Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PJT | |
Entity Registrant Name | PJT Partners Inc. | |
Entity Central Index Key | 1,626,115 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 18,522,710 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 262 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and Cash Equivalents | $ 73,465 | $ 152,431 | |
Investments | 24,937 | ||
Accounts Receivable (net of allowance for doubtful accounts of $2,020 and $4,374 at March 31, 2017 and December 31, 2016, respectively) | 200,358 | 227,560 | |
Intangible Assets, Net | [1] | 14,046 | 14,713 |
Goodwill | 72,286 | 72,286 | |
Furniture, Equipment and Leasehold Improvements, Net | 37,137 | 38,155 | |
Other Assets | 15,062 | 14,374 | |
Deferred Tax Asset, Net | 73,305 | 70,957 | |
Total Assets | 510,596 | 590,476 | |
Liabilities, Redeemable Non-Controlling Interests and Equity (Deficit) | |||
Accrued Compensation and Benefits | 39,274 | 140,076 | |
Accounts Payable, Accrued Expenses and Other Liabilities | 16,999 | 17,354 | |
Deferred Rent Liability | 16,179 | 16,353 | |
Amount Due Pursuant to Tax Receivable Agreement | 1,911 | 964 | |
Taxes Payable | 2,288 | 1,527 | |
Deferred Revenue | 1,419 | 786 | |
Total Liabilities | 78,070 | 177,060 | |
Commitments and Contingencies | |||
Redeemable Non-Controlling Interests | 494,563 | 421,976 | |
Equity (Deficit) | |||
Additional Paid-In Capital | 9,145 | ||
Retained Deficit | (62,284) | (17,946) | |
Accumulated Other Comprehensive Income | 62 | 61 | |
Total Equity (Deficit) | (62,037) | (8,560) | |
Total Liabilities, Redeemable Non-Controlling Interests and Equity (Deficit) | 510,596 | 590,476 | |
Class A Common Stock | |||
Equity (Deficit) | |||
Common stock, value | 185 | 180 | |
Total Equity (Deficit) | 185 | 180 | |
Class B Common Stock | |||
Equity (Deficit) | |||
Common stock, value | $ 0 | $ 0 | |
[1] | Excludes fully amortized intangible assets. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Receivable, allowance for doubtful accounts | $ 2,020 | $ 4,374 |
Class A Common Stock | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 3,000,000,000 | 3,000,000,000 |
Common Stock, Shares Issued | 18,519,225 | 18,003,272 |
Common Stock, Shares Outstanding | 18,519,225 | 18,003,272 |
Class B Common Stock | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Common Stock, Shares Issued | 262 | 271 |
Common Stock, Shares Outstanding | 262 | 271 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Advisory Fees | $ 99,339 | $ 81,554 |
Placement Fees | 19,502 | 31,951 |
Interest Income and Other | 2,128 | 1,799 |
Total Revenues | 120,969 | 115,304 |
Expenses | ||
Compensation and Benefits | 95,676 | 88,171 |
Occupancy and Related | 6,206 | 6,418 |
Travel and Related | 2,883 | 2,745 |
Professional Fees | 4,189 | 3,496 |
Communications and Information Services | 2,413 | 2,053 |
Depreciation and Amortization | 2,092 | 3,901 |
Other Expenses | 5,422 | 5,787 |
Total Expenses | 118,881 | 112,571 |
Income Before Provision (Benefit) for Taxes | 2,088 | 2,733 |
Provision (Benefit) for Taxes | (871) | 1,302 |
Net Income | 2,959 | 1,431 |
Net Income Attributable to Redeemable Non-Controlling Interests | 1,626 | 1,176 |
Net Income Attributable to PJT Partners Inc. | $ 1,333 | $ 255 |
Class A Common Stock | ||
Net Income Per Share of Class A Common Stock | ||
Net Income Per Share of Class A Common Stock — Basic and Diluted | $ 0.07 | $ 0.01 |
Weighted-Average Shares of Class A Common Stock Outstanding — Basic and Diluted | 18,479,025 | 18,261,984 |
Dividends Declared Per Share of Class A Common Stock | $ 0.05 | $ 0.05 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income | $ 2,959 | $ 1,431 |
Other Comprehensive Income, Net of Tax — Currency Translation Adjustment | 2 | 136 |
Comprehensive Income | 2,961 | 1,567 |
Comprehensive Income Attributable to Redeemable Non-Controlling Interests | 1,627 | 1,240 |
Comprehensive Income Attributable to PJT Partners Inc. | $ 1,334 | $ 327 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalClass A Common Stock | Retained Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2015 | $ 32,080 | $ 180 | $ 43,132 | $ (11,184) | $ (48) | ||
Beginning Balance (in shares) at Dec. 31, 2015 | 17,966,456 | 300 | |||||
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2015 | 309,855 | ||||||
Net Income | 255 | 255 | |||||
Redeemable Non-Controlling Interests, Net Income | 1,176 | ||||||
Currency Translation Adjustment | 136 | 136 | |||||
Dividends | (934) | (934) | |||||
Non-Cash Contributions from Former Parent | 2,376 | 2,376 | |||||
Equity-Based Compensation | 11,701 | 11,701 | |||||
Redeemable Non-Controlling Interests, Equity-Based Compensation | 8,934 | ||||||
Forfeiture Liability for Equity Awards | 331 | 331 | |||||
Issuances of Common Stock (in shares) | 4 | ||||||
Redeemable Non-Controlling Interests, Issuances of Shares | 3,401 | ||||||
Forfeitures of Class B Common Stock | 1,511 | 1,511 | |||||
Forfeitures of Shares (in shares) | (1) | ||||||
Redeemable Non-Controlling Interests, Forfeitures of Class B Common Stock | (1,511) | ||||||
Issuance of Shares of Class B Common Stock | (3,401) | (3,401) | |||||
Adjustment of Redeemable Non-Controlling Interests to Redemption Value | 35,295 | 35,295 | |||||
Redeemable Non-Controlling Interests, Adjustment of Redeemable Non-Controlling Interests to Redemption Value | (35,295) | ||||||
Ending Balance at Mar. 31, 2016 | 79,350 | $ 180 | 90,945 | (11,863) | 88 | ||
Ending Balance (in shares) at Mar. 31, 2016 | 17,966,456 | 303 | |||||
Redeemable Non-Controlling Interests, Ending Balance at Mar. 31, 2016 | 286,560 | ||||||
Beginning Balance at Dec. 31, 2016 | (8,560) | $ 180 | 9,145 | (17,946) | 61 | ||
Beginning Balance (in shares) at Dec. 31, 2016 | 18,003,272 | 271 | |||||
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2016 | 421,976 | ||||||
Net Income | 1,333 | 1,333 | |||||
Redeemable Non-Controlling Interests, Net Income | 1,626 | ||||||
Currency Translation Adjustment | 1 | 1 | |||||
Redeemable Non-Controlling Interests, Currency Translation Adjustment | 1 | ||||||
Dividends | (950) | (950) | |||||
Equity-Based Compensation | 21,952 | 21,952 | |||||
Redeemable Non-Controlling Interests, Equity-Based Compensation | 11,304 | ||||||
Forfeiture Liability for Equity Awards | 94 | 94 | |||||
Net Share Settlement | (3,368) | (3,368) | |||||
Issuances of Common Stock | $ 5 | $ (5) | |||||
Issuances of Common Stock (in shares) | 515,953 | 5 | |||||
Redeemable Non-Controlling Interests, Issuances of Shares | 1,283 | ||||||
Issuance of Shares of Class B Common Stock | (1,283) | (1,283) | |||||
Cash Settled Exchanges of Partnership Units | 167 | 167 | |||||
Cash Settled Exchanges of Partnership Units (in shares) | (14) | ||||||
Redeemable Non-Controlling Interests, Cash Settled Exchanges of Partnership Units | (13,050) | ||||||
Adjustment of Redeemable Non-Controlling Interests to Redemption Value | (71,423) | $ (26,702) | (44,721) | ||||
Redeemable Non-Controlling Interests, Adjustment of Redeemable Non-Controlling Interests to Redemption Value | 71,423 | ||||||
Ending Balance at Mar. 31, 2017 | (62,037) | $ 185 | $ (62,284) | $ 62 | |||
Ending Balance (in shares) at Mar. 31, 2017 | 18,519,225 | 262 | |||||
Redeemable Non-Controlling Interests, Ending Balance at Mar. 31, 2017 | $ 494,563 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | ||
Net Income | $ 2,959 | $ 1,431 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities | ||
Equity-Based Compensation Expense | 33,256 | 20,618 |
Depreciation and Amortization Expense | 2,092 | 3,901 |
Bad Debt Expense (Recovery) | 199 | (25) |
Foreign Currency Transaction Gains | (599) | (421) |
Deferred Taxes | (1,239) | |
Cash Flows Due to Changes in Operating Assets and Liabilities | ||
Accounts Receivable | 28,336 | (11,941) |
Deferred Tax Assets | (666) | |
Other Assets | (603) | (5,803) |
Accrued Compensation and Benefits | (101,042) | (12,310) |
Accounts Payable, Accrued Expenses and Other Liabilities | (245) | 12,554 |
Deferred Rent Liability | (222) | 2,872 |
Deferred Tax Liability | 15 | |
Taxes Payable | 759 | 759 |
Deferred Revenue | 635 | (140) |
Net Cash Provided by (Used in) Operating Activities | (35,714) | 10,844 |
Investing Activities | ||
Proceeds from Repayment of Note Issued to Employee | 538 | |
Purchases of Investments | (25,000) | |
Purchases of Furniture, Equipment and Leasehold Improvements | (346) | (6,432) |
Net Cash Used in Investing Activities | (25,346) | (5,894) |
Financing Activities | ||
Dividends | (950) | (934) |
Employee Taxes Paid for Shares Withheld | (3,368) | |
Cash-Settled Exchanges of Partnership Units | (13,050) | |
Principal Payments on Capital Lease Obligations | (23) | (25) |
Net Cash Used in Financing Activities | (17,391) | (959) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (515) | (330) |
Net Increase (Decrease) in Cash and Cash Equivalents | (78,966) | 3,661 |
Cash and Cash Equivalents, Beginning of Period | 152,431 | 82,322 |
Cash and Cash Equivalents, End of Period | 73,465 | 85,983 |
Supplemental Disclosure of Cash Flows Information | ||
Payments for Income Taxes, Net of Refunds Received | $ 2,160 | 722 |
Supplemental Disclosure of Significant Non-Cash Activities | ||
Non-Cash Contributions from Former Parent | $ 2,376 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION PJT Partners Inc. and its consolidated subsidiaries (the “Company” or “PJT Partners”) delivers a wide array of strategic advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments around the world. The Company offers a unique portfolio of advisory services designed to help its clients realize major corporate milestones and solve complex issues. Also, through Park Hill Group, the Company provides private fund advisory and placement services for alternative investment managers, including private equity funds, real estate funds and hedge funds. On October 1, 2015, The Blackstone Group L.P. (“Blackstone” or the “former Parent”) distributed on a pro rata basis to its common unitholders all of the issued and outstanding shares of Class A common stock of PJT Partners Inc. held by it. This pro rata distribution is referred to as the “Distribution.” The separation of the PJT Partners business from Blackstone and related transactions, including the Distribution, the internal reorganization that preceded the Distribution and the acquisition by PJT Partners of PJT Capital LP (together with its general partner and their respective subsidiaries, “PJT Capital”) that occurred substantially concurrently with the Distribution, is referred to as the “spin-off.” Following the spin-off, PJT Partners Inc. became the sole general partner of PJT Partners Holdings LP. PJT Partners Inc. owns less than 100% of the economic interest in PJT Partners Holdings LP, but has 100% of the voting power and controls the management of PJT Partners Holdings LP. As of March 31, 2017, the non-controlling interest was 45.3%. As the sole general partner of PJT Partners Holdings LP, PJT Partners Inc. operates and controls all of the business and affairs and consolidates the financial results of PJT Partners Holdings LP and its subsidiaries. The Company operates through the following subsidiaries: PJT Partners LP, Park Hill Group LLC, PJT Partners (UK) Limited and PJT Partners (HK) Limited. The spin-off, including the consummation of the acquisition of PJT Capital and the Distribution is described in Note 3. “Reorganization and Spin-off” and information regarding the Class A and Class B common stock issued in connection with the spin-off and Redeemable Non-Controlling Interests is described in Note 11. “Stockholders’ Equity (Deficit)” in the “Notes to Consolidated and Combined Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated and combined financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Intercompany transactions have been eliminated for all periods presented. For a comprehensive disclosure of the Company’s significant accounting policies, see Note 2. “Summary of Significant Accounting Policies” in the “Notes to Consolidated and Combined Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. During the second quarter of 2016, a misstatement was identified in the accounting for certain partnership interests in PJT Partners Holdings LP, which resulted in a reclassification from Redeemable Non-Controlling Interests to Retained Deficit and Additional Paid-In Capital. In accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections Recent Accounting Developments In June 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue from contracts with customers. The guidance requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The guidance introduces new qualitative and quantitative disclosure requirements about contracts with customers including revenue and impairments recognized, disaggregation of revenue and information about contract balances and performance obligations. Information is required about significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations and determining the transaction price and amounts allocated to performance obligations. Additional disclosures are required about assets recognized from the costs to obtain or fulfill a contract. As originally proposed, the guidance was effective prospectively for annual periods beginning after December 15, 2016 including interim periods within that reporting period. In recent re-deliberations, the FASB approved a one-year deferral of the effective date of this guidance, such that it will be effective for annual reporting periods beginning after December 31, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company plans to adopt the standard using the modified retrospective approach as of January 1, 2018. The Company is still in the process of determining the full impact that adoption of this guidance will have on its financial statements and continues to evaluate the authoritative literature issued from the various standard setters. The Company will provide additional information about the expected impact of adoption as available. In February 2016, the FASB issued new guidance regarding leases. The guidance requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. Entities are also required to provide enhanced disclosure about leasing arrangements. The amendments retain lease classifications, distinguishing finance leases from operating leases, using criteria that are substantially similar for distinguishing capital leases from operating leases in previous guidance. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Adoption requires a modified retrospective approach. While the Company is still in the process of determining the full impact this guidance will have on its financial statements, the Company has tentatively determined the following based on its evaluation to date: (a) the Company will adopt the standard as of January 1, 2019, and (b) the Company currently expects that adoption of this guidance will have a material impact on the statement of financial condition due to assets and liabilities related to current operating leases being recorded in the statement of financial condition. In June 2016, the FASB issued guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In November 2016, the FASB issued guidance that requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. Adoption requires a retrospective approach. The Company is currently assessing the impact of the adoption of this guidance, but does not expect that adoption of this guidance on January 1, 2018 will have a material impact on its Consolidated Statements of Cash Flows. In January 2017, the FASB issued guidance clarifying the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. This new guidance becomes effective for the Company in the first quarter of 2019 and is applied prospectively. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued guidance intended to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This new guidance becomes effective for the Company in and is applied prospectively, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Doubtful Accounts | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | 3 . ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Included in Accounts Receivable are long-term receivables of $65.7 million and $73.1 million as of March 31, 2017 and December 31, 2016, respectively, related to placement fees that are generally paid in installments over a period of three to four years. The carrying value of such long-term receivables approximates fair value. Long-term receivables are classified as Level II in the fair value hierarchy. The Company does not have any long-term receivables on non-accrual status. Long-term receivables which were more than 90 days past due as of March 31, 2017 and December 31, 2016 were $2.1 million and $2.7 million, respectively. There was no allowance for doubtful accounts with respect to long-term receivables as of March 31, 2017 or December 31, 2016. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4 . INTANGIBLE ASSETS Intangible Assets, Net consists of the following: March 31, December 31, 2017 2016 Finite-Lived Intangible Assets Customer Relationships $ 26,476 $ 26,476 Trade Name 5,700 5,700 Client Mandates and Other — 1,276 Total Intangible Assets 32,176 33,452 Accumulated Amortization (18,130 ) (18,739 ) Intangible Assets, Net (a) $ 14,046 $ 14,713 ( a ) Excludes fully amortized intangible assets. Amortization expense was $0.7 million and $2.8 million for the three months ended March 31, 2017 and 2016, respectively. Amortization of intangible assets held at March 31, 2017 is expected to be $2.4 million for the year ending December 31, 2017 and $2.3 million for each of the years ending December 31, 2018, 2019, 2020 and 2021. The intangible assets as of March 31, 2017 are expected to amortize over a weighted-average period of 8.5 years. |
Furniture, Equipment and Leaseh
Furniture, Equipment and Leasehold Improvements | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Furniture, Equipment and Leasehold Improvements | 5 . FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Furniture, Equipment and Leasehold Improvements, Net consists of the following: March 31, December 31, 2017 2016 Office Equipment $ 1,800 $ 1,778 Leasehold Improvements 33,106 32,889 Furniture and Fixtures 11,547 11,364 Total Furniture, Equipment and Leasehold Improvements 46,453 46,031 Accumulated Depreciation (9,316 ) (7,876 ) Furniture, Equipment and Leasehold Improvements, Net $ 37,137 $ 38,155 Depreciation expense was $1.4 million and $1.1 million for the three months ended March 31, 2017 and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS The Company generally invests in U.S. Treasury securities with remaining maturities of less than twelve months. As of March 31, 2017 and December 31, 2016, the Company held investments in U.S. Treasury securities of $25.9 million and $50.0 million, respectively, of which $1.0 million and $50.0 million were included in Cash and Cash Equivalents in the Condensed Consolidated Statements of Financial Condition. U.S. Treasury securities with remaining maturities of greater than 90 days are included in Investments in the Condensed Consolidated Statements of Financial Condition. In making an assessment of the fair value hierarchy classification, the Company considers the amount of trading activity, observability of pricing inputs as well as 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). As of March 31, 2017 and December 31, 2016, all U.S. Treasury securities held by the Company were classified as Level II in the fair value hierarchy. During the three months ended March 31, 2017, there were no transfers from Level I to Level II related to U.S. Treasury securities that were initially acquired as on-the-run and classified as Level I, but subsequently transferred to Level II as a result of becoming off-the-run. There were also no transfers between Level I, Level II or Level III during the three months ended March 31, 2017. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES The Company’s effective tax rate was -41.7% and 47.6% for the three months ended March 31, 2017 and 2016, respectively. The Company’s income tax benefit was $0.9 million for the three months ended March 31, 2017 and income tax provision was $1.3 million for the three months ended March 31, 2016. The Company’s effective tax rate differed from the U.S. federal statutory tax rate for the three months ended March 31, 2017 due to corporate entities subject to U.S. federal, state, local and foreign income taxes; to non-corporate entities that are subject to New York City Unincorporated Business Tax and to certain compensation charges that are not deductible for income tax purposes. The decrease in tax rate for the three months ended March 31, 2017 from the three months ended March 31, 2016 was primarily attributable to a tax benefit recorded related to the delivery of vested shares at a value in excess of their amortized cost. As of March 31, 2017, the Company had no unrecognized tax benefits. |
Net Income Per Share of Class A
Net Income Per Share of Class A Common Stock | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share of Class A Common Stock | 8. NET INCOME PER SHARE OF CLASS A COMMON STOCK Basic and diluted net income per share of Class A common stock for the three months ended March 31, 2017 and 2016 is presented below: Three Months Ended March 31, 2017 2016 Numerator: Net Income $ 2,959 $ 1,431 Net Income Attributable to Redeemable Non-Controlling Interests 1,626 1,176 Net Income Attributable to PJT Partners Inc. $ 1,333 $ 255 Denominator: Weighted-Average Shares of Class A Common Stock Outstanding — Basic and Diluted 18,479,025 18,261,984 Net Income Per Share of Class A Common Stock — Basic and Diluted $ 0.07 $ 0.01 Common units of partnership interest in PJT Partners Holdings LP (“Partnership Units”) may be exchanged for PJT Partners Inc. Class A common stock on a one-for-one basis, subject to applicable lock-up, vesting and transfer restrictions. If all Partnership Units were exchanged for Class A common stock, Class A common stock outstanding would be 33,986,500, excluding unvested restricted stock units (“RSUs”) and participating RSUs, as of March 31, 2017. In computing the dilutive effect, if any, which the aforementioned exchange would have on net income per share, net income attributable to holders of Class A common stock would be adjusted due to the elimination of the non-controlling interests associated with the Partnership Units (including any tax impact). For the three months ended March 31, 2017 and 2016, such exchange is not reflected in diluted net income per share as the assumed exchange is anti-dilutive. During the three months ended March 31, 2017 and 2016, unvested RSUs, participating RSUs and Partnership Units were all determined to be anti-dilutive and excluded from the calculation of net income per share of Class A common stock. The following amounts would have been included in this calculation if their effect were dilutive for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Weighted-Average Unvested RSUs 3,260,169 1,186,918 Weighted-Average Participating RSUs 575,275 789,924 Weighted-Average Partnership Units 15,507,475 16,123,221 |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 9. EQUITY-BASED COMPENSATION Overview Further information regarding equity-based compensation awards granted in connection with the spin-off is described in Note 10. “Equity-Based Compensation” in the “Notes to Consolidated and Combined Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. On October 1, 2015, the Company adopted the PJT Partners Inc. 2015 Omnibus Incentive Plan (the “PJT Equity Plan”) for the purpose of providing incentive compensation measured by reference to the value of the Company’s Class A common stock or Partnership Units. The PJT Equity Plan provides for the granting of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, partnership interests and other stock-based or cash-based awards. The Company has initially authorized 12.2 million shares of Class A common stock for issuance under the PJT Equity Plan. The following table represents equity-based compensation expense and related income tax benefit for the three months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017 2016 Equity-Based Compensation Expense $ 33,256 $ 20,618 Income Tax Benefit $ 4,670 $ 4,135 Restricted Stock Units Pursuant to the PJT Equity Plan and in connection with the Company’s spin-off from Blackstone, annual compensation process and ongoing hiring process, the Company has issued RSUs, which generally vest over a service life of three to five years. Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting. A summary of the status of the Company’s unvested RSUs in PJT Partners Inc. and PJT Partners Holdings LP as of March 31, 2017 and of changes during the period January 1, 2017 through March 31, 2017 is presented below: Restricted Stock Units PJT Partners Inc. PJT Partners Holdings LP Weighted- Weighted- Average Average Grant Date Number of Grant Date Number of Fair Value Partnership Fair Value Units (in dollars) Units (in dollars) Balance, December 31, 2016 5,776,114 $ 21.71 443,689 $ 25.58 Granted 1,309,570 36.68 — — Vested (611,448 ) 23.84 — — Forfeited (40,827 ) 21.54 — — Dividends Reinvested on Participating RSUs 2,738 33.07 — — Balance, March 31, 2017 6,436,147 $ 24.56 443,689 $ 25.58 As of March 31, 2017, there was $95.2 million of estimated unrecognized compensation expense related to unvested RSU awards. The Company assumes a forfeiture rate of 1.0% to 14.0% annually based on expected turnover and periodically reassesses this rate. This cost is expected to be recognized over a weighted-average period of 1.3 years. Partnership Units In connection with the spin-off on October 1, 2015, certain individuals were issued Class A common stock of PJT Partners Inc., as well as Partnership Units that, subject to certain terms and conditions, are redeemable at the option of the holder for cash, or, at the Company’s election, for shares of PJT Partners Inc. Class A common stock on a one-for-one basis. These Partnership Units generally vest over a service life of five years. A summary of the status of the Company’s unvested Partnership Units as of March 31, 2017 and of changes during the period January 1, 2017 through March 31, 2017 is presented below: Partnership Units Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2016 5,591,357 $ 21.23 Granted 34,894 36.76 Vested (4,571 ) 28.29 Balance, March 31, 2017 5,621,680 $ 21.32 As of March 31, 2017, there was $73.2 million of estimated unrecognized compensation expense related to unvested Partnership Units. The Company assumes a forfeiture rate of 4.0% annually based on expected turnover and periodically reassesses this rate. This cost is expected to be recognized over a weighted-average period of 1.8 years. Equity-Based Awards with Both Service and Market Conditions In connection with the spin-off, the Company also granted equity-based awards containing both service and market conditions. The effect of the market condition is reflected in the grant date fair value of the award. Compensation cost is recognized over the requisite service period, provided that the service period is completed, irrespective of whether the market condition is satisfied. The service condition requirement with respect to such equity-based awards is five years with 20% vesting in the third year, 30% in the fourth year and 50% in the fifth year. The market condition requirement will be satisfied upon the publicly traded shares of Class A common stock achieving certain volume-weighted average share price targets over any consecutive 30-day trading period following the consummation of the spin-off, pro ratably at $48, $55, $63, $71 and $79 per share of Class A common stock. The market condition requirements must be met prior to the sixth anniversary of the consummation of the spin-off. No portion of these awards will become vested until both the service and market conditions have been satisfied. A summary of the status of the Company’s unvested equity-based awards in PJT Partners Holdings LP with both a service and market condition as of March 31, 2017 and December 31, 2016 is presented below: Equity-Based Awards with Both Service and Market Conditions Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2016 6,503,464 $ 5.72 Balance, March 31, 2017 6,503,464 $ 5.72 As of March 31, 2017, there was $21.3 million of estimated unrecognized compensation expense related to equity-based awards with both a service and market condition. The Company assumes a forfeiture rate of 4.0% annually based on expected turnover and periodically reassesses this rate. This cost is expected to be recognized over a weighted-average period of 2.2 years. Units Expected to Vest The following unvested units, after expected forfeitures, as of March 31, 2017, are expected to vest: Weighted-Average Service Period Units in Years Partnership Units 11,498,051 2.0 Restricted Stock Units 6,545,070 1.3 Total Equity-Based Awards 18,043,121 1.8 |
Transactions With Related Parti
Transactions With Related Parties | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | 10. TRANSACTIONS WITH RELATED PARTIES Exchange Agreement The Company has entered into an exchange agreement with the limited partners of PJT Partners Holdings LP pursuant to which they (or certain permitted transferees) have the right, subject to the terms and conditions set forth in the limited partnership agreement of PJT Partners Holdings LP, on a quarterly basis, from and after the first anniversary of the date of the consummation of the spin-off (subject to the terms of the exchange agreement), to exchange all or part of their Partnership Units for cash, or, at the Company’s election, for shares of PJT Partners Inc. Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for splits, unit distributions and reclassifications. Pursuant to the terms in the partnership agreement of PJT Partners Holdings LP, the Company may also require holders of Partnership Units who are not Service Providers (as defined in the partnership agreement of PJT Partners Holdings LP) to exchange such Partnership Units. The price per Partnership Unit to be received in a cash-settled exchange will be equal to the fair value of a share of PJT Partners Inc. Class A common stock (determined in accordance with and subject to adjustment under the exchange agreement). In the event cash-settled exchanges of Partnership Units are funded with new issuances of Class A common stock, the fair value of a share of PJT Partners Inc. Class A common stock will be deemed to be equal to the net proceeds per share of Class A common stock received by PJT Partners Inc. in the related issuance. Accordingly, in this event, the price per Partnership Unit to which an exchanging Partnership Unitholder will be entitled may be greater than or less than the then-current market value of PJT Partners Inc. Class A common stock. The exchange agreement also provides that a holder of Partnership Units will not have the right to exchange Partnership Units in the event that PJT Partners Inc. determines that such exchange would be prohibited by law, or would result in any breach of any debt agreement or other material contract of PJT Partners Inc. or PJT Partners Holdings LP. During the first quarter of 2017, the Company was presented with 526,733 Partnership Units to be exchanged. The Company elected to settle the exchange of these Partnership Units on May 9, 2017 for an aggregate payment of $19.1 million with cash from the Company’s working capital. The price per Partnership Unit paid by the Company was $36.29, which is equal to the volume-weighted average price of a share of the Company’s Class A common stock on May 4, 2017. With respect to the fourth quarter 2016 exchange, certain Partnership Unitholders exchanged 361,588 Partnership Units for cash in the amount of $13.0 million, which was paid on February 16, 2017. Registration Rights Agreement The Company entered into a registration rights agreement with the limited partners of PJT Partners Holdings LP pursuant to which the Company granted them, their affiliates and certain of their transferees the right, under certain circumstances and subject to certain restrictions, to require the Company to register under the Securities Act of 1933 shares of Class A common stock delivered in exchange for Partnership Units. Tax Receivable Agreement The Company entered into a tax receivable agreement with the holders of Partnership Units (other than PJT Partners Inc.) that provides for the payment by PJT Partners Inc. to exchanging holders of Partnership Units of 85% of the benefits, if any, that PJT Partners Inc. is deemed to realize as a result of the increases in tax basis related to such exchanges of Partnership Units and of certain other tax benefits related to entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. As of March 31, 2017 and December 31, 2016, the Company had amounts due of $1.9 million and $1.0 million, respectively, pursuant to the tax receivable agreement, which represent management’s best estimate of the amounts currently expected to be owed in connection with the tax receivable agreement. Actual payments may differ significantly from estimated payments. Aircraft Lease On occasion, certain of the Company’s executive officers, employees and their families may make use of aircraft in which the Company owns a fractional interest (the “Aircraft”). Any such personal use of the Aircraft is charged to the executive officer or employee based on market rates and usage. The amount is not material to the condensed consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Commitments Line of Credit On October 1, 2015, PJT Partners Holdings LP entered into a Loan Agreement (the “Loan Agreement”) and related documents with First Republic Bank. The Loan Agreement provides for a revolving credit facility with aggregate commitments in an amount equal to $60.0 million, which aggregate commitments may be increased, on the terms and subject to the conditions set forth in the Loan Agreement, to up to $80.0 million during the period beginning December 1 each year through March 1 of the following year. The revolving credit facility will mature and the commitments thereunder will terminate on October 2, 2017. The proceeds of the revolving credit facility are available for working capital and general corporate purposes. Interest on the borrowings is based on the prime rate minus 1.0% and undrawn commitments bear a commitment fee. The Loan Agreement contains customary representations, covenants and events of default. Financial covenants consist of a minimum consolidated tangible net worth, maximum leverage ratio, minimum consolidated liquidity ratio and limitation on additional indebtedness, each tested quarterly. On October 10, 2016, PJT Partners Holdings LP entered into a Renewal Agreement (the “Renewal Agreement”) and related documents with First Republic Bank, amending the terms of the Company’s revolving credit facility under the Loan Agreement. The Renewal Agreement provides for a one-year extension of the maturity of the revolving credit facility to October 2, 2018. As of March 31, 2017, there were no borrowings under the revolving credit facility and the Company was in compliance with the debt covenants. Leases The Company leases office space under non-cancelable lease agreements, which expire at Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord and are recognized on a straight-line basis over the term of the lease agreement. Total rent expense was $5.9 million and $6.3 million for the three months ended March 31, 2017 and 2016, respectively. Rent expense is included in Occupancy and Related in the Condensed Consolidated Statements of Operations. These amounts include variable operating escalation payments, which are paid when invoiced. As of March 31, 2017 and December 31, 2016, the Company maintained an irrevocable standby letter of credit for certain operating leases of $4.6 million and $4.5 million, respectively. Capital lease obligations recorded are payable through 2021 at a weighted-average interest rate of 2.3%. The net book value of all assets recorded under capital leases aggregated $0.3 million and $0.4 million as of March 31, 2017 and December 31, 2016, respectively. As of March 31, 2017, the aggregate minimum future payments required on non-cancelable leases are as follows: Minimum Lease Payments Year Ending December 31, Capital Operating 2017 $ 75 $ 16,992 2018 101 20,617 2019 101 20,033 2020 77 19,086 2021 4 19,581 Thereafter — 105,966 Total Minimum Lease Payments 358 202,275 Less: Amount Representing Interest 15 Capital Lease Obligation $ 343 Less: Sublease Proceeds 17,749 Net Minimum Lease Payments $ 184,526 Litigation From time to time, the Company is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Some of these matters may involve claims of substantial amounts. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, after consultation with external counsel, the Company believes it is not probable and/or reasonably possible that any current legal proceedings or claims would individually or in the aggregate have a material adverse effect on the condensed consolidated financial statements of the Company. As previously disclosed, the Company terminated Andrew Caspersen on March 28, 2016 after learning of a number of unauthorized and unlawful transactions outside the scope of his employment with Park Hill. The Company recorded an expense of $8.9 million during the three months ended March 31, 2016, which represented the amount that was considered to be probable and reasonably estimable, as well as a related insurance reimbursement of $5.6 million deemed probable of receipt. The Company made payments totaling $8.9 million related to the charge and also received a $5.6 million insurance reimbursement during the year ended December 31, 2016. With respect to potential additional claims related to funds fraudulently obtained by Mr. Caspersen, the Company believes that any such claims would be without merit and would vigorously defend any such actions. For other matters, the Company is not currently able to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support such an assessment, including quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by courts on motions or appeals, analysis by experts or the status of any settlement negotiations. Indemnifications The Company has entered and may continue to enter into contracts, including contracts with Blackstone relating to the spin-off, which contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is not known. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Transactions and Agreements with Blackstone During the three months ended March 31, 2016, the Company recorded $0.3 million related to certain professional fees payable to Blackstone. Such amounts were paid during the three months ended March 31, 2017. As of March 31, 2017, the Company had no amounts payable to Blackstone for such expenses and $0.3 million as of December 31, 2016. During the three months ended March 31, 2016, the Company recorded $2.4 million in non-cash contributions related to the settlement of balances due to and from Blackstone. Transition Services Agreement In connection with the spin-off, the Company entered into a Transition Services Agreement with Blackstone under which Blackstone or its respective affiliates may provide the Company with certain services for a period of up to 24 months from the date of the spin-off (subject to the earlier termination of the agreement or any or all of the services provided thereunder in the circumstances set forth therein) to help ensure an orderly transition for each of the Company and Blackstone following the distribution. Pursuant to the Transition Services Agreement, Blackstone agreed to provide the Company certain finance, information technology, human resources and compensation, facilities, legal and compliance, external relations and public company services. The Company pays Blackstone for any such services at agreed amounts as set forth in the Transition Services Agreement. In addition, from time to time during the term of the agreement, the Company and Blackstone may mutually agree on additional services to be provided by Blackstone to the Company at pricing based on market rates that are reasonably agreed by the parties. The Company had amounts payable to Blackstone with respect to the Transition Services Agreement of $25 thousand as of March 31, 2017 and December 31, 2016. Employee Matters Agreement The Company is required to reimburse Blackstone for the value of forfeited unvested equity awards granted to former Blackstone employees that transitioned to PJT Partners in connection with the spin-off. Such reimbursement is recorded in Accounts Payable, Accrued Expenses and Other Liabilities with an offset to Equity in the Condensed Consolidated Statements of Financial Condition. The Company will cash settle the liability to Blackstone quarterly as the forfeitures attributable to these employees crystallize. The accrual for these forfeitures was $0.4 million and $0.5 million as of March 31, 2017 and December 31, 2016, respectively. Pursuant to the Employee Matters Agreement, the Company has agreed to pay Blackstone the net realized cash benefit resulting from certain compensation-related tax deductions. The amount payable to Blackstone arising from the tax deductions has been recorded in Other Expenses in the Condensed Consolidated Statements of Operations and is payable annually (for periods in which a cash benefit is realized) within nine months of the end of the relevant tax period. As of March 31, 2017 and December 31, 2016, the Company had accrued $5.7 million and $4.1 million, respectively, which the Company anticipates will be payable to Blackstone after the Company files its respective tax returns. The tax deduction and corresponding payable to Blackstone related to such deliveries will fluctuate primarily based on the price of Blackstone common units at the time of delivery. Tax Matters Agreement The Company entered into a Tax Matters Agreement with Blackstone that governs the respective rights, responsibilities and obligations of the Company and Blackstone after the spin-off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. The Company has joint and several liability with Blackstone to the Internal Revenue Service (“IRS”) for the consolidated U.S. federal income taxes of the Blackstone consolidated group relating to the taxable periods in which the Company was part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which the Company bears responsibility, and Blackstone agrees to indemnify the Company against any amounts for which the Company is not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the spin-off is determined not to be tax-free. Though valid as between the parties, the Tax Matters Agreement is not binding on the IRS. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 12. EMPLOYEE BENEFIT PLANS The Company contributes to employer sponsored defined contribution plans for certain employees, subject to eligibility and statutory requirements. The Company incurred expenses with respect to these defined contribution plans in the amounts of $0.3 million for the three months ended March 31, 2017 and 2016, which are included in Compensation and Benefits in the Condensed Consolidated Statements of Operations. |
Regulated Entities
Regulated Entities | 3 Months Ended |
Mar. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulated Entities | 13. REGULATED ENTITIES Certain subsidiaries of the Company are subject to various regulatory requirements in the United States, United Kingdom and Hong Kong, which specify, among other requirements, minimum net capital requirements for registered broker-dealers. PJT Partners LP is a registered broker-dealer through which strategic advisory and restructuring and special situations services are conducted in the United States and is subject to the net capital requirements of Rule 15c3‑1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). PJT Partners LP computes net capital based upon the aggregate indebtedness standard, which requires the maintenance of minimum net capital, as defined, which shall be the greater of $100 thousand or 6 2/3% of aggregate indebtedness, as defined, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. PJT Partners LP had net capital of $50.3 million and $65.6 million as of March 31, 2017 and December 31, 2016, respectively, which exceeded the minimum net capital requirement by $49.6 million and $64.1 million, respectively. Park Hill Group LLC is a registered broker-dealer through which private fund advisory and placement services are conducted in the United States and is subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. Park Hill Group LLC elected to adopt the alternative standard, which defines minimum net capital as the greater of $250 thousand or 2% of aggregate debit items computed in accordance with the reserve requirement. Park Hill Group LLC had net capital of $12.3 million and $18.1 million as of March 31, 2017 and December 31, 2016, respectively, which exceeded the minimum net capital requirement by $12.1 million and $17.9 million, respectively. PJT Partners LP and Park Hill Group LLC do not carry customer accounts and do not otherwise hold funds or securities for, or owe money or securities to, customers and, accordingly, are both exempt from the SEC Customer Protection Rule (Rule 15c3‑3). PJT Partners (UK) Limited is licensed with the United Kingdom’s Financial Conduct Authority and is required to maintain regulatory net capital of €50 thousand. PJT Partners (HK) Limited is licensed with the Hong Kong Securities and Futures Commission and is subject to a minimum liquid capital requirement of HK$3 million. As of March 31, 2017 and December 31, 2016, both of these entities were in compliance with local capital adequacy requirements. |
Business Information
Business Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Information | 14. BUSINESS INFORMATION The Company’s activities providing strategic advisory, restructuring and special situations and private fund advisory and placement services constitute a single reportable segment. An operating segment is a component of an entity which conducts business, incurs revenues and expenses for which discrete financial information is available that is reviewed by the chief operating decision maker in assessing performance and making resource allocation decisions. The Company has a single operating segment and therefore a single reportable segment. The Company is organized as one operating segment in order to maximize the value of our advice to clients by drawing upon the diversified expertise and broad relationships of our senior professionals across the Company. The chief operating decision maker assesses performance and allocates resources based on broad considerations including the market opportunity, available expertise across the Company and the strength and efficacy of professionals’ collaboration, and not based upon profit or loss measures for the Company’s separate product lines. Since the financial markets are global in nature, the Company generally manages its business based on the operating results of the Company taken as a whole, not by geographic region. The following tables set forth the geographical distribution of 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 the Company’s clients are located. Three Months Ended March 31, 2017 2016 Revenues Domestic $ 105,421 $ 112,111 International 15,548 3,193 Total $ 120,969 $ 115,304 March 31, December 31, 2017 2016 Assets Domestic $ 480,095 $ 545,049 International 30,501 45,427 Total $ 510,596 $ 590,476 The Company had one client that represented 10.3% of total revenues for the three months ended March 31, 2017. The Company is not subject to any material concentrations with respect to its revenues for the three months ended March 31, 2016 or credit risk with respect to its accounts receivable as of March 31, 2017 and December 31, 2016. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15 . SUBSEQUENT EVENTS The Board of Directors of PJT Partners Inc. has declared a quarterly dividend of $0.05 per share of Class A common stock, which will be paid on June 22, 2017 to Class A common stockholders of record on June 8, 2017. The Company did not identify any other subsequent events besides the exchange payment described in Note 10. “Transactions with Related Parties—Exchange Agreement.” |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q. The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated and combined financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Intercompany transactions have been eliminated for all periods presented. For a comprehensive disclosure of the Company’s significant accounting policies, see Note 2. “Summary of Significant Accounting Policies” in the “Notes to Consolidated and Combined Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. During the second quarter of 2016, a misstatement was identified in the accounting for certain partnership interests in PJT Partners Holdings LP, which resulted in a reclassification from Redeemable Non-Controlling Interests to Retained Deficit and Additional Paid-In Capital. In accordance with Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections |
Recent Accounting Developments | Recent Accounting Developments In June 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue from contracts with customers. The guidance requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The guidance introduces new qualitative and quantitative disclosure requirements about contracts with customers including revenue and impairments recognized, disaggregation of revenue and information about contract balances and performance obligations. Information is required about significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations and determining the transaction price and amounts allocated to performance obligations. Additional disclosures are required about assets recognized from the costs to obtain or fulfill a contract. As originally proposed, the guidance was effective prospectively for annual periods beginning after December 15, 2016 including interim periods within that reporting period. In recent re-deliberations, the FASB approved a one-year deferral of the effective date of this guidance, such that it will be effective for annual reporting periods beginning after December 31, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company plans to adopt the standard using the modified retrospective approach as of January 1, 2018. The Company is still in the process of determining the full impact that adoption of this guidance will have on its financial statements and continues to evaluate the authoritative literature issued from the various standard setters. The Company will provide additional information about the expected impact of adoption as available. In February 2016, the FASB issued new guidance regarding leases. The guidance requires lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by leases. Entities are also required to provide enhanced disclosure about leasing arrangements. The amendments retain lease classifications, distinguishing finance leases from operating leases, using criteria that are substantially similar for distinguishing capital leases from operating leases in previous guidance. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Adoption requires a modified retrospective approach. While the Company is still in the process of determining the full impact this guidance will have on its financial statements, the Company has tentatively determined the following based on its evaluation to date: (a) the Company will adopt the standard as of January 1, 2019, and (b) the Company currently expects that adoption of this guidance will have a material impact on the statement of financial condition due to assets and liabilities related to current operating leases being recorded in the statement of financial condition. In June 2016, the FASB issued guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In November 2016, the FASB issued guidance that requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. Adoption requires a retrospective approach. The Company is currently assessing the impact of the adoption of this guidance, but does not expect that adoption of this guidance on January 1, 2018 will have a material impact on its Consolidated Statements of Cash Flows. In January 2017, the FASB issued guidance clarifying the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. This new guidance becomes effective for the Company in the first quarter of 2019 and is applied prospectively. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued guidance intended to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This new guidance becomes effective for the Company in and is applied prospectively, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. |
Fair Value Measurements | In making an assessment of the fair value hierarchy classification, the Company considers the amount of trading activity, observability of pricing inputs as well as 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). |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible Assets, Net consists of the following: March 31, December 31, 2017 2016 Finite-Lived Intangible Assets Customer Relationships $ 26,476 $ 26,476 Trade Name 5,700 5,700 Client Mandates and Other — 1,276 Total Intangible Assets 32,176 33,452 Accumulated Amortization (18,130 ) (18,739 ) Intangible Assets, Net (a) $ 14,046 $ 14,713 ( a ) Excludes fully amortized intangible assets. |
Furniture, Equipment and Leas25
Furniture, Equipment and Leasehold Improvements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Furniture, Equipment and Leasehold Improvements | Furniture, Equipment and Leasehold Improvements, Net consists of the following: March 31, December 31, 2017 2016 Office Equipment $ 1,800 $ 1,778 Leasehold Improvements 33,106 32,889 Furniture and Fixtures 11,547 11,364 Total Furniture, Equipment and Leasehold Improvements 46,453 46,031 Accumulated Depreciation (9,316 ) (7,876 ) Furniture, Equipment and Leasehold Improvements, Net $ 37,137 $ 38,155 |
Net Income Per Share of Class26
Net Income Per Share of Class A Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share of Class A Common Stock | Basic and diluted net income per share of Class A common stock for the three months ended March 31, 2017 and 2016 is presented below: Three Months Ended March 31, 2017 2016 Numerator: Net Income $ 2,959 $ 1,431 Net Income Attributable to Redeemable Non-Controlling Interests 1,626 1,176 Net Income Attributable to PJT Partners Inc. $ 1,333 $ 255 Denominator: Weighted-Average Shares of Class A Common Stock Outstanding — Basic and Diluted 18,479,025 18,261,984 Net Income Per Share of Class A Common Stock — Basic and Diluted $ 0.07 $ 0.01 |
Anti-Dilutive Securities Excluded from Calculation of Net Income Per Share of Class A Common Stock | During the three months ended March 31, 2017 and 2016, unvested RSUs, participating RSUs and Partnership Units were all determined to be anti-dilutive and excluded from the calculation of net income per share of Class A common stock. The following amounts would have been included in this calculation if their effect were dilutive for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Weighted-Average Unvested RSUs 3,260,169 1,186,918 Weighted-Average Participating RSUs 575,275 789,924 Weighted-Average Partnership Units 15,507,475 16,123,221 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity-Based Compensation Expense and Related Income Tax Benefit | The following table represents equity-based compensation expense and related income tax benefit for the three months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017 2016 Equity-Based Compensation Expense $ 33,256 $ 20,618 Income Tax Benefit $ 4,670 $ 4,135 |
Summary of Unvested Restricted Stock Units | A summary of the status of the Company’s unvested RSUs in PJT Partners Inc. and PJT Partners Holdings LP as of March 31, 2017 and of changes during the period January 1, 2017 through March 31, 2017 is presented below: Restricted Stock Units PJT Partners Inc. PJT Partners Holdings LP Weighted- Weighted- Average Average Grant Date Number of Grant Date Number of Fair Value Partnership Fair Value Units (in dollars) Units (in dollars) Balance, December 31, 2016 5,776,114 $ 21.71 443,689 $ 25.58 Granted 1,309,570 36.68 — — Vested (611,448 ) 23.84 — — Forfeited (40,827 ) 21.54 — — Dividends Reinvested on Participating RSUs 2,738 33.07 — — Balance, March 31, 2017 6,436,147 $ 24.56 443,689 $ 25.58 |
Summary of Status of Company's Unvested Equity-Based Awards | A summary of the status of the Company’s unvested Partnership Units as of March 31, 2017 and of changes during the period January 1, 2017 through March 31, 2017 is presented below: Partnership Units Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2016 5,591,357 $ 21.23 Granted 34,894 36.76 Vested (4,571 ) 28.29 Balance, March 31, 2017 5,621,680 $ 21.32 |
Summary of Unvested Units After Expected Forfeitures which are Expected to Vest | The following unvested units, after expected forfeitures, as of March 31, 2017, are expected to vest: Weighted-Average Service Period Units in Years Partnership Units 11,498,051 2.0 Restricted Stock Units 6,545,070 1.3 Total Equity-Based Awards 18,043,121 1.8 |
Service and Market Conditions | |
Summary of Status of Company's Unvested Equity-Based Awards | A summary of the status of the Company’s unvested equity-based awards in PJT Partners Holdings LP with both a service and market condition as of March 31, 2017 and December 31, 2016 is presented below: Equity-Based Awards with Both Service and Market Conditions Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2016 6,503,464 $ 5.72 Balance, March 31, 2017 6,503,464 $ 5.72 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Aggregate Minimum Future Payments Required on Non-Cancelable Leases | As of March 31, 2017, the aggregate minimum future payments required on non-cancelable leases are as follows: Minimum Lease Payments Year Ending December 31, Capital Operating 2017 $ 75 $ 16,992 2018 101 20,617 2019 101 20,033 2020 77 19,086 2021 4 19,581 Thereafter — 105,966 Total Minimum Lease Payments 358 202,275 Less: Amount Representing Interest 15 Capital Lease Obligation $ 343 Less: Sublease Proceeds 17,749 Net Minimum Lease Payments $ 184,526 |
Business Information (Tables)
Business Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Geographical Distribution of Revenues and Assets | The following tables set forth the geographical distribution of 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 the Company’s clients are located. Three Months Ended March 31, 2017 2016 Revenues Domestic $ 105,421 $ 112,111 International 15,548 3,193 Total $ 120,969 $ 115,304 March 31, December 31, 2017 2016 Assets Domestic $ 480,095 $ 545,049 International 30,501 45,427 Total $ 510,596 $ 590,476 |
Organization - Additional Infor
Organization - Additional Information (Detail) - PJT Partners Holdings LP | Mar. 31, 2017 |
Organization Disclosure [Line Items] | |
Voting power | 100.00% |
Non-controlling interest percentage | 45.30% |
Maximum | |
Organization Disclosure [Line Items] | |
Economic interest | 100.00% |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Retained Deficit | |
Significant Accounting Policies [Line Items] | |
Prior period reclassification adjustment | $ 8.8 |
Additional Paid-in Capital | |
Significant Accounting Policies [Line Items] | |
Prior period reclassification adjustment | 90.9 |
Redeemable Non-Controlling Interests | |
Significant Accounting Policies [Line Items] | |
Prior period reclassification adjustment | $ (99.7) |
Accounts Receivable and Allow32
Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Long-term receivables more than 90 days past due | $ 2,100,000 | $ 2,700,000 |
Allowance for doubtful accounts | 0 | 0 |
Placement Fee Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Long-term receivables | $ 65,700,000 | $ 73,100,000 |
Minimum | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable payment terms | 3 years | |
Maximum | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable payment terms | 4 years |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets | |||
Customer Relationships | $ 26,476 | $ 26,476 | |
Trade Name | 5,700 | 5,700 | |
Client Mandates and Other | 1,276 | ||
Total Intangible Assets | 32,176 | 33,452 | |
Accumulated Amortization | (18,130) | (18,739) | |
Intangible Assets, Net | [1] | $ 14,046 | $ 14,713 |
[1] | Excludes fully amortized intangible assets. |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization Expense | $ 0.7 | $ 2.8 |
Expected amortization expense, remainder of year | 2.4 | |
Expected amortization expense, year 2018 | 2.3 | |
Expected amortization expense, year 2019 | 2.3 | |
Expected amortization expense, year 2020 | 2.3 | |
Expected amortization expense, year 2021 | $ 2.3 | |
Intangible assets, weighted average useful life | 8 years 6 months |
Furniture, Equipment and Leas35
Furniture, Equipment and Leasehold Improvements - Schedule of Furniture, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | $ 46,453 | $ 46,031 |
Accumulated Depreciation | (9,316) | (7,876) |
Furniture, Equipment and Leasehold Improvements, Net | 37,137 | 38,155 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | 1,800 | 1,778 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | 33,106 | 32,889 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | $ 11,547 | $ 11,364 |
Furniture, Equipment and Leas36
Furniture, Equipment and Leasehold Improvements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 1.4 | $ 1.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments in U.S. Treasury securities | $ 25,900,000 | $ 50,000,000 |
Transfers between Level I, Level II or Level III | 0 | |
Cash and Cash Equivalents | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments in U.S. Treasury securities | 1,000,000 | $ 50,000,000 |
U.S. Treasury Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Transfers between Level 1 and Level 2 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (41.70%) | 47.60% |
Provision (benefit) for taxes | $ (871,000) | $ 1,302,000 |
Unrecognized tax benefits | $ 0 |
Net Income Per Share of Class39
Net Income Per Share of Class A Common Stock - Schedule of Net Income Per Share of Class A Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net Income | $ 2,959 | $ 1,431 |
Net Income Attributable to Redeemable Non-Controlling Interests | 1,626 | 1,176 |
Net Income Attributable to PJT Partners Inc. | $ 1,333 | $ 255 |
Class A Common Stock | ||
Denominator: | ||
Weighted-Average Shares of Class A Common Stock Outstanding — Basic and Diluted | 18,479,025 | 18,261,984 |
Net Income Per Share of Class A Common Stock — Basic and Diluted | $ 0.07 | $ 0.01 |
Net Income Per Share of Class40
Net Income Per Share of Class A Common Stock - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Earnings Per Share [Abstract] | |
Class A common shares outstanding if all Holding Partnership Units exchanged | 33,986,500 |
Net Income Per Share of Class41
Net Income Per Share of Class A Common Stock - Anti-Dilutive Securities Excluded from Calculation of Net Income Per Share of Class A Common Stock (Details) - Class A Common Stock - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Weighted-Average Unvested RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of net income per share | 3,260,169 | 1,186,918 |
Weighted-Average Participating RSUs | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of net income per share | 575,275 | 789,924 |
Weighted-Average Partnership Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from the calculation of net income per share | 15,507,475 | 16,123,221 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Oct. 02, 2015 | |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Estimated unrecognized compensation expense related to unvested awards | $ 95.2 | |
Weighted-average period for recognition of compensation expense related to unvested awards | 1 year 3 months 18 days | |
Restricted Stock Units | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Assumed forfeiture rate | 1.00% | |
Restricted Stock Units | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Assumed forfeiture rate | 14.00% | |
Partnership Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Estimated unrecognized compensation expense related to unvested awards | $ 73.2 | |
Assumed forfeiture rate | 4.00% | |
Weighted-average period for recognition of compensation expense related to unvested awards | 1 year 9 months 18 days | |
Service and Market Conditions | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Estimated unrecognized compensation expense related to unvested awards | $ 21.3 | |
Assumed forfeiture rate | 4.00% | |
Weighted-average period for recognition of compensation expense related to unvested awards | 2 years 2 months 12 days | |
Equity-based awards service condition requirement | 5 years | |
Weighted-average share price targets on consecutive trading period | 30 days | |
Consummation spin-off price one | $ 48 | |
Consummation spin-off price two | 55 | |
Consummation spin-off price three | 63 | |
Consummation spin-off price four | 71 | |
Consummation spin-off price five | $ 79 | |
Service and Market Conditions | Period Three | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity-based awards vesting percentage with service condition | 20.00% | |
Service and Market Conditions | Period Four | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity-based awards vesting percentage with service condition | 30.00% | |
Service and Market Conditions | Period Five | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity-based awards vesting percentage with service condition | 50.00% | |
Class A Common Stock | PJT Partners Holdings LP | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exchange of Partnership unit to shares, number of shares per each unit | 1 | |
2015 Omnibus Incentive Plan | Class A Common Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 12,200,000 |
Equity-Based Compensation - Equ
Equity-Based Compensation - Equity-Based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Equity-Based Compensation Expense | $ 33,256 | $ 20,618 |
Income Tax Benefit | $ 4,670 | $ 4,135 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Unvested Restricted Stock Units (Details) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
PJT Partners Inc. | |
Number of Units | |
Beginning Balance | shares | 5,776,114 |
Granted (Units) | shares | 1,309,570 |
Vested (Units) | shares | (611,448) |
Forfeited (Units) | shares | (40,827) |
Dividends reinvested on participating RSUs (Units) | shares | 2,738 |
Ending Balance | shares | 6,436,147 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 21.71 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | $ / shares | 36.68 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | $ / shares | 23.84 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | $ / shares | 21.54 |
Dividend reinvested on participating RSUs (Weighted-Average Grant Date Fair Value) | $ / shares | $ / shares | 33.07 |
Ending Balance | $ / shares | $ 24.56 |
PJT Partners Holdings LP | |
Number of Units | |
Beginning Balance | shares | 443,689 |
Ending Balance | shares | 443,689 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 25.58 |
Ending Balance | $ / shares | $ 25.58 |
Equity-Based Compensation - S45
Equity-Based Compensation - Summary of Status of Company's Unvested Equity-Based Awards (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Partnership Units | |
Number of Units | |
Beginning Balance | shares | 5,591,357 |
Granted (Units) | shares | 34,894 |
Vested (Units) | shares | (4,571) |
Ending Balance | shares | 5,621,680 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 21.23 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 36.76 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 28.29 |
Ending Balance | $ / shares | $ 21.32 |
Equity-Based Awards with Both Service and Market Conditions | PJT Partners Holdings LP | |
Number of Units | |
Beginning Balance | shares | 6,503,464 |
Ending Balance | shares | 6,503,464 |
Weighted-Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 5.72 |
Ending Balance | $ / shares | $ 5.72 |
Equity-Based Compensation - Unv
Equity-Based Compensation - Unvested Units After Expected Forfeitures which are Expected to Vest (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units expected to vest | 18,043,121 |
Weighted-average service period of unit expected to vest (in years) | 1 year 9 months 18 days |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units expected to vest | 6,545,070 |
Weighted-average service period of unit expected to vest (in years) | 1 year 3 months 18 days |
PJT Partners Holdings LP | Partnership Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units expected to vest | 11,498,051 |
Weighted-average service period of unit expected to vest (in years) | 2 years |
Transactions With Related Par47
Transactions With Related Parties - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | May 09, 2017 | May 04, 2017 | Feb. 16, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||||
Aggregate payment on exchange of partnership units settled | $ 13,050 | ||||
Amount Due Pursuant to Tax Receivable Agreement | $ 1,911 | $ 964 | |||
PJT Partners Holdings LP | |||||
Related Party Transaction [Line Items] | |||||
Exchange of partnership units settled | 526,733 | 361,588 | |||
Aggregate payment on exchange of partnership units settled | $ 13,000 | ||||
Percentage payment to exchanging holders of partnership units of benefits | 85.00% | ||||
PJT Partners Holdings LP | Subsequent Event | |||||
Related Party Transaction [Line Items] | |||||
Aggregate payment on exchange of partnership units settled | $ 19,100 | ||||
Price per partnership unit paid equal to the volume-weighted average price of share | $ 36.29 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Oct. 10, 2016 | Oct. 02, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Commitments And Contingencies [Line Items] | |||||
Description of expiration date for operating leases | various dates through 2030 | ||||
Rent expense | $ 5,900,000 | $ 6,300,000 | |||
Capital lease obligations payable maturity year | 2,021 | ||||
Weighted-average interest rate of capital lease obligations payable | 2.30% | ||||
Net book value of capital lease obligations | $ 300,000 | $ 400,000 | |||
Loss contingency expense | 8,900,000 | ||||
Insurance reimbursement received | 5,600,000 | ||||
Payment related to loss contingency | 8,900,000 | ||||
Professional fees | 4,189,000 | 3,496,000 | |||
Due to and from settlement of non cash contributions | 2,376,000 | ||||
Forfeiture accrual | 400,000 | 500,000 | |||
Blackstone | |||||
Commitments And Contingencies [Line Items] | |||||
Professional fees | 300,000 | ||||
Amounts payable related to certain professional fees | 0 | 300,000 | |||
Due to and from settlement of non cash contributions | $ 2,400,000 | ||||
Amount payable under transition services agreement | 25,000 | 25,000 | |||
Tax benefit accrual | 5,700,000 | 4,100,000 | |||
Irrevocable Standby Letters of Credit | |||||
Commitments And Contingencies [Line Items] | |||||
Letter of credit | $ 4,600,000 | $ 4,500,000 | |||
Revolving Credit Facility | |||||
Commitments And Contingencies [Line Items] | |||||
Revolving credit facility, borrowing capacity before increase | $ 60,000,000 | ||||
Revolving credit facility, maturity date | Oct. 2, 2017 | ||||
Increase revolving credit facility | $ 80,000,000 | ||||
Notes payable, spread on variable prime rate | 1.00% | ||||
Line of credit facility, interest rate description | Interest on the borrowings is based on the prime rate minus 1.0% | ||||
Revolving credit facility, extended maturity period | 1 year | ||||
Revolving credit facility, extended maturity date | Oct. 2, 2018 | ||||
Revolving credit facility, amount outstanding | $ 0 |
Commitments and Contingencies49
Commitments and Contingencies - Schedule of Aggregate Minimum Future Payments Required on Non-Cancelable Leases (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Minimum Capital Lease Payments | |
2,017 | $ 75 |
2,018 | 101 |
2,019 | 101 |
2,020 | 77 |
2,021 | 4 |
Total Minimum Lease Payments - Capital Leases | 358 |
Less: Amount Representing Interest | 15 |
Capital Lease Obligation | 343 |
Minimum Operating Lease Payments | |
2,017 | 16,992 |
2,018 | 20,617 |
2,019 | 20,033 |
2,020 | 19,086 |
2,021 | 19,581 |
Thereafter | 105,966 |
Total Minimum Lease Payments - Operating Leases | 202,275 |
Less: Sublease Proceeds | 17,749 |
Net Minimum Lease Payments - Operating Leases | $ 184,526 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||
Defined contribution plan, expenses incurred | $ 0.3 | $ 0.3 |
Regulated Entities - Additional
Regulated Entities - Additional Information (Details) € in Thousands, $ in Thousands, HKD in Millions | Mar. 31, 2017USD ($) | Mar. 31, 2017EUR (€) | Mar. 31, 2017HKD | Dec. 31, 2016USD ($) |
United Kingdom | ||||
Regulatory Authorities [Line Items] | ||||
Minimum net capital requirement | € | € 50 | |||
Hong Kong | ||||
Regulatory Authorities [Line Items] | ||||
Minimum net capital requirement | HKD | HKD 3 | |||
Park Hill Group LLC | ||||
Regulatory Authorities [Line Items] | ||||
Minimum net capital requirement | $ 250 | |||
Percentage of aggregate indebtedness capital requirement | 2 | 2 | 2 | |
Net capital | $ 12,300 | $ 18,100 | ||
Net capital in excess of required net capital | 12,100 | 17,900 | ||
PJT Partners LP | ||||
Regulatory Authorities [Line Items] | ||||
Minimum net capital requirement | $ 100 | |||
Percentage of aggregate indebtedness capital requirement | 6.67 | 6.67 | 6.67 | |
Net capital | $ 50,300 | 65,600 | ||
Net capital in excess of required net capital | $ 49,600 | $ 64,100 | ||
Maximum | PJT Partners LP | ||||
Regulatory Authorities [Line Items] | ||||
Percentage of aggregate indebtedness capital requirement | 15 | 15 | 15 |
Business Information - Addition
Business Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017segmentClient | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Sales Revenue, Net | Customer Concentration Risk | |
Segment Reporting Information [Line Items] | |
Number of clients | Client | 1 |
Concentration percentage of revenue | 10.30% |
Business Information - Schedule
Business Information - Schedule of Geographical Distribution of Revenues and Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Revenues | |||
Revenues | $ 120,969 | $ 115,304 | |
Assets | |||
Assets | 510,596 | $ 590,476 | |
Domestic | |||
Revenues | |||
Revenues | 105,421 | 112,111 | |
Assets | |||
Assets | 480,095 | 545,049 | |
International | |||
Revenues | |||
Revenues | 15,548 | $ 3,193 | |
Assets | |||
Assets | $ 30,501 | $ 45,427 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Class A Common Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Subsequent Event [Line Items] | ||
Dividend declared, description | The Board of Directors of PJT Partners Inc. has declared a quarterly dividend | |
Dividends Declared Per Share of Class A Common Stock | $ 0.05 | $ 0.05 |
Dividends payable, date to be paid | Jun. 22, 2017 | |
Dividends payable, date of record | Jun. 8, 2017 |