Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 09, 2022 | Jun. 30, 2021 | |
Entity Registrant Name | Moelis & Co | ||
Entity Central Index Key | 0001596967 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2021 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 3,435 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MC | ||
Entity File Number | 001-36418 | ||
Entity Tax Identification Number | 46-4500216 | ||
Entity Address, Address Line One | 399 Park Avenue | ||
Entity Address, Address Line Two | 5th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 883-3800 | ||
Title of 12(b) Security | Class A common stock | ||
Security Exchange Name | NYSE | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for its 2022 annual meeting of stockholders are incorporated by reference in Part III of this Form 10‑K. | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | New York, NY | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 62,452,457 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 4,686,344 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 520,213 | $ 202,477 |
Restricted cash | 801 | 807 |
Receivables: | ||
Accounts receivable, net of allowance for credit losses of $2,823 and $3,775 as of December 31, 2021 and December 31, 2020, respectively | 41,870 | 89,297 |
Accrued and other receivables | 27,698 | 11,916 |
Total receivables | 69,568 | 101,213 |
Deferred compensation | 11,499 | 12,004 |
Investments | 263,341 | 211,826 |
Right-of-use assets | 164,083 | 177,069 |
Equipment and leasehold improvements, net | 59,163 | 49,977 |
Deferred tax assets | 448,123 | 424,345 |
Prepaid expenses and other assets | 18,890 | 16,726 |
Total assets | 1,555,681 | 1,196,444 |
Liabilities and Equity | ||
Compensation payable | 503,707 | 220,058 |
Accounts payable, accrued expenses and other liabilities | 69,883 | 25,026 |
Amount due pursuant to tax receivable agreement | 307,363 | 307,581 |
Deferred revenue | 4,539 | 2,692 |
Lease liabilities | 191,890 | 196,614 |
Total liabilities | 1,077,382 | 751,971 |
Commitments and Contingencies (See Note 12) | ||
Treasury stock, at cost; 5,873,180 and 3,959,083 shares at December 31, 2021 and December 31, 2020, respectively | (256,320) | (152,170) |
Additional paid-in-capital | 1,280,498 | 1,052,322 |
Retained earnings (accumulated deficit) | (535,282) | (420,682) |
Accumulated other comprehensive income (loss) | (560) | (201) |
Total Moelis & Company equity | 489,068 | 479,948 |
Noncontrolling interests | (10,769) | (35,475) |
Total equity | 478,299 | 444,473 |
Total liabilities and equity | 1,555,681 | 1,196,444 |
Class A Common Stock | ||
Liabilities and Equity | ||
Common stock, par value $0.01 per share | 685 | 620 |
Class B Common Stock | ||
Liabilities and Equity | ||
Common stock, par value $0.01 per share | $ 47 | $ 59 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, allowance for credit losses | $ 2,823 | $ 3,775 |
Treasury stock, shares | 5,873,180 | 3,959,083 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 68,518,779 | 61,986,927 |
Common stock, shares outstanding | 62,645,599 | 58,027,844 |
Treasury stock, shares | 5,873,180 | 3,959,083 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 4,686,344 | 5,948,750 |
Common stock, shares outstanding | 4,686,344 | 5,948,750 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 1,540,611 | $ 943,276 | $ 746,534 |
Expenses | |||
Compensation and benefits | 913,909 | 560,803 | 488,439 |
Occupancy | 26,533 | 30,033 | 20,209 |
Professional fees | 21,826 | 18,378 | 19,229 |
Communication, technology and information services | 35,373 | 32,181 | 31,590 |
Travel and related expenses | 15,399 | 12,845 | 41,496 |
Depreciation and amortization | 7,242 | 4,708 | 4,965 |
Other expenses | 24,412 | 18,619 | 26,063 |
Total expenses | 1,044,694 | 677,567 | 631,991 |
Operating income (loss) | 495,917 | 265,709 | 114,543 |
Other income and (expenses) | 40,396 | 4,404 | 32,962 |
Income (loss) before income taxes | 536,313 | 270,113 | 147,505 |
Provision (benefit) for income taxes | 113,335 | 51,675 | 11,813 |
Net income (loss) | 422,978 | 218,438 | 135,692 |
Net income (loss) attributable to noncontrolling interests | 57,765 | 39,607 | 30,597 |
Net income (loss) attributable to Moelis & Company | 365,213 | 178,831 | 105,095 |
Class A Common Stock | |||
Expenses | |||
Net income (loss) attributable to Moelis & Company | $ 365,213 | $ 178,831 | $ 105,095 |
Weighted-average shares of Class A common stock outstanding | |||
Basic (in shares) | 63,125,497 | 56,566,645 | 50,373,874 |
Diluted (in shares) | 68,435,579 | 60,723,365 | 55,513,149 |
Net income (loss) per share attributable to holders of shares of Class A common stock | |||
Basic (in dollars per share) | $ 5.79 | $ 3.16 | $ 2.09 |
Diluted (in dollars per share) | $ 5.34 | $ 2.95 | $ 1.89 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 422,978 | $ 218,438 | $ 135,692 |
Foreign currency translation adjustment, net of tax | (431) | (2,040) | 1,452 |
Other comprehensive income (loss) | (431) | (2,040) | 1,452 |
Comprehensive income (loss) | 422,547 | 216,398 | 137,144 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 57,693 | 39,200 | 30,908 |
Comprehensive income (loss) attributable to Moelis & Company | $ 364,854 | $ 177,198 | $ 106,236 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income (loss) | $ 422,978 | $ 218,438 | $ 135,692 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Bad debt expense | 2,026 | 2,544 | 2,399 |
Depreciation and amortization | 7,242 | 4,708 | 4,965 |
Equity-based compensation | 167,938 | 133,623 | 124,212 |
Deferred tax provision | 22,862 | 38,997 | 3,665 |
Gain on equity method investment | (30,091) | ||
Gain on sale of investment | (20,714) | ||
Other | (6,251) | (2,488) | (7,333) |
Changes in assets and liabilities: | |||
Accounts receivable | 26,941 | (46,698) | 7,057 |
Accrued and other receivables | (14,721) | (983) | 3,644 |
Prepaid expenses and other assets | (3,396) | 1,236 | (2,203) |
Deferred compensation | 505 | (221) | (2,924) |
Compensation payable | 282,872 | 57,003 | (35,381) |
Accounts payable, accrued expenses and other liabilities | 52,874 | 21,461 | (2,569) |
Deferred revenue | 1,845 | (347) | (4,051) |
Dividends received | 3,356 | 1,942 | 2,848 |
Net cash provided by (used in) operating activities | 936,980 | 429,215 | 209,307 |
Cash flows from investing activities | |||
Purchases of investments | (486,124) | (390,586) | (212,415) |
Proceeds from sales of investments | 456,302 | 391,494 | 120,102 |
Note payments received from (issued to) employees | 70 | (200) | |
Purchases of equipment and leasehold improvements | (16,426) | (40,659) | (6,467) |
Proceeds from partial sale of equity method investment | 29,164 | 46,907 | |
Net cash provided by (used in) investing activities | (17,014) | (39,951) | (51,873) |
Cash flows from financing activities | |||
Payments for dividends and tax distributions | (479,963) | (282,920) | (209,178) |
Payments under tax receivable agreement | (18,628) | (36,459) | (13,798) |
Proceeds from exercise of stock options | 11,923 | 21,459 | |
Payments for treasury stock purchases | (104,150) | (44,334) | (51,175) |
Other proceeds | 200 | ||
Net cash provided by (used in) financing activities | (602,541) | (351,790) | (252,692) |
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash | 305 | (2,762) | 2,059 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 317,730 | 34,712 | (93,199) |
Cash, cash equivalents, and restricted cash, beginning of period | 203,284 | 168,572 | 261,771 |
Cash, cash equivalents, and restricted cash, end of period | 521,014 | 203,284 | 168,572 |
Cash paid during the period for: | |||
Income taxes, net | 55,189 | (305) | 13,405 |
Other non-cash activity | |||
Non-cash settlement of accounts receivable | 18,550 | ||
Settlement of partnership units not yet paid | 118 | ||
Class A Partnership Units or other equity converted into Class A Common stock | 26,964 | 14,964 | 1,267 |
Dividends in kind | 63,374 | 41,144 | 33,299 |
Cumulative effect adjustment upon adoption of ASU 2016-13 | 364 | ||
Forfeiture of fully-vested Group LP units or other equity units | $ 25 | $ 96 | $ 2,397 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect Adjustment Upon Adoption | As Adjusted | Common Stock [Member]Class A Common Stock | Common Stock [Member]Class A Common StockAs Adjusted | Common Stock [Member]Class B Common Stock | Common Stock [Member]Class B Common StockAs Adjusted | Treasury Stock | Treasury StockAs Adjusted | Additional Paid-In Capital | Additional Paid-In CapitalAs Adjusted | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect Adjustment Upon Adoption | Retained Earnings (Accumulated Deficit)As Adjusted | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)As Adjusted | Noncontrolling Interests | Noncontrolling InterestsAs Adjusted |
Balance at beginning of the period at Dec. 31, 2018 | $ 371,753 | $ 470 | $ 105 | $ (56,661) | $ 697,938 | $ (237,782) | $ 291 | $ (32,608) | ||||||||||
Balance at beginning of the period (in shares) at Dec. 31, 2018 | 47,031,095 | 10,493,358 | (1,426,115) | |||||||||||||||
Changes in Equity | ||||||||||||||||||
Net income (loss) | 135,692 | 105,095 | 30,597 | |||||||||||||||
Equity-based compensation | 124,212 | $ 44 | 123,958 | 210 | ||||||||||||||
Equity-based compensation (in shares) | 4,399,851 | |||||||||||||||||
Other comprehensive income (loss) | 1,452 | 1,141 | 311 | |||||||||||||||
Dividends declared tax distributions | (209,178) | 33,299 | (191,505) | (50,972) | ||||||||||||||
Treasury stock purchases | (51,175) | $ (51,175) | ||||||||||||||||
Treasury stock purchases (in shares) | (1,331,443) | |||||||||||||||||
Exercise of stock options | 21,472 | $ 13 | 21,459 | |||||||||||||||
Exercise of stock options (in shares) | 1,285,533 | |||||||||||||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges | 430 | $ 1 | $ (1) | (1,580) | 2,010 | |||||||||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares) | 61,936 | (61,936) | ||||||||||||||||
Equity-based payments to non-employees | 729 | 729 | ||||||||||||||||
Other | (1,560) | (3,012) | 1,452 | |||||||||||||||
Other (in shares) | 4,798 | 33,507 | ||||||||||||||||
Balance at end of the period at Dec. 31, 2019 | 393,827 | $ (364) | $ 393,463 | $ 528 | $ 528 | $ 104 | $ 104 | $ (107,836) | $ (107,836) | 872,791 | $ 872,791 | (324,192) | $ (364) | $ (324,556) | 1,432 | $ 1,432 | (49,000) | $ (49,000) |
Balance at end of the period (in shares) at Dec. 31, 2019 | 52,773,617 | 52,773,617 | 10,397,915 | 10,397,915 | (2,757,558) | (2,757,558) | ||||||||||||
Changes in Equity | ||||||||||||||||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | |||||||||||||||||
Net income (loss) | 218,438 | 178,831 | 39,607 | |||||||||||||||
Equity-based compensation | 133,623 | $ 40 | 133,544 | 39 | ||||||||||||||
Equity-based compensation (in shares) | 4,036,161 | |||||||||||||||||
Other comprehensive income (loss) | (2,040) | (1,633) | (407) | |||||||||||||||
Dividends declared tax distributions | (282,920) | 41,144 | (274,957) | (49,107) | ||||||||||||||
Treasury stock purchases | $ (44,334) | $ (44,334) | ||||||||||||||||
Treasury stock purchases (in shares) | (1,201,525) | (1,201,525) | ||||||||||||||||
Exercise of stock options | $ 11,923 | $ 7 | 11,916 | |||||||||||||||
Exercise of stock options (in shares) | 727,984 | |||||||||||||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges | 14,178 | $ 45 | $ (45) | (6,544) | 20,722 | |||||||||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares) | 4,449,165 | (4,449,165) | ||||||||||||||||
Equity-based payments to non-employees | 1,452 | 1,452 | ||||||||||||||||
Other | 690 | (1,981) | 2,671 | |||||||||||||||
Balance at end of the period at Dec. 31, 2020 | 444,473 | $ 620 | $ 59 | $ (152,170) | 1,052,322 | (420,682) | (201) | (35,475) | ||||||||||
Balance at end of the period (in shares) at Dec. 31, 2020 | 61,986,927 | 5,948,750 | (3,959,083) | |||||||||||||||
Changes in Equity | ||||||||||||||||||
Net income (loss) | 422,978 | 365,213 | 57,765 | |||||||||||||||
Equity-based compensation | 167,938 | $ 36 | 142,507 | 25,395 | ||||||||||||||
Equity-based compensation (in shares) | 3,714,605 | |||||||||||||||||
Other comprehensive income (loss) | (431) | (359) | (72) | |||||||||||||||
Dividends declared tax distributions | (479,963) | 63,374 | (479,813) | (63,524) | ||||||||||||||
Treasury stock purchases | $ (104,150) | $ (104,150) | ||||||||||||||||
Treasury stock purchases (in shares) | (1,914,097) | (1,914,097) | ||||||||||||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges | $ 26,964 | $ 29 | $ (12) | 22,005 | 4,942 | |||||||||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares) | 2,817,247 | (1,262,406) | ||||||||||||||||
Equity-based payments to non-employees | 315 | 315 | ||||||||||||||||
Other | 175 | (25) | 200 | |||||||||||||||
Balance at end of the period at Dec. 31, 2021 | $ 478,299 | $ 685 | $ 47 | $ (256,320) | $ 1,280,498 | $ (535,282) | $ (560) | $ (10,769) | ||||||||||
Balance at end of the period (in shares) at Dec. 31, 2021 | 68,518,779 | 4,686,344 | (5,873,180) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class A Common Stock | |||
Dividends declared per share of Class A common stock | $ 6.80 | $ 4.1525 | $ 3.25 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. ORGANIZATION AND BASIS OF PRESENTATION Moelis & Company and its consolidated subsidiaries (the “Company,” “we,” “our,” or “us”) is a leading global investment bank incorporated in Delaware. Prior to the Company’s Initial Public Offering (“IPO”), the business operated as a Delaware limited partnership that commenced operations during 2007. Following the IPO, the operations are owned by Moelis & Company Group LP (“Group LP”), a U.S. Delaware limited partnership, and Group LP is controlled by Moelis & Company. Moelis & Company’s shareholders are entitled to receive a portion of Group LP’s economics through their direct ownership interests in shares of Class A common stock of Moelis & Company. The noncontrolling interest owners of Group LP (not Moelis & Company) receive economics of the operations primarily through their ownership interests in Group LP partnership units. The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, financial sponsors and governments, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings and other corporate finance matters. Basis of Presentation —The consolidated financial statements of Moelis & Company include its partnership interests in Group LP, its equity interest in the sole general partner of Group LP, Moelis & Company Group GP LLC (“Group GP”), and its interests in its subsidiaries. Moelis & Company will operate and control all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP. The Company operates through the following subsidiaries: • Moelis & Company LLC (“U.S. Broker Dealer”), a Delaware limited liability company, a registered broker‑dealer with the U.S. Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”). • Moelis & Company Israel Ltd., a limited company incorporated in Israel. • Moelis & Company International Holdings LLC (“Moelis International”), a Delaware limited liability company, owns the following entities and investments, directly or indirectly: • Moelis & Company UK LLP (“Moelis UK”), a limited liability partnership registered under the laws of England and Wales. In addition to the United Kingdom, Moelis UK maintains operations through the following branches: • Moelis & Company Europe Limited, Frankfurt am Main Branch (German branch) • Moelis & Company UK LLP, DIFC Branch (Dubai branch) • Moelis & Company Asia Limited (“Moelis Asia”), a limited company incorporated in Hong Kong licensed under the Hong Kong Securities and Futures Ordinance to provide financial advisory services. In addition to Hong Kong, Moelis Asia maintains operations in Beijing China through a wholly‑owned Chinese subsidiary, Moelis & Company Consulting (Beijing) Company Limited. • Moelis & Company Netherlands B.V., a private limited company incorporated in Amsterdam, Netherlands. In addition to Amsterdam, Moelis Netherlands maintains operations in Paris, France through a wholly owned subsidiary, Moelis & Company Netherlands B.V. French Branch • Moelis & Company Europe B.V., a private limited company incorporated in Amsterdam, Netherlands. • Moelis & Company India Private Limited, a private limited company incorporated in Mumbai, India. • Moelis & Company Assessoria Financeira Ltda. (“Moelis Brazil”), a limited liability company incorporated in São Paulo, Brazil. • Moelis & Company Saudi Limited, a limited liability company incorporated in Riyadh, Saudi Arabia. • An equity method investment in MA Financial Group Limited (previously known as Moelis Australia Limited) ("MA Financial"), a public company listed on the Australian Securities Exchange. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting —The Company prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the combined operations, assets and liabilities of the Company. The Notes are an integral part of the Company's consolidated financial statements. Consolidation —The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation. Use of Estimates —The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could have a material impact on the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary. In preparing the consolidated financial statements, management makes estimates and assumptions regarding: • the adequacy of the allowance for credit losses; • the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal; • the assessment of probable lease terms and the measurement of the present value of such obligations; • the measurement and realization of deferred taxes; • the measurement of amount due pursuant to tax receivable agreement; and • other matters that affect the reported amounts and disclosures of contingencies in the consolidated financial statements. Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase. The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. Treasury instruments and money market securities. The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future U.S. medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2021 and 2020, is presented below. December 31, 2021 2020 Cash $ 135,217 $ 83,472 Cash equivalents 384,996 119,005 Restricted cash 801 807 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 521,014 $ 203,284 Receivables —The accompanying consolidated statements of financial condition present accounts receivable balances net of allowance for credit losses based on the Company’s assessment of the collectability of customer accounts. Included in the accounts receivable balances as of December 31, 2021 and 2020 were $ 20,041 and $ 19,603 , respectively, of long term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years . These long term receivables generated interest income of $ 743 , $ 748 and $ 990 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company maintains an allowance for credit losses that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. For purposes of determining appropriate allowances, the Company stratifies its population of accounts receivable into two categories, one for short-term receivables and a second for private funds advisory receivables. Each population is separately evaluated using an aging method that results in a percentage reserve based on the age of the receivable, in addition to considerations of historical charge-offs and current economic conditions. After concluding that a reserved accounts receivable is no longer collectible, the Company will charge-off the receivable. This has the effect of reducing both the gross receivable and the allowance for credit losses. If a reserved accounts receivable is subsequently collected, such recoveries reduce the gross receivable and the allowance for credit losses and is a reduction of bad debt expense, which is recorded within other expenses on the consolidated statement of operations. The combination of recoveries and the provision for credit losses of a reported period comprise the Company’s bad debt expense. On January 1, 2020, the Company adopted Accounting Standards Update ("ASU") No. 2016-13— “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") using the modified retrospective method. Upon adoption, a cumulative adjustment was recorded which decreased retained earnings by $ 459 . The tax effect of this adjustment increased retained earnings by $ 95 , resulting in a net decrease of $ 364 as of January 1, 2020. ASU 2016-13 replaces the incurred loss impairment methodology for financial instruments with the current expected credit loss (CECL) model which requires estimates of future credit losses based on reasonable supporting information. The Company will continue to assess its CECL estimates and recognize changes to expected credit losses during the period in earnings. The following tables summarize credit loss allowance activity for the twelve months ended December 31, 2021 and December 31, 2020: Year Ended December 31, 2021 Year Ended December 31, 2020 Accounts Receivable Accounts Receivable Short-term Receivables Private Funds Advisory Receivables Total Short-term Receivables Private Funds Advisory Receivables Total Allowance for Credit Losses, beginning balance $ 3,577 $ 198 $ 3,775 $ 4,088 $ — $ 4,088 Adjustment for adoption of ASU 2016-13 — — — 260 199 459 Allowance for Credit Losses, adjusted beginning balance 3,577 198 3,775 4,348 199 4,547 Charge-offs, foreign currency translation and other adjustments ( 2,978 ) — ( 2,978 ) ( 3,316 ) — ( 3,316 ) Recoveries ( 8,637 ) ( 65 ) ( 8,702 ) ( 3,965 ) ( 26 ) ( 3,991 ) Reduction to allowance ( 11,615 ) ( 65 ) ( 11,680 ) ( 7,281 ) ( 26 ) ( 7,307 ) Provision for credit losses 10,659 69 10,728 6,510 25 6,535 Allowance for credit losses, ending balance $ 2,621 $ 202 $ 2,823 $ 3,577 $ 198 $ 3,775 Deferred Compensation —Deferred compensation costs represent arrangements with certain employees whereby cash payments are subject to a required period of service subsequent to payment by the Company. These amounts are charged to expenses over the period that the employee is required to provide services in order to vest in the payment. Financial Instruments at Fair Value —Fair value is generally based on quoted prices, however if quoted market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations, price activity for equivalent instruments and valuation pricing models. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of instrument, the characteristics specific to the instrument and the state of the marketplace (including the existence and transparency of transactions between market participants). Financial instruments with readily‑available actively quoted prices or for which fair value can be measured from actively‑quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest level of observability) based on inputs: Level 1 —Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price. Level 2 —Pricing inputs that are significant to the overall fair value measurement are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies. Level 3 —Pricing inputs that are significant to the overall fair value measurement are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The determination of fair value is based on the best information available, may incorporate management's own assumptions, and involves a significant degree of judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the instrument. The Company’s methodology for reclassifications impacting the fair value hierarchy is that transfers in/out of the respective category are reported at fair value as of the beginning of the period in which the reclassification occurred. Investments Held at Cost — Investments without readily determinable fair values are measured at cost, less impairment. If the Company identifies an observable price change in an orderly transaction for an investment held at cost, it will measure the investment at fair value as of the date the observable transaction occurred. The Company shall reassess at each reporting period whether such investments should continue to be measured at cost, less impairment, or another method. Any resulting gain or loss from a change in measurement shall be recorded in other income and expenses on the consolidated statement of operations. Investments held at cost are reported within investments on the consolidated statements of financial condition. Equity Method Investments —The Company accounts for its equity method investments under the equity method of accounting as the Company does not control these entities but has the ability to exercise significant influence. The amounts recorded in investments on the consolidated statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investment. The Company reflects its share of gains and losses of the investment in other income and expenses in the consolidated statements of operations using the most recently available earnings data at the end of the period. Leases — The Company maintains operating leases for corporate offices and an aircraft. The Company determines if a contract contains a lease at inception. Operating leases are recorded as right-of-use (“ROU”) assets and lease liabilities on the consolidated statements of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the lease commencement date and are measured at the present value of anticipated lease payments over the lease term. The operating lease ROU assets are equal to the lease liabilities, adjusted for certain lease incentives, accrued rents, and prepaid rents. Typically, our borrowing rate is used to determine the present value of lease payments because the implicit rate is not readily determinable. Our lease terms may include options to extend or terminate the lease. These options are factored into our present value calculations when it is reasonably certain that such options will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. Equipment and Leasehold Improvements —Office equipment and furniture and fixtures are stated at cost less accumulated depreciation, which is determined using the straight‑line method over the estimated useful lives of the assets, ranging from three to seven years , respectively. Leasehold improvements are stated at cost less accumulated amortization, which is determined using the straight‑line method over the lesser of the term of the lease or the estimated useful life of the asset. Major renewals and improvements are capitalized and minor replacements, maintenance and repairs are charged to expenses as incurred. Assets that are in development and have not yet been placed in service are generally classified as “Construction in Progress” and are reclassified to the appropriate category when the associated assets are placed in service. Upon retirement or disposal of assets, the cost and related accumulated depreciation or amortization are removed from the consolidated statements of financial condition and any gain or loss is reflected in the consolidated statements of operations. Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement – In conjunction with the IPO, the Company was treated for U.S. federal income tax purposes as having directly purchased Class A partnership units in Group LP from the existing unitholders. Additional Group LP Class A partnership units may be issued and exchanged for shares of Class A common stock in the Company. The initial purchase and future exchanges are expected to result in an increase in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP. These increases in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP would not have been available but for the initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. As a result, the Company records a deferred tax asset for such increase in tax basis. The Company has entered into a tax receivable agreement with its eligible Managing Directors that will provide for the payment by the Company to its eligible Managing Directors of 85 % of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of (a) the increases in tax basis attributable to exchanges by its eligible Managing Directors and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this tax receivable agreement. The Company expects to benefit from the remaining 15 % of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid‑in‑capital. For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Group LP as a result of the exchanges and had it not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the initial purchase and subsequent exchanges described above as a deferred tax asset in the consolidated statements of financial condition. The amount due to its eligible Managing Directors related to the tax receivable agreement as a result of the initial purchase and subsequent exchanges described above is recorded as amount due pursuant to tax receivable agreement in the consolidated statements of financial condition. The amounts recorded for the deferred tax asset and the liability for our obligations under the tax receivable agreement are estimates. Any adjustments to our estimates subsequent to their initial establishment will be included in net income (loss). Future exchanges of Class A partnership units in Group LP for Class A common shares in the Company will be accounted for in a similar manner. Software — Costs related to implementation of cloud computing arrangements that qualify for capitalization are stated at cost less accumulated amortization within prepaid and other assets on the Company’s consolidated statement of financial condition. Such capitalized costs are amortized using the straight-line method over the term of the cloud computing service contract or another rational basis, beginning when the cloud computing arrangement is substantially complete and ready for its intended use. All costs not directly related to the implementation of cloud computing arrangements, including overhead costs and costs of service agreements, will be expensed in the period they are incurred. The amortization expense of such capitalized costs will be presented under communication, technology and information services on the consolidated statement of operations. Effective January 1, 2020, the Company adopted ASU No. 2018-15, “Goodwill and Other —Internal Use Software” ("ASU 2018-15") using a prospective approach. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. See Note 4—Fixed and Intangible Assets below for further details on the Company’s capitalized cloud computing arrangements. Revenue and Expense Recognition —We earn substantially all of our revenues by providing advisory services related to mergers and acquisitions, recapitalizations and restructurings, capital markets transactions and other corporate finance matters. The Company also provides services related to securities underwriting and private funds advisory services. We provide our advisory services on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. In many cases, we are not paid until the completion of an underlying transaction. transaction closing) and it is probable that a significant reversal of revenue will not occur in a future period. Upfront fees and retainers specified in our engagement letters that meet the over time criteria will be recognized on a systematic basis over the estimated period where the related services are performed. With respect to fairness opinions, fees are fixed and delivering the opinion is a separate performance obligation from other advisory services that may be promised under the same engagement letter; as such these revenues are recognized at a point in time when the engagement is formally completed and the client can obtain substantially all of the benefits from the service. Similarly, underwriting engagements are typically a single performance obligation and fees are generally recognized as revenue when the offering has been deemed to be completed by the lead manager of the underwriting group. In these instances, point in time recognition appropriately matches the transfer and consumption of our services. Incremental costs of obtaining a contract are expensed as incurred since such costs are generally not recoverable and the typical duration of our advisory contracts is less than one year. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing our advisory services and are typically expensed as incurred, except where the transfer and consumption of our services occurs at a point in time. For engagements recognized at a point in time, out-of-pocket expenses are capitalized and subsequently expensed in the consolidated statement of operations upon completion of the engagement. The Company records deferred revenues when it receives fees from clients that have not yet been earned (e.g. an upfront fee) or when the Company has an unconditional right to consideration before all performance obligations are complete (e.g. upon satisfying conditions to earn an announcement fee, but before the transaction is consummated). Complications that may terminate or delay a transaction include failure to agree upon final terms with the counterparty, failure to obtain required regulatory consents, failure to obtain board or stockholder approvals, failure to secure financing, adverse market conditions or unexpected operating or financial problems related to either party to the transaction. In these circumstances, we often do not receive advisory fees that would have been received if the transaction had been completed, despite the fact that we may have devoted considerable time and resources to the transaction. Barriers to the completion of a restructuring transaction may include a lack of anticipated bidders for the assets of our client, the inability of our client to restructure its operations, or indebtedness due to a failure to reach agreement with its creditors. In these circumstances, our fees are generally limited to monthly retainer fees and reimbursement of certain out-of-pocket expenses. We do not allocate our revenue by the type of advice we provide because of the complexity of the transactions on which we may earn revenue and our holistic approach to client service. For example, a restructuring engagement may evolve to require a sale of all or a portion of the client, M&A assignments can develop from relationships established on prior restructuring engagements, and capital markets expertise can be instrumental on both M&A and restructuring assignments. Equity‑based Compensation —The Company recognizes the cost of services received in exchange for equity instrument awards. The cost is based on its grant‑date fair value based on quoted market prices at the time of grant amortized over the service period required by the award’s vesting terms. In certain instances, the Company may grant an equity-based award with a post-vesting restriction, which is reflected in the grant-date fair value of the award. The Company also recognizes the cost of services received from a nonemployee in exchange for an equity instrument based on the award's grant date fair value. The Company records as treasury stock shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the vesting of restricted stock units (“RSUs”). The Company records dividends in kind, net of forfeitures, on outstanding RSUs as a reduction of retained earnings with a corresponding increase in additional paid-in capital, resulting in no net change to equity. Dividends in kind on RSUs are subject to the same vesting conditions as the underlying RSUs on which they were accrued. Dividends in kind will be forfeited if the underlying award does not vest. The Company has terms that qualify certain employees to terminate their services while not forfeiting certain qualifying incentive RSUs granted during employment. For qualifying awards, (i) the employee must be at least 56 years old, (ii) the employee must have provided at least 5 consecutive years of service to the Company and (iii) the total of (i) and (ii) must be equal to at least 65 years . Any such RSUs will continue to vest on their applicable vesting schedule, subject to noncompetition and other terms. Over time a greater number of employees may become retirement eligible and the related requisite service period over which we will expense these awards will be shorter than the stated vesting period. Any unvested RSUs are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest. Income Taxes —The Company accounts for income taxes in accordance with ASC 740, “ Accounting for Income Taxes ” (“ASC 740”), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax bases of its assets and liabilities by applying the enacted tax rates in effect for the year in which the differences are expected to reverse. Such net tax effects on temporary differences are reflected on the Company’s consolidated statements of financial condition as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more‑likely‑than‑not that some or all of the deferred tax assets will not be realized. ASC 740-10 prescribes a two‑step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the years ended December 31, 2021, 2020 and 2019, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax‑related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the years ended December 31, 2021, 2020 and 2019, no such amounts were recorded. The Company recognizes excess tax benefits and deficiencies as income tax benefits or expenses in the consolidated statement of operations. These are reflected in accounts payable, accrued expenses and other liabilities within the consolidated statement of cash flows. Effective January 1, 2021, the Company adopted ASU No. 2019-12, "Income Taxes" ("ASU 2019-12"). ASU 2019-12 removes certain rule exceptions to simplify accounting for income taxes. ASU 2019-12 has been incorporated into our provision for income taxes calculation and does not have a material impact to our overall income taxes. Foreign Currency Translation —Assets and liabilities held in non‑U.S. dollar denominated currencies are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenues and expenses are translated at average exchange rates during the reporting period. A charge or credit is recorded to other comprehensive income to reflect the translation of these amounts to the extent the non‑U.S. currency is designated the functional currency of the subsidiary. Non‑functional currency related transaction gains and losses are immediately recorded in the consolidated statements of operations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform” (“ASU 2020-04”). ASU 2020-04 provides optional guidance for entities that are impacted by interest rate reform. Specifically, ASU 2020-04 allows for contracts under the scope of Topic 310—Receivables to be accounted for prospectively with the updated interest rate, among other specifications for debt, derivative instruments, and other contracts. ASU 2020-04 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application is permitted. The Company has evaluated this ASU and does not expect its adoption to have a material impact to the Company's consolidated financial statements. |
Fixed and Intangible Assets
Fixed and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed and Intangible Assets | 4. FIXED AND INTANGIBLE ASSETS Equipment and leasehold improvements, net consists of the following: December 31, December 31, 2021 2020 Office equipment $ 15,883 $ 13,267 Furniture and fixtures 14,303 10,409 Leasehold improvements 61,054 36,286 Construction in progress — 14,943 Total 91,240 74,905 Less accumulated depreciation and amortization ( 32,077 ) ( 24,928 ) Equipment and leasehold improvements, net $ 59,163 $ 49,977 Depreciation and amortization expenses for fixed assets totaled $ 7,242 , $ 4,708 and $ 4,965 for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021 and December 31, 2020, there were $ 2,127 and $ 2,503 of costs capitalized, net of $ 744 and $ 256 of accumulated amortization, respectively, within prepaid expenses and other assets on our consolidated statements of financial position related to the implementation of cloud computing arrangements. The amortization expense of the capitalized costs was $ 488 and $ 256 for the twelve months ended December 31, 2021 and December 31, 2020, respectively, and was recorded within communication, technology and information services on the consolidated statements of operations. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Investments | 5. INVESTMENTS Investments Measured at Fair Value Fair value investments are presented within investments on the Company’s consolidated statements of financial condition. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring investments at fair value. See Note 2 for further information on the Company's fair value hierarchy. The estimated fair value of money market securities, U.S. Treasury instruments, common stock, and warrants are based on quoted prices for recent trading activity in identical or similar instruments. The Company generally invests in U.S. Treasury instruments with maturities of less than twelve months and considers U.S. Treasury instruments to be risk free and does not reserve for expected credit losses on these investments. From time to time, the Company may receive equity or other financial instruments from clients, in addition to cash, in partial satisfaction of services rendered. Common stock and warrants held of publicly-traded companies are categorized as level 1 in the fair value hierarchy. The fair value of the Company's financial assets as of December 31, 2021, have been categorized based upon the fair value hierarchy as follows: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents U.S. treasury instruments $ 301,992 $ — $ 301,992 $ — Money market securities 83,004 — 83,004 — Investments U.S. treasury instruments 200,973 — 200,973 — Common stock 15,964 15,964 — — Warrants 684 684 — — Total financial assets $ 602,617 $ 16,648 $ 585,969 $ — For the twelve months ended December 31, 2021, unrealized losses of $ 2,788 were recognized in other income and expenses on the consolidated statement of operations related to equity investments measured at fair value held at December 31, 2021. The cost basis of the financial assets recorded at fair value included in investments on the consolidated statement of financial condition was $ 220,422 as of December 31, 2021. The fair value of the Company's financial assets as of December 31, 2020 have been categorized based upon the fair value hierarchy as follows: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents U.S. treasury instruments $ 15,599 $ — $ 15,599 $ — Money market securities 103,406 — 103,406 — Investments U.S. treasury instruments 172,671 — 172,671 — Total financial assets $ 291,676 $ — $ 291,676 $ — For the year ended December 31, 2020, there were no unrealized gains or losses recognized in other income and expenses on the consolidated statement of operations related to equity investments measured at fair value held at December 31, 2020. The cost basis of the financial assets recorded at fair value included in investments on the consolidated statement of financial condition was $ 172,640 as of December 31, 2020. Investments Held at Cost The Company made investments in the sponsors of several Atlas Crest Investment Corp. entities, each a special purpose acquisition company. The Company's Chief Executive Officer, Kenneth Moelis, is the managing member of the Atlas Crest Sponsors and serves as Non-Executive Chairman of the Atlas Crest Entities. The Company does not direct the activities of the Atlas Crest Sponsors or the related SPACs. Investments in the Atlas Crest Sponsors (discussed in the preceding section) that do not have readily determinable fair values are measured at cost less impairment, and are included in investments on the consolidated statements of financial condition. As of December 31, 2021 and December 31, 2020, the aggregate investment balances of the Atlas Crest Sponsors held at cost was $ 1,895 and $ 887 , respectively. Equity Method Investments Equity-method investments are presented within investments on the Company’s consolidated statements of financial condition. As of December 31, 2021, and 2020, the carrying value of the Company's equity method investment in MA Financial (formerly known as Moelis Australia Holdings PTY Limited) was $ 43,825 and $ 38,143 , respectively. The Company’s share of earnings on this investment is recorded in other income and expenses on the consolidated statements of operations. During the years ended December 31, 2021, 2020, and 2019, MA Financial declared dividends, of which the Company received $ 3,356 , $ 1,942 , and $ 2,848 , respectively. The Company accounted for the dividends as returns on investment and reduced the carrying value of the investment in MA Financial by the amount of dividends received. During the year ended December 31, 2021, the Company recognized gains of $ 9,917 related to share issuances by MA Financial. The shares were issued at fair values greater than the carrying values of the ownership interests held, resulting in dilution gains. During the years ended December 31, 2021, and 2019, the Company sold 6.0 million shares and 20.5 million shares of MA Financial common stock, respectively, resulting in gains of $ 20,174 , and $ 20,714 , respectively. All gains were recorded in other income and expenses on the consolidated statements of operations. The Company’s ownership interest in MA Financial was reduced by each transaction. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. INCOME TAXES The following table presents the U.S. and non‑U.S. components of income (loss) before income tax expense: For the Year Ended December 31, 2021 2020 2019 U.S. $ 468,725 $ 264,047 $ 156,983 Non-U.S. 67,588 6,066 ( 9,478 ) Income (loss) before income taxes $ 536,313 $ 270,113 $ 147,505 The current and deferred components of the income tax provision for the years ended December 31, 2021, 2020, and 2019 are as follows: For the Year Ended December 31, 2021 2020 2019 Current income taxes: Federal $ 63,979 $ 8,207 $ 4,527 State and Local 15,875 2,955 3,212 Foreign 10,619 1,517 409 $ 90,473 $ 12,679 $ 8,148 Deferred income taxes: Federal $ 20,811 $ 31,773 $ 3,084 State and Local 4,295 7,122 613 Foreign ( 2,244 ) 101 ( 32 ) Total $ 113,335 $ 51,675 $ 11,813 The total provision for income taxes differs from the amount which would be computed by applying the appropriate statutory rate to income before income taxes as follows: For the Year Ended December 31, 2021 2020 2019 Reconciliation of federal statutory tax rates U.S. statutory tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) due to state and local taxes 3.6 % 3.7 % 4.3 % Rate benefit as a U.S. limited partnership/flow through - 2.3 % - 3.1 % - 4.4 % Excess tax benefit from equity compensation delivery - 3.4 % - 2.6 % - 11.9 % Foreign taxes 1.3 % 0.0 % - 0.4 % Non-deductible expenses 2.2 % 1.1 % 0.8 % Other - 1.3 % - 1.0 % - 1.4 % Effective income tax rate 21.1 % 19.1 % 8.0 % Deferred income taxes reflect the net effect of temporary differences between the tax basis of an asset or liability and its reported amount in the Company’s consolidated statements of financial condition. These temporary differences result in taxable or deductible amounts in future years. The significant components of deferred tax assets and liabilities included on the Company’s consolidated statements of financial condition are as follows: For the Year Ended December 31, 2021 2020 Net operating loss $ 9,867 $ 9,751 Step-up in tax basis in Group LP assets 384,080 369,216 Deferred compensation 63,778 56,628 Lease liability 43,479 43,214 Other 12,631 — 513,835 478,809 Valuation allowance on NOL and other ( 18,368 ) ( 10,445 ) Deferred tax asset $ 495,467 $ 468,364 Right-of-use asset $ ( 37,117 ) $ ( 38,862 ) Other ( 10,227 ) ( 5,157 ) Deferred tax liability $ ( 47,344 ) $ ( 44,019 ) Net deferred tax asset $ 448,123 $ 424,345 The Company recorded an increase in the net deferred tax asset of $ 23,778 for the twelve months ended December 31, 2021, which was primarily attributable to an increase in the step-up in tax basis in Group LP assets in connection with the exchanges of Group LP partnership units for Class A common stock during 2021, partially offset by the amortization of tax basis in the Group LP assets. Approximately $ 22,249 of this deferred tax asset is attributable to exchanges by certain partners of Group LP who are party to the tax receivable agreement. Pursuant to this agreement, 85 % (or $ 18,912 ) of the tax benefits associated with this portion of the deferred tax asset are payable to such exchanging partners over the next 15 years and recorded as amount due pursuant to tax receivable agreement in the consolidated statements of financial condition. The remaining tax benefit is allocable to the Company and is recorded in additional paid-in-capital. The Company also recorded an increase in the deferred tax asset related to deferred compensation. As of December 31, 2021, the Company had accumulated net foreign operating loss carryforwards related to its international operations of approximately $ 38,989 for which it has recorded a deferred tax asset of $ 9,867 . Approximately $ 38,836 of the operating losses (or $ 9,828 of the deferred tax asset) has an indefinite life and $ 153 of the operating losses (or $ 39 of the deferred tax asset) will expire in 2027. The Company’s operations are generally comprised of entities that are organized as limited liability companies and limited partnerships. For U.S. federal income tax purposes, taxes related to income earned by these entities generally represent obligations of their interest holders. The Company is subject to certain foreign, state and local entity-level taxes (for example, the New York City Unincorporated Business Tax ("UBT")). In addition, the Company is subject to U.S. corporate federal, state and local income tax on its allocable share of results of operations from Group LP. The Company’s tax years for 2020, 2019 and 2018 are generally subject to examination by the tax authorities as of December 31, 2021. The Company does not expect any material changes in its tax provision related to any outstanding current examinations as of December 31, 2021. Tax examinations are monitored on an ongoing basis and adjustments to tax liabilities are made as appropriate. The Company has no unrecognized tax benefits for the periods ended December 31, 2021, 2020 and 2019. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Class A Common Shareholders | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Class A Common Shareholders | 7. NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CLASS A COMMON SHAREHOLDERS The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the years ended December 31, 2021, 2020 and 2019 are presented below. Year Ended December 31, (dollars in thousands, except per share amounts) 2021 2020 2019 Numerator: Net income (loss) attributable to holders of shares of Class A common stock—basic $ 365,213 $ 178,831 $ 105,095 Add (deduct) dilutive effect of: Noncontrolling interests related to Class A partnership units (a) (a) (a) Net income (loss) attributable to holders of shares of Class A common stock—diluted $ 365,213 $ 178,831 $ 105,095 Denominator: Weighted average shares of Class A common stock outstanding—basic 63,125,497 56,566,645 50,373,874 Add (deduct) dilutive effect of: Noncontrolling interests related to Class A partnership units (a) (a) (a) Weighted average number of incremental shares issuable from unvested RSUs and stock options, as calculated using the treasury stock method (b) 5,310,082 (b) 4,156,720 (b) 5,139,275 Weighted average shares of Class A common stock outstanding—diluted 68,435,579 60,723,365 55,513,149 Net income (loss) per share attributable to holders of shares of Class A common stock Basic $ 5.79 $ 3.16 $ 2.09 Diluted $ 5.34 $ 2.95 $ 1.89 We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation. (a) Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one ‑for‑one basis, subject to applicable exchange restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 76,040,864 shares for the year ended December 31, 2021, 71,950,031 shares for the year ended December 31, 2020 and 68,516,397 shares for the year ended December 31, 2019. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the year ended December 31, 2021, 2020 and 2019, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive. (b) Certain shares of Moelis & Company’s Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company for certain periods. During the years ended December 31, 2021, 2020 and 2019, there were 289 , 5,475 and 64,676 RSUs that would have been included in the treasury stock method calculation if the effect were dilutive, respectively. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 8. EQUITY‑BASED COMPENSATION 2014 Omnibus Incentive Plan In connection with the IPO, the Company adopted the Moelis & Company 2014 Omnibus Incentive Plan (the “Plan”) to provide additional incentives to selected officers, employees, Managing Directors, non‑employee directors, independent contractors, partners, senior advisors and consultants. The Plan provides for the issuance of incentive stock options (“ISOs”), nonqualified stock options, stock appreciation rights (“SARs”), restricted stock, RSUs, stock bonuses, other stock‑based awards (including partnership interests that are exchangeable into stock upon satisfaction of certain conditions) and cash awards. Restricted Stock Units (RSUs) and other stock-based awards Pursuant to the Plan and in connection with the Company’s annual compensation process and ongoing hiring process, the Company issues RSUs and other stock-based awards which generally vest over a service life of four to five years . For the years ended December 31, 2021, 2020 and 2019, the Company recognized expense of $ 167,938 , $ 133,583 and $ 123,395 , respectively, in relation to these awards. The following table summarizes activity related to RSUs for the years ended December 31, 2021, 2020 and 2019. Restricted Stock Units 2021 2020 2019 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Unvested Balance at January 1, 8,742,695 $ 41.45 8,414,130 $ 42.19 8,761,224 $ 37.59 Granted 3,875,588 54.84 4,456,157 37.58 4,384,073 44.59 Forfeited ( 432,846 ) 47.31 ( 149,592 ) 40.73 ( 273,698 ) 45.22 Vested ( 4,117,317 ) 42.56 ( 3,978,000 ) 39.01 ( 4,457,469 ) 34.63 Unvested Balance at December 31, 8,068,120 $ 46.36 8,742,695 $ 41.45 8,414,130 $ 42.19 In addition, the Company issues partnership units that are intended to qualify as "profits interest" for U.S. federal income tax purposes ("Partnership Units") that, subject to certain terms and conditions, are exchangeable into shares of Moelis & Company Class A common stock on a one -for-one basis. These Partnership Units are recorded as noncontrolling interests in the Company's consolidated statements of financial condition. Further, these Partnership Units generally vest over a service life of five years , however in certain arrangements the Partnership Units are granted without a service requirement, but do not have exchange rights until the third anniversary of the grant-date. During the year ended December 31, 2021, the Company granted 395,834 Partnership Units with a grant-date fair value of $ 21,672 . As of December 31, 2021, the total compensation expense related to unvested RSUs and other stock-based awards not yet recognized was $ 129,547 , which is expected to be recognized over a weighted‑average period of 1.5 years. Stock Options Pursuant to the Plan, the Company issued 3,501,881 stock options in 2014 which vest over a five‑year period. The Company estimated the fair value of stock option awards at grant using the Black‑Scholes valuation model with the following assumptions: Assumptions Expected life (in years) 6 Weighted-average risk free interest rate 1.91 % Expected volatility 35 % Dividend yield 2.72 % Weighted-average fair value at grant date $ 6.70 During the six year life of the options, the Company paid special dividends of $ 9.05 , in aggregate. As required under Section 5 of the Company’s 2014 Omnibus Incentive Plan, the Compensation Committee of the Company’s Board of Directors equitably reduced the exercise price of the Company’s outstanding options to purchase common stock by $ 9.05 from $ 25.00 per share to $ 15.95 per share. The following table summarizes activity related to stock options for the years ended December 31, 2020 and 2019. Stock Options Outstanding 2020 2019 Weighted Weighted Average Average Number Exercise Price Number Exercise Price Outstanding Per Share Outstanding Per Share Outstanding at January 1, 728,534 $ 15.95 2,017,067 $ 15.95 Exercises ( 728,534 ) 15.95 ( 1,285,533 ) 15.95 Forfeitures or expirations — — ( 3,000 ) 15.95 Outstanding at December 31, — $ — 728,534 $ 15.95 For the years ended December 31, 2021, 2020 and 2019, the Company recognized expenses of $ 0 , $ 0 , and $ 606 respectively, in relation to stock options. As of April 2020, no stock options remain outstanding. |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders Equity | 9. STOCKHOLDERS EQUITY Class A Common Stock In April 2014, the Company issued 15,263,653 shares of Class A common stock in connection with the IPO and reorganization. Since its IPO, the Company has conducted several offerings of Class A common stock in order to facilitate organized liquidity and increase the public float of its Class A common stock. The aggregate increase to Class A common stock as a result of such offerings was 24,923,349 shares. The Company did not retain any proceeds from the sale of its Class A common stock. As of December 31, 2021, there were 68,518,779 shares of Class A common stock issued, 5,873,180 shares of treasury stock, and 62,645,599 shares outstanding. As of December 31, 2020, there were 61,986,927 shares of Class A common stock issued, 3,959,083 shares of treasury stock, and 58,027,844 shares outstanding. The changes in Class A common stock are due primarily to the IPO and offering transactions described above, exchanges of Class A partnership units, the exercise of stock options and vesting of restricted stock units in connection with the Company’s annual compensation process and ongoing hiring process. Class B Common Stock In conjunction with Moelis & Company’s IPO of its Class A common stock, the Company issued 36,158,698 shares of Class B common stock. Moelis & Company Partner Holdings LP (“Partner Holdings”) holds all shares of Class B common stock, enabling it initially to exercise majority voting control over the Company. In connection with the Company’s offerings of Class A common stock described above, 24,919,744 shares of Class B common stock were purchased from Partner Holdings at a cost of $ 550 . The economic rights of Class B common stock are based on the ratio of the Class B subscription price to the initial public offering price of shares of Class A common stock ( .00055 to 1). Shares of Class B common stock are generally not transferrable and, if transferred other than in the limited circumstances set forth in Moelis & Company’s Amended and Restated Certificate of Incorporation, such shares shall automatically convert into a number of shares of Class A common stock, or dollar equivalent. Each share of Class B common stock may also be converted to a number of Class A shares at the option of the holder. Holders of shares of Class B common stock are entitled to receive dividends of the same type as any dividends payable on outstanding shares of Class A common stock at a ratio of .00055 to 1. As of December 31, 2021, and December 31, 2020, 4,686,344 and 5,948,750 shares of Class B common stock were issued and outstanding, respectively, due primarily to the IPO and offering transactions, and Class B conversions described above. Treasury Stock During the years ended December 31, 2021 and 2020, the Company repurchased 1,914,097 and 1,201,525 shares, respectively, pursuant to the Company’s share repurchase program and shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the delivery of equity-based compensation awards. The result of the repurchases was an increase of $ 104,150 and $ 44,334 , respectively, in the treasury stock balance on the Company’s consolidated statements of changes in equity as of December 31, 2021 and 2020. Share Repurchase Plan In February 2019, the Board of Directors authorized the repurchase of up to $ 100,000 of shares of Class A common stock and/or Class A partnership units of Group LP with no expiration date. In July 2021, the Board of Directors authorized the repurchase of an additional $ 100,000 of shares of Class A common stock and/or Class A partnership units of Group LP with no expiration date. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will be opportunistic and measured in nature and will depend on a variety of factors, including price and market conditions. The remaining balance of shares authorized for repurchase under the program is $ 148,101 as of December 31, 2021. Noncontrolling Interests A Group LP Class A partnership unit (not held by Moelis & Company or its subsidiaries) is exchangeable into one share of Moelis & Company Class A common stock and represents the Company’s noncontrolling interests (non‑redeemable). As of December 31, 2021 and 2020, partners held 6,090,500 and 8,508,857 Group LP partnership units, respectively, representing a 9 % and 13 % noncontrolling interest in Moelis & Company, respectively. Controlling Interests Moelis & Company operates and controls all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP, and thus the 62,645,599 shares of Class A common stock outstanding as of December 31, 2021 ( 58,027,844 as of December 31, 2020), represents the controlling interest. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 10. RELATED‑PARTY TRANSACTIONS Aircraft Lease —On August 30, 2014, a related party, Moelis & Company Manager LLC ("Manager"), acquired an aircraft with funds received solely from its managing member (Mr. Moelis). The aircraft was used and operated by the Company pursuant to a dry lease with Manager. The terms of the dry lease were comparable to the market rates of leasing from an independent third party. Pursuant to this dry lease arrangement, the lessee is obligated to bear its share of the costs of operating the aircraft. In addition, Mr. Moelis was the other lessee of the aircraft and shared the operating and related costs of the plane in proportion to his respective use pursuant to a cost sharing and operating agreement. On July 12, 2019, the Company terminated its aircraft dry lease with Manager, the lessor, and Mr. Moelis, the other lessee (the “Old Lease”) and the related cost sharing agreement with Mr. Moelis, which were set to expire by their terms on December 31, 2019, and entered into a new dry lease with Manager, the lessor, and Mr. Moelis, the other lessee (the “New Lease”) and cost sharing agreement with Mr. Moelis, which terminate on December 31, 2022. The terms of the New Lease and new cost sharing agreement are substantially similar to the Old Lease and related cost sharing agreement. For the years ended December 31, 2021, 2020, and 2019, the Company incurred $ 1,295 , $ 1,295 and $ 1,674 in aircraft lease costs to be paid to Manager, respectively. Promissory Notes —As of December 31, 2021, there were $ 219 of unsecured promissory notes from employees held by the Company (December 31, 2020: $ 389 ). Any outstanding balances are reflected in accrued and other receivables on the consolidated statements of financial condition. The notes held bear fixed interest rates ranging from 3.00 % to 4.00 %. During the years ended December 31, 2021, 2020 and 2019, the Company received $ 70 , $ 0 and $ 0 , respectively, of principal repayments and recognized interest income of $ 11 , $ 12 and $ 8 , respectively, on such notes, respectively, which is included in other income and expenses on the consolidated statements of operations. During the year ended December 31, 2021, the Company recognized $ 100 of compensation and benefits expense related to a tranche of a promissory note that will not be repaid. Services Agreement —In connection with the Company’s IPO, the Company entered into a services agreement with a related party, Moelis Asset Management LP, whereby the Company provides certain administrative services to Moelis Asset Management LP for a fee. This fee totaled $ 220 , $ 296 and $ 248 for the years ended December 31, 2021, 2020 and 2019, respectively. The amount of the fee is based upon the estimated usage and related expense of all shared services between the Company and Moelis Asset Management LP during the relevant period, and will be assessed periodically by management as per the terms of the agreement. As of December 31, 2021 and 2020, the Company had no balances due to or from Moelis Asset Management LP. Affiliated SPACs and SPAC Sponsors —The Company provides office space, secretarial, administrative, and other corporate services to Atlas Crest Entities. These services are provided to the Atlas Crest Entities upon consummation of their IPOs, in each case for a fee of $ 10 per month. For the years ended December 31, 2021 and December 31, 2020, this fee totaled $ 200 and $ 20 , respectively. This arrangement shall continue with each Atlas Crest Entity until such Atlas Crest Entity consummates a business combination or is liquidated. As of December 31, 2021 and December 31, 2020, the Company had no balances due from the Atlas Crest Entities or their sponsors. MA Financial —As of December 31, 2021 and 2020, the Company had net balances of $ 0 and $ 5 due to MA Financial, respectively, which is reflected in accrued and other receivables on the consolidated statements of financial condition. These balances consist of amounts due to or from MA Financial for advisory services performed as well as billable expenses incurred by the Company on behalf of MA Financial during the period. The relationship between the Company and MA Financial is governed by a services agreement. Revenues —From time to time, the Company enters into advisory transactions with affiliated entities, such as an Atlas Crest Entity or Moelis Asset Management LP and its affiliates. The Company earned revenues associated with such transactions of $ 30,346 , $ 0 and $ 210 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Requirements | 11. REGULATORY REQUIREMENTS Under the SEC Uniform Net Capital Rule (SEC Rule 15c3‑1) Alternative Standard under Section (a)(1)(ii), the minimum net capital requirement is $ 250 . As of December 31, 2021, U.S. Broker Dealer had net capital of $ 180,342 , which was $ 180,092 in excess of its required net capital. As of December 31, 2020, U.S. Broker Dealer had net capital of $ 96,800 which was $ 96,550 in excess of its required net capital. Certain other non-U.S. subsidiaries are subject to various securities and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries have consistently exceeded their local capital adequacy requirements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES Bank Lines of Credit — The Company renewed its $ 65,000 revolving credit facility which extended the maturity date to June 30, 2022. Unless the lender issues a notice of termination at least 60 days prior to such maturity date, this facility will automatically extend to June 30, 2023 . Borrowings on the facility bear interest at the greater of a fixed rate of 3.50 % per annum or at the borrower’s option of (i) LIBOR plus 1 % or (ii) Prime minus 1.50 %. As of December 31, 2021 and 2020, the Company had no borrowings under the credit facility. As of December 31, 2021, the Company’s available credit under this facility was $ 64,235 as a result of the issuance of an aggregate amount of $ 765 of various standby letters of credit, which were required in connection with certain office lease and other agreements. The Company incurs a 1 % per annum fee on the outstanding balance of issued letters of credit. On May 24, 2021, U.S. Broker Dealer entered into a $ 30,000 revolving credit facility agreement pre-approved by FINRA to provide additional regulatory capital as necessary. Under this facility, the Company may borrow capital until May 24, 2022 , the end of the credit period, and must repay aggregate principal balances by the maturity date of May 24, 2023 . Borrowings on the facility bear interest equal to the Prime rate , payable quarterly in arrears of the last day of March, June, September, and December of each calendar year. The Company had no borrowings under this credit facility and the available balance was $ 30,000 as of December 31, 2021. Leases — The Company maintains operating leases for corporate offices and an aircraft with various expiration dates, some of which extend through 2036. Some leases include options to terminate or to extend the lease terms. The Company records lease liabilities measured at the present value of anticipated lease payments over the lease term, including options to extend or terminate the lease when it is reasonably certain such options will be exercised. The implicit discount rates used to determine the present value of the Company’s leases are not readily determinable, thus the Company uses its secured borrowing rate, which was determined with reference to our available credit line. See below for additional information about the Company’s leases. Year Ended December 31, ($ in thousands) 2021 2020 2019 Supplemental Income Statement Information: Operating lease cost $ 24,550 $ 26,669 $ 16,980 Supplemental Cash Flow Information: Cash paid for amounts included in the measurement of lease liabilities: Net operating cash outflows for operating leases $ 16,278 $ 17,957 $ 19,373 Right-of-use assets obtained in exchange for lease obligations (e.g. new leases and amendments commenced during the period): $ 4,731 $ 7,062 $ 160,657 Other Information Weighted-average remaining lease term - operating leases 13.28 years 13.72 years 14.03 years Weighted-average discount rate - operating leases 3.52 % 3.52 % 3.53 % As of December 31, 2021, the future sublease income and maturities of our operating lease liabilities are as follows: Fiscal year ended Sublease Income Operating Leases 2022 $ ( 903 ) $ 23,030 2023 ( 903 ) 22,022 2024 ( 903 ) 20,130 2025 ( 451 ) 17,401 2026 — 16,307 Thereafter — 162,584 Total Payments $ ( 3,160 ) $ 261,474 Less: Tenant improvement allowances ( 14,303 ) Less: Present value adjustment ( 55,281 ) Total $ 191,890 Contractual Arrangements —In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and which provide indemnification for specified losses, including certain indemnification of certain officers, directors and employees. Legal —In the ordinary course of business, from time to time the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters. In addition, government agencies and self-regulatory organizations conduct periodic examinations and initiate administrative proceedings regarding the Company’s business, including, among other matters, compliance, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees. In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 13. EMPLOYEE BENEFIT PLANS The Company covers substantially all U.S. salaried employees with a defined contribution 401(k) plan. Each salaried employee of the Company who has attained the age of 21 is eligible to participate in the 401(k) plan on their first day of employment. Any employer contributions to the 401(k) plan are entirely at the discretion of the Company. The Company accrued expenses relating to employer matching contributions to the 401(k) plan for the years ended December 31, 2021, 2020 and 2019, in the amounts of $ 3,989 , $ 3,111 and $ 2,860 , respectively. |
Revenues and Business Informati
Revenues and Business Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenues and Business Information | 14. REVENUES AND BUSINESS INFORMATION The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, financial sponsors, governments and sovereign wealth funds, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings, capital markets and other corporate finance matters. Since the financial markets are global in nature, the Company generally manages its business based on the operating results of the enterprise taken as whole, not by geographic region. The following table disaggregates the revenues and assets based on the location of the office that generates the revenues or holds the assets, and therefore may not be reflective of the geography in which our clients are located. No client accounted for more than 10% of revenues for the years ended December 31, 2021, 2020, and 2019. Year Ended December 31, 2021 2020 2019 Revenues: United States $ 1,312,792 $ 794,337 $ 635,787 Europe 157,158 92,660 78,842 Rest of World 70,661 56,279 31,905 Total $ 1,540,611 $ 943,276 $ 746,534 December 31, December 31, 2021 2020 Assets: United States $ 1,356,193 $ 1,012,831 Europe 92,605 78,470 Rest of World 106,883 105,143 Total $ 1,555,681 $ 1,196,444 As of December 31, 2021, and December 31, 2020, the Company had deferred revenues of $ 4,539 and $ 2,692 , respectively. These amounts primarily consist of upfront fees and retainers for our services. During the years ended December 31, 2021 and December 31, 2020, $ 2,558 and $ 2,354 of revenues were recognized from the opening balance of deferred revenues, respectively. Due to the factors that may delay or terminate a transaction (see Note 2), the Company does not estimate constrained transaction fees for revenue recognition. Quantitative disclosures of constrained variable consideration are not provided for remaining, wholly unsatisfied, performance obligations. The remaining performance obligations related to retainers, upfront fees and announcement fees are typically associated with contracts that have durations of one year or less. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. SUBSEQUENT EVENTS The Company has evaluated subsequent events for adjustment to or disclosure in these consolidated financial statements through the date of this report and has not identified any recordable or disclosable events not otherwise reported in these financial statements or the notes thereto other than the following. The Board of Directors of Moelis & Company has declared a dividend of $ 0.60 per share to be paid on March 28, 2022 , to Class A common stockholders of record on February 22, 2022 . |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | SUPPLEMENTAL FINAN CIAL INFORMATION Schedule II—Valuation and Qualifying Accounts For the Year Ended December 31, 2021 (dollars in thousands) Allowance for Credit Losses(1) 2021 2020 2019 Balance at beginning of period $ 3,775 $ 4,088 $ 1,975 Additions: Bad debt expense 2,026 2,544 2,399 Deductions: Charge-offs, foreign currency translation and other adjustments ( 2,978 ) ( 2,857 ) ( 286 ) Balance at end of period $ 2,823 $ 3,775 $ 4,088 (1) Includes the allowance for credit losses for both accounts receivable and other receivables. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting —The Company prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the combined operations, assets and liabilities of the Company. The Notes are an integral part of the Company's consolidated financial statements. |
Consolidation | Consolidation —The Company’s policy is to consolidate (i) entities in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could have a material impact on the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary. In preparing the consolidated financial statements, management makes estimates and assumptions regarding: • the adequacy of the allowance for credit losses; • the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal; • the assessment of probable lease terms and the measurement of the present value of such obligations; • the measurement and realization of deferred taxes; • the measurement of amount due pursuant to tax receivable agreement; and • other matters that affect the reported amounts and disclosures of contingencies in the consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash — Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase. The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. Treasury instruments and money market securities. The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future U.S. medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2021 and 2020, is presented below. December 31, 2021 2020 Cash $ 135,217 $ 83,472 Cash equivalents 384,996 119,005 Restricted cash 801 807 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 521,014 $ 203,284 |
Receivables | Receivables —The accompanying consolidated statements of financial condition present accounts receivable balances net of allowance for credit losses based on the Company’s assessment of the collectability of customer accounts. Included in the accounts receivable balances as of December 31, 2021 and 2020 were $ 20,041 and $ 19,603 , respectively, of long term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years . These long term receivables generated interest income of $ 743 , $ 748 and $ 990 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company maintains an allowance for credit losses that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. For purposes of determining appropriate allowances, the Company stratifies its population of accounts receivable into two categories, one for short-term receivables and a second for private funds advisory receivables. Each population is separately evaluated using an aging method that results in a percentage reserve based on the age of the receivable, in addition to considerations of historical charge-offs and current economic conditions. After concluding that a reserved accounts receivable is no longer collectible, the Company will charge-off the receivable. This has the effect of reducing both the gross receivable and the allowance for credit losses. If a reserved accounts receivable is subsequently collected, such recoveries reduce the gross receivable and the allowance for credit losses and is a reduction of bad debt expense, which is recorded within other expenses on the consolidated statement of operations. The combination of recoveries and the provision for credit losses of a reported period comprise the Company’s bad debt expense. On January 1, 2020, the Company adopted Accounting Standards Update ("ASU") No. 2016-13— “Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") using the modified retrospective method. Upon adoption, a cumulative adjustment was recorded which decreased retained earnings by $ 459 . The tax effect of this adjustment increased retained earnings by $ 95 , resulting in a net decrease of $ 364 as of January 1, 2020. ASU 2016-13 replaces the incurred loss impairment methodology for financial instruments with the current expected credit loss (CECL) model which requires estimates of future credit losses based on reasonable supporting information. The Company will continue to assess its CECL estimates and recognize changes to expected credit losses during the period in earnings. The following tables summarize credit loss allowance activity for the twelve months ended December 31, 2021 and December 31, 2020: Year Ended December 31, 2021 Year Ended December 31, 2020 Accounts Receivable Accounts Receivable Short-term Receivables Private Funds Advisory Receivables Total Short-term Receivables Private Funds Advisory Receivables Total Allowance for Credit Losses, beginning balance $ 3,577 $ 198 $ 3,775 $ 4,088 $ — $ 4,088 Adjustment for adoption of ASU 2016-13 — — — 260 199 459 Allowance for Credit Losses, adjusted beginning balance 3,577 198 3,775 4,348 199 4,547 Charge-offs, foreign currency translation and other adjustments ( 2,978 ) — ( 2,978 ) ( 3,316 ) — ( 3,316 ) Recoveries ( 8,637 ) ( 65 ) ( 8,702 ) ( 3,965 ) ( 26 ) ( 3,991 ) Reduction to allowance ( 11,615 ) ( 65 ) ( 11,680 ) ( 7,281 ) ( 26 ) ( 7,307 ) Provision for credit losses 10,659 69 10,728 6,510 25 6,535 Allowance for credit losses, ending balance $ 2,621 $ 202 $ 2,823 $ 3,577 $ 198 $ 3,775 |
Deferred Compensation | Deferred Compensation —Deferred compensation costs represent arrangements with certain employees whereby cash payments are subject to a required period of service subsequent to payment by the Company. These amounts are charged to expenses over the period that the employee is required to provide services in order to vest in the payment. |
Financial Instruments at Fair Value | Financial Instruments at Fair Value —Fair value is generally based on quoted prices, however if quoted market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations, price activity for equivalent instruments and valuation pricing models. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of instrument, the characteristics specific to the instrument and the state of the marketplace (including the existence and transparency of transactions between market participants). Financial instruments with readily‑available actively quoted prices or for which fair value can be measured from actively‑quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest level of observability) based on inputs: Level 1 —Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price. Level 2 —Pricing inputs that are significant to the overall fair value measurement are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies. Level 3 —Pricing inputs that are significant to the overall fair value measurement are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The determination of fair value is based on the best information available, may incorporate management's own assumptions, and involves a significant degree of judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the instrument. The Company’s methodology for reclassifications impacting the fair value hierarchy is that transfers in/out of the respective category are reported at fair value as of the beginning of the period in which the reclassification occurred. |
Investments Held at Cost | Investments Held at Cost — Investments without readily determinable fair values are measured at cost, less impairment. If the Company identifies an observable price change in an orderly transaction for an investment held at cost, it will measure the investment at fair value as of the date the observable transaction occurred. The Company shall reassess at each reporting period whether such investments should continue to be measured at cost, less impairment, or another method. Any resulting gain or loss from a change in measurement shall be recorded in other income and expenses on the consolidated statement of operations. Investments held at cost are reported within investments on the consolidated statements of financial condition. |
Equity Method Investments | Equity Method Investments —The Company accounts for its equity method investments under the equity method of accounting as the Company does not control these entities but has the ability to exercise significant influence. The amounts recorded in investments on the consolidated statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investment. The Company reflects its share of gains and losses of the investment in other income and expenses in the consolidated statements of operations using the most recently available earnings data at the end of the period. |
Leases | Leases — The Company maintains operating leases for corporate offices and an aircraft. The Company determines if a contract contains a lease at inception. Operating leases are recorded as right-of-use (“ROU”) assets and lease liabilities on the consolidated statements of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the lease commencement date and are measured at the present value of anticipated lease payments over the lease term. The operating lease ROU assets are equal to the lease liabilities, adjusted for certain lease incentives, accrued rents, and prepaid rents. Typically, our borrowing rate is used to determine the present value of lease payments because the implicit rate is not readily determinable. Our lease terms may include options to extend or terminate the lease. These options are factored into our present value calculations when it is reasonably certain that such options will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term. |
Equipment and Leasehold Improvements | Equipment and Leasehold Improvements —Office equipment and furniture and fixtures are stated at cost less accumulated depreciation, which is determined using the straight‑line method over the estimated useful lives of the assets, ranging from three to seven years , respectively. Leasehold improvements are stated at cost less accumulated amortization, which is determined using the straight‑line method over the lesser of the term of the lease or the estimated useful life of the asset. Major renewals and improvements are capitalized and minor replacements, maintenance and repairs are charged to expenses as incurred. Assets that are in development and have not yet been placed in service are generally classified as “Construction in Progress” and are reclassified to the appropriate category when the associated assets are placed in service. Upon retirement or disposal of assets, the cost and related accumulated depreciation or amortization are removed from the consolidated statements of financial condition and any gain or loss is reflected in the consolidated statements of operations. |
Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement | Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement – In conjunction with the IPO, the Company was treated for U.S. federal income tax purposes as having directly purchased Class A partnership units in Group LP from the existing unitholders. Additional Group LP Class A partnership units may be issued and exchanged for shares of Class A common stock in the Company. The initial purchase and future exchanges are expected to result in an increase in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP. These increases in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP would not have been available but for the initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. As a result, the Company records a deferred tax asset for such increase in tax basis. The Company has entered into a tax receivable agreement with its eligible Managing Directors that will provide for the payment by the Company to its eligible Managing Directors of 85 % of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of (a) the increases in tax basis attributable to exchanges by its eligible Managing Directors and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this tax receivable agreement. The Company expects to benefit from the remaining 15 % of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid‑in‑capital. For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Group LP as a result of the exchanges and had it not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the initial purchase and subsequent exchanges described above as a deferred tax asset in the consolidated statements of financial condition. The amount due to its eligible Managing Directors related to the tax receivable agreement as a result of the initial purchase and subsequent exchanges described above is recorded as amount due pursuant to tax receivable agreement in the consolidated statements of financial condition. The amounts recorded for the deferred tax asset and the liability for our obligations under the tax receivable agreement are estimates. Any adjustments to our estimates subsequent to their initial establishment will be included in net income (loss). Future exchanges of Class A partnership units in Group LP for Class A common shares in the Company will be accounted for in a similar manner. |
Software | Software — Costs related to implementation of cloud computing arrangements that qualify for capitalization are stated at cost less accumulated amortization within prepaid and other assets on the Company’s consolidated statement of financial condition. Such capitalized costs are amortized using the straight-line method over the term of the cloud computing service contract or another rational basis, beginning when the cloud computing arrangement is substantially complete and ready for its intended use. All costs not directly related to the implementation of cloud computing arrangements, including overhead costs and costs of service agreements, will be expensed in the period they are incurred. The amortization expense of such capitalized costs will be presented under communication, technology and information services on the consolidated statement of operations. Effective January 1, 2020, the Company adopted ASU No. 2018-15, “Goodwill and Other —Internal Use Software” ("ASU 2018-15") using a prospective approach. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. See Note 4—Fixed and Intangible Assets below for further details on the Company’s capitalized cloud computing arrangements. |
Revenue and Expense Recognition | Revenue and Expense Recognition —We earn substantially all of our revenues by providing advisory services related to mergers and acquisitions, recapitalizations and restructurings, capital markets transactions and other corporate finance matters. The Company also provides services related to securities underwriting and private funds advisory services. We provide our advisory services on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. In many cases, we are not paid until the completion of an underlying transaction. transaction closing) and it is probable that a significant reversal of revenue will not occur in a future period. Upfront fees and retainers specified in our engagement letters that meet the over time criteria will be recognized on a systematic basis over the estimated period where the related services are performed. With respect to fairness opinions, fees are fixed and delivering the opinion is a separate performance obligation from other advisory services that may be promised under the same engagement letter; as such these revenues are recognized at a point in time when the engagement is formally completed and the client can obtain substantially all of the benefits from the service. Similarly, underwriting engagements are typically a single performance obligation and fees are generally recognized as revenue when the offering has been deemed to be completed by the lead manager of the underwriting group. In these instances, point in time recognition appropriately matches the transfer and consumption of our services. Incremental costs of obtaining a contract are expensed as incurred since such costs are generally not recoverable and the typical duration of our advisory contracts is less than one year. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing our advisory services and are typically expensed as incurred, except where the transfer and consumption of our services occurs at a point in time. For engagements recognized at a point in time, out-of-pocket expenses are capitalized and subsequently expensed in the consolidated statement of operations upon completion of the engagement. The Company records deferred revenues when it receives fees from clients that have not yet been earned (e.g. an upfront fee) or when the Company has an unconditional right to consideration before all performance obligations are complete (e.g. upon satisfying conditions to earn an announcement fee, but before the transaction is consummated). Complications that may terminate or delay a transaction include failure to agree upon final terms with the counterparty, failure to obtain required regulatory consents, failure to obtain board or stockholder approvals, failure to secure financing, adverse market conditions or unexpected operating or financial problems related to either party to the transaction. In these circumstances, we often do not receive advisory fees that would have been received if the transaction had been completed, despite the fact that we may have devoted considerable time and resources to the transaction. Barriers to the completion of a restructuring transaction may include a lack of anticipated bidders for the assets of our client, the inability of our client to restructure its operations, or indebtedness due to a failure to reach agreement with its creditors. In these circumstances, our fees are generally limited to monthly retainer fees and reimbursement of certain out-of-pocket expenses. We do not allocate our revenue by the type of advice we provide because of the complexity of the transactions on which we may earn revenue and our holistic approach to client service. For example, a restructuring engagement may evolve to require a sale of all or a portion of the client, M&A assignments can develop from relationships established on prior restructuring engagements, and capital markets expertise can be instrumental on both M&A and restructuring assignments. |
Equity-based Compensation | Equity‑based Compensation —The Company recognizes the cost of services received in exchange for equity instrument awards. The cost is based on its grant‑date fair value based on quoted market prices at the time of grant amortized over the service period required by the award’s vesting terms. In certain instances, the Company may grant an equity-based award with a post-vesting restriction, which is reflected in the grant-date fair value of the award. The Company also recognizes the cost of services received from a nonemployee in exchange for an equity instrument based on the award's grant date fair value. The Company records as treasury stock shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the vesting of restricted stock units (“RSUs”). The Company records dividends in kind, net of forfeitures, on outstanding RSUs as a reduction of retained earnings with a corresponding increase in additional paid-in capital, resulting in no net change to equity. Dividends in kind on RSUs are subject to the same vesting conditions as the underlying RSUs on which they were accrued. Dividends in kind will be forfeited if the underlying award does not vest. The Company has terms that qualify certain employees to terminate their services while not forfeiting certain qualifying incentive RSUs granted during employment. For qualifying awards, (i) the employee must be at least 56 years old, (ii) the employee must have provided at least 5 consecutive years of service to the Company and (iii) the total of (i) and (ii) must be equal to at least 65 years . Any such RSUs will continue to vest on their applicable vesting schedule, subject to noncompetition and other terms. Over time a greater number of employees may become retirement eligible and the related requisite service period over which we will expense these awards will be shorter than the stated vesting period. Any unvested RSUs are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest. |
Income Taxes | Income Taxes —The Company accounts for income taxes in accordance with ASC 740, “ Accounting for Income Taxes ” (“ASC 740”), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax bases of its assets and liabilities by applying the enacted tax rates in effect for the year in which the differences are expected to reverse. Such net tax effects on temporary differences are reflected on the Company’s consolidated statements of financial condition as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more‑likely‑than‑not that some or all of the deferred tax assets will not be realized. ASC 740-10 prescribes a two‑step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the years ended December 31, 2021, 2020 and 2019, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax‑related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the years ended December 31, 2021, 2020 and 2019, no such amounts were recorded. The Company recognizes excess tax benefits and deficiencies as income tax benefits or expenses in the consolidated statement of operations. These are reflected in accounts payable, accrued expenses and other liabilities within the consolidated statement of cash flows. Effective January 1, 2021, the Company adopted ASU No. 2019-12, "Income Taxes" ("ASU 2019-12"). ASU 2019-12 removes certain rule exceptions to simplify accounting for income taxes. ASU 2019-12 has been incorporated into our provision for income taxes calculation and does not have a material impact to our overall income taxes. |
Foreign Currency Translation | Foreign Currency Translation —Assets and liabilities held in non‑U.S. dollar denominated currencies are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenues and expenses are translated at average exchange rates during the reporting period. A charge or credit is recorded to other comprehensive income to reflect the translation of these amounts to the extent the non‑U.S. currency is designated the functional currency of the subsidiary. Non‑functional currency related transaction gains and losses are immediately recorded in the consolidated statements of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Cash, Cash Equivalents and Restricted Cash | A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2021 and 2020, is presented below. December 31, 2021 2020 Cash $ 135,217 $ 83,472 Cash equivalents 384,996 119,005 Restricted cash 801 807 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 521,014 $ 203,284 |
Summary of Credit Loss Allowance Activity | The following tables summarize credit loss allowance activity for the twelve months ended December 31, 2021 and December 31, 2020: Year Ended December 31, 2021 Year Ended December 31, 2020 Accounts Receivable Accounts Receivable Short-term Receivables Private Funds Advisory Receivables Total Short-term Receivables Private Funds Advisory Receivables Total Allowance for Credit Losses, beginning balance $ 3,577 $ 198 $ 3,775 $ 4,088 $ — $ 4,088 Adjustment for adoption of ASU 2016-13 — — — 260 199 459 Allowance for Credit Losses, adjusted beginning balance 3,577 198 3,775 4,348 199 4,547 Charge-offs, foreign currency translation and other adjustments ( 2,978 ) — ( 2,978 ) ( 3,316 ) — ( 3,316 ) Recoveries ( 8,637 ) ( 65 ) ( 8,702 ) ( 3,965 ) ( 26 ) ( 3,991 ) Reduction to allowance ( 11,615 ) ( 65 ) ( 11,680 ) ( 7,281 ) ( 26 ) ( 7,307 ) Provision for credit losses 10,659 69 10,728 6,510 25 6,535 Allowance for credit losses, ending balance $ 2,621 $ 202 $ 2,823 $ 3,577 $ 198 $ 3,775 |
Fixed and Intangible Assets (Ta
Fixed and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Equipment and Leasehold Improvements, Net | Equipment and leasehold improvements, net consists of the following: December 31, December 31, 2021 2020 Office equipment $ 15,883 $ 13,267 Furniture and fixtures 14,303 10,409 Leasehold improvements 61,054 36,286 Construction in progress — 14,943 Total 91,240 74,905 Less accumulated depreciation and amortization ( 32,077 ) ( 24,928 ) Equipment and leasehold improvements, net $ 59,163 $ 49,977 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Summary of Fair value of Company's Financial Assets | The fair value of the Company's financial assets as of December 31, 2021, have been categorized based upon the fair value hierarchy as follows: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents U.S. treasury instruments $ 301,992 $ — $ 301,992 $ — Money market securities 83,004 — 83,004 — Investments U.S. treasury instruments 200,973 — 200,973 — Common stock 15,964 15,964 — — Warrants 684 684 — — Total financial assets $ 602,617 $ 16,648 $ 585,969 $ — The fair value of the Company's financial assets as of December 31, 2020 have been categorized based upon the fair value hierarchy as follows: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents U.S. treasury instruments $ 15,599 $ — $ 15,599 $ — Money market securities 103,406 — 103,406 — Investments U.S. treasury instruments 172,671 — 172,671 — Total financial assets $ 291,676 $ — $ 291,676 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of U.S. and Non-U.S. Components of Income (Loss) before Income Tax Expense | The following table presents the U.S. and non‑U.S. components of income (loss) before income tax expense: For the Year Ended December 31, 2021 2020 2019 U.S. $ 468,725 $ 264,047 $ 156,983 Non-U.S. 67,588 6,066 ( 9,478 ) Income (loss) before income taxes $ 536,313 $ 270,113 $ 147,505 |
Schedule of Current and Deferred Components of Income Tax Provision | The current and deferred components of the income tax provision for the years ended December 31, 2021, 2020, and 2019 are as follows: For the Year Ended December 31, 2021 2020 2019 Current income taxes: Federal $ 63,979 $ 8,207 $ 4,527 State and Local 15,875 2,955 3,212 Foreign 10,619 1,517 409 $ 90,473 $ 12,679 $ 8,148 Deferred income taxes: Federal $ 20,811 $ 31,773 $ 3,084 State and Local 4,295 7,122 613 Foreign ( 2,244 ) 101 ( 32 ) Total $ 113,335 $ 51,675 $ 11,813 |
Reconciliation from Appropriate Statutory Rate to Income Before Income Taxes | The total provision for income taxes differs from the amount which would be computed by applying the appropriate statutory rate to income before income taxes as follows: For the Year Ended December 31, 2021 2020 2019 Reconciliation of federal statutory tax rates U.S. statutory tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) due to state and local taxes 3.6 % 3.7 % 4.3 % Rate benefit as a U.S. limited partnership/flow through - 2.3 % - 3.1 % - 4.4 % Excess tax benefit from equity compensation delivery - 3.4 % - 2.6 % - 11.9 % Foreign taxes 1.3 % 0.0 % - 0.4 % Non-deductible expenses 2.2 % 1.1 % 0.8 % Other - 1.3 % - 1.0 % - 1.4 % Effective income tax rate 21.1 % 19.1 % 8.0 % |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities included on the Company’s consolidated statements of financial condition are as follows: For the Year Ended December 31, 2021 2020 Net operating loss $ 9,867 $ 9,751 Step-up in tax basis in Group LP assets 384,080 369,216 Deferred compensation 63,778 56,628 Lease liability 43,479 43,214 Other 12,631 — 513,835 478,809 Valuation allowance on NOL and other ( 18,368 ) ( 10,445 ) Deferred tax asset $ 495,467 $ 468,364 Right-of-use asset $ ( 37,117 ) $ ( 38,862 ) Other ( 10,227 ) ( 5,157 ) Deferred tax liability $ ( 47,344 ) $ ( 44,019 ) Net deferred tax asset $ 448,123 $ 424,345 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Class A Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share | The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the years ended December 31, 2021, 2020 and 2019 are presented below. Year Ended December 31, (dollars in thousands, except per share amounts) 2021 2020 2019 Numerator: Net income (loss) attributable to holders of shares of Class A common stock—basic $ 365,213 $ 178,831 $ 105,095 Add (deduct) dilutive effect of: Noncontrolling interests related to Class A partnership units (a) (a) (a) Net income (loss) attributable to holders of shares of Class A common stock—diluted $ 365,213 $ 178,831 $ 105,095 Denominator: Weighted average shares of Class A common stock outstanding—basic 63,125,497 56,566,645 50,373,874 Add (deduct) dilutive effect of: Noncontrolling interests related to Class A partnership units (a) (a) (a) Weighted average number of incremental shares issuable from unvested RSUs and stock options, as calculated using the treasury stock method (b) 5,310,082 (b) 4,156,720 (b) 5,139,275 Weighted average shares of Class A common stock outstanding—diluted 68,435,579 60,723,365 55,513,149 Net income (loss) per share attributable to holders of shares of Class A common stock Basic $ 5.79 $ 3.16 $ 2.09 Diluted $ 5.34 $ 2.95 $ 1.89 We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation. (a) Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one ‑for‑one basis, subject to applicable exchange restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 76,040,864 shares for the year ended December 31, 2021, 71,950,031 shares for the year ended December 31, 2020 and 68,516,397 shares for the year ended December 31, 2019. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the year ended December 31, 2021, 2020 and 2019, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive. (b) Certain shares of Moelis & Company’s Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company for certain periods. During the years ended December 31, 2021, 2020 and 2019, there were 289 , 5,475 and 64,676 RSUs that would have been included in the treasury stock method calculation if the effect were dilutive, respectively. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Activity Related to RSUs | The following table summarizes activity related to RSUs for the years ended December 31, 2021, 2020 and 2019. Restricted Stock Units 2021 2020 2019 Weighted Weighted Weighted Average Average Average Number of Grant Date Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Unvested Balance at January 1, 8,742,695 $ 41.45 8,414,130 $ 42.19 8,761,224 $ 37.59 Granted 3,875,588 54.84 4,456,157 37.58 4,384,073 44.59 Forfeited ( 432,846 ) 47.31 ( 149,592 ) 40.73 ( 273,698 ) 45.22 Vested ( 4,117,317 ) 42.56 ( 3,978,000 ) 39.01 ( 4,457,469 ) 34.63 Unvested Balance at December 31, 8,068,120 $ 46.36 8,742,695 $ 41.45 8,414,130 $ 42.19 |
Schedule of Assumptions Used to Estimate the Fair Value of Stock Option Using the Black-Scholes Valuation model | The Company estimated the fair value of stock option awards at grant using the Black‑Scholes valuation model with the following assumptions: Assumptions Expected life (in years) 6 Weighted-average risk free interest rate 1.91 % Expected volatility 35 % Dividend yield 2.72 % Weighted-average fair value at grant date $ 6.70 |
Summary of Activity Related to Stock Options | The following table summarizes activity related to stock options for the years ended December 31, 2020 and 2019. Stock Options Outstanding 2020 2019 Weighted Weighted Average Average Number Exercise Price Number Exercise Price Outstanding Per Share Outstanding Per Share Outstanding at January 1, 728,534 $ 15.95 2,017,067 $ 15.95 Exercises ( 728,534 ) 15.95 ( 1,285,533 ) 15.95 Forfeitures or expirations — — ( 3,000 ) 15.95 Outstanding at December 31, — $ — 728,534 $ 15.95 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Additional Leases Information | See below for additional information about the Company’s leases. Year Ended December 31, ($ in thousands) 2021 2020 2019 Supplemental Income Statement Information: Operating lease cost $ 24,550 $ 26,669 $ 16,980 Supplemental Cash Flow Information: Cash paid for amounts included in the measurement of lease liabilities: Net operating cash outflows for operating leases $ 16,278 $ 17,957 $ 19,373 Right-of-use assets obtained in exchange for lease obligations (e.g. new leases and amendments commenced during the period): $ 4,731 $ 7,062 $ 160,657 Other Information Weighted-average remaining lease term - operating leases 13.28 years 13.72 years 14.03 years Weighted-average discount rate - operating leases 3.52 % 3.52 % 3.53 % |
Schedule of Future Sublease Income and Maturities of Our Operating Lease Liabilities | As of December 31, 2021, the future sublease income and maturities of our operating lease liabilities are as follows: Fiscal year ended Sublease Income Operating Leases 2022 $ ( 903 ) $ 23,030 2023 ( 903 ) 22,022 2024 ( 903 ) 20,130 2025 ( 451 ) 17,401 2026 — 16,307 Thereafter — 162,584 Total Payments $ ( 3,160 ) $ 261,474 Less: Tenant improvement allowances ( 14,303 ) Less: Present value adjustment ( 55,281 ) Total $ 191,890 |
Revenues and Business Informa_2
Revenues and Business Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Geographical Distribution of Revenues and Assets | The following table disaggregates the revenues and assets based on the location of the office that generates the revenues or holds the assets, and therefore may not be reflective of the geography in which our clients are located. Year Ended December 31, 2021 2020 2019 Revenues: United States $ 1,312,792 $ 794,337 $ 635,787 Europe 157,158 92,660 78,842 Rest of World 70,661 56,279 31,905 Total $ 1,540,611 $ 943,276 $ 746,534 December 31, December 31, 2021 2020 Assets: United States $ 1,356,193 $ 1,012,831 Europe 92,605 78,470 Rest of World 106,883 105,143 Total $ 1,555,681 $ 1,196,444 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | ||||
Cash | $ 135,217 | $ 83,472 | ||
Cash equivalents | 384,996 | 119,005 | ||
Restricted cash | 801 | 807 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 521,014 | $ 203,284 | $ 168,572 | $ 261,771 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Accounting Policies [Line Items] | |||||
Long-term receivables | $ 20,041,000 | $ 19,603,000 | |||
Interest income from long-term receivables | 743,000 | 748,000 | $ 990,000 | ||
Cumulative effect on retained earnings | $ 478,299,000 | 444,473,000 | 393,827,000 | $ 371,753,000 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Percentage of tax benefits payable to partners under tax receivable agreement | 85.00% | ||||
Remaining percentage of cash savings realized by the Company (as a percent) | 15.00% | ||||
Revenue and Expense Recognition and Equity-Based Compensation | |||||
Minimum age of retiring employees required so that certain qualifying awards granted during employment will not be forfeited | 56 years | ||||
Consecutive years of service of retiring employees required so that certain qualifying awards granted during employment will not be forfeited | 5 years | ||||
Minimum total age and consecutive years of service of retiring employees required so that certain qualifying awards granted during employment will not be forfeited | 65 years | ||||
Income Taxes | |||||
Unrecognized tax benefits | $ 0 | 0 | 0 | ||
Income tax related interest and penalties | 0 | 0 | 0 | ||
Retained Earnings | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect on retained earnings | $ (535,282,000) | $ (420,682,000) | (324,192,000) | $ (237,782,000) | |
Cumulative Effect Adjustment Upon Adoption | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect on retained earnings | (364,000) | ||||
Cumulative Effect Adjustment Upon Adoption | Retained Earnings | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect on retained earnings | $ (364,000) | ||||
ASU 2016-13 | Cumulative Effect Adjustment Upon Adoption, Before Tax | Retained Earnings | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect on retained earnings | $ (459,000) | ||||
ASU 2016-13 | Cumulative Effect Adjustment Upon Adoption, Tax | Retained Earnings | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect on retained earnings | 95,000 | ||||
ASU 2016-13 | Cumulative Effect Adjustment Upon Adoption | Retained Earnings | |||||
Accounting Policies [Line Items] | |||||
Cumulative effect on retained earnings | $ (364,000) | ||||
Minimum | |||||
Accounting Policies [Line Items] | |||||
Installment Period | 3 years | ||||
Minimum | Office Equipment and Furniture and Fixtures | |||||
Assets and Liabilities, Lessee [Abstract] | |||||
Useful lives | 3 years | ||||
Maximum | |||||
Accounting Policies [Line Items] | |||||
Installment Period | 4 years | ||||
Maximum | Office Equipment and Furniture and Fixtures | |||||
Assets and Liabilities, Lessee [Abstract] | |||||
Useful lives | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Credit Loss Allowance Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | $ 3,775 | |
Allowance for Credit Losses, adjusted beginning balance | 3,775 | $ 4,547 |
Charge-offs, foreign currency translation and other adjustments | (2,978) | (3,316) |
Recoveries | (8,702) | (3,991) |
Reduction to allowance | (11,680) | (7,307) |
Provision for credit losses | 10,728 | 6,535 |
Allowance for credit losses, ending balance | 2,823 | 3,775 |
Previously Reported | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | 3,775 | 4,088 |
Allowance for credit losses, ending balance | 3,775 | |
ASU 2016-13 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | 459 | |
Short-term Receivables | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | 3,577 | |
Allowance for Credit Losses, adjusted beginning balance | 3,577 | 4,348 |
Charge-offs, foreign currency translation and other adjustments | (2,978) | (3,316) |
Recoveries | (8,637) | (3,965) |
Reduction to allowance | (11,615) | (7,281) |
Provision for credit losses | 10,659 | 6,510 |
Allowance for credit losses, ending balance | 2,621 | 3,577 |
Short-term Receivables | Previously Reported | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | 3,577 | 4,088 |
Allowance for credit losses, ending balance | 3,577 | |
Short-term Receivables | ASU 2016-13 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | 260 | |
Private Funds Advisory Receivables | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | 198 | |
Allowance for Credit Losses, adjusted beginning balance | 198 | 199 |
Recoveries | (65) | (26) |
Reduction to allowance | (65) | (26) |
Provision for credit losses | 69 | 25 |
Allowance for credit losses, ending balance | 202 | 198 |
Private Funds Advisory Receivables | Previously Reported | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | $ 198 | |
Allowance for credit losses, ending balance | 198 | |
Private Funds Advisory Receivables | ASU 2016-13 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Credit Losses, beginning balance | $ 199 |
Fixed and Intangible Assets - S
Fixed and Intangible Assets - Schedule of Equipment and Leasehold Improvements, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Equipment and Leasehold Improvements, Net | ||
Total | $ 91,240 | $ 74,905 |
Less accumulated depreciation and amortization | (32,077) | (24,928) |
Equipment and leasehold improvements, net | 59,163 | 49,977 |
Office Equipment | ||
Equipment and Leasehold Improvements, Net | ||
Total | 15,883 | 13,267 |
Furniture and Fixtures | ||
Equipment and Leasehold Improvements, Net | ||
Total | 14,303 | 10,409 |
Leasehold Improvements | ||
Equipment and Leasehold Improvements, Net | ||
Total | $ 61,054 | 36,286 |
Construction in progress | ||
Equipment and Leasehold Improvements, Net | ||
Total | $ 14,943 |
Fixed and Intangible Assets - A
Fixed and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equipment and Leasehold Improvements, Net | |||
Depreciation and amortization expenses | $ 7,242 | $ 4,708 | $ 4,965 |
Prepaid Expenses and Other Assets | |||
Equipment and Leasehold Improvements, Net | |||
Costs capitalized | 2,127 | 2,503 | |
Accumulated amortization, net | 744 | 256 | |
Communication, Technology and Information Services | |||
Equipment and Leasehold Improvements, Net | |||
Amortization expense of capitalized costs | $ 488 | $ 256 |
Investments - Summary of Fair v
Investments - Summary of Fair value of Company's Financial Assets (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value measurements | ||
Total financial assets | $ 602,617 | $ 291,676 |
U.S. Treasury Instruments | ||
Fair value measurements | ||
Cash and cash equivalents | 301,992 | 15,599 |
Investments in securities | 200,973 | 172,671 |
Warrants | ||
Fair value measurements | ||
Investments in securities | 684 | |
Money Market Securities | ||
Fair value measurements | ||
Cash and cash equivalents | 83,004 | 103,406 |
Common Stock | ||
Fair value measurements | ||
Investments in securities | 15,964 | |
Level 1 | ||
Fair value measurements | ||
Total financial assets | 16,648 | |
Level 1 | Warrants | ||
Fair value measurements | ||
Investments in securities | 684 | |
Level 1 | Common Stock | ||
Fair value measurements | ||
Investments in securities | 15,964 | |
Level 2 | ||
Fair value measurements | ||
Total financial assets | 585,969 | 291,676 |
Level 2 | U.S. Treasury Instruments | ||
Fair value measurements | ||
Cash and cash equivalents | 301,992 | 15,599 |
Investments in securities | 200,973 | 172,671 |
Level 2 | Money Market Securities | ||
Fair value measurements | ||
Cash and cash equivalents | $ 83,004 | $ 103,406 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments | |||
Investments at fair value, cost basis | $ 220,422 | $ 172,640 | |
Dividends received | 3,356 | 1,942 | $ 2,848 |
Gain from sale of equity method investment | 20,714 | ||
Investment gains on share issuances | 9,917 | ||
Corporate Joint Venture | |||
Schedule of Investments | |||
Dividends received | 3,356 | 1,942 | $ 2,848 |
Equity method investments | 43,825 | 38,143 | |
Common Stock | |||
Schedule of Investments | |||
Unrealized gains (losses) on equity securities | $ (2,788) | 0 | |
Common Stock shares sold | 6 | 20.5 | |
Gain from sale of equity method investment | $ 20,174 | $ 20,714 | |
Atlas Crest Sponsors | |||
Schedule of Investments | |||
Investments at fair value, cost basis | $ 1,895 | $ 887 |
Income Taxes - Schedule of U.S.
Income Taxes - Schedule of U.S. and Non-U.S. Components of Income (Loss) Before Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. and non-U.S. components of income (loss) before income tax expense: | |||
U.S. | $ 468,725 | $ 264,047 | $ 156,983 |
Non-U.S. | 67,588 | 6,066 | (9,478) |
Income (loss) before income taxes | $ 536,313 | $ 270,113 | $ 147,505 |
Income Taxes - Schedule of Curr
Income Taxes - Schedule of Current and Deferred Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income taxes: | |||
Federal | $ 63,979 | $ 8,207 | $ 4,527 |
State and Local | 15,875 | 2,955 | 3,212 |
Foreign | 10,619 | 1,517 | 409 |
Total | 90,473 | 12,679 | 8,148 |
Deferred income taxes: | |||
Federal | 20,811 | 31,773 | 3,084 |
State and Local | 4,295 | 7,122 | 613 |
Foreign | (2,244) | 101 | (32) |
Income Tax Expense (Benefit), Total | $ 113,335 | $ 51,675 | $ 11,813 |
Income Taxes - Schedule of Appr
Income Taxes - Schedule of Appropriate Statutory Rate to Income Before Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of federal statutory tax rates | |||
U.S. statutory tax rate | 21.00% | 21.00% | 21.00% |
Increase (decrease) due to state and local taxes | 3.60% | 3.70% | 4.30% |
Rate benefit as a U.S. limited partnership/flow through | (2.30%) | (3.10%) | (4.40%) |
Excess tax benefit from equity compensation delivery | (3.40%) | (2.60%) | (11.90%) |
Foreign taxes | 1.30% | 0.00% | (0.40%) |
Non-deductible expenses | 2.20% | 1.10% | 0.80% |
Other | (1.30%) | (1.00%) | (1.40%) |
Effective income tax rate | 21.10% | 19.10% | 8.00% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant components of deferred tax assets and liabilities: | ||
Net operating loss | $ 9,867 | $ 9,751 |
Step-up in tax basis in Group LP assets | 384,080 | 369,216 |
Deferred compensation | 63,778 | 56,628 |
Lease liability | 43,479 | 43,214 |
Other | 12,631 | |
Gross | 513,835 | 478,809 |
Valuation allowance on NOL and other | (18,368) | (10,445) |
Deferred tax asset | 495,467 | 468,364 |
Right-of-use asset | (37,117) | (38,862) |
Other | (10,227) | (5,157) |
Deferred tax liability | (47,344) | (44,019) |
Net deferred tax asset | $ 448,123 | $ 424,345 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||||
Increase in the net deferred tax asset | $ 22,249 | $ 23,778 | ||
Unrecognized tax benefits | 0 | $ 0 | $ 0 | |
Percentage of portion of deferred tax asset payable to exchanging partners | 85.00% | |||
Portion of deferred tax asset payable to exchanging partners | $ 18,912 | |||
Portion of deferred tax asset payable to exchanging partners, period | 15 years | |||
Foreign | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 38,989 | |||
Deferred tax assets for foreign operating loss carryforwards | 9,867 | |||
Operating loss carryforwards with indefinite life | 38,836 | |||
Deferred tax assets for operating loss carryforwards for indefinite life | 9,828 | |||
Operating loss carryforwards which expire in 2027 | 153 | |||
Deferred tax assets for operating loss carryforwards which expire in 2027 | $ 39 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Class A Common Shareholders - Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) attributable to holders of shares of Class A common stock—basic | $ 365,213 | $ 178,831 | $ 105,095 |
Class A Common Stock | |||
Numerator: | |||
Net income (loss) attributable to holders of shares of Class A common stock—basic | 365,213 | 178,831 | 105,095 |
Add (deduct) dilutive effect of: | |||
Net income (loss) attributable to holders of shares of Class A common stock—diluted | $ 365,213 | $ 178,831 | $ 105,095 |
Denominator: | |||
Weighted average shares of Class A common stock outstanding—basic | 63,125,497 | 56,566,645 | 50,373,874 |
Add (deduct) dilutive effect of: | |||
Weighted average number of incremental shares issuable from unvested RSUs and stock options, as calculated using the treasury stock method | 5,310,082 | 4,156,720 | 5,139,275 |
Weighted average shares of Class A common stock outstanding—diluted | 68,435,579 | 60,723,365 | 55,513,149 |
Net income (loss) per share attributable to holders of shares of Class A common stock | |||
Basic (in dollars per share) | $ 5.79 | $ 3.16 | $ 2.09 |
Diluted (in dollars per share) | $ 5.34 | $ 2.95 | $ 1.89 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Class A Common Shareholders - Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Details) - Class A Common Stock - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share Basic [Line Items] | |||
Number of shares of common stock to be issued upon exchange of a partnership unit | 1 | ||
Fully diluted shares of common stock outstanding if all Class A partnership units were to be exchanged for common stock immediately following the reorganization | 76,040,864 | 71,950,031 | 68,516,397 |
Restricted Stock and RSUs | |||
Earnings Per Share Basic [Line Items] | |||
Number of antidilutive securities excluded from calculation of diluted income (loss) per share | 289 | 5,475 | 64,676 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 93 Months Ended | ||||||
Apr. 30, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2014 | Dec. 31, 2021 | Apr. 30, 2020 | Dec. 31, 2018 | Nov. 09, 2014 | |
Equity-Based Compensation | |||||||||
Compensation expenses | $ 167,938 | $ 133,583 | $ 123,395 | ||||||
RSUs and Other Stock-based Awards | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 5 years | ||||||||
Total compensation expense not yet recognized | $ 129,547 | $ 129,547 | |||||||
Weighted average period to recognize compensation expense | 1 year 6 months | ||||||||
Grants (in shares) | 395,834 | ||||||||
Grant-date fair value | $ 21,672 | ||||||||
RSUs and Other Stock-based Awards | Minimum | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 4 years | ||||||||
RSUs and Other Stock-based Awards | Maximum | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 5 years | ||||||||
Stock Options | |||||||||
Equity-Based Compensation | |||||||||
Compensation expenses | $ 0 | $ 0 | $ 606 | ||||||
Stock options remain outstanding | 728,534 | 0 | 2,017,067 | ||||||
Vesting period | 5 years | ||||||||
Grants (in shares) | 3,501,881 | ||||||||
Special dividends paid (in dollars per share) | $ 9.05 | ||||||||
Reduction to exercise price of options outstanding due to special dividend paid (in dollars per share) | 9.05 | ||||||||
Exercise price (in dollars per share) | $ 15.95 | $ 15.95 | $ 15.95 | $ 15.95 | $ 25 | ||||
Class A Common Stock | |||||||||
Equity-Based Compensation | |||||||||
Number of shares of common stock to be issued upon exchange of a partnership unit | 1 | 1 | |||||||
Class A Common Stock | RSUs and Other Stock-based Awards | |||||||||
Equity-Based Compensation | |||||||||
Number of shares of common stock to be issued upon exchange of a partnership unit | 1 | 1 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Activity Related to RSUs (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
Unvested Balance at the beginning of the year | 8,742,695 | 8,414,130 | 8,761,224 |
Granted | 3,875,588 | 4,456,157 | 4,384,073 |
Forfeited | (432,846) | (149,592) | (273,698) |
Vested | (4,117,317) | (3,978,000) | (4,457,469) |
Unvested Balance at the end of the year | 8,068,120 | 8,742,695 | 8,414,130 |
Weighted Average Grant Date Fair Value | |||
Unvested Balance at the beginning of the year | $ 41.45 | $ 42.19 | $ 37.59 |
Granted | 54.84 | 37.58 | 44.59 |
Forfeited | 47.31 | 40.73 | 45.22 |
Vested | 42.56 | 39.01 | 34.63 |
Unvested Balance at the end of the year | $ 46.36 | $ 41.45 | $ 42.19 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Assumptions Used to Estimate the Fair Value of Stock Option Using Black-Scholes Valuation Model (Details) | 12 Months Ended |
Dec. 31, 2021$ / shares | |
Assumptions Used to Estimate Fair Value | |
Expected life (in years) | 6 years |
Weighted-average risk free interest rate | 1.91% |
Expected volatility | 35.00% |
Dividend yield | 2.72% |
Weighted-average fair value at grant date | $ 6.70 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Summary of Activity Related to Stock Options (Details) - Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number Outstanding | ||
Outstanding at January 1, | 728,534 | 2,017,067 |
Exercises | (728,534) | (1,285,533) |
Forfeitures or expirations | (3,000) | |
Outstanding at December 31, | 728,534 | |
Weighted-Average Exercise Price Per Share | ||
Outstanding at January 1, | $ 15.95 | $ 15.95 |
Exercises | $ 15.95 | 15.95 |
Forfeitures or expirations | 15.95 | |
Outstanding at December 31, | $ 15.95 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2014 | Apr. 30, 2014shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Jul. 31, 2021USD ($) | Feb. 28, 2019USD ($) | |
Class Of Stock [Line Items] | |||||||
Treasury stock, shares | 5,873,180 | 3,959,083 | |||||
Treasury stock shares acquired (in shares) | 1,914,097 | 1,201,525 | |||||
Treasury stock shares acquired | $ | $ 104,150 | $ 44,334 | $ 51,175 | ||||
Number of units held by noncontrolling interest holders | 6,090,500 | 8,508,857 | |||||
Group LP | |||||||
Class Of Stock [Line Items] | |||||||
Noncontrolling interests (as a percent) | 9.00% | 13.00% | |||||
Class A Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate stock issuance (in shares) | 15,263,653 | ||||||
Increase in shares outstanding | 24,923,349 | ||||||
Common stock, shares issued | 68,518,779 | 61,986,927 | |||||
Treasury stock, shares | 5,873,180 | 3,959,083 | |||||
Common stock, shares outstanding | 62,645,599 | 58,027,844 | |||||
Number of shares of common stock to be issued upon exchange of a partnership unit | 1 | ||||||
Class A Common Stock | Share Repurchase Plan | |||||||
Class Of Stock [Line Items] | |||||||
Share value authorized for repurchase | $ | $ 100,000 | $ 100,000 | |||||
Value of remaining shares authorized for repurchase | $ | $ 148,101 | ||||||
Class A Common Stock | Group LP | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, shares outstanding | 62,645,599 | 58,027,844 | |||||
Class B Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Increase in shares outstanding | 36,158,698 | ||||||
Common stock, shares issued | 4,686,344 | 5,948,750 | |||||
Common stock, shares outstanding | 4,686,344 | 5,948,750 | |||||
Ratio of subscription price to the initial public offering price of shares of common stock | 0.00055 | ||||||
Dividends payable ratio to outstanding shares of publicly traded common stock | 0.00055 | ||||||
Stock purchased | 24,919,744 | ||||||
Purchase cost | $ | $ 550 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related-party transactions | |||
Compensation and benefits expense related to tranche of promissory note | $ 913,909 | $ 560,803 | $ 488,439 |
Unsecured Promissory Notes | |||
Related-party transactions | |||
Compensation and benefits expense related to tranche of promissory note | 100 | ||
Manager | Aircraft Lease Entered into During August 2014 | |||
Related-party transactions | |||
Expenses | 1,295 | 1,295 | 1,674 |
Employees | |||
Related-party transactions | |||
Unsecured promissory notes from employees | 219 | 389 | |
Employees | Unsecured Promissory Notes | |||
Related-party transactions | |||
Principal repayments | 70 | 0 | 0 |
Interest income recognized | $ 11 | 12 | 8 |
Employees | Minimum | Unsecured Promissory Notes | |||
Related-party transactions | |||
Interest rates (as a percent) | 3.00% | ||
Employees | Maximum | Unsecured Promissory Notes | |||
Related-party transactions | |||
Interest rates (as a percent) | 4.00% | ||
Moelis Asset Management LP | |||
Related-party transactions | |||
Fee for services | $ 220 | 296 | 248 |
Due from related party | 0 | 0 | |
Revenue from related parties | 30,346 | 0 | $ 210 |
Atlas Crest Entities | |||
Related-party transactions | |||
Fee for services | 200 | 20 | |
Due from related party | 0 | 0 | |
Fee for services peer month | 10 | ||
Corporate Joint Venture | |||
Related-party transactions | |||
Due to related party | $ 0 | $ 5 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Regulatory Requirements | ||
Minimum net capital requirement | $ 250 | |
U.S. Broker Dealer | ||
Regulatory Requirements | ||
Net capital | 180,342 | $ 96,800 |
Net capital in excess of required net capital | $ 180,092 | $ 96,550 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | May 24, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Bank line of credit | |||
Available credit under the facility | $ 64,235,000 | ||
Revolving Credit Facility | |||
Bank line of credit | |||
Fixed rate of interest (as a percent) | 3.50% | ||
Borrowings under the credit facility | $ 0 | $ 0 | |
Standby Letters of Credit | |||
Bank line of credit | |||
Letters of credit outstanding | $ 765,000 | ||
Fee on the outstanding balances (as a percent) | 1.00% | ||
Revolving Credit Facility Due at May 24, 2023 | |||
Bank line of credit | |||
Commitment amount | $ 30,000,000 | ||
Maturity date | May 24, 2023 | ||
Reference rate (as a percent) | Prime rate | ||
Borrowings under the credit facility | $ 0 | ||
Line of credit facility credit period to borrow capital | May 24, 2022 | ||
Line of credit facility, frequency of payments | quarterly | ||
Available credit under the facility | $ 30,000,000 | ||
LIBOR | Revolving Credit Facility | |||
Bank line of credit | |||
Interest rate margin (as a percent) | 1.00% | ||
Reference rate (as a percent) | LIBOR | ||
Prime | Revolving Credit Facility | |||
Bank line of credit | |||
Interest rate margin (as a percent) | (1.50%) | ||
Reference rate (as a percent) | Prime | ||
Secured Bank Line of Credit | |||
Bank line of credit | |||
Commitment amount | $ 65,000,000 | ||
Minimum days to issue termination notice | 60 days | ||
Maturity date | Jun. 30, 2023 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Additional Leases Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Income Statement Information: | |||
Operating lease cost | $ 24,550 | $ 26,669 | $ 16,980 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Net operating cash outflows for operating leases | 16,278 | 17,957 | 19,373 |
Right-of-use assets obtained in exchange for lease obligations (e.g. new leases and amendments commenced during the period): | $ 4,731 | $ 7,062 | $ 160,657 |
Other Information | |||
Weighted-average remaining lease term - operating leases | 13 years 3 months 10 days | 13 years 8 months 19 days | 14 years 10 days |
Weighted-average discount rate - operating leases | 3.52% | 3.52% | 3.53% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Future Minimum Rental Payments Required Under Operating Leases in Place (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Sublease Income | ||
2022 | $ (903) | |
2023 | (903) | |
2024 | (903) | |
2025 | (451) | |
Total payments | (3,160) | |
Operating Lease Payments | ||
2022 | 23,030 | |
2023 | 22,022 | |
2024 | 20,130 | |
2025 | 17,401 | |
2026 | 16,307 | |
Thereafter | 162,584 | |
Total payments | 261,474 | |
Less: Tenant improvement allowances | (14,303) | |
Less: Present value adjustment | (55,281) | |
Operating Lease, Liability | $ 191,890 | $ 196,614 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Minimum age required to be eligible to participate in the 401(k) plan | 21 years | ||
Expenses accrued relating to employer matching contributions | $ 3,989 | $ 3,111 | $ 2,860 |
Revenues and Business Informa_3
Revenues and Business Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Item | Dec. 31, 2020USD ($)Item | Dec. 31, 2019Item | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Deferred revenue | $ 4,539 | $ 2,692 | |
Revenues recognized from opening balance of deferred revenues | $ 2,558 | $ 2,354 | |
Client | Revenue | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Number of clients | Item | 0 | 0 | 0 |
Revenues and Business Informa_4
Revenues and Business Information - Schedule of Geographical Distribution of Revenues and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 1,540,611 | $ 943,276 | $ 746,534 |
Total assets | 1,555,681 | 1,196,444 | |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 1,312,792 | 794,337 | 635,787 |
Total assets | 1,356,193 | 1,012,831 | |
Europe | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 157,158 | 92,660 | 78,842 |
Total assets | 92,605 | 78,470 | |
Rest of World | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 70,661 | 56,279 | $ 31,905 |
Total assets | $ 106,883 | $ 105,143 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Feb. 23, 2022$ / shares |
Subsequent Event [Line Items] | |
Dividends declared per share | $ 0.60 |
Dividend payable date | Mar. 28, 2022 |
Dividend payable record date | Feb. 22, 2022 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in valuation and qualifying accounts | |||
Balance at beginning of period | $ 3,775 | $ 4,088 | $ 1,975 |
Additions: | |||
Bad debt expense | 2,026 | 2,544 | 2,399 |
Deductions: | |||
Charge-offs foreign currency translation and other adjustments | (2,978) | (2,857) | (286) |
Balance at end of period | $ 2,823 | $ 3,775 | $ 4,088 |