by- office basis for purposes of making operating decisions, assessing financial performance and allocating resources. Based on the evaluation of the Company’s financial information, management believes that the Company’s offices represent individual operating segments with similar economic characteristics that meet the criteria for aggregation into a single reportable segment for financial statement purposes. The Company’s financing operations also represent an individual operating segment, which does not meet the thresholds to be presented as a separate reportable segment. | ||
Recent accounting pronouncements | ||
There are no recently issued accounting standards which are not yet effective that the Company believes would materially impact its consolidated financial statements. | ||
Accounting_policies
Accounting policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Accounting policies | ' | |
2 | Accounting policies | |
Cash and Cash Equivalents | ||
The Company considers cash and cash equivalents to include short-term, highly liquid investments with maturities of three months or less when purchased. At December 31, 2013 and 2012, a significant portion of the balance of cash and cash equivalents was held with three financial institutions. Management believes the likelihood of realizing material losses from the excess of cash balances over federally insured limits is remote. | ||
Prior to June 30, 2013, the majority of the cash generated and used in the Company’s operations was held in bank accounts with one financial institution that were included in a sweep arrangement with MMC. Pursuant to a treasury management service agreement with that financial institution, the cash was swept daily into MMC’s money market account. The Company collected interest income from MMC at the same interest rate as MMC earned on the money market account. Historically, other than for a 2-week period around MMC’s March 31 fiscal year end, the Company had a receivable from MMC for the cash that was swept. When the sweep arrangement was not in effect, during the week before and the week after March 31, the Company’s cash balances remained in the Company’s bank accounts. As of June 30, 2013, the sweep arrangement with MMC was permanently terminated. | ||
Commissions Receivable, Net | ||
Commissions receivable consist primarily of commissions earned for which payment has not yet been received as well as current receivables from agents. The Company establishes an allowance for doubtful accounts based on the specific-identification of potentially uncollectible accounts. | ||
Property and Equipment, Net | ||
Property and equipment are stated at cost less accumulated depreciation and amortization. The Company uses the straight-line method for depreciation and amortization. Depreciation and amortization are provided over estimated useful lives ranging from three to seven years. | ||
The Company leases certain equipment under capital lease arrangements. The assets and liabilities under capital leases are recorded at the lesser of the present value of aggregate future minimum lease payments, including estimated bargain purchase options, or the fair value of the asset under lease. Assets under capital leases are depreciated using the straight-line method over the lesser of the estimated useful life of the asset or the term of the lease. The Company evaluates its fixed assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company believes the carrying amount of property and equipment is recoverable and, therefore, no impairment loss has been recorded for the years ended December 31, 2013, 2012 or 2011. | ||
Other Assets | ||
Other assets consist primarily of security deposits, due from sales agents and commission notes receivable. | ||
Security deposits relate to lease deposits made in connection with operating leases. | ||
Due from sales agents includes notes receivable from agents and other receivables from agents. The notes receivable from agents, along with interest, are typically collected from future commissions and are generally due in one to five years. As of December 31, 2013 and 2012, the weighted average interest rate for notes receivable from agents was approximately 2% and 6%, respectively. Any cash receipts on notes are applied first to unpaid principal balance prior to any income being recognized. | ||
In connection with real estate brokerage activities, the Company may accept a portion of its commission in the form of a commission note receivable. | ||
The Company establishes an allowance for doubtful accounts based on the specific-identification of potentially uncollectible accounts or commissions notes receivable in accordance with ASC 310, Receivables. Additionally, accounts and commissions notes receivable that are not specifically identified as being impaired are reviewed for impairment in accordance with ASC 450, Contingencies based on consideration of historical experience. | ||
Deferred Rent Obligation | ||
Some of the Company’s operating leases contain periods of free or reduced rent or contain predetermined fixed increases in the minimum rent amount during the lease term. For these leases, the Company recognizes rent expense on a straight-line basis over the term of the lease, generally between five to ten years, including periods of free rent, and records the difference between the amount charged to rent expense and the rent paid as a deferred rent obligation. As of December 31, 2013 and 2012, deferred rent totaled $3.7 million and $3.2 million, respectively, and is included in other liabilities and accounts payable and accrued expenses in the accompanying consolidated balance sheets. | ||
Revenue Recognition | ||
The Company generates real estate brokerage commissions by acting as a broker for real estate owners or investors seeking to buy or sell commercial properties. Revenues from real estate brokerage commissions are recognized when there is persuasive evidence of an arrangement, all services have been provided, the price is fixed and determinable and collectability is reasonably assured. The Company generates financing fees from securing financing on purchase transactions as well as fees earned from refinancing its clients’ existing mortgage debt. Financing fee revenues are recognized at the time the loan closes and there are no remaining significant obligations for performance in connection with the transaction. Other revenues include fees generated from consulting and advisory services, as well as referral fees from other real estate brokers. Revenues from these services are recognized as they are performed and completed. | ||
Advertising Costs | ||
Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2013, 2012 and 2011 was $1.0 million, $0.7 million and $0.5 million, respectively. Advertising costs are included in selling, general, and administrative expense in the accompanying consolidated statements of income. | ||
Income Taxes | ||
Prior to the IPO, the Company was part of a consolidated federal income tax return and various combined and consolidated state tax returns that were filed by MMC. The Company and MMC had a tax-sharing agreement whereby the Company provided for income taxes in its consolidated statements of income using an effective tax rate of 43.5%. In addition, all deferred tax assets and liabilities were recorded by MMC. As part of the spin-off, the Company’s tax sharing agreement with MMC was terminated effective October 31, 2013 and MMC transferred its allocable net deferred tax assets totaling $26.6 million to the Company, which resulted in a deemed capital contribution. | ||
Subsequent to the Spin-Off, the Company files as a stand-alone tax entity and income taxes are accounted for under the asset and liability method in accordance with ASC 740, Accounting for Income Taxes (“ASC 740”). Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured by applying enacted tax rates and laws and are released in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in the income in the period that includes the enactment date. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. The change to a stand-alone entity for tax purposes may result in material changes to the Company’s income tax provision in future years. | ||
ASC 740 defines the threshold for recognizing the benefits of tax return positions in the financial statements as “more likely than not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50% likely to be realized. Management has analyzed the Company’s inventory of tax positions taken with respect to all applicable income tax issues for all open tax years (in each respective jurisdiction), and has concluded that no uncertain tax positions are required to be recognized in the Company’s consolidated financial statements. | ||
Fair Value of Financial Instruments | ||
ASC 820, Fair Value Measurement (“ASC 820”) establishes the accounting guidance for fair value measurements that applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, the Company makes fair value measurements that are classified and disclosed in one of the following three categories: | ||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability, or | ||
Level 3: Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | ||
Investments held in a rabbi trust account are carried at fair value and considered to be in the Level 1 classification. | ||
Fair Value of Financial Instruments | ||
The Company’s financial instruments, including such items in the consolidated financial statement captions as cash and cash equivalents, commissions receivable, net, accounts payable and accrued expenses and commissions payable, are carried at cost, which approximates fair value based on their immediate or short-term maturities and terms, which approximate current market rates and considered to be in the Level 1 classification. | ||
As the Company’s obligations under notes payable to former stockholders and certain employee and agent notes receivable bear fixed interest rates that approximate the rates currently offered to the Company for similar debt instruments, the Company has determined that the carrying value on these instruments approximates fair value. As the Company’s obligations under SARs Liability (included in deferred compensation and commissions caption) bear variable interest rates, the Company has determined that the carrying value approximates the fair value. These are considered to be in the Level 1 classification. | ||
Stock-Based Compensation | ||
Prior to the IPO | ||
MMREIS historically issued stock options and stock appreciation rights, or SARs, to key employees through a book value, stock-based compensation award program (the “Program”). The Program allowed for employees to exercise stock options in exchange for shares of unvested restricted common stock. The Program also allowed employees to exercise options through the issuance of notes receivable, which were recourse to the employee. The grant price and repurchase price of stock-based awards at the grant date and repurchase date were fixed as determined by a valuation formula using book value, as defined by the agreements between MMREIS and the employees. The stock awards generally vested over a three to five-year period. Under these plans, MMREIS retained the right to repurchase shares if certain events occurred, which included termination of employment. In these circumstances, the plan document provided for repurchase proceeds to be settled in the form of a note payable to (former) shareholders or cash, which was settled over a fixed period. While MMREIS had entered into the agreements to repurchase the stock and settle the SARs held by employees upon termination of their employment (subject to certain conditions as specified in the agreements), MMC had historically assumed the obligation to make payments to the former shareholders. While MMREIS recognized the compensation expense associated with these share-based payment arrangements, the liability had historically been assumed by MMC through a deemed contribution, which then has paid the former shareholders over time. The accounting for the stock options and SARs awards, including MMC’s assumption of MMREIS repurchase obligations, is discussed below. | ||
Restricted Common Stock | ||
Since stock options only allowed the grantee the right to acquire shares of unvested restricted common stock at book value, which was determined on an annual basis, MMREIS accounted for the stock options and the related unvested restricted stock, as a single instrument, with a single service period. The service period began on the option grant date, and extended through the exercise and subsequent vesting period of the restricted stock. The unvested restricted common stock was accounted for in accordance with ASC 718, Compensation – Stock Compensation (“ASC 718”). Increases or decreases in the formula settlement value of unvested restricted stock subsequent to the grant date, were recorded as increases or decreases, respectively, to compensation expense, with decreases limited to the book value of the stock on the date of grant. As MMC had assumed MMREIS’s obligation with respect to any appreciation in the value of the underlying vested awards in excess of the employees’ exercise price, MMC was deemed to make a capital contribution to MMREIS additional paid-in capital equal to the amount of compensation expense recorded, net of the applicable taxes. Based on the tax-sharing agreement between MMREIS and MMC, the tax deduction on the compensation expense recorded by MMREIS was allocated to MMC. MMC recorded the liability related to the appreciation in the value of the underlying stock in its consolidated financial statements. To the extent of any depreciation in the value of the underlying vested awards (limited to the amount of any appreciation previously recorded from the employees ‘original exercise price), compensation expense was reduced and MMC was deemed to receive a capital distribution. | ||
SARs | ||
SARs to employees were accounted for in accordance with ASC 718. Similar to the vested stock, compensation expense related to the SARs was recorded in each period and was equal to the appreciation in the formula-settlement value of vested SARs at the end of each reporting period-end from the prior reporting period-end. As MMC had assumed MMREIS’s obligation with respect to any appreciation in the value of the vested SARs, MMC was deemed to make a capital contribution to MMREIS’s additional paid-in capital equal to the amount of compensation expense recorded, net of the applicable taxes. Based on the tax-sharing agreement entered between MMREIS and MMC, the tax deduction on the compensation expense recorded by MMREIS was allocated to MMC. MMC recorded the liability related to the appreciation in the value of the underlying stock in its consolidated financial statements. To the extent of any depreciation in the value of the vested SARs (limited to the amount of any appreciation previously recorded), compensation expense was reduced and MMC was deemed to have received a capital distribution. | ||
Subsequent to the IPO | ||
The Company follows the provisions of ASC 718, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, independent contractors (i.e. agents) and directors. | ||
The Company values its restricted stock units and restricted stock awards based on the grant date closing price of the Company’s common stock when the award is based on shares or based on the grant date cash value when the award is based on a predetermined dollar value. For awards with periodic vesting, the Company recognizes the related expense on a straight-line basis over the requisite service period for the entire award, subject to periodic adjustments to ensure that the cumulative amount of expense recognized through the end of any reporting period is at least equal to the portion of the grant date value of the award that has vested through that date. | ||
ASC 718 also requires forfeitures to be estimated at the time of grant in order to calculate the amount of share-based payment awards ultimately expected to vest. Forfeitures are required to be revised, if necessary, in subsequent periods if estimated and actual forfeitures differ from these initial estimates. The Company evaluates the assumptions used to value share-based awards on a periodic basis. If there are any modifications or cancellations of the underlying unvested share-based awards, the Company may be required to accelerate, increase or cancel any remaining unrecognized stock-based compensation expense. Share-based payments are included in general and administrative expense in the accompanying consolidated statements of income. The Company calculates a separate forfeiture rate for its employees and non-employees awards (discussed below). | ||
The Company accounts for share-based payment awards made to independent contractors, which are typically to agents, under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees (“ASC 505-50”). ASC 505-50 addresses (a) the measurement date for the transaction in which equity instruments are issued to non-employees (b) manner in which to recognize such transactions. The measurement of equity instruments will be measured at the earlier of: (1) the performance commitment date, or (2) the date the services required under the arrangement have been completed. Under ASC 505-50-30-6 if the fair value of goods or services received in a share-based payment transaction with non-employees is more reliably measureable than the fair value of the equity instrument issued, the fair value of the goods or services received shall be used to measure the transaction. In contrast, if the fair value of the equity instrument issued in a share-based payment transaction with non-employees is more reliably measureable than the fair value of the consideration received, the transaction shall be measured based on the fair value of the equity instrument issued. The Company measures the fair value based on the equity instrument issued. The measurement date for non-employee awards is the date the services are completed, resulting in periodic adjustments to stock-based compensation during the vesting period for changes in the fair value of the awards. Stock-based compensation costs for non-employees are recognized as expense over the vesting period on a straight-line basis. | ||
Earnings Per Share | ||
The Company computes earnings per share in accordance with ASC 260, Earnings Per Share (ASC 260). ASC 260 provides that unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and should be included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Certain of the Company’s restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest. | ||
Earnings per share information has not been presented for periods prior to the IPO, as the holders of MMREIS Series A Redeemable Preferred Stock were entitled to receive discretionary dividends, payable in preference and priority to any distribution on MMREIS common stock. Since MMREIS typically distributed its earnings to the Series A Preferred stockholders on a quarter-in-arrears basis, earnings per share information for MMREIS common stock was not meaningful. | ||
Earnings per share is calculated using net income attributable to Marcus and Millichap, Inc. subsequent to initial public offering on October 31, 2013. | ||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
3 | Property and Equipment, Net | ||||||||
Property and equipment, net consist of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computer software and hardware equipment | $ | 8,442 | $ | 6,211 | |||||
Furniture, fixtures, and equipment | 19,530 | 18,394 | |||||||
Less accumulated depreciation and amortization | (19,412 | ) | (17,917 | ) | |||||
$ | 8,560 | $ | 6,688 | ||||||
Depreciation and amortization expense on property and equipment was $3.0 million for each of the years ended December 31, 2013, 2012 and 2011. | |||||||||
Net book value of capital leases recorded in furniture, fixtures and equipment was not material as of December 31, 2013. Furniture, fixtures and equipment with a net book value of $0.2 million is recorded under capital leases as of December 31, 2012. The related depreciation of these assets is included in depreciation and amortization expense. | |||||||||
Selected_Balance_Sheet_Data
Selected Balance Sheet Data | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Selected Balance Sheet Data | ' | ||||||||
4 | Selected Balance Sheet Data | ||||||||
Commissions Receivable, Net | |||||||||
Commissions receivable, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Commissions due from buyer/seller | $ | 3,241 | $ | 5,205 | |||||
Due from sales agents | 973 | 688 | |||||||
Less allowance for doubtful accounts | (99 | ) | (129 | ) | |||||
$ | 4,115 | $ | 5,764 | ||||||
The following table presents the changes in the allowance for doubtful accounts (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Balance at beginning of period | $ | (129 | ) | $ | (143 | ) | |||
Provision for losses on commissions receivable | — | — | |||||||
Write-off of uncollectible commissions receivable | 30 | 14 | |||||||
Balance at end of period | $ | (99 | ) | $ | (129 | ) | |||
Other Assets | |||||||||
Other assets consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Commission notes receivable | $ | 82 | $ | 739 | |||||
Due from sales agents | 566 | 376 | |||||||
Security deposits | 1,126 | 1,046 | |||||||
Other | 1,372 | 1,804 | |||||||
$ | 3,146 | $ | 3,965 | ||||||
Accrued Employee Expenses | |||||||||
Accrued employee expenses consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Bonus payable | $ | 15,428 | $ | 16,600 | |||||
Accrued vacation | 975 | 919 | |||||||
Other employee related accruals | 544 | — | |||||||
$ | 16,947 | $ | 17,519 | ||||||
Deferred Compensation and Commissions | |||||||||
Deferred compensation and commissions consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
SARs liability | $ | 19,970 | $ | — | |||||
Commissions payable | 8,623 | 6,700 | |||||||
Deferred compensation liability | 3,584 | 2,421 | |||||||
$ | 32,177 | $ | 9,121 | ||||||
SARs Liability | |||||||||
In conjunction with the IPO, the SARs liability that was previously assumed by MMC was transferred back to MMREIS based on a SARs frozen liability amount of $20.0 million calculated as of March 31, 2013. The SARs frozen liability amount will be paid out to each participant in installments upon retirement or departure under the terms of the existing program. The Company will begin to accrue interest starting on January 1, 2014 based on the frozen SAR account balances. See Note 7 – “Stockholders’ Equity” for additional information on SARs liability. | |||||||||
Commissions payable | |||||||||
Certain investment sales professionals have the ability to earn additional commissions after meeting certain annual revenue thresholds. These commissions are recognized as cost of services in the period in which they are earned. The Company has the ability to defer payment of certain commissions, at its election, for up to three years. Commissions payable that are not expected to be paid within twelve months are classified as long-term liabilities in the accompanying consolidated balance sheets. | |||||||||
Deferred compensation liability | |||||||||
During the fiscal year ended March 31, 2001, the Company established the MMREIS Deferred Compensation Plan (the Deferred Compensation Plan) for a select group of management. The Deferred Compensation Plan has similar characteristics of a 401(k) plan and provides the Deferred Compensation Plan participants additional flexibility in terms of contribution and distribution elections. Participants may elect to invest in various equity and debt securities offered within the Deferred Compensation Plan program. The Company chose to fund the Deferred Compensation Plan through variable life insurance policies purchased for the participants’ benefit. The Deferred Compensation Plan is managed by a third-party institutional fund manager, and the deferred compensation and investment earnings are held as a Company asset in a rabbi trust, which is recorded in investments held in rabbi trust account caption in the accompanying consolidated balance sheets. This trust account is restricted unless the Company becomes insolvent, as defined in the Deferred Compensation Plan, in which case the Deferred Compensation Plan’s assets are subject to the claims of the Company’s creditors. The Company may also, in its sole and absolute discretion, elect to withdraw at any time all or a portion of the amount by which the fair market value of the Deferred Compensation Plan’s assets exceeds 110% of the aggregate amount credited to the Deferred Compensation Plan’s participants’ accounts, as defined by the Deferred Compensation Plan. | |||||||||
The net change in the carrying value of the investment assets and the related obligation are recorded in other income, net and selling, general, and administrative expense, respectively, in the consolidated statements of income and were not material during the years ended December 31, 2013, 2012 and 2011. | |||||||||
Other Liabilities | |||||||||
Other liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long term deferred rent | $ | 2,952 | $ | 2,703 | |||||
Accrued legal | 1,351 | 1,826 | |||||||
Other | 68 | — | |||||||
$ | 4,371 | $ | 4,529 | ||||||
Notes_Payable_to_Former_Stockh
Notes Payable to Former Stockholders | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Payables And Accruals [Abstract] | ' | ||||
Notes Payable to Former Stockholders | ' | ||||
5 | 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 which were redeemed by MMREIS upon the termination of employment by these former shareholders (“the Notes”), and had been previously assumed by MMC were transferred to the Company. | |||||
The unsecured notes payable for repurchase of restricted stock bears interest at 5% with annual principal and interest installments payable until April 14, 2020, when the remaining principal balance will be due in full. The unsecured notes payable for repurchase of outstanding SARs also bear interest at 5%, with annual principal and interest installments payable until April 14, 2020, when the remaining principal balance will be due in full. | |||||
Subsequent to the IPO, interest payable and interest expense associated with the Notes is recorded in accounts payable and accrued expenses and selling, general and administrative expenses, respectively. As of December 31, 2013, accrued interest expense pertaining to the Notes was $0.4 million and was recorded in accounts payable and accrued expenses in the accompanying consolidated balance sheets. Of this amount, $0.1 million was recorded in selling, general and administrative expenses and the remaining $0.3 million pertaining to accrued interest expense prior to the IPO date of October 31, 2013 was recorded in additional paid-in capital in the accompanying statements of stockholders’ equity. | |||||
As of December 31, 2013, the future minimum principal payments for the Notes for restricted stock and SARs were as follows (in thousands): | |||||
2014 | $ | 851 | |||
2015 | 894 | ||||
2016 | 939 | ||||
2017 | 985 | ||||
2018 | 1,035 | ||||
Thereafter | 7,651 | ||||
$ | 12,355 | ||||
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related-Party Transactions | ' | ||||||||
6 | Related-Party Transactions | ||||||||
Amounts due from (to) affiliates consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cash sweep receivable from MMC | $ | — | $ | 71,905 | |||||
Taxes payable to MMC | — | (11,133 | ) | ||||||
General and administrative expenses payable to MMC | — | (383 | ) | ||||||
$ | — | $ | 60,389 | ||||||
Prior to June 30, 2013, the majority of the cash generated and used in MMREIS’s operations was held in bank accounts with one financial institution that were included in a sweep arrangement with MMC. Pursuant to a treasury management service agreement with that financial institution, the cash was swept daily into MMC’s money market account. MMREIS collected interest income from MMC at the same interest rate as MMC earned on the money market account. Historically, other than for a 2-week period around MMC’s March 31 fiscal year end, the MMREIS had a receivable from MMC for the cash that was swept. When the sweep arrangement was not in effect, during the week before and the week after March 31, MMREIS’s cash balances remained in MMREIS’s bank accounts. As of June 30, 2013, the sweep arrangement with MMC was permanently terminated. MMREIS earned interest income from MMC of $0.1 million, $0.2 million and $0.1 million for the years ended December 31, 2013, 2012 and 2011, respectively, pertaining to the sweep arrangement. | |||||||||
MMC has a credit agreement under which, MMREIS, along with many other entities controlled by MMC, was a guarantor. The credit agreement is comprised of two components, a line of credit and a term loan which matures on December 26, 2015 and June 1, 2019, respectively. There were certain covenants that MMREIS was required to comply with, such as providing an annual audit report, and quarterly financial statements. MMREIS was required to satisfy the outstanding obligation upon an event of default as defined in the credit agreement. Under the terms of the guarantee, there was not a specific allocation of liability related to MMREIS as all guarantors would be combined for paying specific claims. MMREIS’s guarantee for each component of the credit agreement expired on the respective maturity date. The maximum amount of future payments that MMREIS could have been required to make under the guarantee as of December 31, 2012 was equal to the amount outstanding of $49.7 million ($30.7 million outstanding on the line of credit and $19.0 million advanced under the term loan component of the line). At December 31, 2012, MMC was in compliance with all debt covenants under the terms of the line of credit agreement. MMREIS was released from the guaranty effective November 5, 2013 in connection with the Spin-Off and the completion of the IPO. | |||||||||
Shared services arrangement | |||||||||
Under a shared services arrangement with MMC, MMC provided services to MMREIS. During the years ended December 31, 2013, 2012 and 2011, MMREIS incurred $0.6 million, $0.8 million and $0.9 million, respectively, to MMC pursuant to this arrangement. | |||||||||
Amounts representing health insurance premiums incurred by MMC on behalf of MMREIS during the years ended December 31, 2013, 2012, and 2011 were $3.2 million, $3.5 million and $2.8 million, respectively. Such expenses, paid by MMC on behalf of MMREIS, were allocated based on individual employee coverage costs. | |||||||||
During the years ended December 31, 2013, 2012 and 2011, MMC incurred $0.5 million, $0.5 million and $0.8 million, respectively, in other general and administrative expenses on behalf of MMREIS. Expenses incurred by MMC, such as rent, corporate compensation, and other corporate costs, are allocated on a pro rata basis. | |||||||||
Transition services | |||||||||
In connection with the IPO, the shared services arrangement with MMC was replaced by a Transition Services Agreement between the Company and MMC that became effective on October 31, 2013. In accordance with the Transition Services Agreement, MMC will continue to provide certain services to the Company for a limited period of time, including, but not limited to, the sharing of costs relating to certain insurance coverage and health plans, legal services and information technology management. During the year ended December 31, 2013, the Company incurred $0.8 million (of this amount, $0.7 million was incurred for reimbursement to MMC for health insurance premiums), pursuant to the Transition Services Agreement, which is included in selling, general, and administrative expense in the accompanying consolidated statements of income. Of this amount, $0.5 million was accrued as of December 31, 2013 in accounts payable and other accrued expenses – related party in the accompanying consolidated balance sheets. | |||||||||
Following the IPO, Mr. Marcus, the Company’s Founder and Co-Chairman, continues to own indirectly approximately 67.0% of the Company’s fully diluted shares, including shares to be issued upon settlement of vested DSUs. See Note 8 – “Stock-Based Compensation Plans” for additional information on DSUs. | |||||||||
Financing and brokerage services with the subsidiaries of MMC | |||||||||
MMC has wholly or majority owned subsidiaries that buy and sell commercial real estate properties. MMREIS has performed financing and brokerage services related to these transactions with the subsidiaries of MMC. Financing and brokerage service revenue from these transactions with the subsidiaries of MMC for the years ended December 31, 2013, 2012, and 2011, totaled $0.7 million $1.1 million and $0.8 million, respectively. MMREIS commission expense for these transactions totaled $0.4 million, $0.7 million and $0.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Operating lease with MMC | |||||||||
MMREIS has an operating lease with MMC for an office located in Palo Alto, California. The lease expires April 30, 2015. Following the IPO, the Company still has the operating lease. Rent expense for this office totaled $0.4 million, $0.3 million and $0.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Employee notes receivable | |||||||||
MMREIS issues loans to employees and concurrently recognizes an employee notes receivable. At December 31, 2013 and 2012, the aggregate principal amount outstanding was $0.4 million and $1.2 million, respectively which is included in employee notes receivable in the consolidated balance sheets. | |||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
7 | Stockholders’ Equity | ||||||||||||
Prior to IPO | |||||||||||||
Prior to the IPO, MMREIS had issued and outstanding 1,000 shares of Series A Redeemable Preferred Stock (Series A Preferred) and 234,489 shares of common stock. Terms of the Series A Preferred were as follows: | |||||||||||||
Liquidation Preference | |||||||||||||
In the event of voluntary or involuntary liquidation, the Series A Preferred stockholders were entitled to be paid, before any payment was to be made in respect of MMREIS’s common stock, an amount equal to $10 per share of Series A Preferred plus all accrued but unpaid dividends for each share of Series A Preferred. If, upon liquidation, the assets of MMREIS available for distribution to its stockholders were insufficient to pay the holders of Series A Preferred, the entire remaining assets of MMREIS available for distribution would have been distributed ratably among the holders of the Series A Preferred in proportion to the full amount to which they would have otherwise been respectively entitled. | |||||||||||||
After the payment or setting apart for payment to the holders of the Series A Preferred, the remaining assets and funds of MMREIS available for distribution to the stockholders would have been distributed among the holders of common stock pro rata on the basis of the number of shares of common stock then outstanding. | |||||||||||||
Redemption | |||||||||||||
MMREIS was permitted to redeem any or all shares of Series A Preferred by paying an amount equal to $10 per share plus all declared and unpaid dividends with respect to such shares at the redemption date. Series A Preferred shares were not convertible into common stock. | |||||||||||||
Voting Rights | |||||||||||||
The Series A Preferred stockholders did not have voting rights. | |||||||||||||
Dividends | |||||||||||||
Prior to the IPO, MMREIS distributed substantially all of its net income to MMC in the form of cash dividends. The stockholders of Series A Preferred were entitled to receive dividends, payable in preference and priority to any distribution on common stock, at a rate determined by the Board of Directors, when and as declared by the Board of Directors. The right to dividends on the Series A Preferred was not cumulative, and no right accrued to the holders of Series A Preferred by reason of the fact that dividends on such shares were not declared and paid in any prior year, nor are any undeclared or unpaid dividends entitled to bear or accrue interest. No dividends were paid with respect to common stock unless Series A Preferred stockholders received a dividend return in such year in the amount of $10 for each outstanding share of Series A Preferred. To the extent that dividends were declared on any common share, a dividend in an equal amount was to be paid on each outstanding share of Series A Preferred. | |||||||||||||
Total preferred dividends declared and paid for the twelve months ended December 31, 2013, 2012 and 2011 were $37.7 million, $30.8 million and $16.5 million, respectively. No dividends were declared for common stock for the twelve months ended December 31, 2013, 2012 and 2011. | |||||||||||||
IPO | |||||||||||||
On November 5, 2013, the Company completed its IPO of 6,900,000 shares of common stock at a price to the public of $12.00 per share. The Company’s shares are traded on the New York Stock Exchange. The Company sold 4,173,413 shares of common stock in the IPO, including 900,000 shares of common stock pursuant to the exercise of the underwriters’ option to purchase additional shares. Selling stockholders sold an aggregate of 2,726,587 shares in the IPO at the same price to the public. The Company did not receive any of the proceeds from the sale of such shares by the selling stockholders. The Company received proceeds from its IPO of $42.3 million, including the underwriters’ full exercise of their option to purchase additional shares and after deducting the underwriting discounts and commissions of $3.5 million and IPO related expenses of $4.3 million. | |||||||||||||
Common Stock | |||||||||||||
On October 30, 2013 and prior to completion of the Company’s IPO, MMC and the other stockholders of MMREIS contributed all of the 1,000 issued and outstanding shares of Series A Preferred, $10.00 par value and 234,489 issued and outstanding shares of MMREIS common stock, $1.00 par value, in exchange for 32,357,901 shares of Marcus & Millichap common stock, $0.0001 par value. The 234,489 issued and outstanding shares of MMREIS common stock included 28,749 shares owned by MMREIS managing directors. | |||||||||||||
As of December 31, 2013, there were 36,600,897 shares of common stock, $0.0001 par value, issued and outstanding. The issued and outstanding common stock as of December 31, 2013 includes 32,357,901 shares of common stock discussed above, 4,173,413 shares of common stock sold in the IPO, 39,583 shares of fully vested unrestricted common stock issued to certain individuals in connection with the IPO and 30,000 restricted stock issued to the non-employee directors. | |||||||||||||
Following the IPO, the Company does not intend to pay a regular dividend. The Company will evaluate its dividend policy in the future. Any declaration and payment of future dividends to holders of the Company’s common stock will be at the discretion of the board of directors and will depend on many factors, including the Company’s financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends and other considerations that the board of directors deems relevant. | |||||||||||||
Preferred Stock | |||||||||||||
Following the IPO, the Company has 25,000,000 authorized shares of preferred stock with a par value $0.0001 per share. At December 31, 2013, there were no preferred shares issued or outstanding. | |||||||||||||
Deemed Capital Contribution (Distribution) from MMC | |||||||||||||
Deemed capital contribution (distribution) from MMC in additional paid in capital consists of the following (in thousands): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Deemed capital contribution from MMC (prior to IPO) | $ | 2,655 | $ | 4,209 | $ | 1,610 | |||||||
Deferred taxes assets, net | 26,572 | — | — | ||||||||||
SARs liability | (19,970 | ) | — | — | |||||||||
Notes payable to former stockholders | (12,230 | ) | — | — | |||||||||
Interest expense related to notes payable to former stockholders | (318 | ) | — | — | |||||||||
$ | (3,291 | ) | $ | 4,209 | $ | 1,610 | |||||||
Deemed capital contribution from MMC (prior to IPO) related to compensation cost for unvested restricted stock and SARs, net of applicable taxes. | |||||||||||||
In conjunction with the IPO and the termination of the tax-sharing agreement between MMREIS and MMC, certain liabilities and legal obligations of MMREIS that had been previously assumed by MMC were transferred back to MMREIS as non-cash deemed contributions (distributions) from MMC. Such liabilities and legal obligations included (i) the assumption of a liability of $20.0 million related to amounts frozen under the SARs program based on a frozen value calculated as of March 31, 2013; (ii) the assumption of a liability of $12.2 million related to notes payable to certain former stockholders of MMREIS in settlement of SARs and restricted stock awards which were redeemed by MMREIS upon the termination of employment by these former stockholders; (iii) the assumption of a liability of approximately $0.3 million related to interest payable associated with notes payable to former stockholders. See Note 5 – “Notes Payable” for additional information; and (iv) deferred tax assets, net totaling $26.6 million using an effective tax rate of 40.0% primarily pertaining to these and other items in connection with IPO. See Note 9 – “Income Taxes” for additional information. | |||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
The Company did not have other comprehensive income for each of the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Stock-Based Compensation Plans | ' | ||||||||||||||||||||||||
8 | Stock-Based Compensation Plans | ||||||||||||||||||||||||
Prior to the IPO | |||||||||||||||||||||||||
Restricted Common Stock and SARs | |||||||||||||||||||||||||
Prior to the IPO, MMREIS granted options and SARs under a stock-based compensation award program (the “Program”). The options were exercisable into shares of unvested restricted common stock. The Program was administered by the board of directors. The board determined the terms of an award, including the amount, number of rights or shares, and vesting period, among others. Options issued generally had terms of one year or less and the restricted common stock issued upon exercise of the options generally vested over three to five years. The exercise price of the options was based upon a formula equivalent to the net book value of common stock as of the end of the fiscal year immediately preceding the date of issuance. MMREIS had not formally reserved any shares of its common stock for future stock awards under the Program. | |||||||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011 employees of MMREIS exercised stock options through the issuance of notes receivable. Cash payments on notes receivable were presented as an increase in consolidated stockholders’ equity. Such notes bore interest at a rate of 5% or 6% per annum and were due in defined installments on various remaining dates through April 15, 2016, which was consistent with the vesting periods of the restricted common stock. | |||||||||||||||||||||||||
There were no redemptions or cancelations of stock options during the years ended December 31, 2013 or 2012. | |||||||||||||||||||||||||
The following is a summary of MMREIS’s stock option activity: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||||||
Under | Average | Under | Average | Under | Average | ||||||||||||||||||||
Options | Exercise | Options | Exercise | Options | Exercise | ||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Options outstanding at beginning of year: | 750 | $ | 28.86 | 3,500 | $ | 25.67 | 3,025 | $ | 25.25 | ||||||||||||||||
Granted | — | — | 750 | 28.86 | 6,937 | 25.47 | |||||||||||||||||||
Exercised | (750 | ) | 28.86 | (3,500 | ) | 25.67 | (6,462 | ) | 25.27 | ||||||||||||||||
Options outstanding at end of year | — | $ | — | 750 | $ | 28.86 | 3,500 | $ | 25.67 | ||||||||||||||||
The following is a summary of MMREIS’s restricted common stock activity: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted | Weighted- | Restricted | Weighted- | Restricted | Weighted- | ||||||||||||||||||||
Stock | Average | Stock | Average | Stock | Average | ||||||||||||||||||||
Grant | Grant | Grant | |||||||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Restricted common stock outstanding at beginning of year: | 27,999 | $ | 23.67 | 24,499 | $ | 23.36 | 28,447 | $ | 20.95 | ||||||||||||||||
Issued upon exercise of stock options | 750 | 28.86 | 3,500 | 25.87 | 6,462 | 25.28 | |||||||||||||||||||
Canceled | — | — | — | — | (1,866 | ) | 23.07 | ||||||||||||||||||
Repurchased | — | — | — | — | (8,544 | ) | 15.4 | ||||||||||||||||||
Exchange of common stock | (28,749 | ) | — | — | — | — | — | ||||||||||||||||||
Restricted common stock outstanding at end of year | — | $ | — | 27,999 | $ | 23.67 | 24,499 | $ | 23.36 | ||||||||||||||||
Restricted common stock vested at end of year | 28,749 | 22,682 | 18,960 | ||||||||||||||||||||||
Restricted common stock unvested at end of year | — | 5,317 | 5,539 | ||||||||||||||||||||||
Refer to Note 7 – “Stockholders’ Equity” for additional information on the exchange of common stock. | |||||||||||||||||||||||||
The following is a summary of MMREIS’s SARs activity: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
SARs outstanding at beginning of period: | 28,733 | 27,983 | 31,456 | ||||||||||||||||||||||
Granted | — | 750 | 6,937 | ||||||||||||||||||||||
Canceled | — | — | (1,866 | ) | |||||||||||||||||||||
Repurchased | — | — | (8,544 | ) | |||||||||||||||||||||
SARs outstanding at end of period | — | 28,733 | 27,983 | ||||||||||||||||||||||
SARs vested at end of period | 28,733 | 22,666 | 18,944 | ||||||||||||||||||||||
Stock-based Compensation Expense and Deemed Capital Contribution (Distribution) From MMC | |||||||||||||||||||||||||
Historically, MMC assumed MMREIS’s obligation with respect to any appreciation in the value of the underlying vested awards and SARs in excess of the employees’ exercise price. MMC was deemed to make a capital contribution to MMREIS’s additional paid-in capital equal to the amount of compensation expense recorded, net of the applicable taxes. Based on the tax-sharing agreement between MMREIS and MMC, the tax deduction on the compensation expense recorded by MMREIS was allocated to MMC. MMC recorded the liability related to the appreciation in the value of the underlying stock and SARs in its consolidated financial statements. To the extent of any depreciation in the value of the underlying vested awards and SARs (limited to the amount of any appreciation previously recorded from the employees’ original exercise price), compensation expense was reduced and MMC was deemed to receive a capital distribution. | |||||||||||||||||||||||||
The total compensation cost related to unvested stock and SARs was generally recognized over approximately four years. Restricted common stock issued upon exercise of stock options was generally vested over three to five years and stock options typically were exercised immediately for a note receivable. | |||||||||||||||||||||||||
The total formula-settlement value and total compensation cost related to non-vested stock and SARs are as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted common stock | $ | — | $ | 447 | $ | 615 | |||||||||||||||||||
Rights under SARs | $ | — | $ | 371 | $ | 458 | |||||||||||||||||||
In conjunction with the IPO, the vesting of all unvested restricted stock and all unvested SARs was accelerated. | |||||||||||||||||||||||||
The total fair value of restricted stock and SARs that vested during the years ended December 31 was as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted common stock | $ | 470 | $ | 961 | $ | 471 | |||||||||||||||||||
Rights under SARs | $ | 405 | $ | 818 | $ | 358 | |||||||||||||||||||
Amendments to Restricted Stock and SARs | |||||||||||||||||||||||||
The SARs were frozen at the liability amount, calculated as of March 31, 2013, which will be paid out to each participant in installments upon retirement or departure under the terms of the existing program. The Company will begin to accrue interest starting on January 1, 2014 based on the frozen SAR account balances. To replace beneficial ownership in the SARs, the difference between the book value liability and the fair value of the awards was granted to plan participants in the form of deferred stock units, or DSUs, which was fully vested upon receipt and will be settled in actual stock at a rate of 20% per year if the participant remains employed by the Company during that period (or otherwise all unsettled shares of stock upon termination of employment will be settled five years from the termination date). In addition, the formula settlement value of all outstanding shares of stock held by the plan participants was removed, and all such shares of stock will be subject to sales restrictions that lapse at a rate of 20% per year for five years if the participant remains employed by the Company. Additionally, in the event of death or termination of employment after reaching the age of 67, 100% of the DSUs will be settled and 100% of the shares of stock will be released from the resale restriction. Further, 100% of the shares of stock will be released from the resale restriction upon the consummation of a change of control of the Company. | |||||||||||||||||||||||||
The modification was accounted for as a probable-to-probable modification in accordance with ASC 718. Total compensation cost recognized at the time of the modification was equal to (i) the unrecognized portion of compensation cost associated with the original awards, and (ii) the incremental cost resulting from the modification. The incremental compensation cost from the modification was the excess of (a) the fair value of the modified awards based upon the initial public offering price of the stock, and (b) the calculated value of the awards prior to the modification based upon the formula settlement value. The fair value of the DSUs was based upon the Company’s IPO price, discounted for the sales restrictions in accordance with ASC 718. The value of the discount was determined using an independent third-party valuation. In addition, as a result of the removal of the formula settlement value, the modification of the unvested restricted stock resulted in the awards being classified as equity awards. The modification, grant of replacement awards and acceleration of vesting of restricted stock and SARs and grants of other stock-based compensation awards in conjunction with the IPO pursuant to the 2013 Omnibus Equity Incentive Plan, or the 2013 Plan, resulted in non-cash stock-based compensation charges of $30.9 million during the three months ended December 31, 2013, which are included in stock-based and other compensation in connection with the IPO on the consolidated statements of income. Following the IPO, grant of replacement awards and future equity award issuances are recorded by the Company and no longer result in a deemed capital contribution (distribution) to MMC. | |||||||||||||||||||||||||
Subsequent to the IPO | |||||||||||||||||||||||||
2013 Omnibus Equity Incentive Plan | |||||||||||||||||||||||||
In October 2013, the board of directors adopted the 2013 Omnibus Equity Incentive Plan (the “2013 Plan”), which became effective upon the Company’s IPO. The 2013 Plan, in general authorizes for the granting of incentive stock options, to employees and any subsidiary corporations’ employees, and for the granting of nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares to the Company’s employees, independent contractors, directors and consultants and subsidiary corporations’ employees and consultants as selected from time to time by the Company’s board of directors at its discretion. | |||||||||||||||||||||||||
In connection with the approval of the 2013 Plan, the Company reserved 5,500,000 shares of common stock for the issuance of awards under the 2013 Plan. At December 31, 2013, there were 5,500,000 aggregate shares reserved for issuance and 2,310,338 shares available for grant under the Plan. The number of shares available for issuance under the 2013 Plan will increase annually on the first day of each of the years beginning with the 2015 fiscal year, by an amount equal to the least of: (i) 5,500,000 shares of the Company’s common stock; (ii) 3% of the outstanding shares of the Company’s common stock as of the last day of the immediately preceding fiscal year; and (iii) such other amount as the Company’s board of directors may determine. | |||||||||||||||||||||||||
In connection with the IPO, MMI issued the following equity awards under the 2013 Plan: (i) DSUs for an aggregate of 2,192,413 shares granted as replacement awards to the MMREIS managing directors, (ii) DSUs for 83,334 shares to be granted to the Company’s Co-chairman of board of directors (Mr. Millichap) and (iii) 30,000 shares of restricted stock to the Company’s non-employee directors, in each case, based on the IPO price of $12.00. Restricted stock awards granted to non-employee directors vest 33-1/3% per year on the first, second and third anniversary of the date of grant. | |||||||||||||||||||||||||
In November 2013, the Company granted an aggregate of 883,915 restricted stock units to certain employees and independent contractors. The awards vest 20% per year on the first, second, third, fourth and fifth anniversary beginning on January 2, 2015. The awards are canceled upon termination of employment. | |||||||||||||||||||||||||
Award Limitations | |||||||||||||||||||||||||
The following limits apply to any awards granted under the 2013 Plan: | |||||||||||||||||||||||||
• | Options and stock appreciation rights – no employee or independent contractor shall be granted within any fiscal year one or more options or stock appreciation rights, which in the aggregate cover more than 500,000 shares; provided, however, that in connection with an employee or independent contractor’s initial service as an employee or independent contractor, an employee or independent contractor’s aggregate limit may be increased by 1,000,000 shares; | ||||||||||||||||||||||||
• | Restricted stock and restricted stock units – no employee or independent contractor shall be granted within any fiscal year one or more awards of restricted stock or restricted stock units, which in the aggregate cover more than 500,000 shares; provided, however, that in connection with an employee or independent contractor’s initial service as an employee or independent contractor, an employee or independent contractor’s aggregate limit may be increased by 1,000,000 shares; and | ||||||||||||||||||||||||
• | Performance units and performance shares – no employee or independent contractor shall receive performance units or performance shares having a grant date value (assuming maximum payout) greater than $2 million dollars or covering more than 500,000 shares, whichever is greater; provided, however, that in connection with an employee or independent contractor’s initial service as an employee or independent contractor, an employee or independent contractor may receive performance units or performance shares having a grant date value (assuming maximum payout) of up to an additional amount equal to $5 million dollars or covering up to 1,000,000 shares, whichever is greater. An individual may only have one award of performance units or performance shares for a performance period. | ||||||||||||||||||||||||
As of December 31, 2013, there were no issued or outstanding options, stock appreciation rights, performance units or performance shares awards. | |||||||||||||||||||||||||
Restricted Stock Units (RSUs)/Restricted Stock Awards (RSA’s) | |||||||||||||||||||||||||
The following table summarizes the Company’s vested and nonvested RSU and RSA activity under the 2013 Plan for the year ended December 31, 2013: | |||||||||||||||||||||||||
RSA Grants to Non- | RSU Grants to | RSU Grants to | Total | Weighted- | |||||||||||||||||||||
employee Directors | Employee | Independent | Average Grant | ||||||||||||||||||||||
Contractors | Date Fair Value | ||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||
Nonvested shares at December 31, 2012 | — | — | — | — | $ | — | |||||||||||||||||||
Granted | 30,000 | 313,155 | 570,760 | 913,915 | 14.46 | ||||||||||||||||||||
Vested | — | — | — | — | — | ||||||||||||||||||||
Forfeited/canceled | — | — | — | — | — | ||||||||||||||||||||
Nonvested shares at December 31, 2013 | 30,000 | 313,155 | 570,760 | 913,915 | $ | — | |||||||||||||||||||
Weighted average grant date fair value per share for shares granted during the period | $ | 12 | $ | 14.54 | $ | 14.54 | |||||||||||||||||||
RSUs to independent contractors pertain to grants made to the Company’s agents, which are treated as liability awards requiring remeasurement of fair value at the end of each reporting period until settlement. See Note 2 – “Accounting Policies” for additional information. | |||||||||||||||||||||||||
At December 31, 2013, nonvested and expected to vest RSU’s totaled 0.9 million with an intrinsic value totaling $13.6 million ($0.4 million, $8.5 million and $4.7 million attributable to RSA grants to non-employee directors, RSU grants to agents and RSU grants to employees, respectively). The RSU vesting will be settled through the issuance of new shares of common stock. | |||||||||||||||||||||||||
The weighted average remaining period of the nonvested restricted stock units is 4.78 years as of December 31, 2013. | |||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
The following table summarizes the components of share-based compensation included in the consolidated statements of income (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted stock and SARs (prior to IPO) | $ | 4,679 | $ | 7,448 | $ | 2,851 | |||||||||||||||||||
Non-cash stock based compensation charge (prior to IPO) | 30,886 | — | — | ||||||||||||||||||||||
RSAs – non-employee directors | 20 | — | — | ||||||||||||||||||||||
RSUs – employee | 88 | — | — | ||||||||||||||||||||||
RSUs – independent contractors | 168 | — | — | ||||||||||||||||||||||
$ | 35,841 | $ | 7,448 | $ | 2,851 | ||||||||||||||||||||
As of December 31, 2013, there was $12.2 million of unrecognized stock-based compensation expense of which $7.7 million is related to RSUs to agents, $4.2 million is related to RSUs to employees, and $0.3 million is related to RSAs to non-employee directors. This unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately 4.78 years. | |||||||||||||||||||||||||
Employee Stock Purchase Plans | |||||||||||||||||||||||||
In 2013, the Company adopted the 2013 Employee Stock Purchase Plan (“2013 ESPP Plan”). The 2013 ESPP Plan had 366,667 shares of common stock reserved and available for issuance at December 31, 2013. In addition, the ESPP Plan will provide for annual increases in the number of shares available for issuance under the ESPP on the first day of each fiscal year beginning with the 2015 fiscal year, equal to the least of (i) 366,667 Shares, (ii) 1% of the outstanding Shares on such date, or (iii) an amount determined by the Board. | |||||||||||||||||||||||||
The ESPP Plan qualifies under Section 423 of the IRS Code and provides for consecutive, nonoverlapping 6-month offering periods. The offering periods generally start on the first trading day on or after May 15 and November 15 of each year. The first offering period is expected to begin on May 15, 2014. | |||||||||||||||||||||||||
Under the 2013 ESPP Plan, each eligible employee may authorize payroll deductions of up to 15% of his or her compensation to purchase shares of the Company’s common stock. A participant may purchase a maximum of 1,250 shares of common stock during each purchase period. | |||||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
9 | Income Taxes | ||||||||||||
Prior to November 1, 2013, MMREIS was part of a consolidated federal income tax return and various combined and consolidated state tax returns that were filed by MMC. MMREIS and MMC had a tax-sharing agreement whereby MMREIS provided for income taxes in its consolidated statements of income using an effective tax rate of 43.5%. As part of the IPO, the tax-sharing agreement with MMC was terminated effective October 31, 2013 and as a result the tax provision for the period November 1, 2013 through December 31, 2013 is calculated under the asset and liability method. The amount derived under the tax-sharing agreement represented a receivable or obligation of MMREIS from (to) the MMC that MMREIS generally settled on a current basis. | |||||||||||||
The provision for income taxes consists of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal: | |||||||||||||
Current | $ | 20,245 | $ | 18,866 | $ | 9,085 | |||||||
Deferred | (8,077 | ) | — | — | |||||||||
12,168 | 18,866 | 9,085 | |||||||||||
State: | |||||||||||||
Current | 2,522 | 2,641 | 1,270 | ||||||||||
Deferred | (1,199 | ) | — | — | |||||||||
1,323 | 2,641 | 1,270 | |||||||||||
Foreign: | |||||||||||||
Current | 244 | — | — | ||||||||||
Deferred | — | — | — | ||||||||||
244 | — | — | |||||||||||
Provision for Income Taxes | $ | 13,735 | $ | 21,507 | $ | 10,355 | |||||||
Prior to November 1, 2013 all deferred tax assets and liabilities were recorded by MMC. On October 31, 2013, MMC transferred to the Company its allocable net deferred tax assets totaling $26.6 million. See Note 7 – “Stockholders’ Equity” for additional information. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. | |||||||||||||
Significant components of the Company’s deferred tax assets and liabilities at December 31, 2013 are as follows (in thousands): | |||||||||||||
Deferred Tax Assets, Net | |||||||||||||
Current: | |||||||||||||
Accrued expenses and bonuses | $ | 5,668 | |||||||||||
Bad debt and other reserves | 1,290 | ||||||||||||
Deferred compensation | 2,325 | ||||||||||||
Stock compensation | 369 | ||||||||||||
Deferred rent | 335 | ||||||||||||
Prepaid expenses | (915 | ) | |||||||||||
State taxes | (389 | ) | |||||||||||
Current deferred tax assets, net before valuation allowance | 8,683 | ||||||||||||
Valuation allowance | (20 | ) | |||||||||||
Current deferred tax assets, net | $ | 8,663 | |||||||||||
Non-current: | |||||||||||||
Fixed assets and leasehold improvements | $ | 427 | |||||||||||
Litigation reserve | 887 | ||||||||||||
Deferred compensation | 6,396 | ||||||||||||
Stock compensation | 19,151 | ||||||||||||
Deferred rent | 1,259 | ||||||||||||
Net operating loss carryforwards | 1,544 | ||||||||||||
State taxes | (2,213 | ) | |||||||||||
Net non-current deferred tax assets before valuation allowance | 27,451 | ||||||||||||
Valuation allowance | (266 | ) | |||||||||||
Non-Current deferred tax assets, net | $ | 27,185 | |||||||||||
As of December 31, 2013, the Company had state and Canadian net operating losses (NOLs) of approximately $16.2 million, which will begin to expire in 2019. Certain limitations may be placed on NOLs as a result of “changes in control” as defined in Section 382 of the Internal Revenue Code. In the event a change in control occurs, it will have the effect of limiting the annual usage of the carryforwards in future years. Additional changes in control in future periods could result in further limitations of the Company’s ability to offset taxable income. In addition, the utilization of these NOLs may be subject to certain limitations under state and foreign laws. | |||||||||||||
A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax asset is dependent upon taxable income in prior carryback years, estimates of future taxable income, tax planning strategies and reversals of existing taxable temporary differences. Management determined that as of December 31, 2013, $286,000 of the deferred tax assets related to NOLs do not satisfy the recognition criteria and therefore have recorded a valuation allowance for this amount. | |||||||||||||
The provision for income taxes differs from the amount computed by applying the statutory federal corporate income tax rate of 35% to income before provision for taxes as a result of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense at the federal statutory rate of 35% | $ | 7,679 | $ | 17,305 | $ | 8,332 | |||||||
State income tax expenses, net of federal benefit | 985 | 2,423 | 1,165 | ||||||||||
Permanent difference related to compensation charges | 3,445 | — | — | ||||||||||
Other | 361 | 8 | 180 | ||||||||||
Differences due to tax-sharing rate | 1,265 | 1,771 | 678 | ||||||||||
Provision for income taxes | $ | 13,735 | $ | 21,507 | $ | 10,355 | |||||||
As of December 31, 2013, the Company has no liabilities for unrecognized tax benefits. In the event of unrecognized tax benefits, the Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as income tax expense. At December 31, 2013, the Company had not recognized any interest or penalties in its consolidated statements of income or balance sheets. | |||||||||||||
The Company is subject to tax in various jurisdictions and, as a matter or ordinary course, the Company is subject to tax examinations by the federal, state and foreign taxing authorities of for the tax years 2009 to 2013. The Company is not currently under examination by any taxing authorities. | |||||||||||||
The Company has not provided for U.S. taxes on undistributed earnings of its foreign subsidiary as it is operating at a loss and has no earnings and profits to remit. | |||||||||||||
Retirement_Plans
Retirement Plans | 12 Months Ended | |
Dec. 31, 2013 | ||
Compensation And Retirement Disclosure [Abstract] | ' | |
Retirement Plans | ' | |
10 | Retirement Plans | |
The Company participates in a defined contribution plan (the Contribution Plan), provided by MMC under Section 401(k) of the Internal Revenue Code, for all eligible employees of MMREIS who have completed one month of service and have reached age 21. Once eligibility requirements have been met, for purposes of salary deferrals, the entry date to the Contribution Plan will be the first day of the plan year quarter coinciding with or next following the date the employee satisfies the eligibility requirements. The Contribution Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. Participants may contribute up to 100% of their annual eligible compensation, with a maximum contribution of $17,500, $17,000 and $16,500 for 2013, 2012 and 2011. An additional $5,500 contribution is allowed for participants age 50 or older. MMREIS makes matching contributions equal to 50% up to 4% of both deferred and after-tax salary contributions, up to a maximum of $4,000 per eligible employee per year. Contributions totaled $0.3 million for the year ended December 31, 2013 and no contributions were made for the years ended December 31, 2012 and 2011. Participants are entitled to retirement benefits at age 59 1⁄2. Effective January 2014, MMI will have its own defined contribution plan under the same terms. | ||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Earnings Per Share [Abstract] | ' | ||||
Earnings Per Share | ' | ||||
11 | Earnings Per Share | ||||
Earnings per share information has not been presented for periods prior to the IPO on October 31, 2013. See Note 2 – “Accounting Policies” for additional information. | |||||
The following table sets forth the computation of basic and diluted earnings per share subsequent to the IPO for the period ended December 31, 2013 (in thousands, except per share data): | |||||
Period Ended | |||||
December 31, 2013 | |||||
Numerator: | |||||
Net income attributable to Marcus &Millichap, Inc. subsequent to IPO on October 31, 2013 | $ | 9,251 | |||
Denominator: | |||||
Weighted average common shares outstanding (1) | 38,787 | ||||
Effect of dilutive securities: | |||||
Add: RSUs and RSAs | 28 | ||||
Dilutive potential common shares | 38,815 | ||||
Basic earnings per common share | $ | 0.24 | |||
Diluted earnings per common share | $ | 0.24 | |||
(1) | Includes DSUs of 2.2 million shares, which are considered contingently issuable shares and are included in weighted average common shares outstanding in accordance with ASC 260. DSUs were fully vested upon receipt and will be settled in actual stock at a rate of 20% per year if the participant remains employed by the Company during that period (or otherwise all unsettled shares of stock upon termination of employment will be settled five years from the termination date). Note 8 – “Stock-based Compensation Plans” for additional information. | ||||
As discussed in Note 7 – “Stockholders Equity” above, following the IPO, the Company does not intend to pay a regular dividend. Accordingly, an adjustment to the numerator for basic and diluted earnings per common share presentation related to certain of the Company’s restricted stock awards that are considered participating securities was not necessary. | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
12 | Commitments and Contingencies | ||||
Rental expense was $15.7 million, $14.5 million and $15.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. Rental expense is included in selling, general, and administrative expense in the accompanying consolidated statements of income. | |||||
As of December 31, 2013, the future minimum lease payments under non-cancelable operating leases for office facilities and automobiles with terms in excess of one year are as follows (in thousands): | |||||
2014 | $ | 12,668 | |||
2015 | 10,977 | ||||
2016 | 7,691 | ||||
2017 | 4,674 | ||||
2018 | 2,984 | ||||
Thereafter | 1,843 | ||||
$ | 40,837 | ||||
Certain facility leases provide for rental escalations related to increases in the lessors’ direct operating expenses. | |||||
The Company subleases certain office space to subtenants. The rental income received from these subleases is included as a reduction of rental expense. | |||||
Litigation | |||||
The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. If the Company determines that it is probable that a loss has been incurred and the amount is reasonable estimable, it will record a liability. The Company has determined that it does not have a potential liability related to any legal proceedings or claims that would individually or in the aggregate materially adversely affect its financial conditions or operating results. | |||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||||||||||||||||||
13 | Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||
2013 (1) | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Consolidated Financial Statement Data: | |||||||||||||||||||||||||||||||||
Total revenues | $ | 149,101 | $ | 111,953 | $ | 105,471 | $ | 69,370 | $ | 147,638 | $ | 91,228 | $ | 84,181 | $ | 62,669 | |||||||||||||||||
Cost of services | 94,242 | 67,718 | 61,456 | 41,221 | 91,345 | 54,194 | 48,764 | 35,945 | |||||||||||||||||||||||||
Operating (loss) income | (8,165 | ) | 12,625 | 14,169 | 2,657 | 22,967 | 11,295 | 11,062 | 3,684 | ||||||||||||||||||||||||
Net (loss) income | (8,716 | ) | 7,275 | 8,009 | 1,638 | 13,038 | 6,405 | 6,250 | 2,241 | ||||||||||||||||||||||||
Net (loss) income attributable to MMREIS prior to IPO on October 31, 2013 | (17,967 | ) | 7,275 | 8,009 | 1,638 | 13,038 | 6,405 | 6,250 | 2,241 | ||||||||||||||||||||||||
Net income attributable to Marcus & Millichap, Inc. subsequent to IPO on October 31, 2013 | $ | 9,251 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Earnings per share (2): | |||||||||||||||||||||||||||||||||
Basic | $ | 0.24 | |||||||||||||||||||||||||||||||
Diluted | $ | 0.24 | |||||||||||||||||||||||||||||||
(1) | The three months ended December 31, 2013 include non-cash stock-based and other compensation charges of $31.3 million. See Note 8 – “Stock-Based Compensation Plans” for additional information. | ||||||||||||||||||||||||||||||||
(2) | Earnings per share information are presented for periods subsequent to the IPO on October 31, 2013. See Note 11 – “Earnings Per Share” for additional information. |
Description_of_Business_Basis_1
Description of Business, Basis of Presentation and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Description of business | ' |
Description of business | |
Marcus and Millichap Real Estate Investment Services, Inc. (“MMREIS”) was incorporated in 1976 in the state of Delaware and prior to the completion of its initial public offering (the “IPO”), MMREIS was majority-owned by Marcus & Millichap Company (“MMC”) and all of the Company’s preferred and common stock outstanding was held by MMC and its affiliates or officers and employees of MMREIS. In June 2013, in preparation for the spin-off of its real estate investment services business, or the Spin-Off, MMC formed Marcus & Millichap, Inc., (the “Company”, “Marcus & Millichap”, or “MMI”). On October 30, 2013 and prior to the IPO, the stockholders of MMREIS contributed all of their outstanding shares to the Company, in exchange for MMI common stock, and MMREIS became MMI’s wholly-owned subsidiary. Thereafter, on October 31, 2013, MMC distributed 80.0% of the shares of MMI common stock to MMC’s shareholders and exchanged the remaining portion of its shares of MMI common stock for cancellation of indebtedness. | |
On November 5, 2013, the Company completed its IPO of 6,900,000 shares of common stock at a price to the public of $12.00 per share. The Company’s shares, which commenced trading on October 31, 2013, are traded on the New York Stock Exchange. See Note 7 – “Stockholders’ Equity” for additional information. | |
The Company is a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. | |
Basis of Presentation | ' |
Basis of Presentation | |
The Company’s consolidated financial statements for the years ended December 31, 2013, 2012 and 2011 have been prepared in accordance with US generally accepted accounting principles (“GAAP”). In accordance with ASC 805-50-30-6, Business Combinations, since MMI and MMREIS were affiliates under common control, the assets and liabilities of MMREIS were recorded at carryover basis at the Spin-Off date. The historical financial statements of MMREIS, as the Company’s predecessor, have been presented as the historical financial statements of the Company for all periods prior to the Spin-Off from the beginning of the earliest period presented. | |
Consolidation | ' |
Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents, due from affiliates, and receivables. Cash is placed with high-credit quality financial institutions. To reduce its credit risk, the Company monitors the credit standing of the financial institutions that hold the Company’s cash and cash equivalents. The Company historically has not experienced any losses in its cash and cash equivalents or due from affiliates. The Company maintains allowances for estimated credit losses based on management’s assessment of the likelihood of collection. As of December 31, 2013 and 2012, no individual accounted for 10% or more of commissions or notes receivable. | |
The Company derives its revenues from a broad range of real estate investors, owners, and users in the United States and Canada, none of which individually represents a significant concentration of credit risk. For the twelve months ended December 31, 2013 and 2012, no individual customer represented 10% or more of total revenues. | |
The Company performs ongoing credit evaluations of its customers and debtors and requires collateral on a case-by-case basis. | |
Reclassifications | ' |
Reclassifications | |
Certain prior-period amounts in these notes to consolidated financial statements have been reclassified to conform to the current period presentation. These changes had no impact on the previously reported consolidated results of operations or stockholders’ equity. | |
Segment Reporting | ' |
Segment Reporting | |
ASC 280, Segment Reporting, establishes standards for reporting information on operating segments in interim and annual financial statements. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses whose separate financial information is available and is evaluated regularly by the Chief Operating Decision Maker (CODM) or decision making group, to perform resource allocations and performance assessments. The CODM is the Chief Executive Officer and Chief Financial Officer. The CODM reviews financial information presented on an office by- office basis for purposes of making operating decisions, assessing financial performance and allocating resources. Based on the evaluation of the Company’s financial information, management believes that the Company’s offices represent individual operating segments with similar economic characteristics that meet the criteria for aggregation into a single reportable segment for financial statement purposes. The Company’s financing operations also represent an individual operating segment, which does not meet the thresholds to be presented as a separate reportable segment. | |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
There are no recently issued accounting standards which are not yet effective that the Company believes would materially impact its consolidated financial statements. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers cash and cash equivalents to include short-term, highly liquid investments with maturities of three months or less when purchased. At December 31, 2013 and 2012, a significant portion of the balance of cash and cash equivalents was held with three financial institutions. Management believes the likelihood of realizing material losses from the excess of cash balances over federally insured limits is remote. | |
Prior to June 30, 2013, the majority of the cash generated and used in the Company’s operations was held in bank accounts with one financial institution that were included in a sweep arrangement with MMC. Pursuant to a treasury management service agreement with that financial institution, the cash was swept daily into MMC’s money market account. The Company collected interest income from MMC at the same interest rate as MMC earned on the money market account. Historically, other than for a 2-week period around MMC’s March 31 fiscal year end, the Company had a receivable from MMC for the cash that was swept. When the sweep arrangement was not in effect, during the week before and the week after March 31, the Company’s cash balances remained in the Company’s bank accounts. As of June 30, 2013, the sweep arrangement with MMC was permanently terminated. | |
Commissions Receivable, Net | ' |
Commissions Receivable, Net | |
Commissions receivable consist primarily of commissions earned for which payment has not yet been received as well as current receivables from agents. The Company establishes an allowance for doubtful accounts based on the specific-identification of potentially uncollectible accounts. | |
Property and Equipment, Net | ' |
Property and Equipment, Net | |
Property and equipment are stated at cost less accumulated depreciation and amortization. The Company uses the straight-line method for depreciation and amortization. Depreciation and amortization are provided over estimated useful lives ranging from three to seven years. | |
The Company leases certain equipment under capital lease arrangements. The assets and liabilities under capital leases are recorded at the lesser of the present value of aggregate future minimum lease payments, including estimated bargain purchase options, or the fair value of the asset under lease. Assets under capital leases are depreciated using the straight-line method over the lesser of the estimated useful life of the asset or the term of the lease. The Company evaluates its fixed assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company believes the carrying amount of property and equipment is recoverable and, therefore, no impairment loss has been recorded for the years ended December 31, 2013, 2012 or 2011. | |
Other Assets | ' |
Other Assets | |
Other assets consist primarily of security deposits, due from sales agents and commission notes receivable. | |
Security deposits relate to lease deposits made in connection with operating leases. | |
Due from sales agents includes notes receivable from agents and other receivables from agents. The notes receivable from agents, along with interest, are typically collected from future commissions and are generally due in one to five years. As of December 31, 2013 and 2012, the weighted average interest rate for notes receivable from agents was approximately 2% and 6%, respectively. Any cash receipts on notes are applied first to unpaid principal balance prior to any income being recognized. | |
In connection with real estate brokerage activities, the Company may accept a portion of its commission in the form of a commission note receivable. | |
The Company establishes an allowance for doubtful accounts based on the specific-identification of potentially uncollectible accounts or commissions notes receivable in accordance with ASC 310, Receivables. Additionally, accounts and commissions notes receivable that are not specifically identified as being impaired are reviewed for impairment in accordance with ASC 450, Contingencies based on consideration of historical experience. | |
Deferred Rent Obligation | ' |
Deferred Rent Obligation | |
Some of the Company’s operating leases contain periods of free or reduced rent or contain predetermined fixed increases in the minimum rent amount during the lease term. For these leases, the Company recognizes rent expense on a straight-line basis over the term of the lease, generally between five to ten years, including periods of free rent, and records the difference between the amount charged to rent expense and the rent paid as a deferred rent obligation. As of December 31, 2013 and 2012, deferred rent totaled $3.7 million and $3.2 million, respectively, and is included in other liabilities and accounts payable and accrued expenses in the accompanying consolidated balance sheets. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company generates real estate brokerage commissions by acting as a broker for real estate owners or investors seeking to buy or sell commercial properties. Revenues from real estate brokerage commissions are recognized when there is persuasive evidence of an arrangement, all services have been provided, the price is fixed and determinable and collectability is reasonably assured. The Company generates financing fees from securing financing on purchase transactions as well as fees earned from refinancing its clients’ existing mortgage debt. Financing fee revenues are recognized at the time the loan closes and there are no remaining significant obligations for performance in connection with the transaction. Other revenues include fees generated from consulting and advisory services, as well as referral fees from other real estate brokers. Revenues from these services are recognized as they are performed and completed. | |
Advertising Costs | ' |
Advertising Costs | |
Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2013, 2012 and 2011 was $1.0 million, $0.7 million and $0.5 million, respectively. Advertising costs are included in selling, general, and administrative expense in the accompanying consolidated statements of income. | |
Income Taxes | ' |
Income Taxes | |
Prior to the IPO, the Company was part of a consolidated federal income tax return and various combined and consolidated state tax returns that were filed by MMC. The Company and MMC had a tax-sharing agreement whereby the Company provided for income taxes in its consolidated statements of income using an effective tax rate of 43.5%. In addition, all deferred tax assets and liabilities were recorded by MMC. As part of the spin-off, the Company’s tax sharing agreement with MMC was terminated effective October 31, 2013 and MMC transferred its allocable net deferred tax assets totaling $26.6 million to the Company, which resulted in a deemed capital contribution. | |
Subsequent to the Spin-Off, the Company files as a stand-alone tax entity and income taxes are accounted for under the asset and liability method in accordance with ASC 740, Accounting for Income Taxes (“ASC 740”). Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax basis of assets and liabilities and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured by applying enacted tax rates and laws and are released in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rates is recognized in the income in the period that includes the enactment date. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. The change to a stand-alone entity for tax purposes may result in material changes to the Company’s income tax provision in future years. | |
ASC 740 defines the threshold for recognizing the benefits of tax return positions in the financial statements as “more likely than not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50% likely to be realized. Management has analyzed the Company’s inventory of tax positions taken with respect to all applicable income tax issues for all open tax years (in each respective jurisdiction), and has concluded that no uncertain tax positions are required to be recognized in the Company’s consolidated financial statements. | |
Fair Value Measurement | ' |
ASC 820, Fair Value Measurement (“ASC 820”) establishes the accounting guidance for fair value measurements that applies to all financial assets and financial liabilities that are being measured and reported on a fair value basis. Under the accounting guidance, the Company makes fair value measurements that are classified and disclosed in one of the following three categories: | |
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | |
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability, or | |
Level 3: Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | |
Investments held in a rabbi trust account are carried at fair value and considered to be in the Level 1 classification. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The Company’s financial instruments, including such items in the consolidated financial statement captions as cash and cash equivalents, commissions receivable, net, accounts payable and accrued expenses and commissions payable, are carried at cost, which approximates fair value based on their immediate or short-term maturities and terms, which approximate current market rates and considered to be in the Level 1 classification. | |
As the Company’s obligations under notes payable to former stockholders and certain employee and agent notes receivable bear fixed interest rates that approximate the rates currently offered to the Company for similar debt instruments, the Company has determined that the carrying value on these instruments approximates fair value. As the Company’s obligations under SARs Liability (included in deferred compensation and commissions caption) bear variable interest rates, the Company has determined that the carrying value approximates the fair value. These are considered to be in the Level 1 classification. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Prior to the IPO | |
MMREIS historically issued stock options and stock appreciation rights, or SARs, to key employees through a book value, stock-based compensation award program (the “Program”). The Program allowed for employees to exercise stock options in exchange for shares of unvested restricted common stock. The Program also allowed employees to exercise options through the issuance of notes receivable, which were recourse to the employee. The grant price and repurchase price of stock-based awards at the grant date and repurchase date were fixed as determined by a valuation formula using book value, as defined by the agreements between MMREIS and the employees. The stock awards generally vested over a three to five-year period. Under these plans, MMREIS retained the right to repurchase shares if certain events occurred, which included termination of employment. In these circumstances, the plan document provided for repurchase proceeds to be settled in the form of a note payable to (former) shareholders or cash, which was settled over a fixed period. While MMREIS had entered into the agreements to repurchase the stock and settle the SARs held by employees upon termination of their employment (subject to certain conditions as specified in the agreements), MMC had historically assumed the obligation to make payments to the former shareholders. While MMREIS recognized the compensation expense associated with these share-based payment arrangements, the liability had historically been assumed by MMC through a deemed contribution, which then has paid the former shareholders over time. The accounting for the stock options and SARs awards, including MMC’s assumption of MMREIS repurchase obligations, is discussed below. | |
Earnings Per Share | ' |
Earnings Per Share | |
The Company computes earnings per share in accordance with ASC 260, Earnings Per Share (ASC 260). ASC 260 provides that unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and should be included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Certain of the Company’s restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest. | |
Earnings per share information has not been presented for periods prior to the IPO, as the holders of MMREIS Series A Redeemable Preferred Stock were entitled to receive discretionary dividends, payable in preference and priority to any distribution on MMREIS common stock. Since MMREIS typically distributed its earnings to the Series A Preferred stockholders on a quarter-in-arrears basis, earnings per share information for MMREIS common stock was not meaningful. | |
Earnings per share is calculated using net income attributable to Marcus and Millichap, Inc. subsequent to initial public offering on October 31, 2013. | |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Net | ' | ||||||||
Property and equipment, net consist of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computer software and hardware equipment | $ | 8,442 | $ | 6,211 | |||||
Furniture, fixtures, and equipment | 19,530 | 18,394 | |||||||
Less accumulated depreciation and amortization | (19,412 | ) | (17,917 | ) | |||||
$ | 8,560 | $ | 6,688 | ||||||
Selected_Balance_Sheet_Data_Ta
Selected Balance Sheet Data (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Components of Commissions Receivable, Net | ' | ||||||||
Commissions receivable, net consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Commissions due from buyer/seller | $ | 3,241 | $ | 5,205 | |||||
Due from sales agents | 973 | 688 | |||||||
Less allowance for doubtful accounts | (99 | ) | (129 | ) | |||||
$ | 4,115 | $ | 5,764 | ||||||
Changes in Allowance for Doubtful Accounts | ' | ||||||||
The following table presents the changes in the allowance for doubtful accounts (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Balance at beginning of period | $ | (129 | ) | $ | (143 | ) | |||
Provision for losses on commissions receivable | — | — | |||||||
Write-off of uncollectible commissions receivable | 30 | 14 | |||||||
Balance at end of period | $ | (99 | ) | $ | (129 | ) | |||
Schedule of Other Assets | ' | ||||||||
Other assets consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Commission notes receivable | $ | 82 | $ | 739 | |||||
Due from sales agents | 566 | 376 | |||||||
Security deposits | 1,126 | 1,046 | |||||||
Other | 1,372 | 1,804 | |||||||
$ | 3,146 | $ | 3,965 | ||||||
Schedule of Accrued Employee Expenses | ' | ||||||||
Accrued employee expenses consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Bonus payable | $ | 15,428 | $ | 16,600 | |||||
Accrued vacation | 975 | 919 | |||||||
Other employee related accruals | 544 | — | |||||||
$ | 16,947 | $ | 17,519 | ||||||
Components of Deferred Compensation and Commissions | ' | ||||||||
Deferred compensation and commissions consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
SARs liability | $ | 19,970 | $ | — | |||||
Commissions payable | 8,623 | 6,700 | |||||||
Deferred compensation liability | 3,584 | 2,421 | |||||||
$ | 32,177 | $ | 9,121 | ||||||
Schedule of Other Liabilities | ' | ||||||||
Other liabilities consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long term deferred rent | $ | 2,952 | $ | 2,703 | |||||
Accrued legal | 1,351 | 1,826 | |||||||
Other | 68 | — | |||||||
$ | 4,371 | $ | 4,529 | ||||||
Notes_Payable_to_Former_Stockh1
Notes Payable to Former Stockholders (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Payables And Accruals [Abstract] | ' | ||||
Schedule of Future Minimum Principal and Interest Payments for Notes for Restricted Stock and SARs | ' | ||||
As of December 31, 2013, the future minimum principal payments for the Notes for restricted stock and SARs were as follows (in thousands): | |||||
2014 | $ | 851 | |||
2015 | 894 | ||||
2016 | 939 | ||||
2017 | 985 | ||||
2018 | 1,035 | ||||
Thereafter | 7,651 | ||||
$ | 12,355 | ||||
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Amount Due from (to) Affiliates | ' | ||||||||
Amounts due from (to) affiliates consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cash sweep receivable from MMC | $ | — | $ | 71,905 | |||||
Taxes payable to MMC | — | (11,133 | ) | ||||||
General and administrative expenses payable to MMC | — | (383 | ) | ||||||
$ | — | $ | 60,389 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Deemed Capital Contribution (Distribution) | ' | ||||||||||||
Deemed capital contribution (distribution) from MMC in additional paid in capital consists of the following (in thousands): | |||||||||||||
Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Deemed capital contribution from MMC (prior to IPO) | $ | 2,655 | $ | 4,209 | $ | 1,610 | |||||||
Deferred taxes assets, net | 26,572 | — | — | ||||||||||
SARs liability | (19,970 | ) | — | — | |||||||||
Notes payable to former stockholders | (12,230 | ) | — | — | |||||||||
Interest expense related to notes payable to former stockholders | (318 | ) | — | — | |||||||||
$ | (3,291 | ) | $ | 4,209 | $ | 1,610 | |||||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||||||||||
The following is a summary of MMREIS’s stock option activity: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||||||
Under | Average | Under | Average | Under | Average | ||||||||||||||||||||
Options | Exercise | Options | Exercise | Options | Exercise | ||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Options outstanding at beginning of year: | 750 | $ | 28.86 | 3,500 | $ | 25.67 | 3,025 | $ | 25.25 | ||||||||||||||||
Granted | — | — | 750 | 28.86 | 6,937 | 25.47 | |||||||||||||||||||
Exercised | (750 | ) | 28.86 | (3,500 | ) | 25.67 | (6,462 | ) | 25.27 | ||||||||||||||||
Options outstanding at end of year | — | $ | — | 750 | $ | 28.86 | 3,500 | $ | 25.67 | ||||||||||||||||
Summary of Restricted Common Stock Activity | ' | ||||||||||||||||||||||||
The following is a summary of MMREIS’s restricted common stock activity: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted | Weighted- | Restricted | Weighted- | Restricted | Weighted- | ||||||||||||||||||||
Stock | Average | Stock | Average | Stock | Average | ||||||||||||||||||||
Grant | Grant | Grant | |||||||||||||||||||||||
Date Fair | Date Fair | Date Fair | |||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
Restricted common stock outstanding at beginning of year: | 27,999 | $ | 23.67 | 24,499 | $ | 23.36 | 28,447 | $ | 20.95 | ||||||||||||||||
Issued upon exercise of stock options | 750 | 28.86 | 3,500 | 25.87 | 6,462 | 25.28 | |||||||||||||||||||
Canceled | — | — | — | — | (1,866 | ) | 23.07 | ||||||||||||||||||
Repurchased | — | — | — | — | (8,544 | ) | 15.4 | ||||||||||||||||||
Exchange of common stock | (28,749 | ) | — | — | — | — | — | ||||||||||||||||||
Restricted common stock outstanding at end of year | — | $ | — | 27,999 | $ | 23.67 | 24,499 | $ | 23.36 | ||||||||||||||||
Restricted common stock vested at end of year | 28,749 | 22,682 | 18,960 | ||||||||||||||||||||||
Restricted common stock unvested at end of year | — | 5,317 | 5,539 | ||||||||||||||||||||||
Summary of SARs Activity | ' | ||||||||||||||||||||||||
The following is a summary of MMREIS’s SARs activity: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
SARs outstanding at beginning of period: | 28,733 | 27,983 | 31,456 | ||||||||||||||||||||||
Granted | — | 750 | 6,937 | ||||||||||||||||||||||
Canceled | — | — | (1,866 | ) | |||||||||||||||||||||
Repurchased | — | — | (8,544 | ) | |||||||||||||||||||||
SARs outstanding at end of period | — | 28,733 | 27,983 | ||||||||||||||||||||||
SARs vested at end of period | 28,733 | 22,666 | 18,944 | ||||||||||||||||||||||
Formula Settlement Value and Compensation Cost Related to Non Vested Stock and SARs | ' | ||||||||||||||||||||||||
The total formula-settlement value and total compensation cost related to non-vested stock and SARs are as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted common stock | $ | — | $ | 447 | $ | 615 | |||||||||||||||||||
Rights under SARs | $ | — | $ | 371 | $ | 458 | |||||||||||||||||||
Fair Value of Restricted Stock and SARs Vested | ' | ||||||||||||||||||||||||
The total fair value of restricted stock and SARs that vested during the years ended December 31 was as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted common stock | $ | 470 | $ | 961 | $ | 471 | |||||||||||||||||||
Rights under SARs | $ | 405 | $ | 818 | $ | 358 | |||||||||||||||||||
Components of Share-Based Compensation Included in Consolidated Statements of Income | ' | ||||||||||||||||||||||||
The following table summarizes the components of share-based compensation included in the consolidated statements of income (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Restricted stock and SARs (prior to IPO) | $ | 4,679 | $ | 7,448 | $ | 2,851 | |||||||||||||||||||
Non-cash stock based compensation charge (prior to IPO) | 30,886 | — | — | ||||||||||||||||||||||
RSAs – non-employee directors | 20 | — | — | ||||||||||||||||||||||
RSUs – employee | 88 | — | — | ||||||||||||||||||||||
RSUs – independent contractors | 168 | — | — | ||||||||||||||||||||||
$ | 35,841 | $ | 7,448 | $ | 2,851 | ||||||||||||||||||||
Post IPO [Member] | ' | ||||||||||||||||||||||||
Summary of Vested and Nonvested RSU and RSA Activity Under 2013 Plan | ' | ||||||||||||||||||||||||
The following table summarizes the Company’s vested and nonvested RSU and RSA activity under the 2013 Plan for the year ended December 31, 2013: | |||||||||||||||||||||||||
RSA Grants to Non- | RSU Grants to | RSU Grants to | Total | Weighted- | |||||||||||||||||||||
employee Directors | Employee | Independent | Average Grant | ||||||||||||||||||||||
Contractors | Date Fair Value | ||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||
Nonvested shares at December 31, 2012 | — | — | — | — | $ | — | |||||||||||||||||||
Granted | 30,000 | 313,155 | 570,760 | 913,915 | 14.46 | ||||||||||||||||||||
Vested | — | — | — | — | — | ||||||||||||||||||||
Forfeited/canceled | — | — | — | — | — | ||||||||||||||||||||
Nonvested shares at December 31, 2013 | 30,000 | 313,155 | 570,760 | 913,915 | $ | — | |||||||||||||||||||
Weighted average grant date fair value per share for shares granted during the period | $ | 12 | $ | 14.54 | $ | 14.54 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes consists of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal: | |||||||||||||
Current | $ | 20,245 | $ | 18,866 | $ | 9,085 | |||||||
Deferred | (8,077 | ) | — | — | |||||||||
12,168 | 18,866 | 9,085 | |||||||||||
State: | |||||||||||||
Current | 2,522 | 2,641 | 1,270 | ||||||||||
Deferred | (1,199 | ) | — | — | |||||||||
1,323 | 2,641 | 1,270 | |||||||||||
Foreign: | |||||||||||||
Current | 244 | — | — | ||||||||||
Deferred | — | — | — | ||||||||||
244 | — | — | |||||||||||
Provision for Income Taxes | $ | 13,735 | $ | 21,507 | $ | 10,355 | |||||||
Significant Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities at December 31, 2013 are as follows (in thousands): | |||||||||||||
Deferred Tax Assets, Net | |||||||||||||
Current: | |||||||||||||
Accrued expenses and bonuses | $ | 5,668 | |||||||||||
Bad debt and other reserves | 1,290 | ||||||||||||
Deferred compensation | 2,325 | ||||||||||||
Stock compensation | 369 | ||||||||||||
Deferred rent | 335 | ||||||||||||
Prepaid expenses | (915 | ) | |||||||||||
State taxes | (389 | ) | |||||||||||
Current deferred tax assets, net before valuation allowance | 8,683 | ||||||||||||
Valuation allowance | (20 | ) | |||||||||||
Current deferred tax assets, net | $ | 8,663 | |||||||||||
Non-current: | |||||||||||||
Fixed assets and leasehold improvements | $ | 427 | |||||||||||
Litigation reserve | 887 | ||||||||||||
Deferred compensation | 6,396 | ||||||||||||
Stock compensation | 19,151 | ||||||||||||
Deferred rent | 1,259 | ||||||||||||
Net operating loss carryforwards | 1,544 | ||||||||||||
State taxes | (2,213 | ) | |||||||||||
Net non-current deferred tax assets before valuation allowance | 27,451 | ||||||||||||
Valuation allowance | (266 | ) | |||||||||||
Non-Current deferred tax assets, net | $ | 27,185 | |||||||||||
Components of Provision for Income Taxes and Income before Provision for Taxes | ' | ||||||||||||
The provision for income taxes differs from the amount computed by applying the statutory federal corporate income tax rate of 35% to income before provision for taxes as a result of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income tax expense at the federal statutory rate of 35% | $ | 7,679 | $ | 17,305 | $ | 8,332 | |||||||
State income tax expenses, net of federal benefit | 985 | 2,423 | 1,165 | ||||||||||
Permanent difference related to compensation charges | 3,445 | — | — | ||||||||||
Other | 361 | 8 | 180 | ||||||||||
Differences due to tax-sharing rate | 1,265 | 1,771 | 678 | ||||||||||
Provision for income taxes | $ | 13,735 | $ | 21,507 | $ | 10,355 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Earnings Per Share [Abstract] | ' | ||||
Computation of Basic and Diluted Earnings Per Share Subsequent to IPO | ' | ||||
The following table sets forth the computation of basic and diluted earnings per share subsequent to the IPO for the period ended December 31, 2013 (in thousands, except per share data): | |||||
Period Ended | |||||
December 31, 2013 | |||||
Numerator: | |||||
Net income attributable to Marcus &Millichap, Inc. subsequent to IPO on October 31, 2013 | $ | 9,251 | |||
Denominator: | |||||
Weighted average common shares outstanding (1) | 38,787 | ||||
Effect of dilutive securities: | |||||
Add: RSUs and RSAs | 28 | ||||
Dilutive potential common shares | 38,815 | ||||
Basic earnings per common share | $ | 0.24 | |||
Diluted earnings per common share | $ | 0.24 | |||
(1) | Includes DSUs of 2.2 million shares, which are considered contingently issuable shares and are included in weighted average common shares outstanding in accordance with ASC 260. DSUs were fully vested upon receipt and will be settled in actual stock at a rate of 20% per year if the participant remains employed by MMREIS during that period (or otherwise all unsettled shares of stock upon termination of employment will be settled five years from the termination date). Note 8 – “Stock-based Compensation Plans” for additional information. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments for Operating Leases | ' | ||||
As of December 31, 2013, the future minimum lease payments under non-cancelable operating leases for office facilities and automobiles with terms in excess of one year are as follows (in thousands): | |||||
2014 | $ | 12,668 | |||
2015 | 10,977 | ||||
2016 | 7,691 | ||||
2017 | 4,674 | ||||
2018 | 2,984 | ||||
Thereafter | 1,843 | ||||
$ | 40,837 | ||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||||
2013 (1) | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||
Consolidated Financial Statement Data: | |||||||||||||||||||||||||||||||||
Total revenues | $ | 149,101 | $ | 111,953 | $ | 105,471 | $ | 69,370 | $ | 147,638 | $ | 91,228 | $ | 84,181 | $ | 62,669 | |||||||||||||||||
Cost of services | 94,242 | 67,718 | 61,456 | 41,221 | 91,345 | 54,194 | 48,764 | 35,945 | |||||||||||||||||||||||||
Operating (loss) income | (8,165 | ) | 12,625 | 14,169 | 2,657 | 22,967 | 11,295 | 11,062 | 3,684 | ||||||||||||||||||||||||
Net (loss) income | (8,716 | ) | 7,275 | 8,009 | 1,638 | 13,038 | 6,405 | 6,250 | 2,241 | ||||||||||||||||||||||||
Net (loss) income attributable to MMREIS prior to IPO on October 31, 2013 | (17,967 | ) | 7,275 | 8,009 | 1,638 | 13,038 | 6,405 | 6,250 | 2,241 | ||||||||||||||||||||||||
Net income attributable to Marcus & Millichap, Inc. subsequent to IPO on October 31, 2013 | $ | 9,251 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Earnings per share (2): | |||||||||||||||||||||||||||||||||
Basic | $ | 0.24 | |||||||||||||||||||||||||||||||
Diluted | $ | 0.24 | |||||||||||||||||||||||||||||||
(1) | The three months ended December 31, 2013 include non-cash stock-based and other compensation charges of $31.3 million. See Note 8 – “Stock-Based Compensation Plans” for additional information. | ||||||||||||||||||||||||||||||||
(2) | Earnings per share information are presented for periods subsequent to the IPO on October 31, 2013. See Note 11 – “Earnings Per Share” for additional information. |
Description_of_Business_Basis_2
Description of Business, Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Detail) | 0 Months Ended | 12 Months Ended |
Oct. 31, 2013 | Dec. 31, 2013 | |
Description Of Business And Basis Of Presentation [Line Items] | ' | ' |
Contribution date | ' | 30-Oct-13 |
Effective date of IPO | ' | 31-Oct-13 |
Percentage of common stock distributed | 80.00% | ' |
MMREIS [Member] | ' | ' |
Description Of Business And Basis Of Presentation [Line Items] | ' | ' |
Formation date | ' | '1976 |
MMI [Member] | ' | ' |
Description Of Business And Basis Of Presentation [Line Items] | ' | ' |
Formation date | ' | '2013-06 |
Description_of_Business_Basis_3
Description of Business, Basis of Presentation and Recent Accounting Pronouncements - Additional Information 1 (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2013 | Nov. 05, 2013 | |
IPO [Member] | ||
Class of Stock [Line Items] | ' | ' |
Common stock sold | ' | 6,900,000 |
Common stock sold and issued under IPO, price per share | ' | $12 |
Description of IPO | ' | 'On November 5, 2013, the Company completed its IPO of 6,900,000 shares of common stock at a price to the public of $12.00 per share. |
Effective date of IPO | 31-Oct-13 | ' |
Description_of_Business_Basis_4
Description of Business, Basis of Presentation and Recent Accounting Pronouncements - Additional Information 2 (Detail) (Maximum [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commissions or notes receivable [Member] | Credit Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Customer risk percentage | 10.00% | 10.00% |
Total revenues [Member] | Customer Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Customer risk percentage | 10.00% | 10.00% |
Accounting_Policies_Additional
Accounting Policies - Additional Information (Detail) (USD $) | 10 Months Ended | 12 Months Ended | 12 Months Ended | 10 Months Ended | 12 Months Ended | 10 Months Ended | |||||||||
Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | |
Deferred Tax Assets Net from IPO [Member] | Deferred Tax Assets Net from IPO [Member] | Cash Operating Bank Account [Member] | Cash and Cash Equivalents Bank Accounts [Member] | Cash and Cash Equivalents Bank Accounts [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||||
Financial_Institution | Financial_Institution | Financial_Institution | Pre-IPO [Member] | Pre-IPO [Member] | |||||||||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions | ' | ' | ' | ' | ' | ' | 1 | 3 | 3 | ' | ' | ' | ' | ' | ' |
Description of cash sweep arrangement | ' | 'Historically, other than for a 2-week period around MMC's March 31 fiscal year end, the Company had a receivable from MMC for the cash that was swept. When the sweep arrangement was not in effect, during the week before and the week after March 31, the Company's cash balances remained in the Company's bank accounts. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sweep arrangement termination date | ' | 30-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, estimated useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '7 years | ' | ' |
Impairment loss | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest due | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '1 year | ' | '5 years | '5 years | ' |
Weighted average interest rate for notes receivable | ' | 2.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of the lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '10 years | ' | ' |
Deferred rent | ' | 3,700,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising expense | ' | 1,000,000 | 700,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income taxes effective tax rate | 43.50% | ' | 43.50% | 43.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax sharing agreement termination date | 31-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocable net deferred tax assets | ' | -26,572,000 | ' | ' | 26,600,000 | 26,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit realized, percentage | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Uncertain tax positions | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted common stock vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '5 years |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Less accumulated depreciation and amortization | ($19,412) | ($17,917) |
Property and equipment, net | 8,560 | 6,688 |
Computer software and hardware equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 8,442 | 6,211 |
Furniture, fixtures and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $19,530 | $18,394 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization expense on property and equipment | $3,043,000 | $2,981,000 | $2,971,000 |
Furniture, fixtures and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Furniture, fixtures and equipment, net book value | $0 | $200,000 | ' |
Selected_Balance_Sheet_Data_Co
Selected Balance Sheet Data - Components of Commissions Receivable, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Balance Sheet Related Disclosures [Abstract] | ' | ' |
Commissions due from buyer/seller | $3,241 | $5,205 |
Due from sales agents | 973 | 688 |
Less allowance for doubtful accounts | -99 | -129 |
Commissions receivable | $4,115 | $5,764 |
Selected_Balance_Sheet_Data_Ch
Selected Balance Sheet Data - Changes in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Balance at beginning of period | ($129) | ($143) | ' |
Provision for losses on commissions receivable | 23 | 157 | 311 |
Write-off of uncollectible commissions receivable | 30 | 14 | ' |
Balance at end of period | -99 | -129 | -143 |
Commission receivable [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Provision for losses on commissions receivable | ' | ' | ' |
Selected_Balance_Sheet_Data_Sc
Selected Balance Sheet Data - Schedule of Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets [Line Items] | ' | ' |
Other assets | $3,146 | $3,965 |
Commission notes receivable [Member] | ' | ' |
Other Assets [Line Items] | ' | ' |
Other assets | 82 | 739 |
Due from sales agents [Member] | ' | ' |
Other Assets [Line Items] | ' | ' |
Other assets | 566 | 376 |
Security deposits [Member] | ' | ' |
Other Assets [Line Items] | ' | ' |
Other assets | 1,126 | 1,046 |
Other [Member] | ' | ' |
Other Assets [Line Items] | ' | ' |
Other assets | $1,372 | $1,804 |
Selected_Balance_Sheet_Data_Sc1
Selected Balance Sheet Data - Schedule of Accrued Employee Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Bonus payable | $15,428 | $16,600 |
Accrued vacation | 975 | 919 |
Other employee related accruals | 544 | ' |
Accrued employee expenses | $16,947 | $17,519 |
Selected_Balance_Sheet_Data_Co1
Selected Balance Sheet Data - Components of Deferred Compensation and Commissions (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Balance Sheet Related Disclosures [Abstract] | ' | ' | ' |
SARs liability | $19,970 | $20,000 | ' |
Commissions payable | 8,623 | ' | 6,700 |
Deferred compensation liability | 3,584 | ' | 2,421 |
Total | $32,177 | ' | $9,121 |
Selected_Balance_Sheet_Data_Ad
Selected Balance Sheet Data - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 |
Balance Sheet Related Disclosures [Abstract] | ' | ' |
SARs frozen liability amount | $20,000 | $19,970 |
SARs Liability frozen value date | 31-Mar-13 | ' |
SARs Liability interest accrual commencement date | ' | 1-Jan-14 |
Deferred compensation plam establishment date | ' | 31-Mar-01 |
Fair value of deferred compensation plan assets | ' | 110.00% |
Selected_Balance_Sheet_Data_Sc2
Selected Balance Sheet Data - Schedule of Other Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Long term deferred rent | $2,952 | $2,703 |
Accrued legal | 1,351 | 1,826 |
Other | 68 | ' |
Other liabilities | $4,371 | $4,529 |
Notes_Payable_to_Former_Stockh2
Notes Payable to Former Stockholders - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Notes Payable [Line Items] | ' |
Accrued interest expense pertaining to Notes | 400,000 |
Interest expense related to notes payable from former stockholders prior to IPO | 318,000 |
Restricted Stock [Member] | ' |
Notes Payable [Line Items] | ' |
Unsecured notes payable interest rate | 5.00% |
Unsecured notes payable maturity date | 14-Apr-20 |
SARs [Member] | ' |
Notes Payable [Line Items] | ' |
Unsecured notes payable interest rate | 5.00% |
Unsecured notes payable maturity date | 14-Apr-20 |
Selling, general and administrative expenses [Member] | ' |
Notes Payable [Line Items] | ' |
Interest expense related to notes payable from former stockholders subsequent to IPO | 100,000 |
Notes_Payable_to_Former_Stockh3
Notes Payable to Former Stockholders - Schedule of Future Minimum Principal and Interest Payments for Notes for Restricted Stock and SARs (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Notes Payable To Former Stockholders Disclosure [Abstract] | ' |
2014 | $851 |
2015 | 894 |
2016 | 939 |
2017 | 985 |
2018 | 1,035 |
Thereafter | 7,651 |
Total | $12,355 |
RelatedParty_Transactions_Sche
Related-Party Transactions - Schedule of Amount Due from (to) Affiliates (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Due from (to) affiliates | ' | $60,389 |
General and administrative expense [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Taxes and general and administrative expenses payable to MMC | ' | -383 |
Tax [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Taxes and general and administrative expenses payable to MMC | ' | -11,133 |
Cash sweep [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Cash sweep receivable from MMC | ' | $71,905 |
RelatedParty_Transactions_Addi
Related-Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Component | MMC [Member] | MMC [Member] | MMC [Member] | Mr. Marcus [Member] | Transition Services Agreement [Member] | Transition Services Agreement [Member] | Cash Operating Bank Account [Member] | Cash and Cash Equivalents Bank Accounts [Member] | Cash and Cash Equivalents Bank Accounts [Member] | Line of credit [Member] | Term loan [Member] | |||
MMC [Member] | Health Insurance Premium [Member] | Financial_Institution | Financial_Institution | Financial_Institution | Payment guarantee [Member] | Payment guarantee [Member] | ||||||||
MMC [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 3 | 3 | ' | ' |
Description of cash sweep arrangement | 'Historically, other than for a 2-week period around MMC's March 31 fiscal year end, the Company had a receivable from MMC for the cash that was swept. When the sweep arrangement was not in effect, during the week before and the week after March 31, the Company's cash balances remained in the Company's bank accounts. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sweep agreement termination date | 30-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income earned from MMC | ' | ' | ' | $100,000 | $200,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit maturity date | 26-Dec-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan maturity date | 1-Jun-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of components | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligation, maximum amount of future payments | ' | 49,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,700,000 | 19,000,000 |
IPO completion date | 5-Nov-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment under share service agreement | 600,000 | 800,000 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Health insurance premium expense | ' | ' | ' | 3,200,000 | 3,500,000 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses (pursuant to Transition Services Agreement) | ' | ' | ' | 500,000 | 500,000 | 800,000 | ' | 800,000 | 700,000 | ' | ' | ' | ' | ' |
Transition services agreement effective date | 31-Oct-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable and other accrued expenses - related party | 506,000 | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' |
Percentage of ownership in diluted shares | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' | ' | ' | ' |
Finance and brokerage services from transactions with MMC | 700,000 | 1,100,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commission expenses for transactions with MMC | 400,000 | 700,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expenses | 15,700,000 | 14,500,000 | 15,100,000 | 400,000 | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Lease expires date | ' | ' | ' | 30-Apr-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate employee notes receivable | $400,000 | $1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 10 Months Ended | 12 Months Ended | |||
Nov. 05, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | 0 | 0 | ' | ' |
Preferred stock, Shares outstanding | ' | ' | 0 | 0 | ' | ' |
Common stock, shares issued | ' | ' | 36,600,897 | 0 | ' | ' |
Common stock, shares outstanding | ' | ' | 36,600,897 | 0 | ' | ' |
Preferred stock, voting rights | ' | 'The Series A Preferred stockholders did not have voting rights. | ' | ' | ' | ' |
Preferred stock dividends declared and paid | ' | $37,681,000 | $37,681,000 | $30,756,000 | $16,526,000 | ' |
Proceeds from IPO | 42,300,000 | ' | ' | ' | ' | ' |
IPO related expenses | 4,300,000 | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | $0.00 | $0 | ' | ' |
Common stock share, par value | ' | $1 | $0.00 | $0 | ' | ' |
Preferred stock, share outstanding authorized | ' | ' | 25,000,000 | 0 | ' | ' |
SARs frozen liability amount | ' | ' | 19,970,000 | ' | ' | 20,000,000 |
Notes payable to former stockholders | ' | ' | 12,355,000 | ' | ' | ' |
Interest expense related to notes payable to former stockholders | ' | ' | 318,000 | ' | ' | ' |
Deferred tax assets in connection with IPO | ' | ' | 26,572,000 | ' | ' | ' |
Effective tax rate used for deferred taxes assets, net computation | ' | ' | 40.00% | ' | ' | ' |
Other comprehensive income | ' | ' | 0 | 0 | 0 | ' |
MMREIS [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | 234,489 | ' | 234,489 | ' | ' |
Common stock, shares outstanding | ' | 234,489 | ' | 234,489 | ' | ' |
Common stock dividends declared and paid | ' | ' | 0 | 0 | 0 | ' |
IPO [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
IPO completion date | ' | ' | 'November 5, 2013 | ' | ' | ' |
Common stock sold and issued under IPO | 6,900,000 | ' | ' | ' | ' | ' |
Common stock sold and issued under IPO, price per share | $12 | ' | ' | ' | ' | ' |
IPO MMI [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock sold and issued under IPO | 4,173,413 | ' | ' | ' | ' | ' |
IPO Underwriters [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock sold and issued under IPO | 900,000 | ' | ' | ' | ' | ' |
Underwriting discounts and commissions | 3,500,000 | ' | ' | ' | ' | ' |
IPO Selling Stockholder [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock sold and issued under IPO | 2,726,587 | ' | ' | ' | ' | ' |
Notes Payable APIC [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Notes payable to former stockholders | ' | ' | $12,230,000 | ' | ' | ' |
Fully Vested Unrestricted Stock Issued in IPO [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock sold and issued under IPO | ' | ' | 39,583 | ' | ' | ' |
Restricted Stock Issued in IPO [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock sold and issued under IPO | ' | ' | 30,000 | ' | ' | ' |
Series A redeemable preferred stock [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | 0 | 1,000 | ' | ' |
Preferred stock, Shares outstanding | ' | ' | 0 | 1,000 | ' | ' |
Preferred stock liquidation preference per share | ' | $10 | ' | $10 | ' | ' |
Preferred stock, redemption value per share | ' | $10 | $0 | $10 | ' | ' |
Preferred stock, dividend per share | ' | $10 | ' | $10 | ' | ' |
Exchange of common stock | ' | 1,000 | ' | 1,000 | ' | ' |
Preferred stock, par value | ' | $10 | $0 | $10 | ' | ' |
Preferred stock, share outstanding authorized | ' | ' | 0 | 1,000 | ' | ' |
MMREIS Common Stock [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Exchange of common stock | ' | 234,489 | ' | 234,489 | ' | ' |
MMREIS Common Stock [Member] | MMREIS Managing Directors [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Exchange of common stock | ' | 28,749 | ' | ' | ' | ' |
Marcus And Millichap Common Stock [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Exchange of common stock | ' | 32,357,901 | ' | ' | ' | ' |
Exchange of Stock for Stock [Member] | MMC [Member] | ' | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock share, par value | ' | $0.00 | ' | ' | ' | ' |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Deemed Capital Contribution (Distribution) (Detail) (USD $) | 10 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Deferred taxes assets, net | ' | $26,572 | ' | ' | ' |
SARs liability | ' | -19,970 | ' | ' | -20,000 |
Notes payable to former stockholders | ' | -12,355 | ' | ' | ' |
Interest expense related to notes payable to former stockholders | ' | -318 | ' | ' | ' |
Deemed capital contribution in additional paid in capital | -3,291 | -3,291 | 4,209 | 1,610 | ' |
Deemed Capital Contribution from MMC Prior to IPO [Member] | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Deemed capital contribution in additional paid in capital | ' | 2,655 | 4,209 | 1,610 | ' |
Notes Payable APIC [Member] | ' | ' | ' | ' | ' |
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' |
Notes payable to former stockholders | ' | ($12,230) | ' | ' | ' |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Additional Information (Detail) (USD $) | 10 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Notes receivable from employees [Member] | 2013 Omnibus Equity Incentive Plan [Member] | MMREIS [Member] | Pre-IPO [Member] | Pre-IPO [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Deferred stock units [Member] | ||||
Minimum [Member] | Maximum [Member] | Prior to IPO Stock-based Compensation Award Program [Member] | Age | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terms of Issued Options | ' | ' | ' | ' | ' | ' | ' | ' | 'One year or less | ' | ' |
Restricted common stock issued, vesting period | ' | ' | ' | ' | ' | ' | '3 years | '5 years | ' | ' | ' |
Common stock shares reserved for issuance of awards | ' | ' | ' | ' | 5,500,000 | 0 | ' | ' | ' | ' | ' |
Notes issued, interest rate | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Notes issued, interest rate | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' |
Notes issued, payment date | ' | ' | ' | 15-Apr-16 | ' | ' | ' | ' | ' | ' | ' |
Number of stock options, redemption or cancelations | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expenses recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
SARs Liability interest accrual commencement date | ' | 1-Jan-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DSU Settlement to Common Stock Percentage | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% |
Sales restriction lapse percentage for restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' |
Sales restriction period for restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Employee termination age | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67 |
Percentage of deferred stock units settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Percentage of shares of deferred stock units released from resale restriction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Percentage of shares of stock released from resale restriction upon consummation of change of control | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Stock-based compensation charges | ($30,886) | $30,886 | ' | ' | $30,900 | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Shares Under Options, beginning of year | 750 | 3,500 | 3,025 |
Shares Under Options, Granted | ' | 750 | 6,937 |
Shares Under Options, Exercised | -750 | -3,500 | -6,462 |
Shares Under Options, end of year | ' | 750 | 3,500 |
Weighted-Average Exercise Price, beginning of year | $28.86 | $25.67 | $25.25 |
Weighted-Average Exercise Price, Granted | ' | $28.86 | $25.47 |
Weighted-Average Exercise Price, Exercised | $28.86 | $25.67 | $25.27 |
Weighted-Average Exercise Price, end of year | ' | $28.86 | $25.67 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans - Summary of Restricted Common Stock Activity (Detail) (USD $) | 12 Months Ended | 10 Months Ended | 12 Months Ended | 10 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
MMREIS Common Stock [Member] | MMREIS Common Stock [Member] | MMREIS Common Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | ||
MMREIS Managing Directors [Member] | MMREIS Common Stock [Member] | |||||||
MMREIS Managing Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock outstanding, beginning balance, Shares | ' | ' | ' | ' | 27,999 | 24,499 | 28,447 | ' |
Issued upon exercise of stock options | 913,915 | ' | ' | ' | 750 | 3,500 | 6,462 | ' |
Canceled, Shares | ' | ' | ' | ' | ' | ' | -1,866 | ' |
Repurchased, Shares | ' | ' | ' | ' | ' | ' | -8,544 | ' |
Exchange of common stock | ' | 234,489 | 234,489 | 28,749 | ' | ' | ' | -28,749 |
Stock outstanding, ending balance, Shares | 913,915 | ' | ' | ' | ' | 27,999 | 24,499 | ' |
Restricted common stock vested ending balance, Shares | ' | ' | ' | ' | 28,749 | 22,682 | 18,960 | ' |
Restricted common stock unvested ending balance, Shares | ' | ' | ' | ' | ' | 5,317 | 5,539 | ' |
Nonvested weighted average grant date fair value beginning balance | ' | ' | ' | ' | $23.67 | $23.36 | $20.95 | ' |
Issued/Granted, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | $28.86 | $25.87 | $25.28 | ' |
Canceled, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | $23.07 | ' |
Repurchased, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | $15.40 | ' |
Exchange of common stock, Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested weighted average grant date fair value ending balance | ' | ' | ' | ' | ' | $23.67 | $23.36 | ' |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans - Summary of SARs Activity (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
SARs [Member] | SARs [Member] | SARs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock outstanding, beginning balance, Shares | ' | 27,983 | 31,456 | ' |
Granted | 913,915 | 750 | 6,937 | ' |
Canceled | ' | ' | -1,866 | ' |
Repurchased | ' | ' | -8,544 | ' |
Stock outstanding, ending balance, Shares | 913,915 | 28,733 | 27,983 | ' |
SARs vested at end of period | ' | 22,666 | 18,944 | 28,733 |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans - Formula Settlement Value and Compensation Cost Related to Non Vested Stock and SARs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Formula-settlement value and compensation cost | ' | $447 | $615 |
SARs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Formula-settlement value and compensation cost | ' | $371 | $458 |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans - Fair Value of Restricted Stock and SARs Vested (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value vested during the period | $470 | $961 | $471 |
SARs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Fair value vested during the period | $405 | $818 | $358 |
StockBased_Compensation_Plans_7
Stock-Based Compensation Plans - Subsequent to the IPO - 2013 Omnibus Equity Incentive Plan - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
2013 Omnibus Equity Incentive Plan [Member] | Non-employee directors [Member] | Non-Employee Director [Member] | Employee [Member] | Independent Contractors [Member] | Deferred stock units [Member] | Deferred stock units [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Options & SARs [Member] | Options & SARs [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Options [Member] | SARs [Member] | SARs [Member] | SARs [Member] | Restricted Stock Units and Awards [Member] | ||
Incentive_Plan | MMREIS managing directors [Member] | Millichap [Member] | Non-employee directors [Member] | Non-employee directors [Member] | Minimum [Member] | Maximum [Member] | 2013 Omnibus Equity Incentive Plan [Member] | Employee [Member] | Independent Contractors [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Non-employee directors [Member] | ||||||||||||||
2013 Omnibus Equity Incentive Plan [Member] | 2013 Omnibus Equity Incentive Plan [Member] | 2013 Omnibus Equity Incentive Plan [Member] | 2013 Omnibus Equity Incentive Plan [Member] | |||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of active equity plans | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares reserved for issuance of awards | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock shares available for grant | ' | 2,310,338 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock available for future issuance authorized annual percentage increase | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fully vested deferred stock units | 2,200,000 | ' | ' | ' | ' | ' | 2,192,413 | 83,334 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based award granted in connection with IPO | 913,915 | ' | ' | ' | ' | ' | ' | ' | 750 | 3,500 | 6,462 | 30,000 | 30,000 | ' | ' | 883,915 | 313,155 | 570,760 | ' | ' | ' | ' | ' | ' | ' | 750 | 6,937 | ' |
Description of awards granted under the 2013 Plan | ' | 'In connection with the IPO, MMI issued the following equity awards under the 2013 Plan: (i) DSUs for an aggregate of 2,192,413 shares granted as replacement awards to the MMREIS managing directors, (ii) DSUs for 83,334 shares to be granted to the Companybs Co-chairman of board of directors (Mr. Millichap) and (iii) 30,000 shares of restricted stock to the Companybs non-employee directors, in each case, based on the IPO price of $12.00. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial offering price per share | ' | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based payment award vesting rights, percentage | ' | ' | 33.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units legal vesting date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Jan-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share limitations to awards granted under the 2013 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 1,000,000 | ' | ' | ' | 500,000 | 1,000,000 | ' | 500,000 | 1,000,000 | ' | ' | ' | ' | ' |
Grant date fair value limitations to awards granted under the 2013 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | $5 | ' | ' | ' | ' | ' |
Issued and outstanding options, SARs and performance awards under the 2013 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 0 | 0 | ' | ' | ' |
Non vested and expected to vest RSUs value | 0.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non vested and expected to vest RSU intrinsic value | 13.6 | ' | ' | 0.4 | 4.7 | 8.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for nonvested restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 9 months 11 days |
Unrecognized stock-based compensation expense | $12.20 | ' | $0.30 | ' | $4.20 | $7.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for unrecognized compensation expense is expected to recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 9 months 11 days |
StockBased_Compensation_Plans_8
Stock-Based Compensation Plans - Summary of Vested and Nonvested RSU and RSA Activity Under 2013 Plan (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Nonvested weighted average grant date fair value beginning balance | ' | ' | ' |
Granted | 913,915 | ' | ' |
Vested | ' | ' | ' |
Forfeited/canceled | ' | ' | ' |
Stock outstanding, ending balance, Shares | 913,915 | ' | ' |
Weighted average grant date fair value per share for shares granted during the period | $14.46 | ' | ' |
Vested, weighted average grant date fair value | ' | ' | ' |
Forfeited/canceled, weighted average grant date fair value | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock outstanding, beginning balance, Shares | 27,999 | 24,499 | 28,447 |
Nonvested weighted average grant date fair value beginning balance | $23.67 | $23.36 | $20.95 |
Granted | 750 | 3,500 | 6,462 |
Forfeited/canceled | ' | ' | 1,866 |
Stock outstanding, ending balance, Shares | ' | 27,999 | 24,499 |
Forfeited/canceled, weighted average grant date fair value | ' | ' | $23.07 |
Nonvested weighted average grant date fair value ending balance | ' | $23.67 | $23.36 |
Restricted Stock [Member] | Non-employee directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 30,000 | ' | ' |
Vested | ' | ' | ' |
Forfeited/canceled | ' | ' | ' |
Stock outstanding, ending balance, Shares | 30,000 | ' | ' |
Weighted average grant date fair value per share for shares granted during the period | $12 | ' | ' |
Restricted Stock Units (RSUs) [Member] | Employee [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 313,155 | ' | ' |
Vested | ' | ' | ' |
Forfeited/canceled | ' | ' | ' |
Stock outstanding, ending balance, Shares | 313,155 | ' | ' |
Weighted average grant date fair value per share for shares granted during the period | $14.54 | ' | ' |
Restricted Stock Units (RSUs) [Member] | Independent Contractors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 570,760 | ' | ' |
Vested | ' | ' | ' |
Forfeited/canceled | ' | ' | ' |
Stock outstanding, ending balance, Shares | 570,760 | ' | ' |
Weighted average grant date fair value per share for shares granted during the period | $14.54 | ' | ' |
StockBased_Compensation_Plans_9
Stock-Based Compensation Plans - Components of Share-Based Compensation Included in Consolidated Statements of Income (Detail) (USD $) | 10 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock based compensation charge (prior to IPO) | ($30,886) | $30,886 | ' | ' |
Share-based compensation expense - Independent contractors | ' | 168 | ' | ' |
Allocated share-based compensation expense | ' | 35,841 | 7,448 | 2,851 |
Restricted stock and SARs (prior to IPO) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | ' | 4,679 | 7,448 | 2,851 |
Restricted Stock [Member] | Non-employee directors [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | ' | 20 | ' | ' |
Restricted Stock Units (RSUs) [Member] | Employee [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Allocated share-based compensation expense | ' | $88 | ' | ' |
Recovered_Sheet1
Stock-Based Compensation Plans - Employee Stock Purchase Plans - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Payroll deductions maximum percentage to purchase shares on common stock on purchase dates | 15.00% |
Maximum shares of common stock purchase during each purchase period | 1,250 |
Employee Stock Purchase Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Common stock reserved and available for issuance | 366,667 |
Common stock available for future issuance authorized annual percentage increase | 1.00% |
Length of purchase intervals | '6 months |
ESPP offering period description | 'The offering periods generally start on the first trading day on or after May 15 and November 15 of each year. The first offering period is expected to begin on May 15, 2014. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 10 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Percentage of tax-sharing agreement | 43.50% | ' | 43.50% | 43.50% |
Allocable net deferred tax assets | ' | ($26,572,000) | ' | ' |
State and Canadian net operating losses (NOLs) | ' | 16,200,000 | ' | ' |
State and Canadian net operating losses (NOLs), expiration year | ' | '2019 | ' | ' |
Valuation allowance recorded | ' | 286,000 | ' | ' |
Statutory federal corporate income tax rate | ' | 35.00% | 35.00% | 35.00% |
Uncertain tax positions | ' | 0 | ' | ' |
Tax-sharing agreement [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Percentage of tax-sharing agreement | ' | 43.50% | ' | ' |
Agreement termination date | ' | 31-Oct-13 | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Open tax years subject to tax examinations | ' | '2009 | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Open tax years subject to tax examinations | ' | '2013 | ' | ' |
Deferred Tax Assets Net from IPO [Member] | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Allocable net deferred tax assets | 26,600,000 | $26,600,000 | ' | ' |
Income_Taxes_Schedule_of_Provi
Income Taxes - Schedule of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Federal: | ' | ' | ' |
Current | $20,245 | $18,866 | $9,085 |
Deferred | -8,077 | ' | ' |
Provision for Income Taxes, Federal | 12,168 | 18,866 | 9,085 |
State: | ' | ' | ' |
Current | 2,522 | 2,641 | 1,270 |
Deferred | -1,199 | ' | ' |
Provision for Income Taxes, State | 1,323 | 2,641 | 1,270 |
Foreign: | ' | ' | ' |
Current | 244 | ' | ' |
Deferred | ' | ' | ' |
Provision for Income Taxes, Foreign | 244 | ' | ' |
Provision for Income Taxes | $13,735 | $21,507 | $10,355 |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Deferred Tax Assets, Net Current: | ' |
Accrued expenses and bonuses | $5,668 |
Bad debt and other reserves | 1,290 |
Deferred compensation | 2,325 |
Stock compensation | 369 |
Deferred rent | 335 |
Prepaid expenses | -915 |
State taxes | -389 |
Current deferred tax assets, net before valuation allowance | 8,683 |
Valuation allowance | -20 |
Current deferred tax assets, net | 8,663 |
Non-current: | ' |
Fixed assets and leasehold improvements | 427 |
Litigation reserve | 887 |
Deferred compensation | 6,396 |
Stock compensation | 19,151 |
Deferred rent | 1,259 |
Net operating loss carryforwards | 1,544 |
State taxes | -2,213 |
Net non-current deferred tax assets before valuation allowance | 27,451 |
Valuation allowance | -266 |
Non-Current deferred tax assets, net | $27,185 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes and Income before Provision for Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Provision Benefit For Income Taxes [Line Items] | ' | ' | ' |
Income tax expense at the federal statutory rate of 35% | $7,679 | $17,305 | $8,332 |
State income tax expenses, net of federal benefit | 985 | 2,423 | 1,165 |
Permanent difference related to compensation charges | 3,445 | ' | ' |
Other | 361 | 8 | 180 |
Provision for income taxes | 13,735 | 21,507 | 10,355 |
Tax-sharing agreement [Member] | ' | ' | ' |
Provision Benefit For Income Taxes [Line Items] | ' | ' | ' |
Difference due to tax-sharing rate | $1,265 | $1,771 | $678 |
Retirement_Plans_Additional_In
Retirement Plans - Additional Information (Detail) (Retirement Plans [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retirement Plans [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Defined contribution plan minimum eligible period | 'Have completed one month of service and have reached age 21. | ' | ' |
Defined contribution plan, maximum percentage of employee contribution | 100.00% | ' | ' |
Defined contribution plan, maximum employee contribution | $17,500 | $17,000 | $16,500 |
Defined contribution plan, minimum age for additional contribution | 50.00% | ' | ' |
Defined contribution plan, percentage of employee salary | 4.00% | ' | ' |
Defined contribution plan, additional contribution | 5,500 | ' | ' |
Defined contribution plan, total contributions | 300,000 | 0 | 0 |
Defined contribution plan, employee retirement benefits age | '59 years 6 months | ' | ' |
Defined contribution plan, maximum annual employer contribution per employee | $4,000 | ' | ' |
Defined contribution plan, minimum age | '50 years | ' | ' |
Defined contribution plan, new plan date | '2014-01 | ' | ' |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share Subsequent to IPO (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Numerator: | ' | ' | ' | |
Net income attributable to Marcus & Millichap Inc. subsequent to IPO on October 31, 2013 | $9,251 | $9,251 | $9,251 | |
Denominator: | ' | ' | ' | |
Weighted average common shares outstanding | ' | ' | 38,787 | [1] |
Effect of dilutive securities: | ' | ' | ' | |
Add: RSUs and RSAs | ' | ' | 28 | |
Dilutive potential common shares | ' | ' | 38,815 | [1] |
Basic earnings per common share | ' | $0.24 | $0.24 | [1] |
Diluted earnings per common share | ' | $0.24 | $0.24 | [1] |
[1] | Earnings per share information has not been presented for periods prior to the IPO on October 31, 2013. |
Earnings_Per_Share_Computation1
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share Subsequent to IPO (Parenthetical) (Detail) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ' |
DSU Settlement to Common Stock Percentage | 20.00% |
Fully vested deferred stock units | 2.2 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' |
Rental expense | $15.70 | $14.50 | $15.10 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $12,668 |
2015 | 10,977 |
2016 | 7,691 |
2017 | 4,674 |
2018 | 2,984 |
Thereafter | 1,843 |
Total minimum lease payments | $40,837 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Financial Statement Data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total revenues | ' | $149,101 | $111,953 | $105,471 | $69,370 | $147,638 | $91,228 | $84,181 | $62,669 | ' | $435,895 | $385,716 | $274,705 | |
Cost of services | ' | 94,242 | 67,718 | 61,456 | 41,221 | 91,345 | 54,194 | 48,764 | 35,945 | ' | 264,637 | 230,248 | 162,478 | |
Operating (loss) income | ' | -8,165 | 12,625 | 14,169 | 2,657 | 22,967 | 11,295 | 11,062 | 3,684 | ' | 21,286 | 49,008 | 23,455 | |
Net income (loss) | ' | -8,716 | 7,275 | 8,009 | 1,638 | 13,038 | 6,405 | 6,250 | 2,241 | ' | 8,206 | 27,934 | 13,450 | |
Net (loss) income attributable to MMREIS prior to IPO on October 31, 2013 | ' | -17,967 | 7,275 | 8,009 | 1,638 | 13,038 | 6,405 | 6,250 | 2,241 | -1,045 | -1,045 | ' | ' | |
Net income attributable to Marcus & Millichap, Inc. subsequent to IPO on October 31, 2013 | $9,251 | $9,251 | ' | ' | ' | ' | ' | ' | ' | ' | $9,251 | ' | ' | |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Basic | ' | $0.24 | ' | ' | ' | ' | ' | ' | ' | ' | $0.24 | [1] | ' | ' |
Diluted | ' | $0.24 | ' | ' | ' | ' | ' | ' | ' | ' | $0.24 | [1] | ' | ' |
[1] | Earnings per share information has not been presented for periods prior to the IPO on October 31, 2013. |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data - Schedule of Quarterly Financial Data (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Income Statement [Abstract] | ' |
Stock-based and other compensation in connection with IPO | $31,268 |