Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 13, 2019 | Jun. 30, 2018 | |
Entity Registrant Name | Moelis & Co | ||
Entity Central Index Key | 1,596,967 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,340 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 45,557,272 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 10,493,358 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 261,100 | $ 213,191 |
Restricted cash | 671 | 703 |
Receivables: | ||
Accounts receivable, net of allowance for doubtful accounts of $1,975 and $1,433 as of December 31, 2018 and December 31, 2017, respectively | 54,412 | 56,725 |
Accrued and other receivables | 14,199 | 4,868 |
Total receivables | 68,611 | 61,593 |
Deferred compensation | 8,788 | 8,848 |
Investments at fair value (cost basis $80,717 and $96,351 as of December 31, 2018 and December 31, 2017, respectively) | 80,650 | 96,108 |
Equity method investment | 63,274 | 58,848 |
Equipment and leasehold improvements, net | 12,731 | 10,458 |
Deferred tax asset | 402,859 | 234,000 |
Prepaid expenses and other assets | 15,691 | 15,319 |
Total assets | 914,375 | 699,068 |
Liabilities and Equity | ||
Compensation payable | 197,741 | 145,152 |
Accounts payable and accrued expenses | 19,784 | 18,323 |
Amount due pursuant to tax receivable agreement | 311,246 | 177,148 |
Deferred revenue | 7,074 | 4,948 |
Other liabilities | 6,777 | 9,241 |
Total liabilities | 542,622 | 354,812 |
Commitments and Contingencies (See Note 13) | ||
Treasury stock, at cost; 1,426,115 and 707,416 shares as of December 31, 2018 and December 31, 2017, respectively | (56,661) | (23,188) |
Additional paid-in-capital | 697,938 | 487,163 |
Retained earnings (accumulated deficit) | (237,782) | (139,918) |
Accumulated other comprehensive income (loss) | 291 | 352 |
Total Moelis & Company equity | 404,361 | 324,950 |
Noncontrolling interests | (32,608) | 19,306 |
Total equity | 371,753 | 344,256 |
Total liabilities and equity | 914,375 | 699,068 |
Class A Common Stock | ||
Liabilities and Equity | ||
Common stock, par value $0.01 per share | 470 | 342 |
Total equity | 470 | 342 |
Class B Common Stock | ||
Liabilities and Equity | ||
Common stock, par value $0.01 per share | 105 | 199 |
Total equity | $ 105 | $ 199 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 1,975 | $ 1,433 |
Investments at fair value, cost basis | $ 80,717 | $ 96,351 |
Treasury stock, shares | 1,426,115 | 707,416 |
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 | 47,031,095 | 34,163,042 |
Common stock, shares outstanding | 45,604,980 | 33,455,626 |
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 | 10,493,358 | 19,912,230 |
Common stock, shares outstanding | 10,493,358 | 19,912,230 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 885,840 | $ 684,615 | $ 613,373 |
Expenses | |||
Compensation and benefits | 513,863 | 401,384 | 360,893 |
Occupancy | 18,952 | 17,101 | 18,696 |
Professional fees | 25,311 | 19,954 | 12,574 |
Communication, technology and information services | 29,747 | 25,173 | 22,025 |
Travel and related expenses | 42,264 | 30,634 | 20,570 |
Depreciation and amortization | 4,625 | 3,544 | 3,183 |
Other expenses | 24,297 | 22,543 | 14,343 |
Total expenses | 659,059 | 520,333 | 452,284 |
Operating income (loss) | 226,781 | 164,282 | 161,089 |
Other income and (expenses) | 4,509 | 177,728 | 509 |
Income (loss) from equity method investments | 7,162 | 8,341 | 5,076 |
Income (loss) before income taxes | 238,452 | 350,351 | 166,674 |
Provision for income taxes | 30,448 | 223,827 | 24,809 |
Net income (loss) | 208,004 | 126,524 | 141,865 |
Net income (loss) attributable to noncontrolling interests | 67,324 | 97,124 | 103,478 |
Net income (loss) attributable to Moelis & Company | 140,680 | 29,400 | 38,387 |
Class A Common Stock | |||
Expenses | |||
Net income (loss) attributable to Moelis & Company | $ 140,680 | $ 29,400 | $ 38,387 |
Weighted-average shares of Class A common stock outstanding | |||
Basic (in shares) | 43,216,358 | 30,597,058 | 20,933,757 |
Diluted (in shares) | 50,690,528 | 37,675,511 | 24,242,302 |
Net income (loss) per share attributable to holders of shares of Class A common stock | |||
Basic (in dollars per share) | $ 3.26 | $ 0.96 | $ 1.83 |
Diluted (in dollars per share) | $ 2.78 | $ 0.78 | $ 1.58 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 208,004 | $ 126,524 | $ 141,865 |
Unrealized gain (loss) on investments | (465) | (249) | |
Foreign currency translation adjustment, net of tax | (453) | 2,292 | (1,485) |
Other comprehensive income (loss) | (453) | 1,827 | (1,734) |
Comprehensive income (loss) | 207,551 | 128,351 | 140,131 |
Less: Comprehensive income attributable to noncontrolling interests | 67,249 | 98,056 | 102,395 |
Comprehensive income (loss) attributable to Moelis & Company | $ 140,302 | $ 30,295 | $ 37,736 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income (loss) | $ 208,004 | $ 126,524 | $ 141,865 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Bad debt expense | 1,044 | 2,895 | (277) |
Depreciation and amortization | 4,625 | 3,544 | 3,183 |
(Income) loss from equity method investments | (7,162) | (8,341) | (5,076) |
Equity-based compensation | 123,037 | 96,295 | 77,050 |
Deferred tax provision | 6,538 | 191,697 | (1,014) |
Gain on equity method investment | (41,652) | ||
Gain/(Loss) on remeasurement of amount due pursuant to tax receivable agreement | (134,665) | ||
Other | 3,284 | 6,909 | 2,204 |
Changes in assets and liabilities: | |||
Accounts receivable | 963 | (35,607) | 5,536 |
Accrued and other receivables | (6,036) | 2,220 | 3,562 |
Prepaid expenses and other assets | (610) | (5,388) | 1,872 |
Deferred compensation | 22 | (61) | 167 |
Compensation payable | 53,083 | 11,853 | 10,739 |
Accounts payable and accrued expenses | 1,691 | 3,611 | (6,219) |
Deferred revenue | 2,126 | 1,975 | (4,018) |
Dividends received | 2,737 | 11,672 | 1,416 |
Other liabilities | (2,457) | (298) | 584 |
Net cash provided by (used in) operating activities | 390,889 | 233,183 | 231,574 |
Cash flows from investing activities | |||
Purchase of investments | (183,972) | (179,807) | (120,906) |
Proceeds from sales of investments | 199,810 | 115,640 | 126,000 |
Return of capital from equity method investments | 11 | ||
Note payments received from employees | 366 | 781 | |
Notes issued to employees | (400) | (852) | |
Purchase of equipment and leasehold improvements | (6,920) | (5,647) | (2,870) |
Net cash provided by (used in) investing activities | 9,284 | (69,433) | 1,383 |
Cash flows from financing activities | |||
Dividends and distributions | (313,827) | (255,694) | (154,703) |
Payments under tax receivable agreement | (10,994) | (10,386) | |
Proceeds from exercise of stock options | 6,846 | 6,055 | |
Treasury Stock Purchases | (33,473) | (12,258) | (3,314) |
Class A partnership units and other equity purchased | (293) | (229) | |
Net cash provided by (used in) financing activities | (351,741) | (272,512) | (158,017) |
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash | (555) | 3,071 | (4,196) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 47,877 | (105,691) | 70,744 |
Cash, cash equivalents, and restricted cash, beginning of period | 213,894 | 319,585 | 248,841 |
Cash, cash equivalents, and restricted cash, end of period | 261,771 | 213,894 | 319,585 |
Cash paid during the period for: | |||
Income taxes | 23,491 | 31,837 | 28,613 |
Dividends paid, declared in the prior year | 68,066 | ||
Other non-cash activity | |||
Dividend equivalents issued | 49,601 | 24,657 | 23,367 |
Dividend declared not paid | 68,066 | ||
Class A Partnership Units or other equity converted into Class A Common Stock | 30,901 | 55,901 | 835 |
Cumulative Effect Adjustment upon Adoption of ASU 2014-09 | 3,155 | ||
Cumulative Effect Adjustment upon Adoption of ASU 2016-09 | 658 | ||
Forfeiture of fully-vested Group LP units or other equity units | $ 677 | $ 36 | $ 83 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Balance at beginning of the period at Dec. 31, 2015 | $ 257,418 | $ 205 | $ 312 | $ (7,616) | $ 190,703 | $ (15,338) | $ 108 | $ 89,044 |
Balance at beginning of the period (in shares) at Dec. 31, 2015 | 20,536,740 | 31,229,236 | (263,622) | |||||
Changes in Equity | ||||||||
Net income (loss) | 141,865 | 38,387 | 103,478 | |||||
Equity-based compensation | 77,050 | $ 4 | 73,914 | 3,132 | ||||
Equity-based compensation (in shares) | 308,720 | (2,132) | ||||||
Other comprehensive income (loss) | (1,734) | (651) | (1,083) | |||||
Dividends declared and distributions | (222,769) | 23,367 | (91,278) | (154,858) | ||||
Treasury stock purchases | (3,314) | $ (3,314) | ||||||
Treasury stock purchases (in shares) | (124,268) | |||||||
Class A Partnership Units and other equity purchased or converted to Class A Common stock | 835 | $ 1 | $ (1) | 952 | (117) | |||
Class A Partnership units and other equity purchased or converted into Class A Common Stock (in shares) | 103,538 | (88,911) | ||||||
Net excess tax benefit (detriment) from equity-based compensation | (62) | (62) | ||||||
Other | 2,152 | 2,152 | ||||||
Balance at end of the period at Dec. 31, 2016 | 251,441 | $ 210 | $ 311 | $ (10,930) | 291,026 | (68,229) | (543) | 39,596 |
Balance at end of the period (in shares) at Dec. 31, 2016 | 20,948,998 | 31,138,193 | (387,890) | |||||
Cumulative Effect Adjustment upon Adoption of ASU (ASU 2016-09) at Dec. 31, 2016 | 658 | 4,855 | (4,197) | |||||
Balance at beginning of the period, as adjusted at Dec. 31, 2016 | 252,099 | $ 210 | $ 311 | $ (10,930) | 295,881 | (72,426) | (543) | 39,596 |
Changes in Equity | ||||||||
Net income (loss) | 126,524 | 29,400 | 97,124 | |||||
Equity-based compensation | 96,295 | $ 17 | 94,141 | 2,137 | ||||
Equity-based compensation (in shares) | 1,708,826 | |||||||
Other comprehensive income (loss) | 1,827 | 895 | 932 | |||||
Other comprehensive income (loss) | ASU 2016-01 | 317 | |||||||
Dividends declared and distributions | (187,628) | 24,657 | (96,892) | (115,393) | ||||
Treasury stock purchases | $ (12,258) | $ (12,258) | ||||||
Treasury stock purchases (in shares) | (319,526) | (319,526) | ||||||
Exercise of Stock options | $ 6,055 | $ 3 | 6,052 | |||||
Exercise of stock options (in shares) | 279,277 | |||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges | 55,672 | $ 112 | $ (112) | 60,762 | (5,090) | |||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares) | 11,226,067 | (11,225,963) | ||||||
Equity-based payments to non-employees | 5,615 | 5,615 | ||||||
Other | 55 | 55 | ||||||
Other (in shares) | (126) | |||||||
Balance at end of the period at Dec. 31, 2017 | 344,256 | $ 342 | $ 199 | $ (23,188) | 487,163 | (139,918) | 352 | 19,306 |
Balance at end of the period (in shares) at Dec. 31, 2017 | 34,163,042 | 19,912,230 | (707,416) | |||||
Cumulative Effect Adjustment upon Adoption of ASU (ASU 2014-09) at Dec. 31, 2017 | 3,155 | 3,155 | ||||||
Cumulative Effect Adjustment upon Adoption of ASU (ASU 2016-01) at Dec. 31, 2017 | (317) | 317 | ||||||
Balance at beginning of the period, as adjusted at Dec. 31, 2017 | 347,411 | $ 342 | $ 199 | $ (23,188) | 487,163 | (137,080) | 669 | 19,306 |
Changes in Equity | ||||||||
Net income (loss) | 208,004 | 140,680 | 67,324 | |||||
Equity-based compensation | 123,037 | $ 31 | 121,883 | 1,123 | ||||
Equity-based compensation (in shares) | 3,123,395 | |||||||
Other comprehensive income (loss) | (453) | (378) | (75) | |||||
Dividends declared and distributions | (313,827) | 49,601 | (241,382) | (122,046) | ||||
Treasury stock purchases | $ (33,473) | $ (33,473) | ||||||
Treasury stock purchases (in shares) | (718,699) | (718,699) | ||||||
Exercise of Stock options | $ 6,846 | $ 3 | 6,843 | |||||
Exercise of stock options (in shares) | 351,904 | |||||||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges | 30,608 | $ 94 | $ (94) | 28,171 | 2,437 | |||
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares) | 9,392,754 | (9,392,754) | ||||||
Equity-based payments to non-employees | 4,277 | 4,277 | ||||||
Other | (677) | (677) | ||||||
Other (in shares) | (26,118) | |||||||
Balance at end of the period at Dec. 31, 2018 | $ 371,753 | $ 470 | $ 105 | $ (56,661) | $ 697,938 | $ (237,782) | $ 291 | $ (32,608) |
Balance at end of the period (in shares) at Dec. 31, 2018 | 47,031,095 | 10,493,358 | (1,426,115) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class A Common Stock | |||
Dividends declared per share of Class A common stock | $ 4.88 | $ 2.48 | $ 3.29 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
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 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, governments and financial sponsors, 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 (“Moelis U.S.”), 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 International Holdings LLC (“Moelis International”), a Delaware limited liability company, owns the following entities and investments: • 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 UK LLP, French Branch (French branch) • 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 Hong Kong Moelis & Company Asia Limited Beijing Representative Office, as well as having a wholly‑owned Chinese subsidiary, Moelis & Company Consulting (Beijing) Company Limited. • 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. • An equity method investment in Moelis Australia Limited (“Moelis Australia”), a public company listed on the Australian Securities Exchange. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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. Consolidation —The Company’s policy is to consolidate (i) entities, other than limited partnerships, 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. 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 doubtful accounts; • the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal; • the measurement and realization of deferred taxes; • the measurement of amount due pursuant to tax receivable agreement; • the measurement and vesting of equity‑based compensation; and • other matters that affect the reported amounts and disclosures of contingencies in the 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, government securities money markets and government debt securities. Effective January 1, 2018, the Company adopted ASU 2016-18 which requires restricted cash to be included in the beginning and ending balances of cash and cash equivalents within the consolidated statement of cash flows. As a result, the beginning and ending balances of the prior period in the consolidated statement of cash flows has been adjusted to include restricted cash. 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 medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2018 and 2017, is presented below. December 31, 2018 2017 Cash $ 59,705 $ 86,032 Cash equivalents 201,395 127,159 Restricted cash 671 703 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 261,771 $ 213,894 Receivables —The accompanying consolidated statements of financial condition present accounts receivable balances net of allowance for doubtful accounts based on the Company’s assessment of the collectability of customer accounts. Included in the accounts receivable balances at December 31, 2018 and 2017 were $26,738 and $9,586 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 $653, $408 and $263 for the years ended December 31, 2018, 2017 and 2016, respectively. The Company maintains an allowance for doubtful accounts that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable, and the current economic conditions that may affect a customer’s ability to pay such amounts owed to the Company. After concluding that a reserved accounts receivable is no longer collectible, the Company will charge‑off the receivable. This is determined based on several factors including the age of the accounts receivable and the credit worthiness of the customer. This has the effect of reducing both the gross receivable and the allowance for doubtful accounts. 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) 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 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 are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management. 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. For level 3 investments in which pricing inputs are unobservable and limited market activity exists, management’s determination of fair value is based on the best information available, may incorporate management’s own assumptions and involves a significant degree of judgment. Effective January 1, 2018, the Company adopted ASU 2016-01, “Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) using the modified retrospective approach. As a result, a cumulative adjustment was recorded which decreased retained earnings and increased accumulated other comprehensive income by $317. The adjustment is related to the accumulated unrealized losses in fair value of an equity investment as of December 31, 2017. No prior periods were adjusted as a result of this change in accounting policy. The adoption of ASU 2016-01 requires that changes in fair value of equity investments measured at fair value be recognized in net income prospectively. For each period where a consolidated statement of operations is presented, the Company will disclose the portion of realized and/or unrealized gains and losses related to equity investments held at the reporting date or sold during the period. Effective September 30, 2018, the Company early adopted ASU 2018-13, “Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value”. As a result, the Company removed its disclosures of the amounts of and reasons for transfers between level 1 and level 2 fair value investments. Level 3 fair value investments that are acquired in the future will not require disclosures of the valuation process but will require disclosure of unrealized gains and losses and the range and weighted average of significant unobservable inputs used to determine the fair value of the level 3 investment. 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 on the consolidated financial statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investments. The Company reflects its share of gains and losses of the investment in income (loss) from equity method investments in the consolidated statements of operations. Certain adjustments have been made to account for the Company’s equity method investment in Moelis Australia under US GAAP as Moelis Australia follows local accounting principles under Australian Accounting Standards. 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. 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 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. Revenue and Expense Recognition — We earn substantially all of our revenues from advisory engagements and, in many cases, we are not paid until the completion of an underlying transaction. The Company recognizes revenues from providing advisory services when or as our obligations are fulfilled and collection is reasonably assured. The vast majority of our advisory revenues, which include reimbursements for certain out-of-pocket expenses, are recognized over time; however, a small number of transactions may be recognized at a point in time. We provide our advisory service on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. During such engagements, our clients are continuously benefitting from our counsel and the over time recognition matches the transfer of such benefits. However, the recognition of transaction fees is constrained until substantially all services have been provided, specified conditions have been met and it is probable that a revenue reversal 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. Revenues may be recognized at a point in time if the engagement represents a singular objective that does not transfer any notable value until formally completed, such as when issuing a fairness opinion. In these instances, the 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. Adoption of ASU 2014-09 Effective January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers”, and all related amendments (“Topic 606”) using the modified retrospective method for all contracts. The adoption of the new standard requires the Company to present reimbursable expenses gross in revenues and expenses and to use new revenue recognition patterns as discussed below in the policy. Prior to adoption, client expenses were recorded net of reimbursements. As a result, a cumulative adjustment was recorded which increased the opening balance of accrued and other receivables and retained earnings by $3,722 for outstanding reimbursable expenses at December 31, 2017, which would have been recognized as revenues under the new standard. The tax effect of this adjustment decreased retained earnings by $567, resulting in a net increase to the opening balance of retained earnings of $3,155. No prior periods were adjusted as a result of this change in accounting policy. The adoption of Topic 606 may result in the recognition of revenue in certain circumstances earlier as compared with the time prior to the adoption of Topic 606 where revenues were generally recognized upon the closing date of a transaction. In contrast, Topic 606 requires revenues from variable transaction fees to be recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period. Revenues subject to this timing difference in recognition will require significant judgment and could be material to any given reporting period. For the twelve months ended December 31, 2018, there were revenues of $4,788 that met the criteria for recognition during the period although the transactions closed subsequent to the reporting period. For the twelve months ended December 31, 2018, there were $16,694 of reimbursable expenses recognized gross in revenues and expenses in accordance with Topic 606. Total compensation and benefits expense is determined by management primarily based on revenues earned, in addition to other performance and labor market conditions. Compensation and benefits expense has been adjusted in response to the adoption of Topic 606. The aforementioned adjustments had corresponding impacts to accrued and other receivables and compensation payable on our consolidated statement of financial condition. Equity‑based Compensation —The Company recognizes the cost of employee services received in exchange for an equity instrument award. 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. 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 dividend payment and a charge 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 award does not vest. The Company has a retirement plan whereby a retiring employee generally will not forfeit certain qualifying incentive RSUs granted during employment if at retirement the employee meets certain requirements. For qualifying awards issued prior to December 1, 2016, the employee must (i) be at least 54 years old and (ii) have provided at least 8 consecutive years of service to the Company. For qualifying awards issued on or after December 1, 2016, (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 prior to meeting the stated requisite service period or retirement eligibility date are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest. Effective January 1, 2017, the Company adopted a change in accounting policy in accordance with Accounting Standards Update 2016-09, “Compensation—Stock Compensation (Topic 718)” (“ASU 2016-09”) to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative decrease to retained earnings and an increase in additional paid-in capital (“APIC”) of $4,855 as of January 1, 2017. The tax effect of this adjustment increased deferred tax assets and retained earnings by $658. No prior periods were adjusted as a result of this change in accounting policy. 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 portion 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, 2018, 2017 and 2016, 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, 2018, 2017 and 2016, no such amounts were recorded. Prior to January 1, 2017, all excess tax benefits resulting from exercise or settlement of share-based payment transactions were recognized in APIC and any tax deficiencies were either offset against APIC, or were recognized in the income statement under certain conditions. Under ASU 2016-09, all excess tax benefits and deficiencies are recognized as income tax benefits or expenses in the consolidated statement of operations prospectively. Under ASU 2016-09, the Company is now required to present excess tax benefits and detriments as an operating activity in the same manner as other cash flows related to income taxes rather than as a financing activity. The Company adopted these changes retrospectively, and prior year excess tax benefits are now reflected in changes in prepaid expenses and other assets within the consolidated statement of cash flows. 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, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments will retain lease classifications, distinguishing finance leases from operating leases, using criteria that is substantially similar for distinguishing capital leases from operating leases in previous guidance. Upon adoption, the Company will record lease liabilities and right-of-use (“ROU”) assets measured at the net present value of future lease payments. The aggregate lease liability and ROU asset is projected to be approximately $60,000 to $65,000. We do not anticipate any material changes to our consolidated statements of operations due to the adoption of ASU 2016-02, as the Company is electing to adopt the practical expedient package available in transition which will preserve the existing lease classifications and expense profiles. In July 2018, the FASB also issued ASU No. 2018-11, “Leases” (“ASU 2018-11”). ASU 2018-11 allows entities the option to apply the requirements of ASU 2016-02 as of the adoption date, as opposed to the earliest comparative period presented. The Company anticipates it will apply ASU 2016-02 as of the date of adoption as permitted by ASU 2018-11. ASU 2016-02 and ASU 2018-11 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. ASU 2018-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. Upon initial evaluation, we do not anticipate any material changes to our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation—Stock Compensation” (“ASU 2018-07”). ASU 2018-07 simplifies accounting for share-based payment transactions resulting from acquiring goods and services from nonemployees. Awards granted to nonemployees after January 1, 2019, will be measured at grant date fair value, rather than fair value until settled. Upon adoption, any unsettled awards to nonemployees will be measured at fair value as of the adoption date. ASU 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. Upon initial evaluation, we do not anticipate any material changes to our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement” (“ASU 2018-13”). As of September 30, 2018, the Company has early adopted ASU 2018-13 and removed disclosures of the amounts of and reasons for transfers between level 1 and level 2 fair value investments. Level 3 fair value investments acquired in the future will not require disclosures of the valuation process but will require disclosure of unrealized gains and losses and the range and weighted average of significant unobservable inputs used to determine the fair value of the level 3 investment. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Method Investments | 4. EQUITY METHOD INVESTMENTS Moelis Australia On April 1, 2010, the Company entered into a 50-50 joint venture in Moelis Australia Holdings PTY Limited, investing a combination of cash and certain net assets in exchange for its interests. The remaining 50% was owned by an Australian trust established by and for the benefit of Moelis Australia senior executives. On April 10, 2017, Moelis Australia Holdings PTY Limited consummated their initial public offering and became listed on the Australian Securities Exchange as Moelis Australia Limited (ASX: MOE). As a result of the offering, the Company’s ownership interest in Moelis Australia was diluted to less than 50% and the Company recognized a gain of approximately $15,170 during the second quarter of 2017, recorded in other income and expenses on the consolidated statement of operations. Contemporaneous with the offering, Moelis Australia agreed to terminate an asset management related revenue sharing agreement resulting in a payment to a third party, of which the Company recognized a charge of approximately $2,400 in income (loss) from equity method investments during the second quarter of 2017. In connection with Moelis Australia’s initial public offering, the Company and Moelis Australia entered into a Strategic Alliance Agreement pursuant to which Moelis Australia continues to conduct its investment banking advisory business in Australia and New Zealand as an integrated part of the global advisory business of the Company. Also, in connection with the offering and new shareholders agreement, the Company and Moelis Australia terminated a put option enabling the key senior Australian executive to sell his shares held in Moelis Australia back to the Company, and a call option held by the Company to purchase additional shares in Moelis Australia. On March 20, 2017, Moelis Australia declared a dividend, of which the Company received $11,672 on April 18, 2017. The Company accounted for the dividend as a return on investment and reduced the carrying value of the investment in Moelis Australia by $11,672 on April 18, 2017. On September 13, 2017 and October 30, 2017, Moelis Australia completed offerings of 11,940,000 and 10,060,000 shares of common stock, respectively, to raise additional capital. The issuance of shares further reduced Moelis & Company’s ownership interest in Moelis Australia. These shares were issued at a fair value greater than the carrying value of the ownership interest disposed, resulting in gains of approximately $14,429 and $9,680, during the third and fourth quarter of 2017, respectively, recorded in other income on the consolidated statement of operations. Moelis Australia issued additional shares during 2017 related to acquisitions, which further reduced Moelis & Company’s ownership interest in Moelis Australia. The shares were issued at a fair value greater than the carrying value of the ownership interest disposed, resulting in gains of approximately $2,280 and $92, during the second and third quarter of 2017, respectively, recorded in other income and expenses on the consolidated statement of operations. On February 20, 2018, Moelis Australia declared a dividend, of which the Company received $2,737 on March 7, 2018. The Company accounted for the dividend as a return on investment and reduced the carrying value of the investment in Moelis Australia by $2,737. Summary financial information related to Moelis Australia is as follows: Year Ended December 31, 2018 2017 2016 Total revenues $ 91,222 $ 83,602 $ 41,292 Total expenses (69,688 ) (62,187 ) (34,526 ) Net Income (loss) $ 21,534 $ 21,415 $ 6,766 Moelis & Company's Income (loss) from equity method investment $ 7,162 $ 8,366 $ 3,383 December 31, December 31, 2018 2017 Total assets $ 261,513 $ 222,514 Total liabilities (91,799 ) (54,100 ) Net equity $ 169,714 $ 168,414 As of December 31, 2018, 2017 and 2016, the Company’s ownership interest in Moelis Australia was approximately 33%, 33% and 50%, respectively. |
Equipment and Leasehold Improve
Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Equipment and Leasehold Improvements | 5. EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements, net consists of the following: December 31, December 31, 2018 2017 Office equipment $ 11,517 $ 9,639 Furniture and fixtures 4,533 3,424 Leasehold improvements 13,813 11,324 Total 29,863 24,387 Less accumulated depreciation and amortization (17,132 ) (13,929 ) Equipment and leasehold improvements, net $ 12,731 $ 10,458 Depreciation and amortization expenses for fixed assets totaled $4,625, $3,544 and $3,183 for the years ended December 31, 2018, 2017, and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) 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 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 are unobservable for the instruments and include situations in which there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management. The estimated fair values of government securities money markets, U.S. Treasury instruments, and government debt securities as of December 31, 2018 and 2017 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. See Note 2 for further information on the Company’s fair value hierarchy. The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2018: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents U.S. treasury instruments 110,529 100,500 10,029 — Government securities money market 90,866 — 90,866 — Investments Government debt securities (1) 1,105 — 1,105 — U.S. treasury instruments 79,395 7,977 71,418 — Common stock 150 150 — — Total financial assets $ 282,045 $ 108,627 $ 173,418 $ — (1) Consists of municipal bonds and agency bonds. For the twelve months ended December 31, 2018, unrealized losses of $113 were recognized in other income and expenses on the consolidated statement of operations related to common stock held at the reporting date. The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2017: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents Government debt securities (1) $ 41,086 $ — $ 41,086 $ — U.S. treasury instruments 39,978 — 39,978 — Government securities money market 46,095 — 46,095 Investments Government debt securities (1) 39,910 — 39,910 — U.S. treasury instruments 55,935 7,943 47,992 — Common stock 263 263 — Total financial assets $ 223,267 $ 8,206 $ 215,061 $ — (1) Consists of municipal bonds, agency bonds and agency discount notes For the twelve months ended December 31, 2017, unrealized losses of $125 were recognized in other income and expenses on the consolidated statement of operations related to common stock held at the reporting date. At the end of the reporting period, the Company reviews U.S. treasury instruments held to determine whether the securities are of the most recent issuance of that security with the same maturity (referred to as “on-the-run”, which is the most liquid version of the maturity band). If a U.S. treasury instrument held at the end of the reporting period was from the most recent issuance it is classified as level 1, otherwise it is referred to as “off-the-run” and is classified as level 2. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. 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, 2018 2017 2016 U.S. $ 237,920 $ 279,038 $ 172,401 Non-U.S. 532 71,313 (5,727 ) Income (loss) before income taxes $ 238,452 $ 350,351 $ 166,674 The current and deferred components of the income tax provision for the years ended December 31, 2018, 2017, and 2016 are as follows: For the Year Ended December 31, 2018 2017 2016 Current income taxes: Federal $ 15,023 $ 19,923 $ 22,178 State and Local 7,218 4,556 5,361 Foreign 1,393 7,651 (1,716 ) $ 23,634 $ 32,130 $ 25,823 Deferred income taxes: Federal $ 5,221 $ 192,102 $ (848 ) State and Local 1,087 1,538 (207 ) Foreign 506 (1,943 ) 41 Total $ 30,448 $ 223,827 $ 24,809 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, 2018 2017 2016 Reconciliation of federal statutory tax rates U.S. statutory tax rate 21.0 % 35.0 % 35.0 % Increase (decrease) due to state and local taxes 4.0 % 2.7 % 2.3 % Rate benefit as a U.S. limited partnership/flow through -6.1 % -10.1 % -21.8 % Estimated re-measurement impact primarily related to the Tax Act 0.0 % 51.7 % 0.0 % Other income from reduction of amount due pursuant to tax receivable agreement in connection with the Tax Act 0.0 % -14.6 % 0.0 % Excess tax benefit from equity compensation delivery -5.7 % -1.7 % 0.0 % Foreign taxes 0.4 % 0.7 % -0.9 % Other -0.8 % 0.2 % 0.3 % Effective income tax rate 12.8 % 63.9 % 14.9 % 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, 2018 2017 Net operating loss $ 8,397 $ 7,685 Step-up in tax basis in Group LP assets 356,069 208,799 Deferred Compensation 45,875 28,043 Accrued expenses and other (468 ) 292 409,873 244,819 Valuation allowance on NOL and other (7,014 ) (10,819 ) Net deferred tax asset $ 402,859 $ 234,000 The Company recorded an increase in the net deferred tax asset of $168,859 for the twelve months ended December 31, 2018, which was primarily attributable to the step-up in tax basis in Group LP assets resulting from the redemption of Class A partnership units in connection with the Company’s follow-on offerings in March and August 2018. Approximately $171,506 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 $145,780) 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 equity compensation, which was principally offset by the vesting and delivery of equity awards during 2018. On December 22, 2017, the U.S. enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code including, but not limited to, reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete or a reasonable estimate if such accounting is incomplete. The Company recorded a provisional amount related to its analysis of the impact of the Tax Act in its consolidated statements of financial condition for the year ended December 31, 2017. The Company has completed its analysis of the income tax effects of the Tax Act in accordance with SAB 118 and there has been no additional impact recorded. As of December 31, 2018, the Company had accumulated net foreign operating loss carryforwards related to its international operations of approximately $31,566 for which it has recorded a deferred tax asset of $8,397. Approximately $28,714 of the operating losses (or $7,658 of the deferred tax asset) has an indefinite life and $2,852 of the operating losses (or $739 of the deferred tax asset) will expire on dates between 2019 and 2026. The Company’s operations are 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 represent obligations of their interest holders. In connection with the Company’s reorganization and IPO, the Company became subject to U.S. corporate federal, state and local income tax on its allocable share of results of operations from Group LP. The Company is subject to taxation in certain U.S., state, local, and foreign jurisdictions. As of December 31, 2018, the Company’s tax years for 2017, 2016, 2015, and 2014 are generally subject to examination by the tax authorities. As of December 31, 2018, the Company does not expect any material changes in its tax provision related to any outstanding current examinations. Developments with respect to such 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, 2018, 2017 and 2016. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Class A Common Shareholders | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Class A Common Shareholders | 8. 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 year ended December 31, 2018, 2017 and 2016 are presented below. Year Ended December 31, (dollars in thousands, except per share amounts) 2018 2017 2016 Numerator: Net income (loss) attributable to holders of shares of Class A common stock—basic $ 140,680 $ 29,400 $ 38,387 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 $ 140,680 $ 29,400 $ 38,387 Denominator: Weighted average shares of Class A common stock outstanding—basic 43,216,358 30,597,058 20,933,757 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 restricted stock, RSUs and stock options, as calculated using the treasury stock method (b) 7,474,170 (b) 7,078,453 (b) 3,308,545 Weighted average shares of Class A common stock outstanding—diluted 50,690,528 37,675,511 24,242,302 Net income (loss) per share attributable to holders of shares of Class A common stock Basic $ 3.26 $ 0.96 $ 1.83 Diluted $ 2.78 $ 0.78 $ 1.58 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 lock‑up, vesting and transfer 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 67,339,974 shares for the year ended December 31, 2018, 63,647,961 shares for the year ended December 31, 2017 and 58,061,255 shares for the year ended December 31, 2016. 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, 2018, 2017 and 2016, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive. (b) During the years ended December 31, 2018, 2017 and 2016, 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. The additional weighted average amount of RSUs that would have been included in this calculation if the effect were dilutive would have been 243 units for the year ended December 31, 2018, 6,137 units for the year ended December 31, 2017 and 16 units for the year ended December 31, 2016. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 9. EQUITY‑BASED COMPENSATION Partnership Units Prior to the Company’s restructuring and IPO, the business operated as a partnership and its ownership structure was comprised of common partners (principally outside investors) holding units. The common partners contributed capital to the partnership and were not subject to vesting. Units granted to Managing Directors upon joining the Company and as part of annual incentive compensation generally vested based on service over five to eight years. Certain non‑Managing Director employees were granted units as part of their incentive arrangements and these units generally vested based on service ratably over four years. In connection with the Company’s restructuring and IPO, substantially all of the Managing Director partner equity subject to vesting was accelerated. Units granted to non‑Managing Director employees were not accelerated in connection with the Company’s restructuring and IPO and continue to vest based on the original terms of the grant. In connection with the reorganization and IPO, Group LP issued Class A partnership units to Moelis & Company and to certain existing unit holders. Following the reorganization, 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. As of December 31, 2018, partners held 13,053,465 Group LP partnership units, 163,082 of which were unvested and will continue to vest over their service life. In relation to the vesting of units, the Company recognized compensation expenses of $1,123, $2,137 and $3,132 for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, there was $250 of unrecognized compensation expense related to unvested Class A partnership units which is expected to be recognized over a weighted‑average period of 0.4 years, using the graded vesting method. 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 and cash awards. In the first quarter of 2015, the Board of Directors authorized the repurchase of up to $25 million of shares of Class A common stock of the Company 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. As of December 31, 2018, approximately $13 million of shares may yet be purchased under the program. Restricted Stock and Restricted Stock Units (RSUs) Pursuant to the Plan and in connection with the Company’s annual compensation process and ongoing hiring process, the Company issues RSUs which generally vest over a service life of four to five years. For the years ended December 31, 2018, 2017 and 2016, the Company recognized expenses of $120,012, $91,598 and $70,303, respectively, in relation to the vesting of RSUs. The following table summarizes activity related to restricted stock and RSUs for the years ended December 31, 2018, 2017 and 2016. Restricted Stock & RSUs 2018 2017 2016 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, 9,357,999 $ 30.15 8,504,190 $ 26.70 5,123,481 $ 28.67 Granted 3,376,027 54.23 3,348,651 37.40 4,197,742 24.11 Forfeited (127,606 ) 38.90 (87,615 ) 30.59 (75,159 ) 26.04 Vested (3,845,196 ) 31.15 (2,407,227 ) 27.10 (741,874 ) 28.42 Unvested Balance at December 31, 8,761,224 $ 37.59 9,357,999 $ 30.15 8,504,190 $ 26.70 As of December 31, 2018, the total compensation expense related to unvested restricted stock and RSUs not yet recognized was $114,395. The weighted‑average period over which this compensation expense is expected to be recognized at December 31, 2018 is 1.4 years. Beginning in January of 2017, the Company accounts for forfeitures as they occur per the guidance in ASU 2016-09. See Note 2 for further discussion on this change in accounting policy. 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 The Company paid special dividends of $7.05, in aggregate, through December 31, 2018. 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 $7.05 from $25.00 per share to $17.95 per share. The following table summarizes activity related to stock options for the years ended December 31, 2018, 2017 and 2016. Stock Options Outstanding 2018 2017 2016 Weighted Weighted Weighted Average Average Average Number Exercise Price Number Exercise Price Number Exercise Price Outstanding Per Share Outstanding Per Share Outstanding Per Share Outstanding at January 1, 2,436,232 $ 17.95 2,822,728 $ 17.95 3,081,203 $ 17.95 Exercises (351,904 ) 17.95 (279,277 ) 17.95 — 17.95 Forfeitures or expirations (67,261 ) 17.95 (107,219 ) 17.95 (258,475 ) 17.95 Outstanding at December 31, 2,017,067 $ 17.95 2,436,232 $ 17.95 2,822,728 $ 17.95 For the years ended December 31, 2018, 2017 and 2016, the Company recognized expenses of $1,902, $2,560, and $3,615 respectively, in relation to these stock options. As of December 31, 2018, the total compensation expense related to unvested stock options not yet recognized was $630. The weighted-average period over which this compensation expense is expected to be recognized is 0.3 years. Beginning in January of 2017, the Company accounts for forfeitures as they occur per the guidance in ASU 2016-09. See Note 2 for further discussion on this change in accounting policy. |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity Note [Abstract] | |
Stockholders Equity | 10. 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 details of these offerings are displayed below. The Company did not retain any proceeds from the sale of its Class A common stock. Total Shares Total Increase in Date of Offering Offered Shares Outstanding November, 2014 6,325,000 4,511,058 January, 2017 5,750,000 5,356,876 July, 2017 6,000,000 5,680,903 March, 2018 5,000,000 4,689,295 August, 2018 5,000,000 4,685,217 Total 28,075,000 24,923,349 As of December 31, 2018, 47,031,095 shares of Class A common stock were issued and 45,604,980 shares were outstanding. As of December 31, 2017, 34,163,042 shares of Class A common stock were issued and 33,455,626 shares were outstanding. The increase in shares of Class A common stock was due primarily to the IPO and offering transactions described above, in addition to the 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. 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. Class B Stock Purchased / Purchase Cost Date of Offering Surrendered (in thousands) November, 2014 4,507,453 $ 28 January, 2017 5,356,876 101 July, 2017 5,680,903 128 March, 2018 4,689,295 135 August, 2018 4,685,217 158 Total 24,919,744 $ 550 As of December 31, 2018, and December 31, 2017, 10,493,358 and 19,912,230 shares of Class B common stock were issued and outstanding, respectively, due primarily to the IPO, offering transactions, and Class B conversions described above. Treasury Stock During the years ended December 31, 2018 and 2017, the Company repurchased 718,699 and 319,526 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 vesting of RSUs. The result of the repurchases was an increase of $33,473 and $12,258, respectively, 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, 2018 and 2017, partners held 13,053,465 and 22,472,337 Group LP partnership units, respectively, representing a 22% and 40% 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 45,604,980 shares of Class A common stock outstanding at December 31, 2018 (33,455,626 as of December 31, 2017), represents the controlling interest. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 11. 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 is used and operated by the Company pursuant to a dry lease with Manager which terminates on December 31, 2019. The terms of the dry lease are 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. For the years ended December 31, 2018, 2017, and 2016, the Company incurred $1,872, $1,872 and $1,248 in aircraft lease costs to be paid to Manager, respectively. In addition, Mr. Moelis is the other lessee of the aircraft and shares the operating and related costs of the plane in proportion to his respective use pursuant to a cost sharing and operating agreement Promissory Notes —As of December 31, 2018, there were $189 of unsecured promissory notes from employees held by the Company (December 31, 2017: $552). Any outstanding balances are reflected in other receivables on the consolidated statements of financial condition. The notes held as of December 31, 2018 and 2017 bear a fixed interest rate of 4.00%. During the years ended December 31, 2018, 2017 and 2016, the Company received $366, $781 and $0, respectively, of principal repayments and recognized interest income of $13, $27 and $25, respectively, on such notes, which is included in other income and expenses on the consolidated statements of operations. 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, technology, and office space to Moelis Asset Management LP for a fee. This fee totaled $537, $1,118 and $1,283 for the years ended December 31, 2018, 2017 and 2016, 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, 2018 and 2017, there were no balances due from Moelis Asset Management LP Moelis Australia —As of December 31, 2018 and 2017, the Company had a net balance due to Moelis Australia of $1,673 and $128 due from Moelis Australia, respectively, which are reflected in accrued and other receivables on the consolidated statements of financial condition. These balances consist of amounts due to or from Moelis Australia for advisory services performed as well as billable expenses incurred by the Company on behalf of Moelis Australia during the period. The relationship between the Company and Moelis Australia is governed by a services agreement Revenues —From time to time, the Company enters into advisory transactions with Moelis Asset Management LP and its affiliates. The Company earned revenues associated with such transactions of $1,882, $1,240 and $7,281 for the years ended December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, and 2017, the Company had balances due from Moelis Asset Management LP and its affiliates related to such revenues of $1,628 and $0, respectively. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Requirements | 12. 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. At December 31, 2018, Moelis U.S. had net capital of $63,099, which was $62,849 in excess of its required net capital. At December 31, 2017, Moelis U.S. had net capital of $29,259 which was $29,009 in excess of its required net capital. Moelis U.S. does not carry customer accounts and does not otherwise hold funds or securities for, or owe money or securities to, customers and accordingly is exempt under Section (k)(2)(ii) of SEC Rule 15c3‑3. At December 31, 2018, the aggregate regulatory net capital of Moelis UK was $23,041 which exceeded the minimum requirement by $22,984. At December 31, 2017, the aggregate regulatory net capital of Moelis UK was $50,498, which exceeded the minimum requirement by $50,439. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. COMMITMENTS AND CONTINGENCIES Bank Line of Credit — In April 2017 the Company renewed its revolving credit facility which extended the maturity date to June 30, 2019. In May 2018, the facility was revised and the commitment amount increased to $65,000. 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, 2018 and 2017, the Company had no borrowings under the credit facility. As of December 31, 2018, the Company’s available credit under this facility was $60,233 as a result of the issuance of an aggregate amount of $4,767 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. Leases —The Company maintains operating leases with expiration dates that extend through 2029. The Company incurred expense relating to its operating leases of $15,965, $15,102 and $15,856 for the years ended December 31, 2018, 2017 and 2016, respectively. In addition, during the second quarter of 2016, the Company decided to sublet a portion of its growth space in the U.K. which required a sublease loss reserve to be recognized for the estimated net economics of such sublet. The expense related to the aforementioned sublease loss reserve, which is remeasured at each reporting period, for the years ended December 31, 2018 and 2017 was $0 and $213, respectively. The future minimum rental payments required under the operating leases in place at December 31, 2018 are as follows: Fiscal year ended Operating Leases Sublease Income Net Minimum Payments 2019 $ 19,742 $ (530 ) $ 19,212 2020 13,836 (849 ) 12,987 2021 8,682 (849 ) 7,833 2022 8,471 (849 ) 7,622 2023 7,090 (849 ) 6,241 Thereafter 12,349 (1,273 ) 11,076 Total $ 70,170 $ (5,199 ) $ 64,971 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, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 14. 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, 2018, 2017 and 2016, in the amounts of $2,379, $2,264 and $1,971, respectively. |
Revenues and Business Informati
Revenues and Business Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues and Business Information | 15. REVENUES AND BUSINESS INFORMATION The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, governments and financial sponsors, 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, 2018, 2017 and 2016. Year Ended December 31, 2018 2017 2016 Revenues: United States $ 731,265 $ 535,985 $ 516,688 Europe 95,844 111,088 54,332 Rest of World 58,731 37,542 42,353 Total $ 885,840 $ 684,615 $ 613,373 December 31, December 31, 2018 2017 Assets: United States $ 756,053 $ 519,933 Europe 55,064 83,834 Rest of World 103,258 95,301 Total $ 914,375 $ 699,068 As of December 31, 2018, and December 31, 2017, the Company had deferred revenues of $7,074 and $4,948, respectively. These amounts primarily consist of upfront fees and retainers for our services. During the year ended December 31, 2018, $4,948 of revenues were recognized from the opening balance of deferred revenues. 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. In accordance with ASC 606-10-50-14A, quantitative disclosures of constrained variable consideration are not provided for remaining performance obligations. In addition, remaining performance obligations related to retainers, upfront fees and announcement fees are typically associated with contracts that have durations of one year or less. In accordance with ASC 606-10-50-14, the Company does not disclose the expected timing and amount of revenues remaining related to such contracts. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS On February 5, 2019, the Board of Directors of Moelis & Company declared a special dividend of $1.25 per share in addition to a quarterly dividend of $0.50 per share. The $1.75 per share will be paid on March 29, 2019 to Class A common stockholders of record on February 19, 2019. During the first quarter of 2019, the Company entered into a lease agreement related to its headquarters in New York. The new lease expands our current workspace at 399 Park Ave in New York and has an initial term that expires in 2036. Commencement of the lease is anticipated to occur in late 2019, contingent upon the current lessee vacating their space. Subsequent to December 31, 2018, $3.5 million of shares were repurchased under the Company’s share repurchase program. In February 2019, the Board of Directors authorized the repurchase of up to $100 million of shares of Class A common stock and/or Class A partnership units of Group LP with no expiration date. This new authorization replaced the former repurchase program and the remaining authorization under the program was eliminated. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | For the Year Ended December 31, 2018 (dollars in thousands) Allowance for Doubtful Accounts(1) 2018 2017 2016 Balance at beginning of period $ 1,433 $ 475 $ 1,149 Additions: Bad debt expense 1,044 2,895 (277 ) Deductions: Charge-offs of uncollectible balances (502 ) (1,937 ) (397 ) Balance at end of period $ 1,975 $ 1,433 $ 475 (1) Includes the allowance for doubtful accounts for both accounts receivable and other receivables. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. |
Consolidation | Consolidation —The Company’s policy is to consolidate (i) entities, other than limited partnerships, 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. 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 doubtful accounts; • the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal; • the measurement and realization of deferred taxes; • the measurement of amount due pursuant to tax receivable agreement; • the measurement and vesting of equity‑based compensation; and • other matters that affect the reported amounts and disclosures of contingencies in the 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, government securities money markets and government debt securities. Effective January 1, 2018, the Company adopted ASU 2016-18 which requires restricted cash to be included in the beginning and ending balances of cash and cash equivalents within the consolidated statement of cash flows. As a result, the beginning and ending balances of the prior period in the consolidated statement of cash flows has been adjusted to include restricted cash. 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 medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2018 and 2017, is presented below. December 31, 2018 2017 Cash $ 59,705 $ 86,032 Cash equivalents 201,395 127,159 Restricted cash 671 703 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 261,771 $ 213,894 |
Receivables | Receivables —The accompanying consolidated statements of financial condition present accounts receivable balances net of allowance for doubtful accounts based on the Company’s assessment of the collectability of customer accounts. Included in the accounts receivable balances at December 31, 2018 and 2017 were $26,738 and $9,586 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 $653, $408 and $263 for the years ended December 31, 2018, 2017 and 2016, respectively. The Company maintains an allowance for doubtful accounts that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable, and the current economic conditions that may affect a customer’s ability to pay such amounts owed to the Company. After concluding that a reserved accounts receivable is no longer collectible, the Company will charge‑off the receivable. This is determined based on several factors including the age of the accounts receivable and the credit worthiness of the customer. This has the effect of reducing both the gross receivable and the allowance for doubtful accounts. |
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) 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 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 are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management. 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. For level 3 investments in which pricing inputs are unobservable and limited market activity exists, management’s determination of fair value is based on the best information available, may incorporate management’s own assumptions and involves a significant degree of judgment. Effective January 1, 2018, the Company adopted ASU 2016-01, “Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) using the modified retrospective approach. As a result, a cumulative adjustment was recorded which decreased retained earnings and increased accumulated other comprehensive income by $317. The adjustment is related to the accumulated unrealized losses in fair value of an equity investment as of December 31, 2017. No prior periods were adjusted as a result of this change in accounting policy. The adoption of ASU 2016-01 requires that changes in fair value of equity investments measured at fair value be recognized in net income prospectively. For each period where a consolidated statement of operations is presented, the Company will disclose the portion of realized and/or unrealized gains and losses related to equity investments held at the reporting date or sold during the period. Effective September 30, 2018, the Company early adopted ASU 2018-13, “Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value”. As a result, the Company removed its disclosures of the amounts of and reasons for transfers between level 1 and level 2 fair value investments. Level 3 fair value investments that are acquired in the future will not require disclosures of the valuation process but will require disclosure of unrealized gains and losses and the range and weighted average of significant unobservable inputs used to determine the fair value of the level 3 investment. |
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 on the consolidated financial statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investments. The Company reflects its share of gains and losses of the investment in income (loss) from equity method investments in the consolidated statements of operations. Certain adjustments have been made to account for the Company’s equity method investment in Moelis Australia under US GAAP as Moelis Australia follows local accounting principles under Australian Accounting Standards. |
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. 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 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. |
Revenue and Expense Recognition | Revenue and Expense Recognition — We earn substantially all of our revenues from advisory engagements and, in many cases, we are not paid until the completion of an underlying transaction. The Company recognizes revenues from providing advisory services when or as our obligations are fulfilled and collection is reasonably assured. The vast majority of our advisory revenues, which include reimbursements for certain out-of-pocket expenses, are recognized over time; however, a small number of transactions may be recognized at a point in time. We provide our advisory service on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. During such engagements, our clients are continuously benefitting from our counsel and the over time recognition matches the transfer of such benefits. However, the recognition of transaction fees is constrained until substantially all services have been provided, specified conditions have been met and it is probable that a revenue reversal 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. Revenues may be recognized at a point in time if the engagement represents a singular objective that does not transfer any notable value until formally completed, such as when issuing a fairness opinion. In these instances, the 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. Adoption of ASU 2014-09 Effective January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers”, and all related amendments (“Topic 606”) using the modified retrospective method for all contracts. The adoption of the new standard requires the Company to present reimbursable expenses gross in revenues and expenses and to use new revenue recognition patterns as discussed below in the policy. Prior to adoption, client expenses were recorded net of reimbursements. As a result, a cumulative adjustment was recorded which increased the opening balance of accrued and other receivables and retained earnings by $3,722 for outstanding reimbursable expenses at December 31, 2017, which would have been recognized as revenues under the new standard. The tax effect of this adjustment decreased retained earnings by $567, resulting in a net increase to the opening balance of retained earnings of $3,155. No prior periods were adjusted as a result of this change in accounting policy. The adoption of Topic 606 may result in the recognition of revenue in certain circumstances earlier as compared with the time prior to the adoption of Topic 606 where revenues were generally recognized upon the closing date of a transaction. In contrast, Topic 606 requires revenues from variable transaction fees to be recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period. Revenues subject to this timing difference in recognition will require significant judgment and could be material to any given reporting period. For the twelve months ended December 31, 2018, there were revenues of $4,788 that met the criteria for recognition during the period although the transactions closed subsequent to the reporting period. For the twelve months ended December 31, 2018, there were $16,694 of reimbursable expenses recognized gross in revenues and expenses in accordance with Topic 606. Total compensation and benefits expense is determined by management primarily based on revenues earned, in addition to other performance and labor market conditions. Compensation and benefits expense has been adjusted in response to the adoption of Topic 606. The aforementioned adjustments had corresponding impacts to accrued and other receivables and compensation payable on our consolidated statement of financial condition. |
Equity-based Compensation | Equity‑based Compensation —The Company recognizes the cost of employee services received in exchange for an equity instrument award. 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. 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 dividend payment and a charge 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 award does not vest. The Company has a retirement plan whereby a retiring employee generally will not forfeit certain qualifying incentive RSUs granted during employment if at retirement the employee meets certain requirements. For qualifying awards issued prior to December 1, 2016, the employee must (i) be at least 54 years old and (ii) have provided at least 8 consecutive years of service to the Company. For qualifying awards issued on or after December 1, 2016, (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 prior to meeting the stated requisite service period or retirement eligibility date are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest. Effective January 1, 2017, the Company adopted a change in accounting policy in accordance with Accounting Standards Update 2016-09, “Compensation—Stock Compensation (Topic 718)” (“ASU 2016-09”) to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative decrease to retained earnings and an increase in additional paid-in capital (“APIC”) of $4,855 as of January 1, 2017. The tax effect of this adjustment increased deferred tax assets and retained earnings by $658. No prior periods were adjusted as a result of this change in accounting policy. |
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 portion 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, 2018, 2017 and 2016, 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, 2018, 2017 and 2016, no such amounts were recorded. Prior to January 1, 2017, all excess tax benefits resulting from exercise or settlement of share-based payment transactions were recognized in APIC and any tax deficiencies were either offset against APIC, or were recognized in the income statement under certain conditions. Under ASU 2016-09, all excess tax benefits and deficiencies are recognized as income tax benefits or expenses in the consolidated statement of operations prospectively. Under ASU 2016-09, the Company is now required to present excess tax benefits and detriments as an operating activity in the same manner as other cash flows related to income taxes rather than as a financing activity. The Company adopted these changes retrospectively, and prior year excess tax benefits are now reflected in changes in prepaid expenses and other assets within the consolidated statement of cash flows. |
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, 2018 | |
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, 2018 and 2017, is presented below. December 31, 2018 2017 Cash $ 59,705 $ 86,032 Cash equivalents 201,395 127,159 Restricted cash 671 703 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 261,771 $ 213,894 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Financial Information Related to Moelis Australia | Summary financial information related to Moelis Australia is as follows: Year Ended December 31, 2018 2017 2016 Total revenues $ 91,222 $ 83,602 $ 41,292 Total expenses (69,688 ) (62,187 ) (34,526 ) Net Income (loss) $ 21,534 $ 21,415 $ 6,766 Moelis & Company's Income (loss) from equity method investment $ 7,162 $ 8,366 $ 3,383 December 31, December 31, 2018 2017 Total assets $ 261,513 $ 222,514 Total liabilities (91,799 ) (54,100 ) Net equity $ 169,714 $ 168,414 |
Equipment and Leasehold Impro_2
Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Office equipment $ 11,517 $ 9,639 Furniture and fixtures 4,533 3,424 Leasehold improvements 13,813 11,324 Total 29,863 24,387 Less accumulated depreciation and amortization (17,132 ) (13,929 ) Equipment and leasehold improvements, net $ 12,731 $ 10,458 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of the Levels of the Fair Value Hierarchy into Which the Company's Financial Assets Fall | The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2018: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents U.S. treasury instruments 110,529 100,500 10,029 — Government securities money market 90,866 — 90,866 — Investments Government debt securities (1) 1,105 — 1,105 — U.S. treasury instruments 79,395 7,977 71,418 — Common stock 150 150 — — Total financial assets $ 282,045 $ 108,627 $ 173,418 $ — (1) Consists of municipal bonds and agency bonds. The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2017: Total Level 1 Level 2 Level 3 Financial assets: Included in cash and cash equivalents Government debt securities (1) $ 41,086 $ — $ 41,086 $ — U.S. treasury instruments 39,978 — 39,978 — Government securities money market 46,095 — 46,095 Investments Government debt securities (1) 39,910 — 39,910 — U.S. treasury instruments 55,935 7,943 47,992 — Common stock 263 263 — Total financial assets $ 223,267 $ 8,206 $ 215,061 $ — (1) Consists of municipal bonds, agency bonds and agency discount notes |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 U.S. $ 237,920 $ 279,038 $ 172,401 Non-U.S. 532 71,313 (5,727 ) Income (loss) before income taxes $ 238,452 $ 350,351 $ 166,674 |
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, 2018, 2017, and 2016 are as follows: For the Year Ended December 31, 2018 2017 2016 Current income taxes: Federal $ 15,023 $ 19,923 $ 22,178 State and Local 7,218 4,556 5,361 Foreign 1,393 7,651 (1,716 ) $ 23,634 $ 32,130 $ 25,823 Deferred income taxes: Federal $ 5,221 $ 192,102 $ (848 ) State and Local 1,087 1,538 (207 ) Foreign 506 (1,943 ) 41 Total $ 30,448 $ 223,827 $ 24,809 |
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, 2018 2017 2016 Reconciliation of federal statutory tax rates U.S. statutory tax rate 21.0 % 35.0 % 35.0 % Increase (decrease) due to state and local taxes 4.0 % 2.7 % 2.3 % Rate benefit as a U.S. limited partnership/flow through -6.1 % -10.1 % -21.8 % Estimated re-measurement impact primarily related to the Tax Act 0.0 % 51.7 % 0.0 % Other income from reduction of amount due pursuant to tax receivable agreement in connection with the Tax Act 0.0 % -14.6 % 0.0 % Excess tax benefit from equity compensation delivery -5.7 % -1.7 % 0.0 % Foreign taxes 0.4 % 0.7 % -0.9 % Other -0.8 % 0.2 % 0.3 % Effective income tax rate 12.8 % 63.9 % 14.9 % |
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, 2018 2017 Net operating loss $ 8,397 $ 7,685 Step-up in tax basis in Group LP assets 356,069 208,799 Deferred Compensation 45,875 28,043 Accrued expenses and other (468 ) 292 409,873 244,819 Valuation allowance on NOL and other (7,014 ) (10,819 ) Net deferred tax asset $ 402,859 $ 234,000 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Class A Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 year ended December 31, 2018, 2017 and 2016 are presented below. Year Ended December 31, (dollars in thousands, except per share amounts) 2018 2017 2016 Numerator: Net income (loss) attributable to holders of shares of Class A common stock—basic $ 140,680 $ 29,400 $ 38,387 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 $ 140,680 $ 29,400 $ 38,387 Denominator: Weighted average shares of Class A common stock outstanding—basic 43,216,358 30,597,058 20,933,757 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 restricted stock, RSUs and stock options, as calculated using the treasury stock method (b) 7,474,170 (b) 7,078,453 (b) 3,308,545 Weighted average shares of Class A common stock outstanding—diluted 50,690,528 37,675,511 24,242,302 Net income (loss) per share attributable to holders of shares of Class A common stock Basic $ 3.26 $ 0.96 $ 1.83 Diluted $ 2.78 $ 0.78 $ 1.58 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 lock‑up, vesting and transfer 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 67,339,974 shares for the year ended December 31, 2018, 63,647,961 shares for the year ended December 31, 2017 and 58,061,255 shares for the year ended December 31, 2016. 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, 2018, 2017 and 2016, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive. (b) During the years ended December 31, 2018, 2017 and 2016, 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. The additional weighted average amount of RSUs that would have been included in this calculation if the effect were dilutive would have been 243 units for the year ended December 31, 2018, 6,137 units for the year ended December 31, 2017 and 16 units for the year ended December 31, 2016. |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity Related to Restricted Stock and RSUs | The following table summarizes activity related to restricted stock and RSUs for the years ended December 31, 2018, 2017 and 2016. Restricted Stock & RSUs 2018 2017 2016 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, 9,357,999 $ 30.15 8,504,190 $ 26.70 5,123,481 $ 28.67 Granted 3,376,027 54.23 3,348,651 37.40 4,197,742 24.11 Forfeited (127,606 ) 38.90 (87,615 ) 30.59 (75,159 ) 26.04 Vested (3,845,196 ) 31.15 (2,407,227 ) 27.10 (741,874 ) 28.42 Unvested Balance at December 31, 8,761,224 $ 37.59 9,357,999 $ 30.15 8,504,190 $ 26.70 |
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, 2018, 2017 and 2016. Stock Options Outstanding 2018 2017 2016 Weighted Weighted Weighted Average Average Average Number Exercise Price Number Exercise Price Number Exercise Price Outstanding Per Share Outstanding Per Share Outstanding Per Share Outstanding at January 1, 2,436,232 $ 17.95 2,822,728 $ 17.95 3,081,203 $ 17.95 Exercises (351,904 ) 17.95 (279,277 ) 17.95 — 17.95 Forfeitures or expirations (67,261 ) 17.95 (107,219 ) 17.95 (258,475 ) 17.95 Outstanding at December 31, 2,017,067 $ 17.95 2,436,232 $ 17.95 2,822,728 $ 17.95 |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Class A Common Stock | |
Class Of Stock [Line Items] | |
Schedule of Shares Offered and Increase in Shares Outstanding in Follow-on Offerings | Total Shares Total Increase in Date of Offering Offered Shares Outstanding November, 2014 6,325,000 4,511,058 January, 2017 5,750,000 5,356,876 July, 2017 6,000,000 5,680,903 March, 2018 5,000,000 4,689,295 August, 2018 5,000,000 4,685,217 Total 28,075,000 24,923,349 |
Class B Common Stock | |
Class Of Stock [Line Items] | |
Schedule of Shares Offered and Increase in Shares Outstanding in Follow-on Offerings | Class B Stock Purchased / Purchase Cost Date of Offering Surrendered (in thousands) November, 2014 4,507,453 $ 28 January, 2017 5,356,876 101 July, 2017 5,680,903 128 March, 2018 4,689,295 135 August, 2018 4,685,217 158 Total 24,919,744 $ 550 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments required under the operating leases in place | The future minimum rental payments required under the operating leases in place at December 31, 2018 are as follows: Fiscal year ended Operating Leases Sublease Income Net Minimum Payments 2019 $ 19,742 $ (530 ) $ 19,212 2020 13,836 (849 ) 12,987 2021 8,682 (849 ) 7,833 2022 8,471 (849 ) 7,622 2023 7,090 (849 ) 6,241 Thereafter 12,349 (1,273 ) 11,076 Total $ 70,170 $ (5,199 ) $ 64,971 |
Revenues and Business Informa_2
Revenues and Business Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Geographical Distribution of Revenues and Assets | Year Ended December 31, 2018 2017 2016 Revenues: United States $ 731,265 $ 535,985 $ 516,688 Europe 95,844 111,088 54,332 Rest of World 58,731 37,542 42,353 Total $ 885,840 $ 684,615 $ 613,373 December 31, December 31, 2018 2017 Assets: United States $ 756,053 $ 519,933 Europe 55,064 83,834 Rest of World 103,258 95,301 Total $ 914,375 $ 699,068 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents | ||||
Cash | $ 59,705 | $ 86,032 | ||
Cash equivalents | 201,395 | 127,159 | ||
Restricted cash | 671 | 703 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 261,771 | $ 213,894 | $ 319,585 | $ 248,841 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Accounting Policies [Line Items] | ||||
Account receivables | $ 26,738 | $ 9,586 | ||
Interest Income | 653 | 408 | $ 263 | |
Retained earnings (accumulated deficit) | (237,782) | (139,918) | ||
Accumulated other comprehensive income | $ (453) | 1,827 | (1,734) | |
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 | ||||
Revenue recognized | $ 4,948 | |||
Income Taxes | ||||
Unrecognized tax benefits | $ 0 | 0 | $ 0 | |
Issued Prior to December 1, 2016 | ||||
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 | 54 years | |||
Consecutive years of service of retiring employees required so that certain qualifying awards granted during employment will not be forfeited | 8 years | |||
Issued on or After December 1, 2016 | ||||
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 | |||
ASU 2016-01 | ||||
Accounting Policies [Line Items] | ||||
Retained earnings (accumulated deficit) | (317) | |||
Accumulated other comprehensive income | 317 | |||
ASU 2014-09 | ||||
Revenue and Expense Recognition and Equity-Based Compensation | ||||
Cumulative effect on retained earnings and APIC | 3,722 | |||
Tax effect of adjustment | 567 | |||
Net change resulting from cumulative effect on retained earnings and APIC | $ 3,155 | |||
Revenue recognized | $ 4,788 | |||
Reimbursable expenses recognized | $ 16,694 | |||
ASU 2016-09 | Adjusted | Deferred Tax Assets | ||||
Revenue and Expense Recognition and Equity-Based Compensation | ||||
Tax effect of adjustment | $ 658 | |||
ASU 2016-09 | Adjusted | Retained Earnings (Accumulated Deficit) | ||||
Revenue and Expense Recognition and Equity-Based Compensation | ||||
Cumulative effect on retained earnings and APIC | (4,855) | |||
Tax effect of adjustment | 658 | |||
ASU 2016-09 | Adjusted | Additional Paid-in Capital | ||||
Revenue and Expense Recognition and Equity-Based Compensation | ||||
Cumulative effect on retained earnings and APIC | $ 4,855 | |||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Installment Period | 3 years | |||
Minimum | Office Equipment and Furniture and Fixtures | ||||
Accounting Policies [Line Items] | ||||
Useful lives | 3 years | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Installment Period | 4 years | |||
Maximum | Office Equipment and Furniture and Fixtures | ||||
Accounting Policies [Line Items] | ||||
Useful lives | 7 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) - ASU 2016-02 $ in Thousands | Feb. 29, 2016USD ($) |
Minimum | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Operating lease, liability | $ 60,000 |
Operating lease, right-of-use asset | 60,000 |
Maximum | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Operating lease, liability | 65,000 |
Operating lease, right-of-use asset | $ 65,000 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Thousands | Feb. 20, 2018 | Oct. 30, 2017 | Sep. 13, 2017 | Apr. 18, 2017 | Apr. 10, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 01, 2010 |
Equity Method Investments | ||||||||||||
Ownership percentage | 50.00% | |||||||||||
Gain recognized by Company on issuance of shares | $ 41,652 | |||||||||||
Income (loss) from equity method investments | $ 7,162 | 8,341 | $ 5,076 | |||||||||
Return of capital from equity method investments | $ 2,737 | $ 11,672 | $ 1,416 | |||||||||
Corporate Joint Venture | ||||||||||||
Equity Method Investments | ||||||||||||
Ownership percentage | 33.00% | 33.00% | 33.00% | 50.00% | ||||||||
Gain recognized by Company on issuance of shares | $ 9,680 | $ 14,429 | $ 15,170 | |||||||||
Income (loss) from equity method investments | $ (2,400) | $ 7,162 | $ 8,366 | $ 3,383 | ||||||||
Return of capital from equity method investments | $ 2,737 | $ 11,672 | ||||||||||
Shares issued | 10,060,000 | 11,940,000 | ||||||||||
Gain recognized by Company on issuance of shares related to acquisitions | $ 92 | $ 2,280 | ||||||||||
Australian Trust | ||||||||||||
Equity Method Investments | ||||||||||||
Ownership percentage | 50.00% |
Equity Method Investments - Sum
Equity Method Investments - Summary of Financial Information Related to Moelis Australia (Details) - USD ($) $ in Thousands | Apr. 10, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Method Investments | ||||
Income (loss) from equity method investments | $ 7,162 | $ 8,341 | $ 5,076 | |
Moelis Australia Holdings | ||||
Equity Method Investments | ||||
Total revenues | 91,222 | 83,602 | 41,292 | |
Total expenses | (69,688) | (62,187) | (34,526) | |
Net Income (loss) | 21,534 | 21,415 | 6,766 | |
Income (loss) from equity method investments | $ (2,400) | 7,162 | 8,366 | $ 3,383 |
Total assets | 261,513 | 222,514 | ||
Total liabilities | (91,799) | (54,100) | ||
Net equity | $ 169,714 | $ 168,414 |
Equipment and Leasehold Impro_3
Equipment and Leasehold Improvements - Schedule of Equipment and Leasehold Improvements, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Equipment and Leasehold Improvements, Net | ||
Total | $ 29,863 | $ 24,387 |
Less accumulated depreciation and amortization | (17,132) | (13,929) |
Equipment and leasehold improvements, net | 12,731 | 10,458 |
Office Equipment | ||
Equipment and Leasehold Improvements, Net | ||
Total | 11,517 | 9,639 |
Furniture and Fixtures | ||
Equipment and Leasehold Improvements, Net | ||
Total | 4,533 | 3,424 |
Leasehold Improvements | ||
Equipment and Leasehold Improvements, Net | ||
Total | $ 13,813 | $ 11,324 |
Equipment and Leasehold Impro_4
Equipment and Leasehold Improvements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expenses | $ 4,625 | $ 3,544 | $ 3,183 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of the Levels of the Fair Value Hierarchy into Which the Company's Financial Assets Fall (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements | ||
Total financial assets | $ 282,045 | $ 223,267 |
U.S. Treasury Instruments | ||
Fair Value Measurements | ||
Cash and cash equivalents | 110,529 | 39,978 |
Investments in securities | 79,395 | 55,935 |
Government Debt Securities | ||
Fair Value Measurements | ||
Cash and cash equivalents | 41,086 | |
Investments in securities | 1,105 | 39,910 |
Government Securities Money Market | ||
Fair Value Measurements | ||
Cash and cash equivalents | 90,866 | 46,095 |
Common Stock | ||
Fair Value Measurements | ||
Investments in securities | 150 | 263 |
Level 1 | ||
Fair Value Measurements | ||
Total financial assets | 108,627 | 8,206 |
Level 1 | U.S. Treasury Instruments | ||
Fair Value Measurements | ||
Cash and cash equivalents | 100,500 | |
Investments in securities | 7,977 | 7,943 |
Level 1 | Common Stock | ||
Fair Value Measurements | ||
Investments in securities | 150 | 263 |
Level 2 | ||
Fair Value Measurements | ||
Total financial assets | 173,418 | 215,061 |
Level 2 | U.S. Treasury Instruments | ||
Fair Value Measurements | ||
Cash and cash equivalents | 10,029 | 39,978 |
Investments in securities | 71,418 | 47,992 |
Level 2 | Government Debt Securities | ||
Fair Value Measurements | ||
Cash and cash equivalents | 41,086 | |
Investments in securities | 1,105 | 39,910 |
Level 2 | Government Securities Money Market | ||
Fair Value Measurements | ||
Cash and cash equivalents | $ 90,866 | $ 46,095 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock | ||
Fair Value Measurements | ||
Unrealized gain (loss) on equity securities | $ 113 | $ 125 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. and non-U.S. components of income (loss) before income tax expense: | |||
U.S. | $ 237,920 | $ 279,038 | $ 172,401 |
Non-U.S. | 532 | 71,313 | (5,727) |
Income (loss) before income taxes | $ 238,452 | $ 350,351 | $ 166,674 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income taxes: | |||
Federal | $ 15,023 | $ 19,923 | $ 22,178 |
State and Local | 7,218 | 4,556 | 5,361 |
Foreign | 1,393 | 7,651 | (1,716) |
Total | 23,634 | 32,130 | 25,823 |
Deferred income taxes: | |||
Federal | 5,221 | 192,102 | (848) |
State and Local | 1,087 | 1,538 | (207) |
Foreign | 506 | (1,943) | 41 |
Income Tax Expense (Benefit), Total | $ 30,448 | $ 223,827 | $ 24,809 |
Income Taxes - Schedule of Appr
Income Taxes - Schedule of Appropriate Statutory Rate to Income Before Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of federal statutory tax rates | |||
U.S. statutory tax rate | 21.00% | 35.00% | 35.00% |
Increase (decrease) due to state and local taxes | 4.00% | 2.70% | 2.30% |
Rate benefit as a U.S. limited partnership/flow through | (6.10%) | (10.10%) | (21.80%) |
Estimated re-measurement impact primarily related to the Tax Act | 0.00% | 51.70% | 0.00% |
Other income from reduction of amount due pursuant to tax receivable agreement in connection with the Tax Act | 0.00% | (14.60%) | 0.00% |
Excess tax benefit from equity compensation delivery | (5.70%) | (1.70%) | 0.00% |
Foreign taxes | 0.40% | 0.70% | (0.90%) |
Other | (0.80%) | 0.20% | 0.30% |
Effective income tax rate | 12.80% | 63.90% | 14.90% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Significant components of deferred tax assets and liabilities: | ||
Net operating loss | $ 8,397 | $ 7,685 |
Step-up in tax basis in Group LP assets | 356,069 | 208,799 |
Deferred Compensation | 45,875 | 28,043 |
Accrued expenses and other | (468) | 292 |
Gross | 409,873 | 244,819 |
Valuation allowance on NOL and other | (7,014) | (10,819) |
Net deferred tax asset | $ 402,859 | $ 234,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
U.S. statutory tax rate | 21.00% | 35.00% | 35.00% |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Foreign | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards | 31,566 | ||
Deferred tax assets for foreign operating loss carryforwards | 8,397 | ||
Operating loss carryforwards with indefinite life | 28,714 | ||
Deferred tax assets for operating loss carryforwards for indefinite life | 7,658 | ||
Operating loss carryforwards which expire between 2019 and 2026 | 2,852 | ||
Deferred tax assets for operating loss carryforwards which expire between 2019 and 2026 | 739 | ||
Group LP | |||
Income Taxes [Line Items] | |||
Net deferred tax asset increase | 168,859 | ||
Deferred tax assets attributable to exchanges by partners | $ 171,506 | ||
Percentage of cash distribution to partners in connection to IPO attributable to exchanges by partners, payable to partners | 85.00% | ||
Total tax receivable agreement obligation | $ 145,780 | ||
Period of tax receivable agreement | 15 years |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net income (loss) attributable to holders of shares of Class A common stock—basic | $ 140,680 | $ 29,400 | $ 38,387 |
Class A Common Stock | |||
Numerator: | |||
Net income (loss) attributable to holders of shares of Class A common stock—basic | 140,680 | 29,400 | 38,387 |
Add (deduct) dilutive effect of: | |||
Net income (loss) attributable to holders of shares of Class A common stock—diluted | $ 140,680 | $ 29,400 | $ 38,387 |
Denominator: | |||
Weighted average shares of Class A common stock outstanding—basic | 43,216,358 | 30,597,058 | 20,933,757 |
Add (deduct) dilutive effect of: | |||
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method | 7,474,170 | 7,078,453 | 3,308,545 |
Weighted average shares of Class A common stock outstanding—diluted | 50,690,528 | 37,675,511 | 24,242,302 |
Net income (loss) per share attributable to holders of shares of Class A common stock | |||
Basic (in dollars per share) | $ 3.26 | $ 0.96 | $ 1.83 |
Diluted (in dollars per share) | $ 2.78 | $ 0.78 | $ 1.58 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 67,339,974 | 63,647,961 | 58,061,255 |
Restricted Stock and RSUs | |||
Earnings Per Share Basic [Line Items] | |||
Number of antidilutive securities excluded from calculation of diluted income (loss) per share | 243 | 6,137 | 16 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 57 Months Ended | ||||||
Apr. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2015 | Mar. 31, 2015 | Nov. 09, 2014 | |
Class A Common Stock | |||||||||
Equity-Based Compensation | |||||||||
Number of shares of common stock to be issued upon exchange of a partnership unit | 1 | 1 | |||||||
Share value authorized for repurchase | $ 25,000 | ||||||||
Value of remaining shares authorized for repurchase | $ 13,000 | $ 13,000 | |||||||
Partnership Units | |||||||||
Equity-Based Compensation | |||||||||
Compensation expenses | 1,123 | $ 2,137 | $ 3,132 | ||||||
Unrecognized compensation expenses | $ 250 | $ 250 | |||||||
Weighted average period to recognize unrecognized compensation expense | 4 months 24 days | ||||||||
Partnership and Employees | |||||||||
Equity-Based Compensation | |||||||||
Units held by partners and employees | 13,053,465 | 13,053,465 | |||||||
Unvested units held by partners and employees | 163,082 | 163,082 | |||||||
RSUs | |||||||||
Equity-Based Compensation | |||||||||
Compensation expenses | $ 120,012 | $ 91,598 | $ 70,303 | ||||||
RSUs | Minimum | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 4 years | ||||||||
RSUs | Maximum | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 5 years | ||||||||
Restricted Stock and RSUs | |||||||||
Equity-Based Compensation | |||||||||
Unvested units held by partners and employees | 8,761,224 | 9,357,999 | 8,504,190 | 8,761,224 | 5,123,481 | ||||
Unrecognized compensation expenses | $ 114,395 | $ 114,395 | |||||||
Weighted average period to recognize unrecognized compensation expense | 1 year 4 months 24 days | ||||||||
Stock Options | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 5 years | ||||||||
Compensation expenses | $ 1,902 | $ 2,560 | $ 3,615 | ||||||
Unrecognized compensation expenses | $ 630 | $ 630 | |||||||
Grants (in shares) | 3,501,881 | ||||||||
Special dividends paid (in dollars per share) | $ 7.05 | ||||||||
Reduction to exercise price of options outstanding due to special dividend paid (in dollars per share) | 7.05 | ||||||||
Exercise price (in dollars per share) | $ 17.95 | $ 17.95 | $ 17.95 | $ 17.95 | $ 17.95 | $ 25 | |||
Weighted average remaining period for recognition of unrecognized compensation cost | 3 months 18 days | ||||||||
Managing Directors | Partnership Units | Minimum | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 5 years | ||||||||
Managing Directors | Partnership Units | Maximum | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 8 years | ||||||||
Non-Managing Director Employees | Partnership Units | |||||||||
Equity-Based Compensation | |||||||||
Vesting period | 4 years |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Activity Related to Restricted Stock and RSUs (Details) - Restricted Stock and RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Unvested balance at the beginning of the year | 9,357,999 | 8,504,190 | 5,123,481 |
Granted | 3,376,027 | 3,348,651 | 4,197,742 |
Forfeited | (127,606) | (87,615) | (75,159) |
Vested | (3,845,196) | (2,407,227) | (741,874) |
Unvested balance at the end of the year | 8,761,224 | 9,357,999 | 8,504,190 |
Weighted Average Grant Date Fair Value | |||
Unvested balance at the beginning of the year | $ 30.15 | $ 26.70 | $ 28.67 |
Granted | 54.23 | 37.40 | 24.11 |
Forfeited | 38.90 | 30.59 | 26.04 |
Vested | 31.15 | 27.10 | 28.42 |
Unvested balance at the end of the year | $ 37.59 | $ 30.15 | $ 26.70 |
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, 2018$ / 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number Outstanding | |||
Beginning Balance | 2,436,232 | 2,822,728 | 3,081,203 |
Exercises | (351,904) | (279,277) | |
Forfeitures or expirations | (67,261) | (107,219) | (258,475) |
Ending Balance | 2,017,067 | 2,436,232 | 2,822,728 |
Weighted-Average Exercise Price Per Share | |||
Beginning Balance | $ 17.95 | $ 17.95 | $ 17.95 |
Exercises | 17.95 | 17.95 | 17.95 |
Forfeitures or expirations | 17.95 | 17.95 | 17.95 |
Ending Balance | $ 17.95 | $ 17.95 | $ 17.95 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2014 | Apr. 30, 2014shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | |
Class Of Stock [Line Items] | |||||
Treasury stock shares acquired (in shares) | 718,699 | 319,526 | |||
Treasury stock shares acquired | $ | $ 33,473 | $ 12,258 | $ 3,314 | ||
Number of units held by noncontrolling interest holders | 13,053,465 | 22,472,337 | |||
Group LP | |||||
Class Of Stock [Line Items] | |||||
Noncontrolling interests (as a percent) | 22.00% | 40.00% | |||
Class A Common Stock | |||||
Class Of Stock [Line Items] | |||||
Aggregate stock issuance (in shares) | 15,263,653 | ||||
Common stock, shares issued | 47,031,095 | 34,163,042 | |||
Common stock, shares outstanding | 45,604,980 | 33,455,626 | |||
Number of shares of common stock to be issued upon exchange of a partnership unit | 1 | ||||
Class A Common Stock | Group LP | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares outstanding | 45,604,980 | 33,455,626 | |||
Class B Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares issued | 10,493,358 | 19,912,230 | |||
Common stock, shares outstanding | 10,493,358 | 19,912,230 | |||
Total Increase in Shares Outstanding | 36,158,698 | ||||
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 |
Stockholders Equity - Schedule
Stockholders Equity - Schedule of Shares Offered and Increase in Shares Outstanding in Follow-on Offerings (Details) - USD ($) $ in Thousands | 1 Months Ended | 51 Months Ended | |||||
Aug. 31, 2018 | Mar. 31, 2018 | Jul. 31, 2017 | Jan. 31, 2017 | Nov. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2018 | |
Class A Common Stock | Follow-on Offering | |||||||
Class Of Stock [Line Items] | |||||||
Total Shares Offered | 5,000,000 | 5,000,000 | 6,000,000 | 5,750,000 | 6,325,000 | 28,075,000 | |
Total Increase in Shares Outstanding | 4,685,217 | 4,689,295 | 5,680,903 | 5,356,876 | 4,511,058 | 24,923,349 | |
Class B Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Total Increase in Shares Outstanding | 36,158,698 | ||||||
Stock Purchased/Surrendered | 4,685,217 | 4,689,295 | 5,680,903 | 5,356,876 | 4,507,453 | 24,919,744 | |
Purchase Cost | $ 158 | $ 135 | $ 128 | $ 101 | $ 28 | $ 550 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related-party transactions | |||
Principal repayments | $ 366 | $ 781 | |
Manager | Aircraft Lease Entered into During August 2014 | |||
Related-party transactions | |||
Expenses | 1,872 | 1,872 | $ 1,248 |
Employees | |||
Related-party transactions | |||
Unsecured promissory notes from employees | $ 189 | $ 552 | |
Employees | Unsecured Promissory Notes | |||
Related-party transactions | |||
Interest rates (as a percent) | 4.00% | 4.00% | |
Principal repayments | $ 366 | $ 781 | 0 |
Interest income recognized | 13 | 27 | 25 |
Moelis Asset Management LP | |||
Related-party transactions | |||
Fee for services | 537 | 1,118 | 1,283 |
Due from related party | 0 | 0 | |
Revenue from related parties | 1,882 | 1,240 | $ 7,281 |
Revenue balances due from related parties | 1,628 | 0 | |
Corporate Joint Venture | |||
Related-party transactions | |||
Due from related party | $ 1,673 | $ 128 |
Regulatory Requirements - Addit
Regulatory Requirements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Regulatory Requirements | ||
Minimum net capital requirement | $ 250 | |
Moelis US | ||
Regulatory Requirements | ||
Net capital | 63,099 | $ 29,259 |
Net capital in excess of required net capital | 62,849 | 29,009 |
Moelis UK | ||
Regulatory Requirements | ||
Net capital | 23,041 | 50,498 |
Net capital in excess of required net capital | $ 22,984 | $ 50,439 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2018 | |
Bank line of credit | ||||
Available credit under the facility | $ 60,233,000 | |||
Rent expense incurred relating to operating leases | 15,965,000 | $ 15,102,000 | $ 15,856,000 | |
Sublease loss reserve | $ 0 | 213,000 | ||
Unsecured Revolving Credit Facility | ||||
Bank line of credit | ||||
Commitment amount | $ 65,000,000 | |||
Fixed rate of interest (as a percent) | 3.50% | |||
Borrowings under the credit facility | $ 0 | $ 0 | ||
Unsecured Revolving Credit Facility | LIBOR | ||||
Bank line of credit | ||||
Interest rate margin (as a percent) | 1.00% | |||
Reference rate (as a percent) | LIBOR | |||
Unsecured Revolving Credit Facility | Prime | ||||
Bank line of credit | ||||
Interest rate margin (as a percent) | (1.50%) | |||
Reference rate (as a percent) | Prime | |||
Standby Letters of Credit | ||||
Bank line of credit | ||||
Letters of credit outstanding | $ 4,767,000 | |||
Fee on the outstanding balances (as a percent) | 1.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Rental Payments Required Under Operating Leases in Place (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Future minimum rental payments | |
2,019 | $ 19,742 |
2,020 | 13,836 |
2,021 | 8,682 |
2,022 | 8,471 |
2,023 | 7,090 |
Thereafter | 12,349 |
Total | 70,170 |
Sublease Income | |
2,019 | (530) |
2,020 | (849) |
2,021 | (849) |
2,022 | (849) |
2,023 | (849) |
Thereafter | (1,273) |
Total | (5,199) |
Net Minimum Payments | |
2,019 | 19,212 |
2,020 | 12,987 |
2,021 | 7,833 |
2,022 | 7,622 |
2,023 | 6,241 |
Thereafter | 11,076 |
Total | $ 64,971 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 2,379 | $ 2,264 | $ 1,971 |
Revenues and Business Informa_3
Revenues and Business Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Dec. 31, 2016item | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Deferred revenue | $ 7,074 | $ 4,948 | |
Revenues recognized from opening balance of deferred revenues | $ 4,948 | ||
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 885,840 | $ 684,615 | $ 613,373 |
Total assets | 914,375 | 699,068 | |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 731,265 | 535,985 | 516,688 |
Total assets | 756,053 | 519,933 | |
Europe | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 95,844 | 111,088 | 54,332 |
Total assets | 55,064 | 83,834 | |
Rest of World | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 58,731 | 37,542 | $ 42,353 |
Total assets | $ 103,258 | $ 95,301 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 05, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 27, 2019 | Mar. 31, 2015 |
Class A Common Stock | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared per share | $ 4.88 | $ 2.48 | $ 3.29 | |||
Share value authorized for repurchase | $ 25 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Special dividends paid (in dollars per share) | $ 1.25 | |||||
Dividends declared per share | 0.50 | |||||
Total quarterly and special dividends declared per share | $ 1.75 | |||||
Dividend declared date | Feb. 5, 2019 | |||||
Dividend payable date | Mar. 29, 2019 | |||||
Dividend payable record date | Feb. 19, 2019 | |||||
Share value authorized for repurchase | $ 3.5 | |||||
Subsequent Event | Maximum | Class A Common Stock | ||||||
Subsequent Event [Line Items] | ||||||
Share value authorized for repurchase | $ 100 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in valuation and qualifying accounts | |||
Balance at beginning of period | $ 1,433 | $ 475 | $ 1,149 |
Additions: | |||
Bad debt expense | 1,044 | 2,895 | (277) |
Deductions: | |||
Charge-offs of uncollectible balances | (502) | (1,937) | (397) |
Balance at end of period | $ 1,975 | $ 1,433 | $ 475 |