Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-36869 | ||
Entity Registrant Name | PJT Partners Inc. | ||
Entity Central Index Key | 0001626115 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4797143 | ||
Entity Address, Address Line One | 280 Park Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10017 | ||
City Area Code | (212) | ||
Local Phone Number | 364-7810 | ||
Title of 12(b) Security | Class A common stock, par value $0.01 per share | ||
Trading Symbol | PJT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.7 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | New York, New York | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Definitive Proxy Statement relating to its 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Class A Common Stock | |||
Entity Common Stock, Shares Outstanding | 24,099,649 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 159 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and Cash Equivalents | $ 173,235 | $ 200,481 |
Investments (at fair value) | 50,242 | |
Accounts Receivable (net of allowance for credit losses of $1,945 and $1,853 at December 31, 2022 and 2021, respectively) | 317,751 | 289,267 |
Intangible Assets, Net | 17,880 | 24,386 |
Goodwill | 172,725 | 172,725 |
Furniture, Equipment and Leasehold Improvements, Net | 30,693 | 37,147 |
Operating Lease Right-of-Use Assets | 119,025 | 137,916 |
Other Assets | 99,929 | 61,921 |
Deferred Tax Asset, Net | 69,172 | 63,782 |
Total Assets | 1,050,652 | 987,625 |
Liabilities and Equity | ||
Accrued Compensation and Benefits | 83,920 | 121,717 |
Accounts Payable, Accrued Expenses and Other Liabilities | 24,782 | 23,753 |
Operating Lease Liabilities | 135,627 | 157,013 |
Amount Due Pursuant to Tax Receivable Agreement | 30,315 | 31,131 |
Taxes Payable | 3,451 | 3,492 |
Deferred Revenue | 12,999 | 12,947 |
Total Liabilities | 291,094 | 350,053 |
Commitments and Contingencies | ||
Equity | ||
Additional Paid-In Capital | 502,585 | 391,242 |
Retained Earnings (Deficit) | 60,969 | (4,933) |
Accumulated Other Comprehensive Income (Loss) | (2,274) | 631 |
Treasury Stock at Cost (6,583,289 and 4,929,044 shares at December 31, 2022 and 2021, respectively) | (376,484) | (267,000) |
Total PJT Partners Inc. Equity | 185,106 | 120,232 |
Non-Controlling Interests | 574,452 | 517,340 |
Total Equity | 759,558 | 637,572 |
Total Liabilities and Equity | 1,050,652 | 987,625 |
Class A Common Stock | ||
Equity | ||
Common stock, value | $ 310 | $ 292 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable, allowance for credit losses | $ 1,945 | $ 1,853 |
Treasury Stock, Shares | 6,583,289 | 4,929,044 |
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 | 31,062,575 | 29,248,457 |
Common Stock, Shares Outstanding | 24,479,286 | 24,319,413 |
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 | 158 | 159 |
Common Stock, Shares Outstanding | 158 | 159 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues | $ 1,026,559 | $ 986,416 | $ 1,045,008 |
Interest Income and Other | 9,119 | 12,530 | 17,777 |
Revenues | 1,025,505 | 991,945 | 1,052,300 |
Expenses | |||
Compensation and Benefits | 669,141 | 640,040 | 683,393 |
Occupancy and Related | 35,253 | 34,686 | 34,282 |
Travel and Related | 25,197 | 9,073 | 7,345 |
Professional Fees | 27,200 | 27,209 | 23,014 |
Communications and Information Services | 16,897 | 18,060 | 14,669 |
Depreciation and Amortization | 15,475 | 15,750 | 15,055 |
Other Expenses | 34,871 | 27,678 | 26,581 |
Total Expenses | 824,034 | 772,496 | 804,339 |
Income Before Provision for Taxes | 201,471 | 219,449 | 247,961 |
Provision for Taxes | 36,699 | 29,494 | 35,535 |
Net Income | 164,772 | 189,955 | 212,426 |
Net Income Attributable to Non-Controlling Interests | 74,238 | 83,787 | 94,877 |
Net Income Attributable to PJT Partners Inc. | 90,534 | 106,168 | 117,549 |
Advisory Fees | |||
Revenues | |||
Revenues | 823,496 | 762,723 | 872,286 |
Placement Fees | |||
Revenues | |||
Revenues | $ 192,890 | $ 216,692 | $ 162,237 |
Class A Common Stock | |||
Net Income Per Share of Class A Common Stock | |||
Basic | $ 3.61 | $ 4.25 | $ 4.80 |
Diluted | $ 3.51 | $ 3.99 | $ 4.40 |
Weighted-Average Shares of Class A Common Stock Outstanding | |||
Basic | 25,077,835 | 24,959,382 | 24,496,285 |
Diluted | 26,616,640 | 42,358,705 | 43,127,166 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 164,772 | $ 189,955 | $ 212,426 |
Other Comprehensive Income (Loss), Net of Tax — Currency Translation Adjustment | (5,304) | (1,444) | 2,310 |
Comprehensive Income | 159,468 | 188,511 | 214,736 |
Comprehensive Income Attributable to Non-Controlling Interests | 71,839 | 83,126 | 95,919 |
Comprehensive Income Attributable to PJT Partners Inc. | $ 87,629 | $ 105,385 | $ 118,817 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Revision of Prior Period, Accounting Standards Update, Adjustment | Class A Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Deficit Revision of Prior Period, Accounting Standards Update, Adjustment | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2019 | $ 574,517 | $ (938) | $ 251 | $ (114,984) | $ 290,896 | $ (144,919) | $ (938) | $ 146 | $ 543,127 | ||
Beginning Balance (in shares) at Dec. 31, 2019 | 25,621,451 | 204 | (2,544,657) | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||
Net Income | $ 212,426 | 117,549 | 94,877 | ||||||||
Other Comprehensive Income (Loss) | 2,310 | 1,268 | 1,042 | ||||||||
Dividends Declared ($1.00 Per Share of Class A Common Stock) | (4,819) | (4,819) | |||||||||
Tax Distributions | (54,685) | (54,685) | |||||||||
Equity-Based Compensation | 120,912 | 112,713 | 8,199 | ||||||||
Net Share Settlement | (12,704) | (12,704) | |||||||||
Deliveries of Vested Shares of Common Stock | $ 16 | (16) | |||||||||
Deliveries of Vested Shares of Common Stock (in shares) | 1,671,634 | ||||||||||
Change in Ownership Interest | (100,499) | (41,526) | (58,973) | ||||||||
Change in Ownership Interest (in shares) | (10) | ||||||||||
Treasury Stock Purchases | (48,674) | $ (48,674) | |||||||||
Treasury Stock Purchases (in shares) | (932,074) | ||||||||||
Ending Balance at Dec. 31, 2020 | 687,846 | $ 267 | $ (163,658) | 349,363 | (33,127) | 1,414 | 533,587 | ||||
Ending Balance (in shares) at Dec. 31, 2020 | 27,293,085 | 194 | (3,476,731) | ||||||||
Net Income | 189,955 | 106,168 | 83,787 | ||||||||
Other Comprehensive Income (Loss) | (1,444) | (783) | (661) | ||||||||
Dividends Declared ($1.00 Per Share of Class A Common Stock) | (77,974) | (77,974) | |||||||||
Tax Distributions | (37,830) | (37,830) | |||||||||
Equity-Based Compensation | 108,913 | 101,465 | 7,448 | ||||||||
Net Share Settlement | (22,773) | (22,773) | |||||||||
Deliveries of Vested Shares of Common Stock | $ 25 | (25) | |||||||||
Deliveries of Vested Shares of Common Stock (in shares) | 1,955,372 | ||||||||||
Change in Ownership Interest | (105,779) | (36,788) | (68,991) | ||||||||
Change in Ownership Interest (in shares) | (35) | ||||||||||
Treasury Stock Purchases | (103,342) | $ (103,342) | |||||||||
Treasury Stock Purchases (in shares) | (1,452,313) | ||||||||||
Ending Balance at Dec. 31, 2021 | 637,572 | $ 292 | $ (267,000) | 391,242 | (4,933) | 631 | 517,340 | ||||
Ending Balance (in shares) at Dec. 31, 2021 | 29,248,457 | 159 | (4,929,044) | ||||||||
Net Income | 164,772 | 90,534 | 74,238 | ||||||||
Other Comprehensive Income (Loss) | (5,304) | (2,905) | (2,399) | ||||||||
Dividends Declared ($1.00 Per Share of Class A Common Stock) | (24,632) | (24,632) | |||||||||
Tax Distributions | (38,338) | (38,338) | |||||||||
Equity-Based Compensation | 165,528 | 143,949 | 21,579 | ||||||||
Net Share Settlement | (17,792) | (17,792) | |||||||||
Deliveries of Vested Shares of Common Stock | $ 18 | (18) | |||||||||
Deliveries of Vested Shares of Common Stock (in shares) | 1,814,118 | ||||||||||
Change in Ownership Interest | (12,764) | (14,796) | 2,032 | ||||||||
Change in Ownership Interest (in shares) | (1) | ||||||||||
Treasury Stock Purchases | (109,484) | $ (109,484) | |||||||||
Treasury Stock Purchases (in shares) | (1,700,000) | (1,654,245) | |||||||||
Ending Balance at Dec. 31, 2022 | $ 759,558 | $ 310 | $ (376,484) | $ 502,585 | $ 60,969 | $ (2,274) | $ 574,452 | ||||
Ending Balance (in shares) at Dec. 31, 2022 | 31,062,575 | 158 | (6,583,289) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class A Common Stock | |||
Dividends Declared Per Share of Class A Common Stock | $ 1 | $ 3.20 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net Income | $ 164,772 | $ 189,955 | $ 212,426 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||
Equity-Based Compensation Expense | 165,528 | 108,913 | 120,912 |
Depreciation and Amortization Expense | 15,475 | 15,750 | 15,055 |
Amortization of Operating Lease Right-of-Use Assets | 20,735 | 19,175 | 21,305 |
Deferred Taxes | 1,784 | 7,096 | 6,911 |
Provision for Credit Losses | 2,817 | 2,869 | 1,266 |
Other | 2,793 | (4,674) | (4,281) |
Cash Flows Due to Changes in Operating Assets and Liabilities | |||
Accounts Receivable | (32,497) | (61,034) | (4,943) |
Other Assets | (42,659) | (3,060) | (6,490) |
Accrued Compensation and Benefits | (35,347) | (131,388) | 129,618 |
Accounts Payable, Accrued Expenses and Other Liabilities | 1,658 | (2,073) | 818 |
Operating Lease Liabilities | (22,488) | (21,397) | (16,596) |
Taxes Payable | 105 | 847 | (2,133) |
Deferred Revenue | 55 | 3,182 | (4,426) |
Net Cash Provided by Operating Activities | 242,731 | 124,161 | 469,442 |
Investing Activities | |||
Purchases of Investments | (143,929) | (97,638) | (278,060) |
Proceeds from Sales and Maturities of Investments | 94,128 | 235,457 | 141,162 |
Purchases of Furniture, Equipment and Leasehold Improvements | (3,434) | (6,472) | (8,854) |
Net Cash Provided by (Used in) Investing Activities | (53,235) | 131,347 | (145,752) |
Financing Activities | |||
Dividends | (24,632) | (77,974) | (4,819) |
Proceeds from Revolving Credit Facility | 42,000 | 15,000 | 16,000 |
Payments on Revolving Credit Facility | (42,000) | (15,000) | (16,000) |
Principal Payments on Term Loan | (21,500) | ||
Tax Distributions | (38,338) | (37,830) | (54,685) |
Employee Taxes Paid for Shares Withheld | (17,792) | (22,773) | (12,704) |
Cash-Settled Exchanges of Partnership Units | (15,120) | (109,574) | (101,895) |
Treasury Stock Purchases | (109,484) | (103,342) | (48,674) |
Payments Pursuant to Tax Receivable Agreement | (4,655) | (1,890) | |
Net Cash Used in Financing Activities | (210,021) | (353,383) | (244,277) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (6,721) | (1,157) | 4,150 |
Net Increase (Decrease) in Cash and Cash Equivalents | (27,246) | (99,032) | 83,563 |
Cash and Cash Equivalents, Beginning of Period | 200,481 | 299,513 | 215,950 |
Cash and Cash Equivalents, End of Period | 173,235 | 200,481 | 299,513 |
Supplemental Disclosure of Cash Flows Information | |||
Payments for Income Taxes, Net of Refunds Received | 28,578 | 30,933 | 36,161 |
Payments for Interest | $ 133 | 10 | 116 |
Non-Cash Receipt of Shares | $ 1,125 | $ 1,138 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION PJT Partners Inc. and its consolidated subsidiaries (the “Company” or “PJT Partners”) offer a unique portfolio of advisory services designed to help clients achieve their strategic objectives. The Company’s team of senior professionals delivers a range of strategic advisory, capital markets advisory, restructuring and special situations and shareholder advisory services to corporations, financial sponsors, institutional investors and governments around the world. The Company also provides private fund advisory and fundraising services for alternative investment strategies, including private equity, real estate, hedge funds and private credit. On October 1, 2015, Blackstone Inc. (“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.” 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 operating subsidiaries. The Company operates through the following subsidiaries: PJT Partners LP, PJT Partners (UK) Limited, PJT Partners (HK) Limited, PJT Partners Park Hill (Spain) A.V., S.A.U., PJT Partners (Germany) GmbH and PJT Partners (France) SAS. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”). Intercompany transactions have been eliminated for all periods presented. Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary. In preparing the consolidated financial statements, management makes estimates regarding the recognition of revenue, adequacy of the allowance for credit losses, assumptions used in the provision for income taxes, measurement of equity-based compensation and other matters that affect the reported amounts and disclosures in the consolidated financial statements. Revenue Recognition The Company provides a range of strategic advisory, capital markets advisory, restructuring and special situations and shareholder advisory services to corporations, financial sponsors, institutional investors and governments around the world. In conjunction with providing restructuring advice, the Company may also assist with raising various forms of financing, including debt and equity. Secondary advisory services include providing GP solutions and investing solutions to clients seeking portfolio liquidity, unfunded commitment relief and investments in secondary markets. The Company’s fund placement services primarily serve alternative investment strategies, including private equity, real estate, hedge funds and private credit. The Company also provides public and private placement fundraising services to corporate clients. At contract inception, the Company assesses the services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a service (or a bundle of services) that is distinct. To identify the performance obligations, the Company considers all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices . Additionally, the Company allocates the transaction price to the respective performance obligation(s) by estimating the amount of consideration in which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company’s primary performance obligation with respect to advisory and placement services is to stand ready to perform a broad range of services the client may need over the course of the engagement Fees related to these performance obligations are recognized over time using a time-based measure of progress. The Company may also be engaged to provide a fairness opinion to the client, amend contract terms, provide underwriting services or . The Company has determined that the delivery of these services represents a separate performance obligation that is satisfied at a point in time when each is completed and delivered to the client as the customer is able to direct the use of, and obtain substantially all of the benefits from, the service at that point. With respect to the transaction price, the consideration to which the Company expects to be entitled is predominantly variable as the consideration is susceptible to factors outside of the Company’s influence and/or contain a large number and broad range of possible consideration amounts. As such, these amounts . With respect to contracts to provide placement services, fees are generally payable upon completion of a fund closing or may be paid in installments over three or four years with interest being charged to the outstanding balance. With respect to such fees paid over time, the Company has determined there is not a significant financing component related to such contracts. Fees earned for placement services to corporate clients are typically payable upon completion. Additionally, the Company is typically reimbursed for certain professional fees and other expenses incurred that are necessary in order to provide services to the customer. These expenses are recorded in the relevant expense caption in the Consolidated Statements of Operations when incurred and recognized as revenue and recorded in Accounts Receivable, Net when these amounts are invoiced to the customer. Such revenue amounts are recorded in Interest Income and Other in the Consolidated Statements of Operations. Determining the Timing of Satisfaction of Performance Obligations For performance obligations that are satisfied over time, determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. The Company has determined that the methods described above provide a faithful depiction of the transfer of services to the customer. For performance obligations that are satisfied at a point in time, the Company has determined that the customer is able to direct the use of, and obtain substantially all of the benefits from, the output of the service at the time it is provided to the client. Additionally, at that point the Company has a present right to payment, the Company has transferred the output of the service and the customer has significant risks and rewards of ownership. Contract Balances The timing of revenue recognition may differ from the timing of payment. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. The Company may receive non-refundable up-front fees in its contracts with customers, which are recorded as revenues in the period over which services are estimated to be provided. Additionally, the Company may receive payment of certain announcement, retainer or milestone fees before the performance obligation has been fully satisfied. Such fees give rise to a contract liability and are recorded as Deferred Revenue in the Consolidated Statements of Financial Condition. The Company does not establish a provision for refunds or similar obligations. Additionally, the Company is the principal in the satisfaction of performance obligations. To obtain a contract with a customer, the Company may incur costs such as advertising, marketing costs, bid and proposal costs and legal fees. The Company has determined that these costs would have been incurred regardless of whether the contract with the customer was obtained. Additionally, the Company does not expect to recover any of these costs from the customer; therefore, the costs of obtaining contracts with customers are expensed as incurred. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing services and are generally expensed as incurred, except for performance obligations that are satisfied at a point in time. For contracts with customers where a performance obligation is satisfied at a point in time, out-of-pocket expenses, where material, are capitalized and subsequently expensed in the Consolidated Statements of Operations upon satisfaction of the performance obligation. Interest Income and Other – Interest Income and Other represents interest typically earned on Cash and Cash Equivalents, investments in Treasury securities and outstanding placement fees receivable; miscellaneous income; foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars; sublease income; and the amount of expense reimbursement invoiced to clients related to out-of-pocket expenses. Interest on placement fees receivable is earned from the time revenue is recognized and is calculated (typically based upon the Secured Overnight Financing Rate or an alternate reference rate) plus an additional percentage as mutually agreed upon with the receivable counterparty. Interest receivable is included in Accounts Receivable, Net in the Consolidated Statements of Financial Condition. Fair Value of Financial Instruments The carrying value of financial instruments, including cash and cash equivalents, investments, accounts receivable, other assets, accounts payable, accrued expenses, taxes payable and other liabilities approximates their fair value. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. • Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. • Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. In making an assessment of the fair value hierarchy classification of investments in Treasury securities , 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 liqui d version of the maturity band). These securities are recorded at fair value using broker quotes, reflecting inputs from auction yields. Long-term receivables are classified as Level II in the fair value hierarchy. Cash, Cash Equivalents and Investments Cash and Cash Equivalents include short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase. Cash and Cash Equivalents are primarily held at four major financial institutions. Also included in Cash and Cash Equivalents are amounts held in bank accounts that are subject to advance notification to withdraw, which totaled $0.6 million and $41.2 million as of December 31, 2022 and 2021, respectively. Treasury securities with original maturities greater than three months when purchased are classified as Investments in the Consolidated Statements of Financial Condition. Accounts Receivable Accounts Receivable, Net includes receivables related to services provided in contracts with customers. Included in Accounts Receivable, Net are long-term receivables that relate to placement fees that are generally paid in installments over a period of three to four years. The Company generally charges interest on long-term receivables as mutually agreed upon with the receivable counterparty. Additional disclosures regarding accounts receivable are discussed in Note 4. “Accounts Receivable and Allowance for Credit Losses.” Allowance for Credit Losses The Company estimates the allowance for credit losses using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience, including write-offs and recoveries that have occurred during the period, provides the basis for the estimation of expected credit losses. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist in the Company’s accounts receivable. The Company has classified its accounts receivable into short-term and long-term receivables, both of which relate to revenues from contracts with customers, in estimating the allowance for credit losses. Short-term receivables generally have payment terms less than one year and share similar historical credit loss patterns including write-offs and recoveries. These receivables arise from the Company’s performance obligation of standing ready to perform. Long-term receivables are generally paid in installments over a period of three to four years. These receivables share similar historical credit loss patterns including write-offs and recoveries, and arise from the Company’s performance obligation of providing corporate and fund placement services. The Company measures the allowance for credit losses using the loss-rate method by multiplying the historical loss rate by the asset’s amortized cost (including accrued interest) at the balance sheet date. The historical loss rate is derived from the Company’s historical loss experience over the prior three year period. The Company reduces both the gross receivable and the allowance for credit losses in the period in which the receivable(s) are deemed uncollectible. The Company considers a receivable to be uncollectible at the point when all efforts at collection have been exhausted. A recovery may occur if cash is received after a receivable balance has been written off. Such recovery would be recorded as an increase to the allowance at the time of the recovery. Goodwill and Intangible Assets Goodwill recorded arose from the contribution and reorganization of Blackstone’s predecessor entities in 2007 immediately prior to Blackstone’s initial public offering (“IPO”), the acquisition of PJT Capital LP that occurred on October 1, 2015 and the acquisition of CamberView Partners Holdings, LLC (“CamberView”) that occurred on October 1, 2018. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach and more frequently if circumstances indicate impairment may have occurred. Goodwill is tested for impairment at the reporting unit level. A reporting unit is a component of an operating segment for which discrete financial information is available that is regularly reviewed by management. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of the Company’s reporting unit is less than its respective carrying value. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value or when the quantitati ve approach is used, a quantitative assessment is performed to (a) calculate the fair value of the reporting unit and c ompare it to its carrying value, and (b) if the carrying value exceeds its fair value, to measure an impairment loss. The Company’s intangible assets are derived from (a) customer relationships that were established as part of Blackstone’s IPO and the acquisition of CamberView, and (b) the value of the trade name as part of the acquisitions of PJT Capital LP and CamberView. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives of four to fifteen years, reflecting the average time over which such intangible assets are expected to contribute to cash flows. Amortization expense is included in Depreciation and Amortization in the Consolidated Statements of Operations. The Company does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Furniture, Equipment and Leasehold Improvements Furniture, Equipment and Leasehold Improvements, Net consist primarily of leasehold improvements, furniture, fixtures and equipment and office equipment, and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and five to seven years for other fixed assets. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation and amortization are included in Depreciation and Amortization in the Consolidated Statements of Operations. Leases The Company determines at inception if an arrangement is, or contains, a lease. The Company leases office space under non-cancelable lease agreements, which expire at The lease arrangements for office space typically contain payments to the lessor for common area maintenance charges and reimbursement for certain other costs that are not fixed. The Company accounts for these costs as variable lease costs and does not include them in the lease component. Right-of-Use Assets (“ROU assets”) represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. The Company’s lease agreements generally do not provide an implicit rate, so the Company estimates the incremental borrowing rate considering the collateral, term and the economic environment of the lease arrangement with reference to the Company’s loan agreement. Certain leases may include options to extend or terminate and the Company reflects such renewal or termination option in the lease term when it is reasonably certain to exercise the option. The Company records ROU assets and lease liabilities for operating leases in Operating Lease Right-of-Use Assets and Operating Lease Liabilities, respectively, on the Consolidated Statements of Financial Condition. The Company does not record ROU assets or lease liabilities for leases with a term of twelve months or less. Lease expense for such leases is recognized on a straight-line basis. Foreign Currency In the normal course of business, the Company may enter into transactions not denominated in U.S. dollars. Foreign exchange gains and losses arising on such transactions are recorded in Interest Income and Other in the Consolidated Statements of Operations. In addition, the Company consolidates a number of businesses that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing monthly average exchange rate on the dates they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated operations are recorded in Other Comprehensive Income. Non-Controlling Interests Non-Controlling Interests are presented separately from Equity in the Consolidated Statements of Financial Condition and the portion of net income attributable to the non-controlling interests is presented separately in the Consolidated Statements of Operations. Repurchases of Common Stock Shares of the Company’s Class A common stock may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The Company may structure such repurchases as either a purchase of treasury stock or a retirement of shares. The Company records its purchases of treasury stock at cost as a separate component of Equity. The Company may re-issue treasury stock, at average cost. Compensation and Benefits Compensation and Benefits includes salaries, cash bonuses and restricted cash awards, benefits, employer taxes and equity-based compensation associated with the grants of equity-based awards to partners and employees. Compensation cost relating to the issuance of equity-based awards with a requisite service period to partners and employees is measured at fair value at the grant date, taking into consideration expected forfeitures, and expensed over the vesting period on a straight-line basis. Equity-based awards that do not require future service are expensed immediately. Restricted cash awards are expensed over the vesting period on a straight-line basis. In certain instances, the Company may grant equity-based awards containing both a service and a market condition. The effect of the market condition is reflected in the grant date fair value of the award. Compensation cost is recognized for an award with a market condition over the requisite service period, provided that the requisite service period is completed, irrespective of whether the market condition is satisfied. If the market condition has not been satisfied during the vesting period, the remaining unrecognized compensation cost will continue to be recognized over the requisite service period. If a recipient terminates employment before completion of the requisite service period, any compensation cost previously recognized is reversed unless the market condition has been satisfied prior to termination. If the market condition has been satisfied during the vesting period, the remaining unrecognized compensation cost is accelerated. At the Company’s discretion, the Company may provide compensation to certain employees with repayment obligations and/or service provisions. Such payments are recorded in Compensation and Benefits in the Consolidated Statements of Operations. The Company assesses the potential risk of forfeiture and likelihood of recouping amounts paid, and if deemed necessary, records a provision for forfeitures in the financial statements. Income Taxes PJT Partners Inc. is a corporation subject to U.S. federal, state and local income taxes in jurisdictions where it does business. The Company’s businesses generally operate as partnerships for U.S. federal and state purposes and as corporate entities in non-U.S. jurisdictions. In the U.S. federal and state jurisdictions, taxes related to income earned by these entities generally represent obligations of the individual members and partners. The operating entities have generally been subject to New York City Unincorporated Business Tax and to entity-level income taxes imposed by state and local as well as non-U.S. jurisdictions, as applicable. These taxes have been reflected in the Company’s consolidated financial statements . PJT Partners Inc. is subject to U.S. corporate federal, state and local income tax on its allocable share of results of operations from the operating partnership (PJT Partners Holdings LP) . Current tax liabilities are recorded in Taxes Payable in the Consolidated Statements of Financial Condition. The Company uses the asset and liability method of accounting for deferred tax assets and liabilities. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases, using the enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records uncertain tax positions on the basis of a two-step process: (a) a determination is made whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (b) those tax positions that meet the recognition threshold described in the first step are recorded based on the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with the tax authority. The effects of tax adjustments and settlements with taxing authorities are presented in the Company’s consolidated financial statements in the period to which they relate as if the Company were a separate tax filer in those years. The Company recognizes accrued interest and penalties related to uncertain tax positions in Other Expenses in the Consolidated Statements of Operations, as applicable. Unrecognized tax benefits are recorded in Taxes Payable in the Consolidated Statements of Financial Condition, as applicable. In August 2022, two pieces of legislation that have significant tax-related provisions were signed into law: (1) the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (the "CHIPS Act"), which creates a new advanced manufacturing investment credit under new Internal Revenue Code section 48D, and (2) the Inflation Reduction Act of 2022 (the "IRA"), which, among other provisions, introduces (a) a 15% minimum tax on certain large corporations with a 3-year average adjusted financial statement income (“AFSI”) of $1 billion or more (b) a plethora of clean energy tax incentives in the form of tax credits, and (c) a 1% excise tax on repurchases of stock by certain publicly traded corporations. The Company has evaluated the impact of the new laws, and does not expect the IRA or CHIPS Act to have a material impact on its consolidated financial statements. Amount Due Pursuant to Tax Receivable Agreement Holders of common units of partnership interest in PJT Partners Holdings LP (“Partnership Units”) (other than PJT Partners Inc.) may, subject to the terms and conditions set forth in the partnership agreement of PJT Partners Holdings LP, on a quarterly basis (subject to the terms of the exchange agreement), exchange their Partnership Units for cash or, at the Company’s election, for shares of Class A common stock of PJT Partners Inc. on a one-for-one basis, subject to customary conversion rate adjustments for splits, unit distributions and reclassifications. PJT Partners Holdings LP has made an election under Section 754 of the Internal Revenue Code effective for each taxable year in which an exchange of Partnership Units for cash or for shares of Class A common stock occurs, which is expected to result in increases to the tax basis of the assets of PJT Partners Holdings LP at the time of an exchange of Partnership Units. Stock-settled exchanges and certain of these cash-settled exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of PJT Partners Holdings LP. These increases in tax basis may reduce the amount of tax that PJT Partners Inc. would otherwise be required to pay in the future. These increases in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets . The Company has 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. This payment obligation is an obligation of PJT Partners Inc. and not of PJT Partners Holdings LP. PJT Partners Inc. expects to benefit from the remaining 15% of cash tax savings, if any, in income tax it realizes. For purposes of the tax receivable agreement, the cash tax savings in income tax is computed by comparing the actual income tax liability of PJT Partners Inc. (calculated with certain assumptions) to the amount of such taxes that PJT Partners Inc. would have been required to pay had there been no increase to the tax basis of the assets of PJT Partners Holdings LP as a result of the exchanges and had PJT Partners Inc. not entered into the tax receivable agreement. The term of the tax receivable agreement continues until all such tax benefits have been utilized or expired, unless PJT Partners Inc. exercises its right to terminate the tax receivable agreement for an amount based on the agreed payments remaining to be made under the agreement or PJT Partners Inc. breaches any of its material obligations under the tax receivable agreement in which case all obligations generally will be accelerated and due as if PJT Partners Inc. had exercised its right to terminate the tax receivable agreement. The Company accounts for the effects of these increases in tax basis and associated payments under the tax receivable agreement arising from exchanges as follows: • the Company records an increase in deferred tax assets for the estimated income tax effects of the increases in tax basis based on enacted federal, state and local tax rates at the date of the exchange; • to the extent the Company estimates that it will not realize the full benefit represented by the deferred tax asset, based on an analysis that will consider, among other things, the Company’s expectation of future earnings, the Company reduces the deferred tax asset with a valuation allowance; and • the Company records 85% of the estimated realizable tax benefit (which is the recorded deferred tax asset less any recorded valuation allowance) as an increase to the Amount Due Pursuant to Tax Receivable Agreement and the remaining 15% of the estimated realizable tax benefit as an increase to Additional Paid-In Capital. The effects of changes in estimates after the date of the redemption or exchange as well as subsequent changes in the enacted tax rates are included in net income. Net Income Per Share of Class A Common Stock Basic Net Income Per Share is computed using the weighted-average number of shares of Class A common stock outstanding; vested, undelivered restricted stock units (“RSUs”); and unvested RSUs that have met requisite service requirements. Diluted Net Income Per Share is computed using the number of shares of Class A common stock included in the Basic Net Income Per Share calculation, and if dilutive, the incremental common stock that the Company would issue upon the assumed vesting of RSUs using the treasury stock method and the assumed conversion of Partnership Units using the if-converted method. Contingencies and Litigation The Company records loss contingencies if (a) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the consolidated financial statements, and (b) the amount of loss can be reasonably estimated. If one or both criteria for accrual are not met, but there is at least a reasonable possibility that a loss will occur, the Company does not record an accrual for a loss contingency but describes the contingency and provides detail, when possible, of the estimated potential loss or range of loss. If an estimate cannot be made, a statement to that effect is made. Costs incurred with defending matters are expensed as incurred. Recent Accounting Developments In June 2022, the FASB issued updated guidance on the fair value measurement of equity securities subject to contractual sale restrictions. The guidance is effective for annual and interim periods beginning after December 15, 2023, with early adoption permitted. The Company evaluated and concluded that this guidance will not have a material impact on its consolidated financial statements. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenues from Contracts with Customers | 3 . REVENUES FROM CONTRACTS WITH CUSTOMERS The following table provides a disaggregation of revenues recognized from contracts with customers for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Advisory Fees $ 823,496 $ 762,723 $ 872,286 Placement Fees 192,890 216,692 162,237 Interest Income from Placement Fees and Other 10,173 7,001 10,485 Revenues from Contracts with Customers $ 1,026,559 $ 986,416 $ 1,045,008 Remaining Performance Obligations and Revenue Recognized from Past Performance As of December 31, 2022, the aggregate amount of the transaction price allocated to performance obligations yet to be satisfied was $42.2 million and the Company generally expects to recognize this revenue within the next twelve months. Such amounts relate to the Company’s performance obligations of providing advisory and placement services. The Company recognized revenue of $57.8 million, $15.3 million and $28.0 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to performance obligations that were fully satisfied in prior periods, primarily due to constraints on variable consideration in prior periods being resolved. Such amounts related primarily to the provision of corporate and fund placement services. The majority of Fee Revenue recognized by the Company during the years ended December 31, 2022, 2021 and 2020 was predominantly related to performance obligations that were partially satisfied in prior periods. Contract Balances There were no significant impairments related to contract balances during the years ended December 31, 2022 and 2021. For the years ended December 31, 2022 and 2021, $11.5 million and $9.0 million, respectively, of revenue was recognized that was included in the beginning balance of Deferred Revenue, primarily related to the Company’s performance obligation of standing ready to perform. In certain contracts, the Company receives customer expense advances, which are also considered to be contract liabilities. As of December 31, 2022 and 2021, the Company recorded $1.8 million and $1.2 million, respectively, in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition primarily related to expense advances. |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable and Allowance for Credit Losses | 4 . ACCOUNTS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Changes in the allowance for credit losses consist of the following: Year Ended December 31, 2022 2021 2020 Balance, Beginning of Year $ 1,853 $ 1,330 $ — Adoption of ASC 326 — — 1,107 Provision for Credit Losses 2,817 2,869 1,266 Write-offs (2,725 ) (2,742 ) (1,368 ) Recoveries — 396 325 Balance, End of Year $ 1,945 $ 1,853 $ 1,330 Included in Accounts Receivable, Net is accrued interest of $2.7 million and $1.9 million as of December 31, 2022 and 2021, respectively, related to placement fees. Included in Accounts Receivable , Net are long-term receivables of $ 133.3 million and $ 104.6 million as of December 31, 2022 and 2021 , respectively, related to placement fees that are generally paid in installments over a period of three to four years . The Company does not have any long-term receivables on non-accrual status. Of receivables that originated as long-term, there were $6.5 million and $3.4 million as of December 31, 2022 and 2021, respectively, which were outstanding more than 90 days. The Company’s allowance for credit losses with respect to long-term receivables was $0.5 million and $0.8 million as of December 31, 2022 and 2021, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5 . GOODWILL AND INTANGIBLE ASSETS As of December 31, 2022 and 2021, the Company’s assessment did not result in any impairment of goodwill. Intangible Assets, Net consists of the following: December 31, 2022 2021 Finite-Lived Intangible Assets Customer Relationships $ 61,276 $ 61,276 Trade Name 9,800 9,800 Total Intangible Assets 71,076 71,076 Accumulated Amortization Customer Relationships (44,964 ) (39,797 ) Trade Name (8,232 ) (6,893 ) Total Accumulated Amortization (53,196 ) (46,690 ) Intangible Assets, Net $ 17,880 $ 24,386 Changes in the Company’s Intangible Assets, Net consist of the following: Year Ended December 31, 2022 2021 2020 Balance, Beginning of Year $ 24,386 $ 32,030 $ 39,806 Amortization Expense (6,506 ) (7,644 ) (7,776 ) Balance, End of Year $ 17,880 $ 24,386 $ 32,030 Amortization of Intangible Assets held at December 31, 2022 is expected to be $4.9 million for each of the years ending December 31, 2023 and 2024; $4.8 million for the year ending December 31, 2025; and $3.3 million for the year ending December 31, 2026. |
Furniture, Equipment and Leaseh
Furniture, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Furniture, Equipment and Leasehold Improvements | 6 . FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS Furniture, Equipment and Leasehold Improvements, Net consists of the following: December 31, 2022 2021 Leasehold Improvements $ 54,555 $ 56,230 Furniture and Fixtures 18,811 18,044 Office Equipment 5,533 4,423 Total Furniture, Equipment and Leasehold Improvements 78,899 78,697 Accumulated Depreciation (48,206 ) (41,550 ) Furniture, Equipment and Leasehold Improvements, Net $ 30,693 $ 37,147 Depreciation expense was $9.0 million, $8.0 million and $7.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7 . The following tables summarize the valuation of the Company’s investments by the fair value hierarchy: December 31, 2022 Level I Level II Level III Total Treasury Securities $ — $ 50,242 $ — $ 50,242 December 31, 2021 Level I Level II Level III Total Treasury Securities $ — $ 40,000 $ — $ 40,000 Investments in Treasury securities were included in Investments at December 31, 2022 and in Cash and Cash Equivalents at December 31, 2021 in the Consolidated Statements of Financial Condition. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . INCOME TAXES The Company’s pretax income is associated with activities in domestic and international jurisdictions, as follows: Year Ended December 31, 2022 2021 2020 Income Before Provision for Taxes Domestic $ 237,635 $ 235,453 $ 260,361 International (36,164 ) (16,004 ) (12,400 ) Total $ 201,471 $ 219,449 $ 247,961 The Provision for Income Taxes consists of the following: Year Ended December 31, 2022 2021 2020 Current Federal Income Tax $ 22,492 $ 13,673 $ 20,306 State and Local Income Tax 10,664 6,096 7,747 Foreign Income Tax 1,759 2,629 571 34,915 22,398 28,624 Deferred Federal Income Tax 534 6,742 2,308 State and Local Income Tax 1,151 345 300 Foreign Income Tax 99 9 4,303 1,784 7,096 6,911 Provision for Taxes $ 36,699 $ 29,494 $ 35,535 The following table summarizes the Company’s tax position: Year Ended December 31, 2022 2021 2020 Income Before Provision for Taxes $ 201,471 $ 219,449 $ 247,961 Provision for Taxes $ 36,699 $ 29,494 $ 35,535 Effective Income Tax Rate 18.2 % 13.4 % 14.3 % The following table reconciles the U.S. federal statutory tax rate to the effective income tax rate: Year Ended December 31, 2022 2021 2020 Expected Income Tax Expense at the Federal Statutory Rate 21.0 % 21.0 % 21.0 % Permanent Differences for Compensation -0.8 % -2.2 % -0.1 % Income Not Subject to U.S. Corporate Income Taxes -8.3 % -8.7 % -8.3 % Foreign Income Taxes 0.8 % 1.2 % 0.7 % State and Local Income Taxes, Net of Federal Benefit 3.9 % 2.5 % 2.9 % Return to Provision 0.8 % -0.1 % -0.4 % Rate Change Impact 0.3 % -0.5 % 0.0 % Tax Benefit from NOL Carryback under the CARES Act — — -1.5 % Other 0.5 % 0.2 % 0.0 % Effective Income Tax Rate 18.2 % 13.4 % 14.3 % Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows: December 31, 2022 2021 Deferred Tax Assets Operating Lease Liabilities $ 16,459 $ 19,818 Tax Basis Step-Up from Blackstone 11,252 15,028 Deferred Compensation 24,835 16,939 Partner Exchange Basis Step-Up 38,966 36,350 Other 2,427 4,349 Total Deferred Tax Assets $ 93,939 $ 92,484 Deferred Tax Liabilities Operating Lease Right-of-Use Assets $ 14,398 $ 17,306 Intangible Assets 2,071 1,654 Fixed Assets 857 1,612 Other 7,441 8,130 Total Deferred Tax Liabilities 24,767 28,702 Deferred Tax Asset, Net $ 69,172 $ 63,782 The realization of deferred tax assets arising from timing differences and net operating losses requires taxable income in future years in order to deduct the reversing timing differences and absorb the net operating losses. The Company assesses positive and negative evidence in determining whether to record a valuation allowance with respect to deferred tax assets. This assessment is performed separately for each taxing jurisdiction. The Company considered its cumulative taxable income earned in recent periods and projections of future taxable income based on the growth trajectory of its business as positive evidence in evaluating its ability to utilize the deferred tax assets. The Company’s projections of future taxable income currently indicate that it is more likely than not that the deferred tax assets will be realized. The Company does not believe that it meets the indefinite reversal criteria that would allow the Company to refrain from recognizing any deferred tax liability with respect to its foreign subsidiaries. Accordingly, the Company records a deferred tax liability with respect to an outside basis difference in its investment in a foreign subsidiary, where applicable. The Company is subject to taxation in the U.S. and various state, local and foreign jurisdictions. As of December 31, 2022 , the Company is not generally subject to examination by the tax a uthorities for years before 201 9 . The Company had no unrecognized tax benefits as of December 31, 2022 and 2021. The Company does not anticipate a material increase or decrease in unrecognized tax benefits during the coming year. For the years ended December 31, 2022, 2021 and 2020, no interest or penalties were accrued with respect to unrecognized tax positions and there were no settlements with taxing authorities. |
Net Income Per Share of Class A
Net Income Per Share of Class A Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share of Class A Common Stock | 9 . NET INCOME PER SHARE OF CLASS A COMMON STOCK Basic and diluted net income per share of Class A common stock for the years ended December 31, 2022, 2021 and 2020 is presented below: Year Ended December 31, 2022 2021 2020 Numerator: Net Income Attributable to PJT Partners Inc. $ 90,534 $ 106,168 $ 117,549 Less: Dividends on Participating Securities — — 11 Net Income Attributable to Participating Securities — — 41 Net Income Attributable to Shares of Class A Common Stock — Basic 90,534 106,168 117,497 Incremental Net Income from Dilutive Securities 2,810 62,740 72,452 Net Income Attributable to Shares of Class A Common Stock — Diluted $ 93,344 $ 168,908 $ 189,949 Denominator: Weighted-Average Shares of Class A Common Stock Outstanding — Basic 25,077,835 24,959,382 24,496,285 Weighted-Average Number of Incremental Shares from Unvested RSUs and Partnership Units 1,538,805 17,399,323 18,630,881 Weighted-Average Shares of Class A Common Stock Outstanding — Diluted 26,616,640 42,358,705 43,127,166 Net Income Per Share of Class A Common Stock Basic $ 3.61 $ 4.25 $ 4.80 Diluted $ 3.51 $ 3.99 $ 4.40 Partnership Units may be exchanged for PJT Partners Inc. Class A common stock on a one-for-one basis, subject to applicable vesting and transfer restrictions. If all Partnership Units were exchanged for Class A common stock, weighted-average Class A common stock outstanding would be 40,123,029 for the year ended December 31, 2022, excluding unvested RSUs. 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 year ended December 31, 2022, there were 15,045,194 weighted-average Partnership Units that were anti-dilutive. For the years ended December 31, 2021 and 2020, there were no anti-dilutive securities. |
Equity-Based and Other Deferred
Equity-Based and Other Deferred Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based and Other Deferred Compensation | 1 0 . EQUITY-BASED AND OTHER DEFERRED COMPENSATION Overview On October 1, 2015, the Company adopted the PJT Partners Inc. 2015 Omnibus Incentive Plan, and on April 24, 2019, the Company adopted the Amended and Restated PJT Partners Inc. Omnibus 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 st ock-based or cash-based awards. The Company ha s authorized 17 million shares of Class A common stock for issuance of new awards under the PJT Equity Plan, (in addition to the shares that were issuable under the plan in connection with the spin-off), of which 2.4 million were available for issuance as of December 31, 2022 . The Company intends to use newly-issued shares of the Company’s Class A common stock to satisfy vested restricted stock unit (“ RSU ”) and RSU s containing both service and market conditions awards under the PJT Equity Plan. The following table represents equity-based compensation expense and related income tax benefit for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Equity-Based Compensation Expense $ 165,528 $ 108,913 $ 120,912 Income Tax Benefit $ 21,548 $ 14,921 $ 16,417 Restricted Stock Units Pursuant to the PJT Equity Plan and in connection with the acquisition of CamberView, 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. The following table summarizes activity related to unvested RSUs for the year ended December 31, 2022: Restricted Stock Units Weighted- Average Grant Date Number of Fair Value Units (in dollars) Balance, December 31, 2021 4,098,671 $ 60.14 Granted 1,920,006 63.88 Vested (1,724,481 ) 51.37 Forfeited (94,470 ) 64.07 Dividends Reinvested on RSUs (18,651 ) 16.97 Balance, December 31, 2022 4,181,075 $ 65.58 As of December 31, 2022, there was $120.4 million of estimated unrecognized compensation expense related to unvested RSU awards. This cost is expected to be recognized over a weighted-average period of 1.3 years. The Company assumes a forfeiture rate of 1.0% to 6.0% annually based on expected turnover and periodically reassesses this rate. The weighted-average grant date fair value with respect to RSUs granted for the years ended December 31, 2021 and 2020 was $73.45 and $53.70, respectively. RSU Awards with Both Service and Market Conditions The Company has granted RSU awards containing both service and market conditions. The service condition requirement for these awards is generally three to five years. The market condition will generally be satisfied upon the publicly traded shares of Class A common stock achieving certain volume-weighted average share price target over various trading periods during the life of the award. Effective February 10, 2022, the Company granted RSU awards containing both service and market conditions. The effect of the service and market conditions 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 RSU awards is five years with 20% vesting per annum. The market condition requirement will be 50% satisfied upon the dividend-adjusted publicly traded shares of Class A common stock achieving a volume-weighted average share price over any consecutive 20-day trading period (“20-day VWAP”) of $100 and the other 50% will be satisfied ratably upon the dividend-adjusted publicly traded shares of Class A common stock achieving a 20-day VWAP above $ 100 with the market condition fully satisfied upon achieving a 20-day VWAP of $ 130 prior to February 26, 2027. No portion of these awards will become vested until both the service and market conditions have been satisfied. The following table summarizes activity related to unvested RSU awards with both a service and market condition for the year ended December 31, 2022: RSU Awards with Both Service and Market Conditions Weighted- Average Grant Date Number of Fair Value Units (in dollars) Balance, December 31, 2021 50,280 $ 36.53 Granted 1,514,748 $ 41.97 Vested (26,500 ) 31.13 Forfeited (3,860 ) 41.97 Dividends Reinvested on RSUs (656 ) 34.22 Balance, December 31, 2022 1,534,012 $ 41.98 As of December 31, 2022, there was $36.3 million of estimated unrecognized compensation expense related to RSU awards with both a service and market condition. This cost is expected to be recognized over a weighted-average period of 2.3 years. The Company assumes a forfeiture rate of 4.0% to 6.0% annually based on expected turnover and periodically reassesses this rate. For the year ended December 31, 2021, no RSUs with both a service and market condition were granted. The weighted-average grant date fair value with respect to RSUs with both a service and market condition granted for the year ended December 31, 2020 was $34.42. The Company estimated the fair value of RSU awards with both a service and market condition at grant using a Monte Carlo simulation. The following table presents the assumptions used for the years ended December 31, 2022 and 2020: Year Ended December 31, 2022 2020 Risk-Free Interest Rate 2.0 % 0.2% Dividend Yield 0.0 % 0.5% Volatility Factor 37.0 % 52.3% Expected Life (in years) 5.0 1.3 Restricted Share Awards In connection with the acquisition of CamberView Partners Holdings, LLC, certain individuals were issued restricted shares of the Company’s Class A common stock. Based on the terms of the award, compensation expense was fully recognized over four years. For the years ended December 31, 2022 and 2021, no restricted share awards were granted. As of December 31, 2022, there were no restricted shares outstanding. Partnership Units In connection with the spin-off, acquisition of CamberView, annual compensation process and ongoing hiring process, certain individuals were issued Partnership Units that, subject to certain terms and conditions, are exchangeable 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 three to five years. The following table summarizes activity related to unvested Partnership Units for the year ended December 31, 2022: Partnership Units Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2021 248,595 $ 53.42 Granted 77,588 62.05 Vested (141,052 ) 48.80 Forfeited (7,064 ) 59.09 Balance, December 31, 2022 178,067 $ 60.62 As of December 31, 2022, there was $6.5 million of estimated unrecognized compensation expense related to unvested Partnership Units. This cost is expected to be recognized over a weighted-average period of 1.0 years. The Company assumes a forfeiture rate of 4.0% annually based on expected turnover and periodically reassesses this rate. The weighted-average grant date fair value with respect to Partnership Units granted for the years ended December 31, 2021 and 2020 was $68.70 and $49.92, respectively. Partnership Unit Awards with Both Service and Market Conditions Effective February 10, 2022, the Company granted Partnership Unit awards containing both service and market conditions. The effect of the service and market conditions 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 Partnership Unit awards is five years with 20% vesting per annum. The market condition requirement will be 50% satisfied upon the dividend-adjusted publicly traded shares of Class A common stock achieving a 20-day VWAP of $100 and the other 50% will be satisfied ratably upon the dividend-adjusted publicly traded shares of Class A common stock achieving a 20-day VWAP above $100 with the market condition fully satisfied upon achieving a 20-day VWAP of $130 prior to February 26, 2027. No portion of these awards will become vested until both the service and market conditions have been satisfied. The following table summarizes activity related to unvested Partnership Unit awards with both a service and market condition for the year ended December 31, 2022: Partnership Unit Awards with Both Service and Market Conditions Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2021 — $ — Granted 1,107,768 39.10 Balance, December 31, 2022 1,107,768 $ 39.10 As of December 31, 2022, there was $25.5 million of estimated unrecognized compensation expense related to Partnership Unit awards with both a service and market condition. This cost is expected to be recognized over a weighted-average period of 2.4 years. The Company assumes a forfeiture rate of 4.0% annually based on expected turnover and periodically reassesses this rate. The Company estimated the fair value of Partnership Unit awards with both a service and market condition at grant using a Monte Carlo simulation. The following table presents the assumptions used for the year ended December 31, 2022: Risk-Free Interest Rate 2.0 % Volatility Factor 37.0 % Expected Life (in years) 5.0 Units Expected to Vest The following unvested units, after expected forfeitures, as of December 31, 2022, are expected to vest: Weighted-Average Service Period Units in Years Partnership Units 1,212,064 2.2 Restricted Stock Units 5,371,276 1.6 Total Equity-Based Awards 6,583,340 1.7 Deferred Cash Compensation The Company has periodically issued deferred cash compensation in connection with annual incentive compensation as well as other hiring or retention related awards. These awards typically vest over a period of one to four years. Compensation expense related to deferred cash awards was $26.6 million, $30.8 million and $34.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, there was $19.2 million of unrecognized compensation expense related to these awards. The weighted-average period over which this compensation cost is expected to be recognized is 2.2 years. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholder's Equity | 1 1 . STOCKHOLDERS’ EQUITY Class A and Class B Common Stock Holders of shares of the Company’s Class A common stock are (a) entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally, including the election or removal of directors; (b) entitled to receive dividends when and if declared by the Company’s Board of Directors (the “Board”) out of funds legally available therefor; and (c) entitled to receive pro rata the Company’s remaining assets available for distribution upon any liquidation, dissolution or winding up of the Company. Partnership Unit holders are granted an accompanying share of Class B common stock. This share of Class B common stock entitles the holder to a number of votes commensurate with such holder’s vested and unvested Partnership Units and does not provide any voting power in excess of the holder’s economic interest in the Company. Rather, it merely provides a vehicle for a Partnership Unit holder to vote such holder’s economic interest in the Company and does not give disproportionate or super-voting rights to holders of Partnership Units and Class B common stock. In an effort to preserve the tax-free nature of the spin-off, the Company’s Certificate of Incorporation provided that holders of Class B common stock were limited to only one vote per share of Class B common stock solely with respect to the election or removal of directors. With the passage of time since the spin-off, this restriction on the voting rights of holders of Class B common stock is no longer operative. Pursuant to the Company’s Certificate of Incorporation, upon the request of a holder of Class B common stock and approval by the Board, such holder’s Class B common stock would be equalized to provide the same number of votes for the election and removal of directors as it does for all other matters. Accordingly, as of December 31, 2022, the holders of 10,339,443 vested and unvested Partnership Units have requested, and the Board has approved, that the shares of Class B common stock held by them provide them with the same number of votes for the election and removal of directors as they do for all other matters. Holders of shares of the Company’s Class B common stock vote together with holders of the Company’s publicly traded Class A common stock as a single class on all matters on which such shareholders are entitled to vote generally, except as otherwise required by law. Non-Controlling Interests PJT Partners Inc. is 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 December 31, 2022 and 2021, the non-controlling interest was 37.6% and 38.4%, respectively. The percentage of the Net Income Attributable to Non-Controlling Interests will vary from this percentage primarily due to the differing level of income taxes applicable to the controlling interest. Partnership Units are exchangeable at the option of the holder for cash or, at the Company’s election, for shares of Class A common stock on a one-for-one basis. The election to exchange Partnership Units is entirely within the control of the holder of Partnership Units, although the Company retains the sole option to determine whether to settle the exchange in either cash or shares of Class A common stock. PJT Partners Inc. operates and controls all of the business and affairs of PJT Partners Holdings LP and its operating subsidiaries indirectly through its equity interest in PJT Partners Holdings LP; therefore, the shares of Class A common stock outstanding represent the controlling interest. Treasury Stock On April 25, 2022, the Company’s Board authorized a $200 million repurchase program of the Company’s Class A common stock, which is in addition to the previous Board authorizations. As of December 31, 2022, the Company’s remaining repurchase authorization was $173.7 million. Under the repurchase program, shares of the Company’s Class A common stock may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the year ended December 31, 2022, the Company repurchased 1.7 million shares of the Company’s Class A common stock at an average price per share of $66.15, or $109.5 million in aggregate, pursuant to this share repurchase program. The result of these repurchases was an increase of $109.5 million in Treasury Stock in the Company’s Consolidated Statement of Financial Condition for the year ended December 31, 2022. With respect to repurchases of the Company’s Class A common stock during the year ended December 31, 2021, the Company recorded an increase of $103.3 million in Treasury Stock in the Company’s Consolidated Statement of Financial Condition. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 1 2 . LEASES The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 Operating Lease Cost $ 27,672 $ 27,519 $ 27,492 Short-Term Lease Cost — 102 — Variable Lease Cost 3,606 3,090 3,101 Sublease Income (529 ) (909 ) (2,757 ) Total Lease Cost $ 30,749 $ 29,802 $ 27,836 Supplemental information related to the Company’s operating leases was as follows: Year Ended December 31, 2022 2021 2020 Cash Paid for Amounts Included in Measurement of Lease Liabilities Operating Cash Flows from Operating Leases $ 22,488 $ 21,397 $ 16,596 Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities $ 6,261 $ 6,765 $ 4,043 December 31, 2022 2021 Weighted-Average Remaining Lease Term (in years) 6.8 7.6 Weighted-Average Discount Rate 4.6 % 4.7 % The following is a maturity analysis of the annual undiscounted cash flows of the Company’s operating lease liabilities as of December 31, 2022: Year Ending December 31, 2023 $ 32,119 2024 29,086 2025 24,752 2026 19,164 2027 10,560 Thereafter 43,037 Total Lease Payments 158,718 Less: Imputed Interest 23,091 Total $ 135,627 |
Transactions With Related Parti
Transactions With Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | 1 3 . 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, 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. Further, 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 holder of Partnership Units 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. Certain holders of Partnership Units exchanged 0.2 million and 1.5 million Partnership Units, respectively, for cash in the amounts of $15.1 million and $109.6 million, respectively, for the years ended and 2021. Such amounts are recorded as a reduction of Non-Controlling Interests in the Consolidated Statements of Financial Condition. Additionally, 250 thousand Partnership Units were exchanged for shares of PJT Partners Inc. Class A common for the year ended December 31, 2022. There were no exchanges for the shares of PJT Partners Inc. Class A common stock for the year ended December 31, 2021. Exchanges for shares are recorded as a reduction of Non-Controlling Interests and an increase in Additional Paid-In Capital in the Consolidated Statements of Financial Condition. With respect to the fourth quarter 2022 exchange, the Company elected to settle the exchange of 142,502 Partnership Units on February 14, 2023 for cash for an aggregate payment of $10.7 million. The price per Partnership Unit paid by the Company was $75.35, which was equal to the volume-weighted average price of a share of the Company’s Class A common stock on February 9, 2023. Registration Rights Agreement The Company has 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. The registration rights agreement does not contain any penalties associated with failure to file or to maintain the effectiveness of a registration statement covering the shares owned by individuals covered by such agreement. Tax Receivable Agreement The Company has 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 December 31, 2022 and 2021, the Company had amounts due of $30.3 million and $31.1 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. The Company expects to make the following payments with respect to the tax receivable agreement: $2.2 million for the year ending December 31, 2023; $2.3 million for the year ending December 31, 2024; $2.2 million for the years ending December 31, 2025, 2026 and 2027; and $19.1 million in years thereafter. Actual payments may differ significantly from estimated payments. Sublease The Company has entered into a Sublease Agreement (the “Sublease”) with Dynasty Equity Partners Management, LLC (“Dynasty”) to sublease a portion of its office space. K. Don Cornwell, former partner and a member of the Board of Directors as of January 2023, is the CEO and co-founder of Dynasty. The sublease commenced on October 1, 2022 with an initial term of two years. The rent, terms and conditions of the Sublease were consistent with those similar subleases in the market as of the time the Sublease was entered. The Company recognized $0.1 million of sublease income for the year ended December 31, 2022 related to the Sublease. Such amounts are recorded in Interest Income and Other in the Consolidated Statements of Operations Aircraft Lease The Company makes available to its partners and, on occasion, their family members personal use of a company leased aircraft when it is not being used for business purposes, for which the partners pay the full incremental costs associated with such use. Such amount is not material to the consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 1 4 . COMMITMENTS AND CONTINGENCIES Commitments Line of Credit On October 1, 2018, PJT Partners Holdings LP, as borrower (“Borrower”) entered into an Amended and Restated Loan Agreement (the “Amended and Restated Loan Agreement”) and related documents with First Republic Bank, as lender (the “Lender”). The Amended and Restated Loan Agreement provides for a revolving credit facility with aggregate commitments in an amount equal to $40.0 million, which aggregate commitments may be increased, on the terms and subject to the conditions set forth in the Amended and Restated Loan Agreement, to up to $60.0 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 the maturity date, subject to extension by agreement of the Borrower and Lender. On February 1, 2021, Borrower entered into a Renewal and Modification Agreement (the “Renewal Agreement”) and related documents with Lender, amending the terms of the Borrower’s revolving credit facility with the Lender under the Amended and Restated Loan Agreement. The Renewal Agreement provides for a revolving credit facility with aggregate commitments in an amount equal to $ million, which aggregate commitments may be increased, on the terms and subject to the conditions set forth in the Renewal Agreement, to up to $ million durin g the period beginning December 1 each year through March 1 of the following year. The revolving credit facility was scheduled to mature and the commitments the reunder were scheduled to terminate on October 1, 2022 , subject to extension by agreement of the Borrower and Lender. On April, 25, 2022, the Renewal Agreement was further amended to extend the maturity date to October 1, 2023. The Renewal Agreement requires the Borrower to maintain certain minimum financial covenants and limits or restricts the ability of the Borrower (subject to certain qualifications and exceptions) to incur additional indebtedness in excess of $20.0 million. Outstanding borrowings under the Renewal Agreement are secured by the accounts receivable of PJT Partners LP. Outstanding borrowings under the revolving credit facility bear interest equal to the greater of a per annum rate of (a) 2.75%, or (b) the prime rate minus 1.0%. During an event of default, overdue principal under the revolving credit facility bears interest at a rate 2.0% in excess of the otherwise applicable rate of interest. In connection with the closing of the Renewal Agreement, the Borrower paid the Lender certain closing costs and fees. In addition, on and after the closing date, the Borrower will also pay a commitment fee on the undrawn portion of the revolving credit facility of 0.125% per annum, payable quarterly in arrears. As of December 31, 2022 and 2021, the Company was in compliance with the debt covenants under the Renewal Agreement and Amended and Restated Loan Agreement, respectively. As of December 31, 2022 and 2021, there were no borrowings outstanding under the revolving credit facility. Contingencies Litigation From time to time, the Company may be 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 consolidated financial statements of the Company. 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. Guarantee The Company provides a guarantee to a lending institution for certain loans held by employees for investment in funds of its former Parent, which are secured by the underlying investments in those funds. The amount guaranteed was $3.3 million and $4.1 million as of December 31, 2022 and 2021, respectively. In connection with this guarantee, the Company currently expects any associated risk of loss to be insignificant. Indemnifications The Company has entered and may continue to enter into contracts that contain a variety of indemnification obligations. The Company’s maximum exposure under these arrangements is not known; however, the Company currently expects any associated risk of loss to be insignificant. In connection with these matters, the Company has incurred and may continue to incur legal expenses, which are expensed as incurred. Transactions and Agreements with Blackstone 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 Consolidated Statements of Financial Condition. The accrual for these forfeitures was $0.9 million as of December 31, 2022 and 2021. 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. Amounts are payable annually (for periods in which a cash benefit is realized) within nine months of the end of the relevant tax period. As of December 31, 2022 and 2021, the Company had accrued $3.4 million and $2.6 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 stock at the time of delivery. |
Regulated Entities
Regulated Entities | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital Requirements [Abstract] | |
Regulated Entities | 1 5 . REGULATED ENTITIES Certain subsidiaries of the Company are subject to various regulatory requirements in the U.S., United Kingdom, Hong Kong and Spain, which specify, among other requirements, minimum net capital requirements for registered broker-dealers. PJT Partners LP is a registered broker-dealer through which advisory and placement services are conducted in the U.S. 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 PJT Partners LP does not carry customer accounts and does not otherwise hold funds or securities for, or owe money or securities to, customers and, accordingly, has no obligations under the SEC Customer Protection Rule (Rule 15c3-3). PJT Partners (UK) Limited is authorized and regulated by the United Kingdom’s Financial Conduct Authority and is required to maintain minimum capital of the greater of the permanent minimum requirement of £75 thousand or a fixed overhead requirement, defined as 25% of fixed overheads of the preceding year. One third of the fixed overhead requirement must be held in liquid assets. 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. PJT Partners Park Hill (Spain) A.V., S.A.U. is an investment firm authorized and regulated by Spain’s National Securities Market Commission and is required to maintain minimum capital of the greater of the permanent minimum requirement of €75 thousand or 25% of the fixed overheads of the preceding year. One third of the fixed overhead requirement must be held in liquid assets. As of December 31, 2022 and 2021, these entities were in compliance with local capital adequacy requirements. |
Business Information
Business Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Information | 1 6 . BUSINESS INFORMATION The Company’s activities providing advisory and placement services constitute a single reportable segment. An operating segment is a component of an entity that conducts business and 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 single The Company is organized as one operating segment in order to maximize the value of advice to clients by drawing upon the diversified expertise and broad relationships of 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. Year Ended December 31, 2022 2021 2020 Revenues Domestic $ 923,334 $ 873,563 $ 933,580 International 102,171 118,382 118,720 Total $ 1,025,505 $ 991,945 $ 1,052,300 December 31, 2022 2021 Assets Domestic $ 921,274 $ 824,963 International 129,378 162,662 Total $ 1,050,652 $ 987,625 The Company was not subject to any material concentrations with respect to its revenues for the years ended December 31, 2022, 2021 and 2020. The Company was not subject to any material concentrations of credit risk with respect to its accounts receivable as of December 31, 2022 and 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 1 7 . SUBSEQUENT EVENTS The Board has declared a quarterly dividend of $0.25 per share of Class A common stock, which will be paid on March 22, 2023 to Class A common stockholders of record on March 8, 2023. The Company has evaluated the impact of subsequent events through the date these financial statements were issued, and determined there were no subsequent events requiring adjustment or further disclosure to the financial statements besides those described in Note 13. “Transactions with Related Parties—Exchange Agreement” and Note 13. “Transactions with Related Parties—Sublease.” |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”). Intercompany transactions have been eliminated for all periods presented. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary. In preparing the consolidated financial statements, management makes estimates regarding the recognition of revenue, adequacy of the allowance for credit losses, assumptions used in the provision for income taxes, measurement of equity-based compensation and other matters that affect the reported amounts and disclosures in the consolidated financial statements. |
Revenue Recognition | Revenue Recognition The Company provides a range of strategic advisory, capital markets advisory, restructuring and special situations and shareholder advisory services to corporations, financial sponsors, institutional investors and governments around the world. In conjunction with providing restructuring advice, the Company may also assist with raising various forms of financing, including debt and equity. Secondary advisory services include providing GP solutions and investing solutions to clients seeking portfolio liquidity, unfunded commitment relief and investments in secondary markets. The Company’s fund placement services primarily serve alternative investment strategies, including private equity, real estate, hedge funds and private credit. The Company also provides public and private placement fundraising services to corporate clients. At contract inception, the Company assesses the services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a service (or a bundle of services) that is distinct. To identify the performance obligations, the Company considers all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices . Additionally, the Company allocates the transaction price to the respective performance obligation(s) by estimating the amount of consideration in which the Company expects to be entitled in exchange for transferring the promised services to the customer. The Company’s primary performance obligation with respect to advisory and placement services is to stand ready to perform a broad range of services the client may need over the course of the engagement Fees related to these performance obligations are recognized over time using a time-based measure of progress. The Company may also be engaged to provide a fairness opinion to the client, amend contract terms, provide underwriting services or . The Company has determined that the delivery of these services represents a separate performance obligation that is satisfied at a point in time when each is completed and delivered to the client as the customer is able to direct the use of, and obtain substantially all of the benefits from, the service at that point. With respect to the transaction price, the consideration to which the Company expects to be entitled is predominantly variable as the consideration is susceptible to factors outside of the Company’s influence and/or contain a large number and broad range of possible consideration amounts. As such, these amounts . With respect to contracts to provide placement services, fees are generally payable upon completion of a fund closing or may be paid in installments over three or four years with interest being charged to the outstanding balance. With respect to such fees paid over time, the Company has determined there is not a significant financing component related to such contracts. Fees earned for placement services to corporate clients are typically payable upon completion. Additionally, the Company is typically reimbursed for certain professional fees and other expenses incurred that are necessary in order to provide services to the customer. These expenses are recorded in the relevant expense caption in the Consolidated Statements of Operations when incurred and recognized as revenue and recorded in Accounts Receivable, Net when these amounts are invoiced to the customer. Such revenue amounts are recorded in Interest Income and Other in the Consolidated Statements of Operations. Determining the Timing of Satisfaction of Performance Obligations For performance obligations that are satisfied over time, determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. The Company has determined that the methods described above provide a faithful depiction of the transfer of services to the customer. For performance obligations that are satisfied at a point in time, the Company has determined that the customer is able to direct the use of, and obtain substantially all of the benefits from, the output of the service at the time it is provided to the client. Additionally, at that point the Company has a present right to payment, the Company has transferred the output of the service and the customer has significant risks and rewards of ownership. Contract Balances The timing of revenue recognition may differ from the timing of payment. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. The Company may receive non-refundable up-front fees in its contracts with customers, which are recorded as revenues in the period over which services are estimated to be provided. Additionally, the Company may receive payment of certain announcement, retainer or milestone fees before the performance obligation has been fully satisfied. Such fees give rise to a contract liability and are recorded as Deferred Revenue in the Consolidated Statements of Financial Condition. The Company does not establish a provision for refunds or similar obligations. Additionally, the Company is the principal in the satisfaction of performance obligations. To obtain a contract with a customer, the Company may incur costs such as advertising, marketing costs, bid and proposal costs and legal fees. The Company has determined that these costs would have been incurred regardless of whether the contract with the customer was obtained. Additionally, the Company does not expect to recover any of these costs from the customer; therefore, the costs of obtaining contracts with customers are expensed as incurred. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing services and are generally expensed as incurred, except for performance obligations that are satisfied at a point in time. For contracts with customers where a performance obligation is satisfied at a point in time, out-of-pocket expenses, where material, are capitalized and subsequently expensed in the Consolidated Statements of Operations upon satisfaction of the performance obligation. Interest Income and Other – Interest Income and Other represents interest typically earned on Cash and Cash Equivalents, investments in Treasury securities and outstanding placement fees receivable; miscellaneous income; foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars; sublease income; and the amount of expense reimbursement invoiced to clients related to out-of-pocket expenses. Interest on placement fees receivable is earned from the time revenue is recognized and is calculated (typically based upon the Secured Overnight Financing Rate or an alternate reference rate) plus an additional percentage as mutually agreed upon with the receivable counterparty. Interest receivable is included in Accounts Receivable, Net in the Consolidated Statements of Financial Condition. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of financial instruments, including cash and cash equivalents, investments, accounts receivable, other assets, accounts payable, accrued expenses, taxes payable and other liabilities approximates their fair value. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. • Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. • Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. In making an assessment of the fair value hierarchy classification of investments in Treasury securities , 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 liqui d version of the maturity band). These securities are recorded at fair value using broker quotes, reflecting inputs from auction yields. Long-term receivables are classified as Level II in the fair value hierarchy. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Cash and Cash Equivalents include short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase. Cash and Cash Equivalents are primarily held at four major financial institutions. Also included in Cash and Cash Equivalents are amounts held in bank accounts that are subject to advance notification to withdraw, which totaled $0.6 million and $41.2 million as of December 31, 2022 and 2021, respectively. Treasury securities with original maturities greater than three months when purchased are classified as Investments in the Consolidated Statements of Financial Condition. |
Accounts Receivable | Accounts Receivable Accounts Receivable, Net includes receivables related to services provided in contracts with customers. Included in Accounts Receivable, Net are long-term receivables that relate to placement fees that are generally paid in installments over a period of three to four years. The Company generally charges interest on long-term receivables as mutually agreed upon with the receivable counterparty. Additional disclosures regarding accounts receivable are discussed in Note 4. “Accounts Receivable and Allowance for Credit Losses.” |
Allowance for Credit Loss | Allowance for Credit Losses The Company estimates the allowance for credit losses using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience, including write-offs and recoveries that have occurred during the period, provides the basis for the estimation of expected credit losses. The allowance for credit losses is measured on a collective basis when similar risk characteristics exist in the Company’s accounts receivable. The Company has classified its accounts receivable into short-term and long-term receivables, both of which relate to revenues from contracts with customers, in estimating the allowance for credit losses. Short-term receivables generally have payment terms less than one year and share similar historical credit loss patterns including write-offs and recoveries. These receivables arise from the Company’s performance obligation of standing ready to perform. Long-term receivables are generally paid in installments over a period of three to four years. These receivables share similar historical credit loss patterns including write-offs and recoveries, and arise from the Company’s performance obligation of providing corporate and fund placement services. The Company measures the allowance for credit losses using the loss-rate method by multiplying the historical loss rate by the asset’s amortized cost (including accrued interest) at the balance sheet date. The historical loss rate is derived from the Company’s historical loss experience over the prior three year period. The Company reduces both the gross receivable and the allowance for credit losses in the period in which the receivable(s) are deemed uncollectible. The Company considers a receivable to be uncollectible at the point when all efforts at collection have been exhausted. A recovery may occur if cash is received after a receivable balance has been written off. Such recovery would be recorded as an increase to the allowance at the time of the recovery. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill recorded arose from the contribution and reorganization of Blackstone’s predecessor entities in 2007 immediately prior to Blackstone’s initial public offering (“IPO”), the acquisition of PJT Capital LP that occurred on October 1, 2015 and the acquisition of CamberView Partners Holdings, LLC (“CamberView”) that occurred on October 1, 2018. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach and more frequently if circumstances indicate impairment may have occurred. Goodwill is tested for impairment at the reporting unit level. A reporting unit is a component of an operating segment for which discrete financial information is available that is regularly reviewed by management. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of the Company’s reporting unit is less than its respective carrying value. If it is determined that it is more likely than not that the reporting unit’s fair value is less than its carrying value or when the quantitati ve approach is used, a quantitative assessment is performed to (a) calculate the fair value of the reporting unit and c ompare it to its carrying value, and (b) if the carrying value exceeds its fair value, to measure an impairment loss. The Company’s intangible assets are derived from (a) customer relationships that were established as part of Blackstone’s IPO and the acquisition of CamberView, and (b) the value of the trade name as part of the acquisitions of PJT Capital LP and CamberView. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives of four to fifteen years, reflecting the average time over which such intangible assets are expected to contribute to cash flows. Amortization expense is included in Depreciation and Amortization in the Consolidated Statements of Operations. The Company does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Furniture, Equipment and Leasehold Improvements | Furniture, Equipment and Leasehold Improvements Furniture, Equipment and Leasehold Improvements, Net consist primarily of leasehold improvements, furniture, fixtures and equipment and office equipment, and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and five to seven years for other fixed assets. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Depreciation and amortization are included in Depreciation and Amortization in the Consolidated Statements of Operations. |
Leases | Leases The Company determines at inception if an arrangement is, or contains, a lease. The Company leases office space under non-cancelable lease agreements, which expire at The lease arrangements for office space typically contain payments to the lessor for common area maintenance charges and reimbursement for certain other costs that are not fixed. The Company accounts for these costs as variable lease costs and does not include them in the lease component. Right-of-Use Assets (“ROU assets”) represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. The Company’s lease agreements generally do not provide an implicit rate, so the Company estimates the incremental borrowing rate considering the collateral, term and the economic environment of the lease arrangement with reference to the Company’s loan agreement. Certain leases may include options to extend or terminate and the Company reflects such renewal or termination option in the lease term when it is reasonably certain to exercise the option. The Company records ROU assets and lease liabilities for operating leases in Operating Lease Right-of-Use Assets and Operating Lease Liabilities, respectively, on the Consolidated Statements of Financial Condition. The Company does not record ROU assets or lease liabilities for leases with a term of twelve months or less. Lease expense for such leases is recognized on a straight-line basis. |
Foreign Currency | Foreign Currency In the normal course of business, the Company may enter into transactions not denominated in U.S. dollars. Foreign exchange gains and losses arising on such transactions are recorded in Interest Income and Other in the Consolidated Statements of Operations. In addition, the Company consolidates a number of businesses that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing monthly average exchange rate on the dates they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated operations are recorded in Other Comprehensive Income. |
Non-Controlling Interests | Non-Controlling Interests Non-Controlling Interests are presented separately from Equity in the Consolidated Statements of Financial Condition and the portion of net income attributable to the non-controlling interests is presented separately in the Consolidated Statements of Operations. |
Repurchases of Common Stock | Repurchases of Common Stock Shares of the Company’s Class A common stock may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The Company may structure such repurchases as either a purchase of treasury stock or a retirement of shares. The Company records its purchases of treasury stock at cost as a separate component of Equity. The Company may re-issue treasury stock, at average cost. |
Compensation and Benefits | Compensation and Benefits Compensation and Benefits includes salaries, cash bonuses and restricted cash awards, benefits, employer taxes and equity-based compensation associated with the grants of equity-based awards to partners and employees. Compensation cost relating to the issuance of equity-based awards with a requisite service period to partners and employees is measured at fair value at the grant date, taking into consideration expected forfeitures, and expensed over the vesting period on a straight-line basis. Equity-based awards that do not require future service are expensed immediately. Restricted cash awards are expensed over the vesting period on a straight-line basis. In certain instances, the Company may grant equity-based awards containing both a service and a market condition. The effect of the market condition is reflected in the grant date fair value of the award. Compensation cost is recognized for an award with a market condition over the requisite service period, provided that the requisite service period is completed, irrespective of whether the market condition is satisfied. If the market condition has not been satisfied during the vesting period, the remaining unrecognized compensation cost will continue to be recognized over the requisite service period. If a recipient terminates employment before completion of the requisite service period, any compensation cost previously recognized is reversed unless the market condition has been satisfied prior to termination. If the market condition has been satisfied during the vesting period, the remaining unrecognized compensation cost is accelerated. At the Company’s discretion, the Company may provide compensation to certain employees with repayment obligations and/or service provisions. Such payments are recorded in Compensation and Benefits in the Consolidated Statements of Operations. The Company assesses the potential risk of forfeiture and likelihood of recouping amounts paid, and if deemed necessary, records a provision for forfeitures in the financial statements. |
Income Taxes | Income Taxes PJT Partners Inc. is a corporation subject to U.S. federal, state and local income taxes in jurisdictions where it does business. The Company’s businesses generally operate as partnerships for U.S. federal and state purposes and as corporate entities in non-U.S. jurisdictions. In the U.S. federal and state jurisdictions, taxes related to income earned by these entities generally represent obligations of the individual members and partners. The operating entities have generally been subject to New York City Unincorporated Business Tax and to entity-level income taxes imposed by state and local as well as non-U.S. jurisdictions, as applicable. These taxes have been reflected in the Company’s consolidated financial statements . PJT Partners Inc. is subject to U.S. corporate federal, state and local income tax on its allocable share of results of operations from the operating partnership (PJT Partners Holdings LP) . Current tax liabilities are recorded in Taxes Payable in the Consolidated Statements of Financial Condition. The Company uses the asset and liability method of accounting for deferred tax assets and liabilities. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases, using the enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company records uncertain tax positions on the basis of a two-step process: (a) a determination is made whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (b) those tax positions that meet the recognition threshold described in the first step are recorded based on the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with the tax authority. The effects of tax adjustments and settlements with taxing authorities are presented in the Company’s consolidated financial statements in the period to which they relate as if the Company were a separate tax filer in those years. The Company recognizes accrued interest and penalties related to uncertain tax positions in Other Expenses in the Consolidated Statements of Operations, as applicable. Unrecognized tax benefits are recorded in Taxes Payable in the Consolidated Statements of Financial Condition, as applicable. In August 2022, two pieces of legislation that have significant tax-related provisions were signed into law: (1) the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022 (the "CHIPS Act"), which creates a new advanced manufacturing investment credit under new Internal Revenue Code section 48D, and (2) the Inflation Reduction Act of 2022 (the "IRA"), which, among other provisions, introduces (a) a 15% minimum tax on certain large corporations with a 3-year average adjusted financial statement income (“AFSI”) of $1 billion or more (b) a plethora of clean energy tax incentives in the form of tax credits, and (c) a 1% excise tax on repurchases of stock by certain publicly traded corporations. The Company has evaluated the impact of the new laws, and does not expect the IRA or CHIPS Act to have a material impact on its consolidated financial statements. |
Amount Due Pursuant to Tax Receivable Agreement | Amount Due Pursuant to Tax Receivable Agreement Holders of common units of partnership interest in PJT Partners Holdings LP (“Partnership Units”) (other than PJT Partners Inc.) may, subject to the terms and conditions set forth in the partnership agreement of PJT Partners Holdings LP, on a quarterly basis (subject to the terms of the exchange agreement), exchange their Partnership Units for cash or, at the Company’s election, for shares of Class A common stock of PJT Partners Inc. on a one-for-one basis, subject to customary conversion rate adjustments for splits, unit distributions and reclassifications. PJT Partners Holdings LP has made an election under Section 754 of the Internal Revenue Code effective for each taxable year in which an exchange of Partnership Units for cash or for shares of Class A common stock occurs, which is expected to result in increases to the tax basis of the assets of PJT Partners Holdings LP at the time of an exchange of Partnership Units. Stock-settled exchanges and certain of these cash-settled exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of PJT Partners Holdings LP. These increases in tax basis may reduce the amount of tax that PJT Partners Inc. would otherwise be required to pay in the future. These increases in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets . The Company has 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. This payment obligation is an obligation of PJT Partners Inc. and not of PJT Partners Holdings LP. PJT Partners Inc. expects to benefit from the remaining 15% of cash tax savings, if any, in income tax it realizes. For purposes of the tax receivable agreement, the cash tax savings in income tax is computed by comparing the actual income tax liability of PJT Partners Inc. (calculated with certain assumptions) to the amount of such taxes that PJT Partners Inc. would have been required to pay had there been no increase to the tax basis of the assets of PJT Partners Holdings LP as a result of the exchanges and had PJT Partners Inc. not entered into the tax receivable agreement. The term of the tax receivable agreement continues until all such tax benefits have been utilized or expired, unless PJT Partners Inc. exercises its right to terminate the tax receivable agreement for an amount based on the agreed payments remaining to be made under the agreement or PJT Partners Inc. breaches any of its material obligations under the tax receivable agreement in which case all obligations generally will be accelerated and due as if PJT Partners Inc. had exercised its right to terminate the tax receivable agreement. The Company accounts for the effects of these increases in tax basis and associated payments under the tax receivable agreement arising from exchanges as follows: • the Company records an increase in deferred tax assets for the estimated income tax effects of the increases in tax basis based on enacted federal, state and local tax rates at the date of the exchange; • to the extent the Company estimates that it will not realize the full benefit represented by the deferred tax asset, based on an analysis that will consider, among other things, the Company’s expectation of future earnings, the Company reduces the deferred tax asset with a valuation allowance; and • the Company records 85% of the estimated realizable tax benefit (which is the recorded deferred tax asset less any recorded valuation allowance) as an increase to the Amount Due Pursuant to Tax Receivable Agreement and the remaining 15% of the estimated realizable tax benefit as an increase to Additional Paid-In Capital. The effects of changes in estimates after the date of the redemption or exchange as well as subsequent changes in the enacted tax rates are included in net income. |
Net Income Per Share of Class A Common Stock | Net Income Per Share of Class A Common Stock Basic Net Income Per Share is computed using the weighted-average number of shares of Class A common stock outstanding; vested, undelivered restricted stock units (“RSUs”); and unvested RSUs that have met requisite service requirements. Diluted Net Income Per Share is computed using the number of shares of Class A common stock included in the Basic Net Income Per Share calculation, and if dilutive, the incremental common stock that the Company would issue upon the assumed vesting of RSUs using the treasury stock method and the assumed conversion of Partnership Units using the if-converted method. |
Contingencies and Litigation | Contingencies and Litigation The Company records loss contingencies if (a) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the consolidated financial statements, and (b) the amount of loss can be reasonably estimated. If one or both criteria for accrual are not met, but there is at least a reasonable possibility that a loss will occur, the Company does not record an accrual for a loss contingency but describes the contingency and provides detail, when possible, of the estimated potential loss or range of loss. If an estimate cannot be made, a statement to that effect is made. Costs incurred with defending matters are expensed as incurred. |
Recent Accounting Developments | Recent Accounting Developments In June 2022, the FASB issued updated guidance on the fair value measurement of equity securities subject to contractual sale restrictions. The guidance is effective for annual and interim periods beginning after December 15, 2023, with early adoption permitted. The Company evaluated and concluded that this guidance will not have a material impact on its consolidated financial statements. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenues Recognized from Contracts with Customers | The following table provides a disaggregation of revenues recognized from contracts with customers for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Advisory Fees $ 823,496 $ 762,723 $ 872,286 Placement Fees 192,890 216,692 162,237 Interest Income from Placement Fees and Other 10,173 7,001 10,485 Revenues from Contracts with Customers $ 1,026,559 $ 986,416 $ 1,045,008 |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Changes in the Allowance for Credit Losses | Changes in the allowance for credit losses consist of the following: Year Ended December 31, 2022 2021 2020 Balance, Beginning of Year $ 1,853 $ 1,330 $ — Adoption of ASC 326 — — 1,107 Provision for Credit Losses 2,817 2,869 1,266 Write-offs (2,725 ) (2,742 ) (1,368 ) Recoveries — 396 325 Balance, End of Year $ 1,945 $ 1,853 $ 1,330 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible Assets, Net consists of the following: December 31, 2022 2021 Finite-Lived Intangible Assets Customer Relationships $ 61,276 $ 61,276 Trade Name 9,800 9,800 Total Intangible Assets 71,076 71,076 Accumulated Amortization Customer Relationships (44,964 ) (39,797 ) Trade Name (8,232 ) (6,893 ) Total Accumulated Amortization (53,196 ) (46,690 ) Intangible Assets, Net $ 17,880 $ 24,386 |
Schedule of Changes in Intangible Assets, Net | Changes in the Company’s Intangible Assets, Net consist of the following: Year Ended December 31, 2022 2021 2020 Balance, Beginning of Year $ 24,386 $ 32,030 $ 39,806 Amortization Expense (6,506 ) (7,644 ) (7,776 ) Balance, End of Year $ 17,880 $ 24,386 $ 32,030 |
Furniture, Equipment and Leas_2
Furniture, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Schedule of Furniture, Equipment and Leasehold Improvements | Furniture, Equipment and Leasehold Improvements, Net consists of the following: December 31, 2022 2021 Leasehold Improvements $ 54,555 $ 56,230 Furniture and Fixtures 18,811 18,044 Office Equipment 5,533 4,423 Total Furniture, Equipment and Leasehold Improvements 78,899 78,697 Accumulated Depreciation (48,206 ) (41,550 ) Furniture, Equipment and Leasehold Improvements, Net $ 30,693 $ 37,147 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Valuation of the Company's Investments by Fair Value Hierarchy | The following tables summarize the valuation of the Company’s investments by the fair value hierarchy: December 31, 2022 Level I Level II Level III Total Treasury Securities $ — $ 50,242 $ — $ 50,242 December 31, 2021 Level I Level II Level III Total Treasury Securities $ — $ 40,000 $ — $ 40,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | The Company’s pretax income is associated with activities in domestic and international jurisdictions, as follows: Year Ended December 31, 2022 2021 2020 Income Before Provision for Taxes Domestic $ 237,635 $ 235,453 $ 260,361 International (36,164 ) (16,004 ) (12,400 ) Total $ 201,471 $ 219,449 $ 247,961 |
Summary of Income Tax Expense | The Provision for Income Taxes consists of the following: Year Ended December 31, 2022 2021 2020 Current Federal Income Tax $ 22,492 $ 13,673 $ 20,306 State and Local Income Tax 10,664 6,096 7,747 Foreign Income Tax 1,759 2,629 571 34,915 22,398 28,624 Deferred Federal Income Tax 534 6,742 2,308 State and Local Income Tax 1,151 345 300 Foreign Income Tax 99 9 4,303 1,784 7,096 6,911 Provision for Taxes $ 36,699 $ 29,494 $ 35,535 |
Summary of Company's Tax Position | The following table summarizes the Company’s tax position: Year Ended December 31, 2022 2021 2020 Income Before Provision for Taxes $ 201,471 $ 219,449 $ 247,961 Provision for Taxes $ 36,699 $ 29,494 $ 35,535 Effective Income Tax Rate 18.2 % 13.4 % 14.3 % |
U.S Federal Statutory Tax Rate Reconciliation to the Effective Income Tax Rate | The following table reconciles the U.S. federal statutory tax rate to the effective income tax rate: Year Ended December 31, 2022 2021 2020 Expected Income Tax Expense at the Federal Statutory Rate 21.0 % 21.0 % 21.0 % Permanent Differences for Compensation -0.8 % -2.2 % -0.1 % Income Not Subject to U.S. Corporate Income Taxes -8.3 % -8.7 % -8.3 % Foreign Income Taxes 0.8 % 1.2 % 0.7 % State and Local Income Taxes, Net of Federal Benefit 3.9 % 2.5 % 2.9 % Return to Provision 0.8 % -0.1 % -0.4 % Rate Change Impact 0.3 % -0.5 % 0.0 % Tax Benefit from NOL Carryback under the CARES Act — — -1.5 % Other 0.5 % 0.2 % 0.0 % Effective Income Tax Rate 18.2 % 13.4 % 14.3 % |
Summary of the Tax Effects of Temporary Differences | A summary of the tax effects of the temporary differences is as follows: December 31, 2022 2021 Deferred Tax Assets Operating Lease Liabilities $ 16,459 $ 19,818 Tax Basis Step-Up from Blackstone 11,252 15,028 Deferred Compensation 24,835 16,939 Partner Exchange Basis Step-Up 38,966 36,350 Other 2,427 4,349 Total Deferred Tax Assets $ 93,939 $ 92,484 Deferred Tax Liabilities Operating Lease Right-of-Use Assets $ 14,398 $ 17,306 Intangible Assets 2,071 1,654 Fixed Assets 857 1,612 Other 7,441 8,130 Total Deferred Tax Liabilities 24,767 28,702 Deferred Tax Asset, Net $ 69,172 $ 63,782 |
Net Income Per Share of Class_2
Net Income Per Share of Class A Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 years ended December 31, 2022, 2021 and 2020 is presented below: Year Ended December 31, 2022 2021 2020 Numerator: Net Income Attributable to PJT Partners Inc. $ 90,534 $ 106,168 $ 117,549 Less: Dividends on Participating Securities — — 11 Net Income Attributable to Participating Securities — — 41 Net Income Attributable to Shares of Class A Common Stock — Basic 90,534 106,168 117,497 Incremental Net Income from Dilutive Securities 2,810 62,740 72,452 Net Income Attributable to Shares of Class A Common Stock — Diluted $ 93,344 $ 168,908 $ 189,949 Denominator: Weighted-Average Shares of Class A Common Stock Outstanding — Basic 25,077,835 24,959,382 24,496,285 Weighted-Average Number of Incremental Shares from Unvested RSUs and Partnership Units 1,538,805 17,399,323 18,630,881 Weighted-Average Shares of Class A Common Stock Outstanding — Diluted 26,616,640 42,358,705 43,127,166 Net Income Per Share of Class A Common Stock Basic $ 3.61 $ 4.25 $ 4.80 Diluted $ 3.51 $ 3.99 $ 4.40 |
Equity-Based and Other Deferr_2
Equity-Based and Other Deferred Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity-Based Compensation Expense and Related Income Tax Benefit | The following table represents equity-based compensation expense and related income tax benefit for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Equity-Based Compensation Expense $ 165,528 $ 108,913 $ 120,912 Income Tax Benefit $ 21,548 $ 14,921 $ 16,417 |
Summary of Activity Related to Unvested Restricted Stock Units | The following table summarizes activity related to unvested RSUs for the year ended December 31, 2022: Restricted Stock Units Weighted- Average Grant Date Number of Fair Value Units (in dollars) Balance, December 31, 2021 4,098,671 $ 60.14 Granted 1,920,006 63.88 Vested (1,724,481 ) 51.37 Forfeited (94,470 ) 64.07 Dividends Reinvested on RSUs (18,651 ) 16.97 Balance, December 31, 2022 4,181,075 $ 65.58 |
Summary of Assumptions Used for Estimated Fair Value of RSU Awards | The Company estimated the fair value of RSU awards with both a service and market condition at grant using a Monte Carlo simulation. The following table presents the assumptions used for the years ended December 31, 2022 and 2020: Year Ended December 31, 2022 2020 Risk-Free Interest Rate 2.0 % 0.2% Dividend Yield 0.0 % 0.5% Volatility Factor 37.0 % 52.3% Expected Life (in years) 5.0 1.3 |
Summary of Activity Related to Unvested Partnership Units | The following table summarizes activity related to unvested Partnership Units for the year ended December 31, 2022: Partnership Units Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2021 248,595 $ 53.42 Granted 77,588 62.05 Vested (141,052 ) 48.80 Forfeited (7,064 ) 59.09 Balance, December 31, 2022 178,067 $ 60.62 |
Summary of Unvested Units After Expected Forfeitures which are Expected to Vest | The following unvested units, after expected forfeitures, as of December 31, 2022, are expected to vest: Weighted-Average Service Period Units in Years Partnership Units 1,212,064 2.2 Restricted Stock Units 5,371,276 1.6 Total Equity-Based Awards 6,583,340 1.7 |
RSU Awards Containing Service and Market Conditions | |
Summary of Activity Related to Unvested Restricted Stock Units | The following table summarizes activity related to unvested RSU awards with both a service and market condition for the year ended December 31, 2022: RSU Awards with Both Service and Market Conditions Weighted- Average Grant Date Number of Fair Value Units (in dollars) Balance, December 31, 2021 50,280 $ 36.53 Granted 1,514,748 $ 41.97 Vested (26,500 ) 31.13 Forfeited (3,860 ) 41.97 Dividends Reinvested on RSUs (656 ) 34.22 Balance, December 31, 2022 1,534,012 $ 41.98 |
Partnership Unit Awards Containing Service and Market Conditions | |
Summary of Assumptions Used for Estimated Fair Value of RSU Awards | The Company estimated the fair value of Partnership Unit awards with both a service and market condition at grant using a Monte Carlo simulation. The following table presents the assumptions used for the year ended December 31, 2022: Risk-Free Interest Rate 2.0 % Volatility Factor 37.0 % Expected Life (in years) 5.0 |
Summary of Activity Related to Unvested Partnership Units | The following table summarizes activity related to unvested Partnership Unit awards with both a service and market condition for the year ended December 31, 2022: Partnership Unit Awards with Both Service and Market Conditions Weighted- Average Number of Grant Date Partnership Fair Value Units (in dollars) Balance, December 31, 2021 — $ — Granted 1,107,768 39.10 Balance, December 31, 2022 1,107,768 $ 39.10 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 Operating Lease Cost $ 27,672 $ 27,519 $ 27,492 Short-Term Lease Cost — 102 — Variable Lease Cost 3,606 3,090 3,101 Sublease Income (529 ) (909 ) (2,757 ) Total Lease Cost $ 30,749 $ 29,802 $ 27,836 |
Schedule of Supplemental Information Related to Leases | Supplemental information related to the Company’s operating leases was as follows: Year Ended December 31, 2022 2021 2020 Cash Paid for Amounts Included in Measurement of Lease Liabilities Operating Cash Flows from Operating Leases $ 22,488 $ 21,397 $ 16,596 Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities $ 6,261 $ 6,765 $ 4,043 December 31, 2022 2021 Weighted-Average Remaining Lease Term (in years) 6.8 7.6 Weighted-Average Discount Rate 4.6 % 4.7 % |
Schedule of Maturity Analysis of Operating Lease Liabilities | The following is a maturity analysis of the annual undiscounted cash flows of the Company’s operating lease liabilities as of December 31, 2022: Year Ending December 31, 2023 $ 32,119 2024 29,086 2025 24,752 2026 19,164 2027 10,560 Thereafter 43,037 Total Lease Payments 158,718 Less: Imputed Interest 23,091 Total $ 135,627 |
Business Information (Tables)
Business Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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. Year Ended December 31, 2022 2021 2020 Revenues Domestic $ 923,334 $ 873,563 $ 933,580 International 102,171 118,382 118,720 Total $ 1,025,505 $ 991,945 $ 1,052,300 December 31, 2022 2021 Assets Domestic $ 921,274 $ 824,963 International 129,378 162,662 Total $ 1,050,652 $ 987,625 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | ||
Cash subject to notice requirement | $ 0.6 | $ 41.2 |
Accounts receivable payment terms | 1 year | |
Finite-lived intangible assets amortization method | straight-line basis | |
Fixed assets depreciation method | straight-line method | |
Description of expiration date for operating leases | various dates through 2036 | |
Minimum Tax on book income as per IRA | 15% | |
Average adjusted book income as per IRA | $ 1,000 | |
Average adjusted book period as per IRA | 3 years | |
PJT Partners Holdings LP | ||
Significant Accounting Policies [Line Items] | ||
Percentage payment to exchanging holders of partnership units of benefits | 85% | |
Percentage of benefit from remaining of cash tax savings, in income tax | 15% | |
Percentage of estimated realizable tax benefit recorded as increase to amount due | 85% | |
Percentage of remaining estimated realizable tax benefit recorded as increase to additional paid in capital | 15% | |
PJT Partners Holdings LP | Class A Common Stock | ||
Significant Accounting Policies [Line Items] | ||
Basis of exchange of partnership units for cash or shares | Holders of common units of partnership interest in PJT Partners Holdings LP (“Partnership Units”) (other than PJT Partners Inc.) may, subject to the terms and conditions set forth in the partnership agreement of PJT Partners Holdings LP, on a quarterly basis (subject to the terms of the exchange agreement), exchange their Partnership Units for cash or, at the Company’s election, for shares of Class A common stock of PJT Partners Inc. on a one-for-one basis, subject to customary conversion rate adjustments for splits, unit distributions and reclassifications. | |
Exchange of Partnership unit to shares, number of shares per each unit | 1 | |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Placement fees installment period | 3 years | |
Accounts receivable payment terms | 3 years | |
Estimated useful lives of intangible assets | 4 years | |
Estimated useful lives of fixed assets | 5 years | |
Minimum | Leasehold Improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives of fixed assets | 10 years | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Placement fees installment period | 4 years | |
Accounts receivable payment terms | 4 years | |
Estimated useful lives of intangible assets | 15 years | |
Estimated useful lives of fixed assets | 7 years | |
Maximum | Leasehold Improvements | ||
Significant Accounting Policies [Line Items] | ||
Estimated useful lives of fixed assets | 15 years |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Disaggregation of Revenues Recognized from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenues from Contracts with Customers | $ 1,026,559 | $ 986,416 | $ 1,045,008 |
Advisory Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 823,496 | 762,723 | 872,286 |
Placement Fees | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues from Contracts with Customers | 192,890 | 216,692 | 162,237 |
Interest Income from Placement Fees and Other | |||
Disaggregation Of Revenue [Line Items] | |||
Revenues from Contracts with Customers | $ 10,173 | $ 7,001 | $ 10,485 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Additional Information (Details1) - Advisory And Placement Fees - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 $ in Millions | Dec. 31, 2022 USD ($) |
Deferred Revenue Arrangement [Line Items] | |
Aggregate amount of transaction price allocated to performance obligations yet to be satisfied | $ 42.2 |
Revenue remaining performance obligation, expected satisfaction period | 12 months |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenue | $ 11,500 | $ 9,000 | |
Contract liabilities | 12,999 | 12,947 | |
Accounts Payable, Accrued Expenses and Other Liabilities | |||
Deferred Revenue Arrangement [Line Items] | |||
Contract liabilities | $ 1,800 | 1,200 | |
Advisory And Placement Fees | |||
Deferred Revenue Arrangement [Line Items] | |||
Explanation of remaining performance obligations expected to be recognized as revenue | the Company generally expects to recognize this revenue within the next twelve months. | ||
Revenue recognized related to performance obligations that were fully satisfied in prior periods | $ 57,800 | $ 15,300 | $ 28,000 |
Accounts Receivable and Allow_3
Accounts Receivable and Allowance for Credit Losses - Schedule of Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Balance, Beginning of Year | $ 1,853 | $ 1,330 | |
Adoption of ASC 326 | $ 1,107 | ||
Provision for Credit Losses | 2,817 | 2,869 | 1,266 |
Write-offs | (2,725) | (2,742) | (1,368) |
Recoveries | 396 | 325 | |
Balance, End of Year | $ 1,945 | $ 1,853 | $ 1,330 |
Accounts Receivable and Allow_4
Accounts Receivable and Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accounts receivable payment terms | 1 year | |
Long-term receivables outstanding more than 90 days | $ 6.5 | $ 3.4 |
Allowance for credit loss, long-term receivables | 0.5 | 0.8 |
Placement Fee Receivable | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Accrued interest | $ 2.7 | $ 1.9 |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accounts Receivable Net | Accounts Receivable Net |
Long-term receivables | $ 133.3 | $ 104.6 |
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 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill | $ 0 | $ 0 |
Expected amortization of intangible assets, 2023 | 4,900,000 | |
Expected amortization of intangible assets, 2024 | 4,900,000 | |
Expected amortization of intangible assets, 2025 | 4,800,000 | |
Expected amortization of intangible assets, 2026 | $ 3,300,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets, Net | ||||
Total Intangible Assets | $ 71,076 | $ 71,076 | ||
Total Accumulated Amortization | (53,196) | (46,690) | ||
Intangible Assets, Net | 17,880 | 24,386 | $ 32,030 | $ 39,806 |
Customer Relationships | ||||
Finite-Lived Intangible Assets, Net | ||||
Total Intangible Assets | 61,276 | 61,276 | ||
Total Accumulated Amortization | (44,964) | (39,797) | ||
Trade Names | ||||
Finite-Lived Intangible Assets, Net | ||||
Total Intangible Assets | 9,800 | 9,800 | ||
Total Accumulated Amortization | $ (8,232) | $ (6,893) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Changes in Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Balance, Beginning of Year | $ 24,386 | $ 32,030 | $ 39,806 |
Amortization Expense | (6,506) | (7,644) | (7,776) |
Balance, End of Year | $ 17,880 | $ 24,386 | $ 32,030 |
Furniture, Equipment and Leas_3
Furniture, Equipment and Leasehold Improvements - Schedule of Furniture, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | $ 78,899 | $ 78,697 |
Accumulated Depreciation | (48,206) | (41,550) |
Furniture, Equipment and Leasehold Improvements, Net | 30,693 | 37,147 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | 5,533 | 4,423 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | 54,555 | 56,230 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total Furniture, Equipment and Leasehold Improvements | $ 18,811 | $ 18,044 |
Furniture, Equipment and Leas_4
Furniture, Equipment and Leasehold Improvements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 9 | $ 8 | $ 7.3 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Valuation of the Company's Investments by Fair Value Hierarchy (Details) - Treasury Securities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments | $ 50,242 | $ 40,000 |
Level II | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments | $ 50,242 | $ 40,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income (Loss ) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 237,635 | $ 235,453 | $ 260,361 |
International | (36,164) | (16,004) | (12,400) |
Income Before Provision for Taxes | $ 201,471 | $ 219,449 | $ 247,961 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Federal Income Tax | $ 22,492 | $ 13,673 | $ 20,306 |
State and Local Income Tax | 10,664 | 6,096 | 7,747 |
Foreign Income Tax | 1,759 | 2,629 | 571 |
Total Current | 34,915 | 22,398 | 28,624 |
Federal Income Tax | 534 | 6,742 | 2,308 |
State and Local Income Tax | 1,151 | 345 | 300 |
Foreign Income Tax | 99 | 9 | 4,303 |
Deferred Income Tax Expense (Benefit) | 1,784 | 7,096 | 6,911 |
Provision for Taxes | $ 36,699 | $ 29,494 | $ 35,535 |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Tax Position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income Before Provision for Taxes | $ 201,471 | $ 219,449 | $ 247,961 |
Provision for Taxes | $ 36,699 | $ 29,494 | $ 35,535 |
Effective Income Tax Rate | 18.20% | 13.40% | 14.30% |
Income Taxes - U.S Federal Stat
Income Taxes - U.S Federal Statutory Tax Rate Reconciliation to the Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Expected Income Tax Expense at the Federal Statutory Rate | 21% | 21% | 21% |
Permanent Differences for Compensation | (0.80%) | (2.20%) | (0.10%) |
Income Not Subject to U.S. Corporate Income Taxes | (8.30%) | (8.70%) | (8.30%) |
Foreign Income Taxes | 0.80% | 1.20% | 0.70% |
State and Local Income Taxes, Net of Federal Benefit | 3.90% | 2.50% | 2.90% |
Return to Provision | 0.80% | (0.10%) | (0.40%) |
Rate Change Impact | 0.30% | (0.50%) | 0% |
Tax Benefit from NOL Carryback under the CARES Act | (1.50%) | ||
Other | 0.50% | 0.20% | 0% |
Effective Income Tax Rate | 18.20% | 13.40% | 14.30% |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets | ||
Operating Lease Liabilities | $ 16,459 | $ 19,818 |
Tax Basis Step-Up from Blackstone | 11,252 | 15,028 |
Deferred Compensation | 24,835 | 16,939 |
Partner Exchange Basis Step-Up | 38,966 | 36,350 |
Other | 2,427 | 4,349 |
Total Deferred Tax Assets | 93,939 | 92,484 |
Deferred Tax Liabilities | ||
Operating Lease Right-of-Use Assets | 14,398 | 17,306 |
Intangible Assets | 2,071 | 1,654 |
Fixed Assets | 857 | 1,612 |
Other | 7,441 | 8,130 |
Total Deferred Tax Liabilities | 24,767 | 28,702 |
Deferred Tax Asset, Net | $ 69,172 | $ 63,782 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Interest expense related to unrecognized tax positions | 0 | 0 | $ 0 |
Penalties accrued related to unrecognized tax positions | 0 | 0 | 0 |
Settlements with taxing authorities | $ 0 | $ 0 | $ 0 |
Net Income Per Share of Class_3
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net Income Attributable to PJT Partners Inc. | $ 90,534 | $ 106,168 | $ 117,549 |
Dividends on Participating Securities | 11 | ||
Net Income Attributable to Participating Securities | $ 41 | ||
Unvested Restricted Stock Units | |||
Denominator: | |||
Weighted-Average Number of Incremental Shares from Unvested RSUs and Partnership Units | 1,538,805 | 17,399,323 | 18,630,881 |
Class A Common Stock | |||
Numerator: | |||
Net Income Attributable to Shares of Class A Common Stock — Basic | $ 90,534 | $ 106,168 | $ 117,497 |
Incremental Net Income from Dilutive Securities | 2,810 | 62,740 | 72,452 |
Net Income Attributable to Shares of Class A Common Stock — Diluted | $ 93,344 | $ 168,908 | $ 189,949 |
Denominator: | |||
Weighted-Average Shares of Class A Common Stock Outstanding — Basic | 25,077,835 | 24,959,382 | 24,496,285 |
Weighted-Average Shares of Class A Common Stock Outstanding — Diluted | 26,616,640 | 42,358,705 | 43,127,166 |
Net Income Per Share of Class A Common Stock | |||
Basic | $ 3.61 | $ 4.25 | $ 4.80 |
Diluted | $ 3.51 | $ 3.99 | $ 4.40 |
Net Income Per Share of Class_4
Net Income Per Share of Class A Common Stock - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-Average Participating RSUs | |||
Earnings Per Share Basic [Line Items] | |||
Class A common shares outstanding if all Holding Partnership Units exchanged | 40,123,029 | ||
Weighted-Average Participating RSUs | Class A Common Stock | |||
Earnings Per Share Basic [Line Items] | |||
Anti-dilutive securities excluded from the calculation of net income per share | 0 | 0 | |
Weighted-Average Partnership Units | Class A Common Stock | |||
Earnings Per Share Basic [Line Items] | |||
Anti-dilutive securities excluded from the calculation of net income per share | 15,045,194 |
Equity-Based and Other Deferr_3
Equity-Based and Other Deferred Compensation - Additional Information (Details) | 12 Months Ended | ||||
Feb. 10, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 $ / shares | Oct. 01, 2015 shares | |
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated unrecognized compensation expense related to unvested awards | $ | $ 120,400,000 | ||||
Weighted-average period for recognition of compensation expense related to unvested awards | 1 year 3 months 18 days | ||||
Weighted-average grant date fair value | $ / shares | $ 63.88 | $ 73.45 | $ 53.70 | ||
Granted | 1,920,006 | ||||
Shares outstanding | 4,181,075 | 4,098,671 | |||
Restricted Stock Units | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Assumed forfeiture rate | 1% | ||||
Restricted Stock Units | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Assumed forfeiture rate | 6% | ||||
RSU Awards Containing Service and Market Conditions | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated unrecognized compensation expense related to unvested awards | $ | $ 36,300,000 | ||||
Weighted-average period for recognition of compensation expense related to unvested awards | 2 years 3 months 18 days | ||||
Weighted-average grant date fair value | $ / shares | $ 41.97 | 34.42 | |||
Awards with service condition requirement | 5 years | ||||
Awards vesting percentage with service condition | 20% | ||||
Weighted-average share price targets on consecutive trading period | 20 days | ||||
Awards incremental cost | $ | $ 100 | ||||
Awards with service and market condition vested | 0 | ||||
Granted | 1,514,748 | 0 | |||
Shares outstanding | 1,534,012 | 50,280 | |||
RSU Awards Containing Service and Market Conditions | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Assumed forfeiture rate | 4% | ||||
Awards with service condition requirement | 3 years | ||||
Awards incremental cost | $ | $ 100 | ||||
RSU Awards Containing Service and Market Conditions | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Assumed forfeiture rate | 6% | ||||
Awards with service condition requirement | 5 years | ||||
Awards incremental cost | $ | $ 130 | ||||
Partnership Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated unrecognized compensation expense related to unvested awards | $ | $ 6,500,000 | ||||
Assumed forfeiture rate | 4% | ||||
Weighted-average period for recognition of compensation expense related to unvested awards | 1 year | ||||
Weighted-average grant date fair value | $ / shares | $ 62.05 | $ 68.70 | $ 49.92 | ||
Granted | 77,588 | ||||
Shares outstanding | 178,067 | 248,595 | |||
Partnership Units | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Partnership Units | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Partnership Unit Awards Containing Service and Market Conditions | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated unrecognized compensation expense related to unvested awards | $ | $ 25,500,000 | ||||
Assumed forfeiture rate | 4% | ||||
Weighted-average period for recognition of compensation expense related to unvested awards | 2 years 4 months 24 days | ||||
Weighted-average grant date fair value | $ / shares | $ 39.10 | ||||
Awards with service condition requirement | 5 years | ||||
Awards vesting percentage with service condition | 20% | ||||
Weighted-average share price targets on consecutive trading period | 20 days | ||||
Awards incremental cost | $ | $ 100 | ||||
Awards with service and market condition vested | 0 | ||||
Granted | 1,107,768 | ||||
Shares outstanding | 1,107,768 | ||||
Partnership Unit Awards Containing Service and Market Conditions | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards incremental cost | $ | $ 100 | ||||
Partnership Unit Awards Containing Service and Market Conditions | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards incremental cost | $ | $ 130 | ||||
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 | ||||
Class A Common Stock | Restricted Share Awards | CamberView | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Granted | 0 | 0 | |||
Shares outstanding | 0 | ||||
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 | 17,000,000 | ||||
Shares available for issuance | 2,400,000 | ||||
Dividend Adjusted Publicly Traded Shares Of Class A Common Stock | RSU Awards Containing Service and Market Conditions | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, Percentage of satisfied upon dividend-adjusted publicly traded shares | 50% | 50% | |||
Dividend Adjusted Publicly Traded Shares Of Class A Common Stock | Partnership Unit Awards Containing Service and Market Conditions | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, Percentage of satisfied upon dividend-adjusted publicly traded shares | 50% | 50% |
Equity-Based and Other Deferr_4
Equity-Based and Other Deferred Compensation - Stock-Based Compensation Expense and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Equity-Based Compensation Expense | $ 165,528 | $ 108,913 | $ 120,912 |
Income Tax Benefit | $ 21,548 | $ 14,921 | $ 16,417 |
Equity-Based and Other Deferr_5
Equity-Based and Other Deferred Compensation - Summary of Activity Related to Unvested Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units | |||
Number of Units | |||
Beginning Balance | 4,098,671 | ||
Granted | 1,920,006 | ||
Vested | (1,724,481) | ||
Forfeited | (94,470) | ||
Dividends Reinvested on RSUs | (18,651) | ||
Ending Balance | 4,181,075 | 4,098,671 | |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 60.14 | ||
Granted | 63.88 | $ 73.45 | $ 53.70 |
Vested | 51.37 | ||
Forfeited | 64.07 | ||
Dividends Reinvested on RSUs | 16.97 | ||
Ending Balance | $ 65.58 | $ 60.14 | |
RSU Awards Containing Service and Market Conditions | |||
Number of Units | |||
Beginning Balance | 50,280 | ||
Granted | 1,514,748 | 0 | |
Vested | (26,500) | ||
Forfeited | (3,860) | ||
Dividends Reinvested on RSUs | (656) | ||
Ending Balance | 1,534,012 | 50,280 | |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 36.53 | ||
Granted | 41.97 | $ 34.42 | |
Vested | 31.13 | ||
Forfeited | 41.97 | ||
Dividends Reinvested on RSUs | 34.22 | ||
Ending Balance | $ 41.98 | $ 36.53 |
Equity-Based and Other Deferr_6
Equity-Based and Other Deferred Compensation - Summary of Assumptions Used for Estimated Fair Value of Awards (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
RSU Awards Containing Service and Market Conditions | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-Free Interest Rate | 2% | 0.20% |
Dividend Yield | 0% | 0.50% |
Volatility Factor | 37% | 52.30% |
Expected Life (in years) | 5 years | 1 year 3 months 18 days |
Partnership Unit Awards Containing Service and Market Conditions | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-Free Interest Rate | 2% | |
Volatility Factor | 37% | |
Expected Life (in years) | 5 years |
Equity-Based and Other Deferr_7
Equity-Based and Other Deferred Compensation - Summary of Activity Related to Unvested Partnership Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Partnership Units | |||
Number of Units | |||
Beginning Balance | 248,595 | ||
Granted | 77,588 | ||
Vested | (141,052) | ||
Forfeited | (7,064) | ||
Ending Balance | 178,067 | 248,595 | |
Weighted-Average Grant Date Fair Value | |||
Beginning Balance | $ 53.42 | ||
Granted | 62.05 | $ 68.70 | $ 49.92 |
Vested | 48.80 | ||
Forfeited | 59.09 | ||
Ending Balance | $ 60.62 | $ 53.42 | |
Partnership Unit Awards Containing Service and Market Conditions | |||
Number of Units | |||
Granted | 1,107,768 | ||
Ending Balance | 1,107,768 | ||
Weighted-Average Grant Date Fair Value | |||
Granted | $ 39.10 | ||
Ending Balance | $ 39.10 |
Equity-Based and Other Deferr_8
Equity-Based and Other Deferred Compensation - Unvested Units After Expected Forfeitures which are Expected to Vest (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units expected to vest | 6,583,340 |
Weighted-average service period of unit expected to vest (in years) | 1 year 8 months 12 days |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units expected to vest | 5,371,276 |
Weighted-average service period of unit expected to vest (in years) | 1 year 7 months 6 days |
PJT Partners Holdings LP | Partnership Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units expected to vest | 1,212,064 |
Weighted-average service period of unit expected to vest (in years) | 2 years 2 months 12 days |
Equity-Based and Other Deferr_9
Equity-Based and Other Deferred Compensation - Deferred Cash Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Compensation expense | $ 26.6 | $ 30.8 | $ 34.7 |
Unrecognized compensation expense related to deferred cash awards | $ 19.2 | ||
Weighted-average period over compensation cost is expected to be recognized | 2 years 2 months 12 days | ||
Minimum | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Vesting period | 1 year | ||
Maximum | |||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | |||
Vesting period | 4 years |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Vote $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 25, 2022 USD ($) | |
Class Of Stock [Line Items] | ||||
Number of vested and unvested partnership units | shares | 10,339,443 | |||
Aggregate amount of shares repurchased | $ 109,484,000 | $ 103,342,000 | $ 48,674,000 | |
Treasury stock purchases | $ 109,484,000 | $ 103,342,000 | $ 48,674,000 | |
PJT Partners Holdings LP | ||||
Class Of Stock [Line Items] | ||||
Voting power | 100% | |||
Non-controlling interest percentage | 37.60% | 38.40% | ||
PJT Partners Holdings LP | Maximum | ||||
Class Of Stock [Line Items] | ||||
Economic interest | 100% | |||
Class A Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock, voting rights, votes per share | Vote | 1 | |||
Share repurchase program, authorized amount | $ 200,000,000 | |||
Share repurchase program, remaining authorized amount | $ 173,700,000 | |||
Treasury stock repurchased | shares | 1,700,000 | |||
Treasury stock, average price per share | $ / shares | $ 66.15 | |||
Aggregate amount of shares repurchased | $ 109,500,000 | |||
Class B Common Stock | ||||
Class Of Stock [Line Items] | ||||
Common stock, voting rights, votes per share | Vote | 1 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating Lease Cost | $ 27,672 | $ 27,519 | $ 27,492 |
Short-Term Lease Cost | 102 | ||
Variable Lease Cost | 3,606 | 3,090 | 3,101 |
Sublease Income | (529) | (909) | (2,757) |
Total Lease Cost | $ 30,749 | $ 29,802 | $ 27,836 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Paid for Amounts Included in Measurement of Lease Liabilities | |||
Operating Cash Flows from Operating Leases | $ 22,488 | $ 21,397 | $ 16,596 |
Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities | $ 6,261 | $ 6,765 | $ 4,043 |
Weighted-Average Remaining Lease Term (in years) | 6 years 9 months 18 days | 7 years 7 months 6 days | |
Weighted-Average Discount Rate | 4.60% | 4.70% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, 2023 | $ 32,119 | |
Operating Lease, 2024 | 29,086 | |
Operating Lease, 2025 | 24,752 | |
Operating Lease, 2026 | 19,164 | |
Operating Lease, 2027 | 10,560 | |
Operating Lease, Thereafter | 43,037 | |
Operating Lease, Total Lease Payments | 158,718 | |
Operating Lease, Less: Imputed Interest | 23,091 | |
Operating Lease, Total | $ 135,627 | $ 157,013 |
Transactions With Related Par_2
Transactions With Related Parties - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 14, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | |
Related Party Transaction [Line Items] | ||||
Cash settled exchange of partnership units | $ 15,120 | $ 109,574 | $ 101,895 | |
Amount due to tax receivable agreement | 30,315 | 31,131 | ||
Tax receivable agreement, 2023 | 2,200 | |||
Tax receivable agreement, 2024 | 2,300 | |||
Tax receivable agreement, 2025 | 2,200 | |||
Tax receivable agreement, 2026 | 2,200 | |||
Tax receivable agreement, 2027 | 2,200 | |||
Tax receivable agreement, Thereafter | 19,100 | |||
Sublease Income | $ 529 | $ 909 | $ 2,757 | |
Dynasty Equity Partners Management | Sublease Agreement | ||||
Related Party Transaction [Line Items] | ||||
Sublease, commitment date | Oct. 01, 2022 | |||
Sublease, term of contract | 2 years | |||
Sublease Income | $ 100 | |||
PJT Partners Holdings LP | ||||
Related Party Transaction [Line Items] | ||||
Exchange of partnership units settled | shares | 200,000 | 1,500,000 | ||
Percentage payment to exchanging holders of partnership units of benefits | 85% | |||
PJT Partners Holdings LP | Subsequent Event | ||||
Related Party Transaction [Line Items] | ||||
Exchange of partnership units settled | shares | 142,502 | |||
Cash settled exchange of partnership units | $ 10,700 | |||
Price per partnership unit paid equal to the volume-weighted average price of share | $ / shares | $ 75.35 | |||
Class A Common Stock | PJT Partners Holdings LP | ||||
Related Party Transaction [Line Items] | ||||
Exchange of Partnership unit to shares, number of shares per each unit | 1 | |||
Exchange of partnership units settled | shares | 250,000 | 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Feb. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2018 | |
Blackstone | ||||
Commitments And Contingencies [Line Items] | ||||
Loans held by employees for investments guaranteed | $ 3,300,000 | $ 4,100,000 | ||
Forfeiture accrual | 900,000 | 900,000 | ||
Tax benefit accrual | $ 3,400,000 | 2,600,000 | ||
Renewal Agreement | ||||
Commitments And Contingencies [Line Items] | ||||
Loan agreement financial covenants maximum additional indebtedness | $ 20,000,000 | |||
Loan agreement, interest rate description | During an event of default, overdue principal under the revolving credit facility bears interest at a rate 2.0% in excess of the otherwise applicable rate of interest. | |||
Revolving Credit Facility | ||||
Commitments And Contingencies [Line Items] | ||||
Revolving credit facility, amount outstanding | $ 0 | $ 0 | ||
Revolving Credit Facility | Loan Agreement | ||||
Commitments And Contingencies [Line Items] | ||||
Revolving credit facility, borrowing capacity before increase | $ 40,000,000 | |||
Increase revolving credit facility | $ 60,000,000 | |||
Revolving Credit Facility | Renewal Agreement | ||||
Commitments And Contingencies [Line Items] | ||||
Revolving credit facility, borrowing capacity before increase | 60,000,000 | |||
Increase revolving credit facility | $ 80,000,000 | |||
Revolving credit facility, maturity date | Oct. 01, 2022 | |||
Line of credit facility bear interest equal to greater of per annum rate | 2.75% | |||
Notes payable, spread on variable prime rate | 1% | |||
Line of credit facility revised interest rate in event of default | 2% | |||
Percentage of commitment fee | 0.125% | |||
Line of credit facility, interest rate description | Outstanding borrowings under the revolving credit facility bear interest equal to the greater of a per annum rate of (a) 2.75%, or (b) the prime rate minus 1.0%. | |||
Line of credit facility, frequency of commitment fee payment | quarterly |
Regulated Entities - Additional
Regulated Entities - Additional Information (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 GBP (£) | Dec. 31, 2021 USD ($) | |
Hong Kong | |||||
Regulatory Authorities [Line Items] | |||||
Minimum net capital requirement | $ 3 | ||||
Spain | |||||
Regulatory Authorities [Line Items] | |||||
Minimum net capital requirement | € | € 75 | ||||
Percentage of fixed overheads | 25% | ||||
UNITED KINGDOM | |||||
Regulatory Authorities [Line Items] | |||||
Minimum net capital requirement | £ | £ 75 | ||||
Percentage of fixed overheads | 25% | ||||
PJT Partners LP | |||||
Regulatory Authorities [Line Items] | |||||
Minimum net capital requirement | $ 100 | ||||
Percentage of aggregate indebtedness capital requirement | 6.67 | 6.67 | 6.67 | 6.67 | |
Net capital | $ 125,900 | $ 79,400 | |||
Net capital in excess of required net capital | $ 124,100 | $ 77,600 | |||
Maximum | PJT Partners LP | |||||
Regulatory Authorities [Line Items] | |||||
Percentage of aggregate indebtedness capital requirement | 15 | 15 | 15 | 15 |
Business Information - Addition
Business Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Business Information - Schedule
Business Information - Schedule of Geographical Distribution of Revenues and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues | $ 1,025,505 | $ 991,945 | $ 1,052,300 |
Assets | |||
Assets | 1,050,652 | 987,625 | |
Domestic | |||
Revenues | |||
Revenues | 923,334 | 873,563 | 933,580 |
Assets | |||
Assets | 921,274 | 824,963 | |
International | |||
Revenues | |||
Revenues | 102,171 | 118,382 | $ 118,720 |
Assets | |||
Assets | $ 129,378 | $ 162,662 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Class A Common Stock - $ / shares | 12 Months Ended | |||
Feb. 24, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Dividends Declared Per Share of Class A Common Stock | $ 1 | $ 3.20 | $ 0.20 | |
Subsequent Event | Quarterly Dividend | ||||
Subsequent Event [Line Items] | ||||
Dividend declared, description | The Board has declared a quarterly dividend | |||
Dividends Declared Per Share of Class A Common Stock | $ 0.25 | |||
Dividends payable, date to be paid | Mar. 22, 2023 | |||
Dividends payable, date of record | Mar. 08, 2023 |