Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 14, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | DOUGLAS ELLIMAN INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 1-41054 | ||
Entity Tax Identification Number | 87-2176850 | ||
Entity Address, Address Line One | 4400 Biscayne Boulevard | ||
Entity Address, City or Town | Miami | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33137 | ||
City Area Code | 305 | ||
Local Phone Number | 579-8000 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | DOUG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 359 | ||
Entity Common Stock, Shares Outstanding | 84,416,022 | ||
Documents Incorporated by Reference | Part III (Items 10, 11, 12, 13 and 14) from the definitive Proxy Statement for the 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s fiscal year covered by this report. | ||
Entity Central Index Key | 0001878897 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Miami, Florida |
Auditor Firm ID | 34 |
COMBINED CONSOLIDATED BALANCE S
COMBINED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 163,859 | $ 211,623 |
Receivables | 22,162 | 32,488 |
Agent receivables, net | 12,826 | 9,192 |
Income taxes receivables, net | 7,547 | 0 |
Restricted cash and cash equivalents | 4,985 | 15,336 |
Other current assets | 13,680 | 12,166 |
Total current assets | 225,059 | 280,805 |
Property and equipment, net | 41,717 | 39,381 |
Operating lease right-of-use assets | 117,773 | 123,538 |
Long-term investments (includes $6,219 and $3,756 at fair value) | 12,932 | 8,094 |
Contract assets, net | 38,913 | 28,996 |
Goodwill | 32,230 | 32,571 |
Other intangible assets, net | 73,666 | 74,421 |
Equity-method investments | 1,629 | 2,521 |
Other assets | 6,483 | 4,842 |
Total assets | 550,402 | 595,169 |
Current liabilities: | ||
Current portion of notes payable and other obligations | 0 | 12,527 |
Current operating lease liabilities | 22,328 | 22,666 |
Income taxes payable, net | 0 | 1,240 |
Accounts payable | 5,456 | 5,874 |
Commissions payable | 22,117 | 35,766 |
Accrued salaries and benefits | 18,228 | 25,446 |
Contract liabilities | 8,222 | 6,689 |
Other current liabilities | 13,607 | 22,259 |
Total current liabilities | 89,958 | 132,467 |
Notes payable and other obligations less current portion | 0 | 176 |
Deferred income taxes, net | 14,467 | 11,412 |
Non-current operating lease liabilities | 120,508 | 129,496 |
Contract liabilities | 54,706 | 39,557 |
Other liabilities | 306 | 188 |
Total liabilities | 279,945 | 313,296 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01 per share, 10,000,000 shares authorized | $ 0 | $ 0 |
Common stock, shares issued (in shares) | 80,881,022 | 81,210,626 |
Common stock, shares outstanding (in shares) | 80,881,022 | 81,210,626 |
Common stock, par value $0.01 per share, 250,000,000 shares authorized, 80,881,022 and 81,210,626 shares issued and outstanding | $ 809 | $ 812 |
Additional paid-in capital | 273,111 | 278,500 |
(Accumulated deficit) retained earnings | (5,000) | 622 |
Total Douglas Elliman Inc. stockholders' equity | 268,920 | 279,934 |
Non-controlling interest | 1,537 | 1,939 |
Total stockholders' equity | 270,457 | 281,873 |
Total liabilities and stockholders' equity | $ 550,402 | $ 595,169 |
COMBINED CONSOLIDATED BALANCE_2
COMBINED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Long-term investments, fair value | $ 6,219 | $ 3,756 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 80,881,022 | 81,210,626 |
Common stock, shares outstanding (in shares) | 80,881,022 | 81,210,626 |
COMBINED CONSOLIDATED STATEMENT
COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total revenues | $ 1,153,177 | $ 1,353,138 | $ 773,987 |
Expenses: | |||
Sales and marketing | 85,763 | 77,174 | 64,097 |
General and administrative | 131,421 | 92,798 | 76,134 |
Depreciation and amortization | 8,012 | 8,561 | 8,537 |
Loss on disposal of assets | 0 | 0 | 1,169 |
Impairments of goodwill and other intangible assets | 0 | 0 | 58,252 |
Restructuring | 0 | 0 | 3,382 |
Operating (loss) income | (4,541) | 102,098 | (49,285) |
Other income (expenses): | |||
Interest income | 1,779 | 83 | 190 |
Equity in losses from equity-method investments | (563) | (278) | (225) |
Change in fair value of contingent liability | 0 | (1,647) | 2,149 |
Investment and other income | 3,429 | 529 | 843 |
Income (loss) before provision for income taxes | 104 | 100,785 | (46,328) |
Income tax expense | 6,503 | 2,133 | 44 |
Net (loss) income | (6,399) | 98,652 | (46,372) |
Net loss attributed to non-controlling interest | 777 | 186 | 0 |
Net (loss) income attributed to Douglas Elliman Inc. | $ (5,622) | $ 98,838 | $ (46,372) |
Per basic common share: | |||
Net (loss) income applicable to common shares attributed to Douglas Elliman Inc.(in dollars per share) | $ (0.08) | $ 1.27 | $ (0.60) |
Per diluted common share: | |||
Net (loss) income applicable to common shares attributed to Douglas Elliman Inc.(in dollars per share) | $ (0.08) | $ 1.27 | $ (0.60) |
Commissions and other brokerage income | |||
Revenues: | |||
Total revenues | $ 1,099,885 | $ 1,292,416 | $ 733,751 |
Property management | |||
Revenues: | |||
Total revenues | 36,022 | 37,345 | 35,115 |
Other ancillary services | |||
Revenues: | |||
Total revenues | 17,270 | 23,377 | 5,121 |
Real estate agent commissions | |||
Expenses: | |||
Costs related to sales | 836,803 | 985,523 | 546,948 |
Operations and support | |||
Expenses: | |||
Costs related to sales | 72,946 | 71,641 | 49,895 |
Technology | |||
Expenses: | |||
Costs related to sales | $ 22,773 | $ 15,343 | $ 14,858 |
COMBINED CONSOLIDATED STATEME_2
COMBINED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Former Parent’s Net Investment | Non-controlling Interest |
Beginning Balance (in shares) at Dec. 31, 2019 | 0 | |||||
Beginning Balance at Dec. 31, 2019 | $ 204,283 | $ 0 | $ 0 | $ 0 | $ 204,283 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (46,372) | (46,372) | ||||
Net transfers from Former Parent | 5,679 | 5,679 | ||||
Ending Balance (in shares) at Dec. 31, 2020 | 0 | |||||
Ending Balance at Dec. 31, 2020 | 163,590 | $ 0 | 0 | 0 | 163,590 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 98,652 | 622 | 98,216 | (186) | ||
Net transfers from Former Parent | 17,506 | 17,506 | ||||
Transfer of net investment to additional paid-in capital | 0 | 279,312 | (279,312) | |||
Issuance of common stock (in shares) | 77,720,626 | |||||
Issuance of common stock | 0 | $ 777 | (777) | |||
Restricted stock grant (in shares) | 3,490,000 | |||||
Restricted stock grants | 0 | $ 35 | (35) | |||
Acquisition of subsidiary | 500 | 500 | ||||
Net transfers from non-controlling interest | $ 1,625 | 1,625 | ||||
Ending Balance (in shares) at Dec. 31, 2021 | 81,210,626 | 81,210,626 | ||||
Ending Balance at Dec. 31, 2021 | $ 281,873 | $ 812 | 278,500 | 622 | 0 | 1,939 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (6,399) | (5,622) | (777) | |||
Distributions and dividends on common stock | (16,250) | (16,250) | ||||
Restricted stock grant (in shares) | 65,000 | |||||
Restricted stock grants | 0 | $ 1 | (1) | |||
Withholding of shares as payment of tax liabilities in connection with restricted stock vesting (in shares) | (394,604) | |||||
Withholding of shares as payment of tax liabilities in connection with restricted stock vesting | (1,626) | $ (4) | (1,622) | |||
Stock-based compensation | 11,138 | 11,138 | ||||
Contributions from non-controlling interest | 375 | 375 | ||||
Other | $ 1,346 | 1,346 | ||||
Ending Balance (in shares) at Dec. 31, 2022 | 80,881,022 | 80,881,022 | ||||
Ending Balance at Dec. 31, 2022 | $ 270,457 | $ 809 | $ 273,111 | $ (5,000) | $ 0 | $ 1,537 |
COMBINED CONSOLIDATED STATEME_3
COMBINED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Parenthetical) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends on common stock (in dollars per share) | $ 0.20 |
COMBINED CONSOLIDATED STATEME_4
COMBINED CONSOLIDATED STATEMENTS OF CASH CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (6,399) | $ 98,652 | $ (46,372) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 8,012 | 8,561 | 8,537 |
Non-cash stock-based compensation expense | 11,138 | 0 | 0 |
Impairments of goodwill and other intangible assets | 0 | 0 | 58,252 |
Loss on sale of assets | 11 | 186 | 1,169 |
Deferred income taxes | 4,193 | (73) | 78 |
Net gains on investment securities | (2,839) | (265) | 0 |
Equity in losses from equity-method investments | 563 | 278 | 225 |
Distributions from equity-method investments | 654 | 75 | 30 |
Non-cash lease expense | 20,621 | 18,667 | 17,326 |
Non-cash portion of restructuring | 0 | 0 | 1,214 |
Change in fair value of contingent liability | 0 | 1,647 | (2,149) |
Provision for credit losses | 4,064 | 3,331 | 1,460 |
Other | 0 | 0 | (1,098) |
Changes in assets and liabilities: | |||
Receivables | 3,377 | (11,705) | (4,816) |
Accounts payable and accrued liabilities | (22,734) | (1,127) | 3,529 |
Operating right-of-use assets and operating lease liabilities, net | (24,183) | (23,989) | (7,493) |
Accrued salary and benefits | (7,218) | 13,408 | (1,287) |
Other | (4,004) | 20,180 | 3,260 |
Net cash (used in) provided by operating activities | (14,744) | 127,826 | 31,865 |
Cash flows from investing activities: | |||
Investments in equity-method investments | (400) | 0 | 0 |
Distributions from equity-method investments | 75 | 88 | 0 |
Purchase of debt securities | (701) | 0 | 0 |
Purchase of equity securities | (2,100) | (3,975) | 0 |
Purchase of long-term investments | (1,074) | (365) | 0 |
Purchase of subsidiaries | 0 | (500) | (722) |
Cash acquired in purchase of subsidiaries | 0 | 0 | 2,760 |
Capital expenditures | (8,537) | (4,106) | (6,126) |
Net cash used in investing activities | (12,737) | (8,858) | (4,088) |
Cash flows from financing activities: | |||
Repayment of debt | (12,528) | (361) | (63) |
Contributions from Former Parent | 0 | 33,532 | 0 |
Distributions to Former Parent | 0 | (31,470) | 0 |
Dividends on common stock | (16,250) | 0 | 0 |
Contributions from non-controlling interest | 375 | 1,625 | 0 |
Earn out payments | (1,600) | (130) | (80) |
Net cash (used in) provided by financing activities | (30,003) | 3,196 | (143) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (57,484) | 122,164 | 27,634 |
Cash, cash equivalents and restricted cash, beginning of year | 228,866 | 106,702 | 79,068 |
Cash, cash equivalents and restricted cash, end of year | $ 171,382 | $ 228,866 | $ 106,702 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation : Douglas Elliman Inc. (“Douglas Elliman” or the “Company”) i s engaged in the real estate services and property technology investment business and is seeking to acquire or invest in additional real estate services and property technology, or PropTech, companies. Douglas Elliman owns Douglas Elliman Realty, LLC, one of the largest residential brokerage companies in the New York metropolitan area and the sixth largest in the U.S. Douglas Elliman has approximately 120 offices with approximately 6,900 real estate agents in the New York metropolitan area as well as in Florida, California, Connecticut, Massachusetts, Colorado, New Jersey, and Texas. In August 2021, Douglas Elliman increased its ownership in Douglas Elliman Texas from 1% to 50%. Prior to December 29, 2021, the Company was wholly owned by Vector Group Ltd. (“Vector Group” and collectively, with its consolidated subsidiaries, “Former Parent”). In December 2021, the Vector Group board of directors approved the distribution of the operations of its real estate services and property technology business through a pro rata distribution of the Company’s stock to existing Vector Group stockholders. On December 29, 2021, Vector Group stockholders received one share of Douglas Elliman common stock for every two shares of Vector Group common stock held as of the close of business on December 20, 2021 (the “Distribution”). The accompanying combined consolidated financial statements include the accounts and transactions of Douglas Elliman, as well as the entities in which Douglas Elliman directly or indirectly has a controlling financial interest. These entities include DER Holdings LLC and New Valley Ventures LLC (“New Valley Ventures”), directly and indirectly wholly-owned subsidiaries of Vector Group. DER Holdings LLC owns Douglas Elliman Realty, LLC and Douglas Elliman of California, Inc. New Valley Ventures consists of minority investments in innovative and cutting-edge Property Technology companies (“PropTech”). The accompanying combined consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Douglas Elliman’s combined consolidated financial statements include certain indirect general and administrative costs allocated to it by Former Parent for certain functions and services including, but not limited to, executive office, finance and other administrative support. These expenses have been allocated to Douglas Elliman on the basis of direct usage, when identifiable, or a quarterly management fee of $500, which was charged quarterly until March 31, 2020. The management fee was suspended in connection with the impact of the COVID-19 pandemic. Douglas Elliman’s combined consolidated results of operations, financial position and cash flows may not be indicative of its future performance and do not necessarily reflect what its combined consolidated results of operations, financial position and cash flows would have been had Douglas Elliman operated as a separate, stand- alone entity during the periods presented, including changes in its operations and capitalization as a result of the separation and distribution from Vector Group. In presenting the combined consolidated financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. (b) Principles of Consolidation : The combined consolidated financial statements presented herein have been prepared on a standalone basis and, prior to December 29, 2021, are derived from the combined consolidated financial statements and accounting records of Vector Group. The combined consolidated financial statements include the assets, liabilities, revenues, expenses and cash flows of DER Holdings LLC and New Valley Ventures as well as all other entities in which Douglas Elliman has a controlling financial interest. All intercompany balances and transactions have been eliminated in the combined consolidated financial statements. When evaluating an entity for consolidation, Douglas Elliman first determines whether an entity is within the scope of the guidance for consolidation of variable interest entities (“VIE”) and if it is deemed to be a VIE. If the entity is considered to be a VIE, Douglas Elliman determines whether it would be considered the entity’s primary beneficiary. Douglas Elliman consolidates those VIEs for which it has determined that it is the primary beneficiary. If Douglas Elliman determines it does not have a controlling financial interest in an entity that is a VIE, it does not consolidate the entity. For entities where Douglas Elliman does not have a controlling financial interest, the investments in such entities are classified as available-for-sale securities or accounted for using the equity or cost method, as appropriate. (c) Former Parent’s Net Investment : The Former Parent’s net investment in the combined consolidated statement of stockholders’ equity represents Vector Group’s historical net investment in Douglas Elliman resulting from various transactions with and allocations from the Former Parent. Balances due to and due from the Former Parent and accumulated earnings attributable to Douglas Elliman operations have been presented as components of Former Parent’s net investment. (d) Estimates and Assumptions : The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Significant estimates subject to material changes in the near term include impairment charges and valuation of intangible assets. Actual results could differ from those estimates. (e) Cash and Cash Equivalents : Cash includes cash on hand, cash on deposit in banks, and money market accounts. Cash equivalents include short-term investments which have an original maturity of 90 days or less. Interest on short-term investments is recognized when earned. The Company places its cash and cash equivalents with large commercial banks. The Federal Deposit Insurance Corporation and Securities Investor Protection Corporation insure these balances, up to $250 and $500, respectively. Substantially all of the Company’s cash balances at December 31, 2022 are uninsured. (f) Reconciliation of Cash, Cash Equivalents and Restricted Cash : Restricted cash amounts included in current assets and other assets represent cash and cash equivalents required to be deposited into escrow for amounts required for letters of credit related to office leases, and certain deposit requirements for banking arrangements. The restrictions related to the letters of credit will remain in place for the duration of the respective lease. The restrictions related to the banking arrangements will remain in place for the duration of the arrangement. The components of “Cash, cash equivalents and restricted cash” in the combined consolidated statements of cash flows were as follows: December 31, December 31, December 31, Cash and cash equivalents $ 163,859 $ 211,623 $ 94,421 Restricted cash and cash equivalents included in current assets 4,985 15,336 10,374 Restricted cash and cash equivalents included in other assets 2,538 1,907 1,907 Total cash, cash equivalents, and restricted cash shown in the combined consolidated statements of cash flows $ 171,382 $ 228,866 $ 106,702 (g) Investment Securities : The Company classifies investments in debt securities as trading. Investments classified as trading are recorded at fair value, with changes in fair value recognized in net income. Gains and losses are recognized when realized in the Company’s combined consolidated statements of operations. The cost of securities sold is determined based on average cost. (h) Significant Concentrations of Credit Risk : Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. The Company places its temporary cash in money market securities (investment grade or better) with, what management believes are, high credit quality financial institutions. (i) Receivables : Receivables consist of commissions earned on sales transactions which closed prior to the Company’s year-end but for which the related commissions have not yet been received. The Company provides an allowance for potential losses on uncollectible receivables based principally on the specific identification method. There are no allowances for bad debt for commission receivables as of December 31, 2022 and December 31, 2021. Uncollectible accounts are written off when the likelihood of collection is remote and when collection efforts have been abandoned. (j) Property and equipment, net : Property and equipment, net are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the respective assets, which are 3 to 10 years for furniture and equipment. The cost and related accumulated depreciation of property and equipment, net are removed from the accounts upon retirement or other disposition and any resulting gain or loss is reflected in operations. The cost of leasehold improvements is amortized over the lesser of the related leases or the estimated useful lives of the improvements. Costs of major additions and betterments are capitalized, while expenditures for routine maintenance and repairs are charged to expense as incurred. (k) Investments accounted for under the equity-method of accounting : In accounting for its equity-method investments, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as (a) entities in which the equity investment at risk is not sufficient to finance its activities without additional subordinated financial support; (b) as a group, the equity investors at risk lack 1) the power to direct the activities of a legal entity that most significantly impact the entity’s economic performance, 2) the obligation to absorb the expected losses of the entity, or 3) the right to receive the expected residual returns of the entity; or (c) as a group, the equity investors have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company’s interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the VIE, any unfunded capital commitments to the VIE, and, in some cases, guarantees in connection with debt on the specific project. On a quarterly basis, the Company evaluates its equity-method investments to determine if there are indicators of impairment. If so, the Company further investigates to determine if an impairment has occurred and whether such impairment is considered temporary or other than temporary. The Company believes that the assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. (l) Goodwill and Other Intangible Assets : Goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment on an annual basis, as of October 1, or whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. The Company follows ASC 350, Intangibles – Goodwill and Other , and subsequent updates including ASU 2011-08, Testing Goodwill for Impairment and ASU 2017-14, Simplifying the Test for Goodwill Impairment . The amendments permit entities to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that a reporting unit’s fair value is less than its carrying value or chooses to bypass the optional qualitative assessment, the Company then assesses recoverability by comparing the fair value of the reporting unit to its carrying amount; otherwise, no further impairment test would be required. The fair value of the intangible asset associated with the Douglas Elliman trademark is determined using a “relief from royalty payments” method. This approach involves two steps: (i) estimating reasonable royalty rates for its trademark associated with the Douglas Elliman trademark and (ii) applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine fair value. This fair value is then compared with the carrying value of the trademark. As discussed in Note 9 to the Company’s combined consolidated financial statements, during the first quarter of 2020, the Company performed quantitative assessments of its goodwill and its trademark intangible asset in conjunction with its quarterly review for indicators of impairment. The quantitative assessments resulted in impairment charges $46,252 and to the trademark intangible asset of $12,000. The Company performed a qualitative assessment for the year ended December 31, 2022, which did not result in additional impairment charges related to its goodwill or trademark. Goodwill from acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in the Company’s acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) the Company’s strategies for growth in sales, income and cash flows. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. (m) Impairment of Long-Lived Assets : The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company performs a test for recoverability, comparing projected undiscounted cash flows to the carrying value of the asset group to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value of the asset on the basis of discounted cash flow. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Additionally, the Company performs impairment reviews on its long-term investments that are classified as equity securities without readily determinable fair values that do not qualify for the net asset value (“NAV”) practical expedient. On a quarterly basis, the Company evaluates the investments to determine if there are indicators of impairment. If so, a determination is made of whether there is an impairment and if it is considered temporary or other than temporary. The assessment of temporary or other-than-temporary impairment is facts-and-circumstances driven. The impairment indicators that are taken into consideration as part of the analysis include (a) a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, (b) a significant adverse change in the regulatory, economic, or technological environment of the investee, (c) a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates, and (d) factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. (n) Leases : The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on the Company’s combined consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company’s obligation to make lease payments as determined by the lease agreement. Lease liabilities are recorded at commencement for the net present value of future lease payments over the lease term. The discount rate used is generally the Company’s estimated incremental borrowing rate unless the lessor’s implicit rate is readily determinable. Discount rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value, over a similar term, with a similar security. ROU assets are recorded and recognized at commencement for the lease liability amount, initial direct costs incurred and are reduced for lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components; the Company has elected the accounting policy to combine lease and non-lease components for all underlying asset classes. (o) Stock Awards : The Company accounts for employee stock compensation plans by measuring compensation cost for share-based payments at fair value at grant date. The fair value is recognized as compensation expense over the vesting period on a straight-line basis. The terms of restricted stock awarded under the 2021 Management Incentive Plan (the “2021 Plan”) provide for common stock dividend equivalents (paid in cash at the same rate as paid on the common stock) with respect to the shares underlying the unvested portion of the restricted stock award. The Company recognizes payments of the dividend equivalent rights on these restricted stock awards on the Company’s combined consolidated balance sheets as reductions in additional paid-in capital ($704 for the year ended December 31, 2022), which are included as “Distributions and dividends on common stock” in the Company’s combined consolidated statement of stockholders’ equity. (p) Income Taxes : The Company accounts for income taxes under the liability method and records deferred taxes for the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes as well as tax credit carryforwards and loss carryforwards. These deferred taxes are measured by applying the enacted tax rates relative to when the deferred item is expected to reverse. A valuation allowance reduces deferred tax assets when it is deemed more likely than not that some portion or all deferred tax assets will not be realized. A current tax provision is recorded for income taxes currently payable. In 2021, the Company calculated its provision for income taxes for the two days subsequent to the Distribution based upon the taxable income attributable to its activity and the activity of its subsidiaries during this period. T he Company’s principal subsidiaries, Douglas Elliman Realty, LLC and New Valley Ventures LLC, are limited liability companies. The members of a limited liability company are taxed on their proportionate share of the Company’s taxable income. Accordingly, prior to the Distribution, no provision or liability for Federal income taxes was included in the financial statements, except for Douglas Elliman of California, Inc. which is taxed as a corporation and has net operating loss carryforwards, which have been fully reserved for with a valuation allowance. The Company is, however, subject to New York City Unincorporated Business Tax (“UBT”) and accordingly has recorded a provision for UBT in its combined consolidated financial statements. The Company accounts for uncertainty in income taxes by recognizing tax liabilities when, despite the Company’s belief that its tax return positions are supportable, the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. (q) Contingencies : The Company and its subsidiaries record provisions in its combined consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. (r) Distributions and Dividends on Common Stock : The Company records distributions on its common stock as dividends in its combined consolidated statement of stockholders’ equity to the extent of retained earnings. Any amounts exceeding retained earnings are recorded as a reduction to additional paid-in-capital to the extent paid-in-capital is available and then to retained earnings (accumulated deficit). The Company’s stock dividends are recorded as stock splits and given retroactive effect to earnings per share for all years presented. (s) Revenue Recognition : Commissions and other brokerage income: Real estate commissions earned by the Company’s real estate brokerage businesses are recognized as revenue when the real estate sale is completed or lease agreement is executed, which is the point in time that the performance obligation is satisfied. Any commission and other payments received in advance are deferred until the satisfaction of the performance obligation. Corresponding agent commission expenses, including any advance commission or other direct expense payments, are deferred and recognized as agent commission expenses concurrently with related revenues. The accounting for these commissions and other brokerage income under Topic 606 are largely consistent with the previous accounting for these transactions under Topic 605, except for customer arrangements in the development marketing business and extended payments terms that exist in some commercial leasing contracts. Property management: Property management revenue arrangements consist of providing operational and administrative services to manage a subject property. Fees for these services are typically billed and collected monthly. Property management service fees are recognized as revenue over time using the output method as the performance obligations under the customer arrangement are satisfied each month. Ancillary services: Ancillary services revenue earned by the Company related primarily to title and escrow services. These services are recognized as revenue when the real estate sale is completed, which is the point in time that the performance obligation is satisfied. See Note 2 — Revenue Recognition for additional information. (t) Real estate agent commissions : Real estate agent commissions consists of commissions paid to the Company’s agents, who are independent contractors, upon the closing of a real estate transaction and fees paid to external brokerages for client referrals, which are recognized and paid upon the closing of a real estate transaction. (u) Sales and marketing expenses : Sales and marketing expenses consists primarily of marketing and advertising expenses, compensation and other personnel-related costs for employees supporting sales, marketing, expansion and related functions, occupancy-related costs and agent acquisition incentives. Advertising expense primarily includes the cost of marketing activities such as print advertising, online advertising and promotional items, which are expensed as incurred. Compensation and other personnel-related costs include salaries, benefits, bonuses and other compensation expense. Real estate advertising costs, which are expensed as incurred and included within sales and marketing expenses, were $29,937, $26,091 and $18,875 for the years ended December 31, 2022 and 2021 and 2020, respectively. (v) Operations and support expenses : Operations and support expenses consists primarily of compensation and other personnel-related costs for employees supporting agents, third-party consulting and professional services costs (not included in general and administrative or technology), fair value adjustments to contingent consideration for the Company’s acquisitions and other related expenses. (w) General and administrative expenses : General and administrative expenses consists primarily of compensation, stock-based compensation expense and other personnel-related costs for executive management and administrative employees, including finance and accounting, legal, human resources and communications, the occupancy costs for its headquarters and other offices supporting its administrative functions, and transition services paid to its Former Parent for the use of office space and employees, professional services fees for legal and finance, insurance expenses and talent acquisition expenses. (x) Technology expenses : Technology expenses consist primarily of compensation and other personnel-related costs for employees in the product, engineering and technology functions, website hosting expenses, software licenses and equipment, third-party consulting costs, data licenses of PropTech and other related expenses associated with the implementation of our technology initiatives. (y) Restructuring : In response to COVID-19, the Company commenced a restructuring by realigning its administrative support function and office locations as well as adjusting its business model to serve its client more efficiently. This included a reduction of staff by approximately 25% at Douglas Elliman. For the years ended December 31, 2022 and 2021 , there were no restructuring charges. As of December 31, 2020 , there was no accrual for restructuring charges. The following table summarizes amounts expensed for the year ended December 31, 2020: Year Ended December 31, 2020 Cash Charges: Employee severance and benefits $ 1,875 Other restructuring expenses 293 2,168 Non-Cash: Loss on fixed assets associated with consolidation of sales offices 1,214 Total restructuring charges $ 3,382 All amounts expensed for the year ended December 31, 2020 are included as restructuring charges in the Company’s combined consolidated statements of operations. Employee severance and benefits expensed for the year ended December 31, 2020 relate entirely to the reduction in staff. The following table presents the activity under the restructuring plan for the year ended December 31, 2020: Employee Severance and Benefits Other Non-Cash Loss on Fixed Assets Total Accrual balance as of January 1, 2020 $ — $ — $ — $ — Restructuring charges 1,875 293 1,214 3,382 Utilized (1,875) (293) (1,214) (3,382) Accrual balance as of December 31, 2020 $ — $ — $ — $ — (z) Investments and Other Income: Investment and other income consists of the following: Year Ended December 31, 2022 2021 2020 Net gains recognized on PropTech convertible trading debt securities. $ 2,184 $ 60 $ — Net gains recognized on long-term investments at fair value 655 205 — Other income 1 264 843 Income related to Tax Disaffiliation indemnification 589 — — Investment and other income $ 3,429 $ 529 $ 843 (aa) Other Comprehensive Income : The Company does not have any activity that results in Other Comprehensive Income. (ab) Acquisitions : On August 6, 2021, the Company acquired an additional 49% ownership in Douglas Elliman Texas, a licensed real estate service provider in Houston, Texas, for a purchase price of $500. The purchase price allocation for this acquisition resulted in the recognition of $6,527 of intangible assets related to a non-compete agreement, $5,047 of assets, $11,389 of liabilities and $815 of goodwill. The goodwill is not expected to be deductible for income tax purposes. The non-compete agreement is expected to be amortized over ten years. The Company controls the board of Douglas Elliman Texas and consolidates its ownership interest under the voting interest model in accordance with ASC 810, resulting in a non-controlling interest for the remaining 50% of Douglas Elliman Texas not owned by the Company on its combined consolidated financial statements. The assets, liabilities and results of operations of Douglas Elliman Texas were not material to the Company’s combined consolidated financial position, results of operations, or cash flows and therefore pro forma financial information for the acquisition was not presented. (ab) Subsequent Events : The Company has evaluated subsequent events through March 16, 2023, the date the financial statements were issued. (ac) New Accounting Pronouncements : Accounting Standards Updates (“ASUs”) to be adopted in future periods: In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In June 2022, the FASB issued ASU 2022-03 , Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The ASU clarifies the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. SEC Proposed Rule Changes On March 21, 2022, the SEC proposed rule changes that would require registrants to provide certain climate-related information in their registration statements and annual reports. The proposed rules would require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks would also include disclosure of a registrant's greenhouse gas emissions, which have become a commonly used metric to assess a registrant's ex |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue Recognition Policies Revenue is measured based on a consideration specified in a contract with a customer less any sales incentives. Revenue is recognized when (a) an enforceable contract with a customer exists, that has commercial substance, and collection of substantially all consideration for services is probable; and (b) the performance obligations to the customer are satisfied either over time or at a point in time. Real estate sales: Real estate commissions earned by the Company’s real estate brokerage businesses are recognized as revenue when the real estate sale is completed or lease agreement is executed, which is the point in time that the performance obligation is satisfied. Any commission and other payments received in advance are deferred until the satisfaction of the performance obligation. Corresponding agent commission expenses, including any advance commission or other direct expense payments, are deferred and recognized as cost of sales concurrently with related revenues. The Company’s revenue contracts with customers do not have multiple material performance obligations to customers under Topic 606, except for contracts in the Company’s development marketing business. Contracts in the development marketing business provide the Company with the exclusive right to sell units in a subject property for a commission fee per unit sold calculated as a percentage of the sales price of each unit. Accordingly, a performance obligation exists for each unit in the development marketing property under contract, and a portion of the total contract transaction price is allocated to and recognized at the time each unit is sold. The Company applies the optional exemption in paragraph 606-10-50-14A of Topic 606 and does not disclose the amount of the transaction price allocated to the remaining performance obligations for the Real Estate development marketing business because the transaction prices in these contracts are comprised entirely of variable consideration based on the ultimate selling price of each unit in the subject property. The total contract transaction price is allocated to each unit in the subject property and recognized when the performance obligation, i.e., the sale of each unit, is satisfied. Accordingly, the transaction price allocated to the remaining performance obligations for the development marketing business represents variable consideration allocated entirely to wholly unsatisfied performance obligations. Under development marketing service arrangements, dedicated staff are required for a subject property and these costs are typically reimbursed from the customer through advance payments that are recoupable from future commission earnings. Advance payments received and associated direct costs paid are deferred, allocated to each unit in the subject property, and recognized at the time of the completed sale of each unit. Development marketing service arrangements also include direct fulfillment costs incurred in advance of the satisfaction of the performance obligation. The Company capitalizes costs incurred in fulfilling a contract with a customer if the fulfillment costs 1) relate directly to an existing contract or anticipated contract, 2) generate or enhance resources that will be used to satisfy performance obligations in the future, and 3) are expected to be recovered. These costs are amortized over the estimated customer relationship period which is the contract term. The Company uses an amortization method that is consistent with the pattern of transfer of goods or services to its customers by allocating these costs to each unit in the subject property and expensing these costs as each unit sold is closed over the contract. Commission revenue is recognized at the time the performance obligation is met for commercial leasing contracts, which is when the lease agreement is executed, as there are no further performance obligations, including any amounts of future payments under extended payment terms. Property management revenue arrangements consist of providing operational and administrative services to manage a subject property. Fees for these services are typically billed and collected monthly. Property management service fees are recognized as revenue over time using the output method as the performance obligations under the customer arrangement are satisfied each month. The Company applies the optional exemption in paragraph 606-10-50-14 of Topic 606 and does not disclose the amount of the transaction price allocated to the remaining performance obligations for the Real Estate property management business because the contracts to provide property management services are typically annual contracts and provide cancellation rights to customers. Title insurance commission fee revenue is earned when the sale of the title insurance policy is completed, which corresponds to the point in time when the underlying real estate sale is completed, which is when the performance obligation is satisfied. Escrow commission fee revenue is recorded at a point in time which occurs at the time a home sale transaction or refinancing closes. Disaggregation of Revenue In the following table, revenue is disaggregated by major services line and primary geographical market: Year Ended December 31, 2022 Total New York City Northeast Southeast West Revenues : Commission and other brokerage income - existing home sales $ 1,028,480 $ 359,417 $ 207,932 $ 263,468 $ 197,663 Commission and other brokerage income - development marketing 71,405 53,773 654 13,867 3,111 Property management revenue 36,022 35,421 601 — — Escrow and title fees 17,270 3,186 1,235 — 12,849 Total revenue $ 1,153,177 $ 451,797 $ 210,422 $ 277,335 $ 213,623 Year Ended December 31, 2021 Total New York City Northeast Southeast West Revenues : Commission and other brokerage income - existing home sales $ 1,210,469 $ 392,011 $ 249,195 $ 355,206 $ 214,057 Commission and other brokerage income - development marketing 81,947 48,167 — 32,292 1,488 Property management revenue 37,345 36,756 589 — — Escrow and title fees 23,377 5,200 1,755 — 16,422 Total revenue $ 1,353,138 $ 482,134 $ 251,539 $ 387,498 $ 231,967 Year Ended December 31, 2020 Total New York City Northeast Southeast West Revenues : Commission and other brokerage income - existing home sales $ 686,389 $ 186,229 $ 204,814 $ 160,404 $ 134,942 Commission and other brokerage income - development marketing 47,362 24,590 — 22,081 691 Property management revenue 35,115 34,209 906 — — Escrow and title fees 5,121 2,047 1,717 — 1,357 Total revenue $ 773,987 $ 247,075 $ 207,437 $ 182,485 $ 136,990 Contract Balances The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers: December 31, 2022 December 31, 2021 Receivables, which are included in receivable $ 3,063 $ 2,749 Contract assets, net, which are included in other current assets 4,453 2,187 Contract assets, net, which are in other assets 38,913 28,996 Payables, which are included in other current liabilities 2,291 2,070 Contract liabilities, which are in current liabilities 8,222 6,689 Contract liabilities, which are in other liabilities 54,706 39,557 Receivables and payables relate to commission receivables and commissions payable from the Real Estate commercial leasing contracts for which the performance obligation has been satisfied, have extended payment terms and are expected to be received and paid in the next twelve months. Receivables increased $314 for the year ended December 31, 2022 primarily due to revenue accrued as performance obligations are satisfied of $3,985 offset by cash collections. Correspondingly, payables increased by $221 primarily due to additional expense accruals as performance obligations are satisfied of $3,007 offset by cash payments. Contract assets increased by $12,183 during the year ended December 31, 2022 due to $26,884 of payments made for direct fulfillment costs incurred in advance of the satisfaction of the performance obligations for Real Estate development marketing contracts, offset by costs recognized for units closed during the quarter. Contract liabilities relate to payments received in advance of the performance obligations being satisfied under the Real Estate development marketing contracts and are recognized as revenue at the points in time when the Company performs under the contracts. Performance obligations related to the Real Estate development marketing contracts are considered satisfied when each unit is closed. Development marketing projects tend to span four Contract liabilities increased by $16,682 during the year ended December 31, 2022 due to $38,461 of advance payments received from customers prior to the satisfaction of performance obligations for Real Estate development marketing contracts, offset by revenue recognized for units sold during the year. The Company recognized revenue of $6,776 for the year ended December 31, 2022 that were included in the contract liabilities balances at December 31, 2021. The Company recognized revenue of $9,988 for the year ended December 31, 2021 that were included in the contract balances at December 31, 2020. The Company recognized revenue of $8,846 for the year ended December 31, 2020 that were included in the contract balances at January 1, 2020. |
Current Expected Credit Losses
Current Expected Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
CURRENT EXPECTED CREDIT LOSSES | CURRENT EXPECTED CREDIT LOSSES Real estate broker agent receivables: Douglas Elliman Realty is exposed to credit losses for various amounts due from real estate agents, which are included in Other current assets on the combined consolidated balance sheets, net of an allowance for credit losses. The Company estimates its allowance for credit losses on receivables from agents based on an evaluation of aging, agent sales in pipeline, any security, specific exposures, historical experience of collections from the individual agents, and current and expected future market trends. The Company estimated that the credit losses for these receivables were $10,916 and $8,607 at December 31, 2022 and December 31, 2021, respectively. The following table summarizes changes in the allowance for credit losses for the year ended December 31, 2022: January 1, Current Period Provision Write-offs Recoveries December 31, Allowance for credit losses: Real estate broker agent receivables $ 8,607 $ 4,064 (1) $ 1,755 $ — 10,916 _____________________________ (1) The current period provision for the real estate broker agent receivables is included in “General and administrative expenses” in the Company’s combined consolidated statements of operations. The following table summarizes changes in the allowance for credit losses for the year ended December 31, 2021: January 1, Current Period Provision Write-offs Recoveries December 31, Allowance for credit losses: Real estate broker agent receivables $ 7,038 $ 3,331 (1) $ 1,762 $ — 8,607 _____________________________ (1) The current period provision for the real estate broker agent receivables is included in “General and administrative expenses” in the Company’s combined consolidated statements of operations. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE On December 29, 2021, the date of the Distribution, 77,720,626 shares of the Common Stock, par value $0.01 per share, were distributed to Vector Group stockholders of record as of December 20, 2021. This share amount is being utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Distribution as all shares were owned by Vector Group prior to the Distribution. For the 2020 calculation, these shares are treated as issued and outstanding at January 1, 2020 for purposes of calculating historical basic and diluted earnings per share. The Company has restricted stock awards which will provide cash dividends at the same rate as paid on the common stock with respect to the shares underlying the restricted stock awards. These outstanding restricted stock awards would represent participating securities under authoritative guidance. The Company would recognize payments of the cash dividends on these awards as reductions in additional paid-in-capital on the Company’s combined consolidated balance sheets. The Company did not pay any dividends for the years ended December 31, 2021 and 2020, respectively. As a result, in its calculation of basic and dilutive EPS for the years ended December 31, 2022, 2021 and 2020, respectively, the Company did not adjust its net (loss) income for the effect of these participating securities because the adjustment was negligible. For the year ended December 31, 2022 2021 2020 Net (loss) income attributed to Douglas Elliman Inc. $ (5,622) $ 98,838 $ (46,372) Income attributable to participating securities (704) (12) — Net (loss) income available to common stockholders attributed to Douglas Elliman Inc. $ (6,326) $ 98,826 $ (46,372) Basic EPS is computed by dividing net (loss) income available to common stockholders attributed to Douglas Elliman Inc. by the weighted-average number of shares outstanding, which will include vested restricted stock. Basic and diluted EPS were calculated using the following common shares for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, 2022 2021 2020 Weighted-average shares for basic and diluted EPS 77,728,081 77,720,626 77,720,626 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for corporate and sales offices and equipment. The leases have remaining lease terms of less than one year to eleven years, some of which include options to extend for up to five years, and some of which include options to terminate the leases within one year. However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants. The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred. The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 33,248 $ 32,694 $ 32,926 Short-term lease cost 1,064 794 912 Variable lease cost 4,144 3,623 3,552 Less: Sublease income (579) (458) (325) Total lease cost $ 37,877 $ 36,653 $ 37,065 Supplemental cash flow information related to 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 $ 36,956 $ 38,416 $ 22,201 ROU assets obtained in exchange for lease obligations: Operating leases 14,856 9,102 12,977 Supplemental balance sheet information related to leases was as follows: December 31, December 31, 2022 2021 Weighted average remaining lease term in years: Operating leases 7.03 7.65 Weighted average discount rate: Operating leases 8.73 % 9.12 % As of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Year Ending December 31: 2023 $ 34,607 2024 29,657 2025 24,936 2026 22,617 2027 19,792 Thereafter 64,121 Total lease payments 195,730 Less imputed interest (52,894) Total $ 142,836 As of December 31, 2022, the Company had $217 undiscounted lease payments relating to leases that have not yet commenced. The Company’s rental expense for the years ended December 31, 2022, 2021 and 2020 was $33,248, $32,692 and $32,937, respectively. Rent expense for the year ended December 31, 2022 consisted of $20,621 of amortization and $12,627 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2021 consisted of $18,667 of amortization and $14,025 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2020 consisted of $17,326 of amortization and impairment of ROU assets and $15,611 of lease expense for interest accretion on operating lease liabilities. |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
LONG-TERM INVESTMENTS | LONG-TERM INVESTMENTS Long-term investments consisted of the following: December 31, 2022 December 31, 2021 PropTech convertible trading debt securities $ 2,957 $ 2,222 Long-term investment securities at fair value (1) 3,262 1,534 PropTech investments at cost 8,588 4,338 Total investments 14,807 8,094 PropTech current convertible trading debt securities (2) 1,875 — Total long-term investments $ 12,932 $ 8,094 _____________________________ (1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820. (2) These amounts are included in “Other current assets” on the combined consolidated balance sheets. Net gains recognized on long-term investment securities were as follows: Year Ended December 31, 2022 2021 2020 Net gains recognized on PropTech convertible trading debt securities $ 2,184 $ 60 $ — Net gains recognized on long-term investment securities at fair value 655 205 — Net gains recognized on long-term investment securities $ 2,839 $ 265 $ — (a) PropTech Convertible Trading Debt Securities: During the year ended December 31, 2022, New Valley Ventures invested $701 into convertible notes of two PropTech ventures. The securities are classified as trading debt securities and are accounted for at fair value. The maturities of all convertible notes range from March 2023 to February 2025. (b) Long-Term Investment Securities at Fair Value: The following is a summary of unrealized and realized net gains recognized in net income on long-term investment securities at fair value during the years ended December 31, 2022, 2021 and 2020, respectively: Year Ended December 31, 2022 2021 2020 Net gains recognized on long-term investment securities $ 655 $ 205 $ — Less: Net gains recognized on long-term investment securities sold — — — Net unrealized gains recognized on long-term investment securities still held at the reporting date $ 655 $ 205 $ — The Company has unfunded commitments of $1,085 related to long-term investment securities at fair value as of December 31, 2022. During the year ended December 31, 2022, New Valley Ventures invested $500 into one additional investment that is classified as a long-term investment security at fair value. (c) Equity Securities Without Readily Determinable Fair Values That Do Not Qualify for the NAV Practical Expedient During the year ended December 31, 2022, New Valley Ventures invested $1,500 into four additional PropTech ventures, which do not qualify for the NAV practical expedient. During the year ended December 31, 2022, one of the convertible trading debt securities was converted and it was classified as an equity security without a readily determinable fair value. The total carrying value of these investments was $8,588 and $4,338 as of December 31, 2022 and 2021, respectively. No impairment or other adjustments related to observable price changes in orderly transactions for identical or similar investments were identified for the year ended December 31, 2022. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: December 31, December 31, Leasehold improvements $ 52,986 $ 51,571 Furniture and equipment 40,531 32,985 93,517 84,556 Less accumulated depreciation and amortization (51,800) (45,175) $ 41,717 $ 39,381 Depreciation and amortization expense related to property and equipment, net for the years ended December 31, 2022, 2021 and 2020 was $7,257, $8,144 and $8,373, respectively. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS Equity-method investments consisted of the following: December 31, 2022 December 31, 2021 Ancillary services ventures $ 1,629 $ 2,521 At December 31, 2022, the Company’s ownership percentages in these investments ranged from 17.0% to 50.0%; therefore, the Company accounts for these investments under the equity method of accounting. VIE Consideration: The Company has determined that the Company is not the primary beneficiary of any of its equity method investments because it does not control the activities that most significantly impact the economic performance of each investment. The Company determined that the entities were VIEs but the Company was not the primary beneficiary. Therefore, the Company’s equity method investments have been accounted for under the equity method of accounting. Maximum Exposure to Loss: The Company’s maximum exposure to loss from its equity method investments consists of the net carrying value of the investments adjusted for any future capital commitments and/or guarantee arrangements and was $1,629 as of December 31, 2022. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The components of Goodwill and other intangible assets were as follows: December 31, December 31, Goodwill $ 32,230 $ 32,571 Indefinite-life intangibles: Trademark - Douglas Elliman $ 68,000 $ 68,000 Intangibles with a finite life, net 5,666 6,421 Total other intangible assets, net $ 73,666 $ 74,421 The carrying amounts of goodwill and intangibles with a finite life, net related to acquisitions made in 2022 were as follows: Goodwill Intangibles with a finite life, net Balance as of January 1, 2022 $ 32,571 $ 6,421 Purchase price adjustment (1) (341) — Amortization — (755) Balance as of December 31, 2022 $ 32,230 $ 5,666 _____________________________ (1) Purchase price adjustment related to the Douglas Elliman Texas acquisition. Refer to Note 1, Summary of Significant Accounting Policies , for further information. The carrying amounts of goodwill and intangibles with a finite life, net related to the August 6, 2021 acquisition of an additional 49% ownership in Douglas Elliman Texas were as follows: Goodwill Intangibles with a finite life, net Balance as of January 1, 2021 $ 31,756 $ 310 Acquisitions (1) 815 6,527 Amortization — (416) Balance as of December 31, 2021 $ 32,571 $ 6,421 _____________________________ (1) Refer to Note 1, Summary of Significant Accounting Policies , for further information. Goodwill is evaluated for impairment annually or whenever the Company identifies certain triggering events or circumstances that would more likely than not reduce the fair value of the Company below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts. During the first quarter of 2020, the Company determined that a triggering event occurred due to a decline in sales and profitability projections for the Company driven by the COVID-19 pandemic and related economic disruption. The Company utilized third-party valuation specialists to prepare a quantitative assessment of goodwill and trademark intangible asset related to Douglas Elliman. For the goodwill testing, the Company utilized an income approach (a discounted cash flows method) to estimate the fair value of the Douglas Elliman business. The estimated fair value of the trademark indefinite-life intangible asset related to the Douglas Elliman brand name was determined using an approach that values the Company’s cash savings from having a royalty-free license compared to the market rate it would pay for access to use the trade name. The third-party quantitative assessments of the goodwill and trademark intangible asset reflected management’s assumptions regarding revenue growth rates, economic and market trends including current expectations of deterioration resulting from the COVID-19 pandemic, changes to cost structures and other expectations about the anticipated short-term and long-term operating results of the Company. The quantitative assessments resulted in impairment charges to goodwill of $46,252 and to the trademark intangible asset of $12,000. The Company determined that there have not been any triggering events since the first quarter of 2020. If the Company fails to achieve the financial projections used in the quantitative assessments of fair value, additional impairment charges could result in future periods, and such impairment charges could be material. Other intangible assets and contract liabilities assumed were as follows: Useful Lives in Years December 31, December 31, Trademark - Douglas Elliman Indefinite $ 68,000 $ 68,000 Other intangibles 1 - 10 11,216 11,216 11,216 11,216 Less: Accumulated amortization on amortizable intangibles (5,550) (4,795) Other intangibles, net $ 5,666 $ 6,421 The trademark intangible has been attributed to the acquisition of the Douglas Elliman brand name which the Company plans to continue using. The fair value of the intangible asset associated with the Douglas Elliman trademark is determined using a “relief from royalty payments” method. This approach involves two steps: (i) estimating reasonable royalty rates for its Douglas Elliman trademark and (ii) applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine fair value. This fair value is then compared with the carrying value of the trademark. The Company performed its impairment test for the year ended December 31, 2022, which did not result in additional impairment charges related to the Company’s trademark. If the Company fails to achieve the financial projections used in the quantitative assessments of fair value, additional impairment charges could result in future periods, and such impairment charges could be material. As of December 31, 2022, other intangibles with finite lives included non-compete agreements recognized business combinations. Other intangibles in prior periods included backlog and listing inventory for Development sales. For the years ended December 31, 2022, 2021, and 2020, respectively, amortization of other intangibles was $755, $416 and $164. |
Notes Payable and Other Obligat
Notes Payable and Other Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND OTHER OBLIGATIONS | NOTES PAYABLE AND OTHER OBLIGATIONS Notes payable and other obligations consisted of the following: December 31, 2022 December 31, 2021 Notes payable $ — $ 12,500 Other — 203 Total notes payable and other obligations — 12,703 Less: Current maturities — (12,527) Amount due after one year $ — $ 176 Notes Payable: The notes payable in the amount of $30,000 were issued by DER Holdings LLC on December 31, 2018, in connection with the acquisition of the 29.41% interest in Douglas Elliman. The remaining $12,500 of notes were repaid in full during 2022. Fair V alue of Notes Payable and Other Obligations: The estimated fair value of the Company’s notes payable and long-term debt was as follows: December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Notes payable $ — $ — $ 12,500 $ 12,500 Other — — 203 203 Notes payable and other obligations $ — $ — $ 12,703 $ 12,703 Notes payable and other obligations are recorded at amortized cost. The fair value determinations disclosed above would be classified as Level 2 under the fair value hierarchy disclosed in Note 17 if such liabilities were recorded on the combined consolidated balance sheets at fair value. Considerable judgment is required to develop the estimates of fair value and, accordingly, the estimate presented herein is not necessarily indicative of the amount that could be realized in a current market exchange. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The financial statements of Douglas Elliman Inc. include the tax accounts of the following entities: (i) DER Holdings LLC, the parent of Douglas Elliman Realty LLC, is a single-member limited liability company that is a disregarded entity for U.S. income tax purposes, (ii) Douglas Elliman Realty LLC is a limited liability company that files as a partnership for U.S. income tax purposes, (iii) Douglas Elliman of California, Inc. is a corporation that reported on a separate company basis until February 28, 2019, then elected to become a consolidated subsidiary included in Vector Group’s consolidated U.S. income tax return until the Distribution, and thereafter is a consolidated subsidiary of Douglas Elliman Inc., (iv) DER Holdings II LLC, a subsidiary of DER Holdings LLC, which has elected to be taxed as corporation for U.S. income tax purposes, and (v) certain single member limited liability companies that are treated as disregarded entities for U.S. income tax purposes. Upon completion of the Distribution, Douglas Elliman Inc. and its subsidiaries detailed above became a separate taxable entity for federal and state income tax purposes. After the Distribution, the Company calculates its provision for income taxes based upon the taxable income attributable to its activity and the activity of its subsidiaries. The net deferred tax liabilities attributable to the Company and its subsidiaries were transferred from Vector Group to the Company in connection with the tax-free Distribution. For the periods presented prior to the Distribution, the Company calculated its provision for income taxes by using a separate-return method and elected not to allocate tax expense to single-member limited liability companies or partnerships that did not incur income tax liability because they were not severally liable for the taxes of their owners. Prior to the Distribution, Douglas Elliman of California, Inc. and DER Holdings II LLC were the only two entities taxed as a corporation for U.S. Income Tax purposes while the remaining entities were pass through entities for federal income tax purposes. Therefore, no income tax expense was allocated to entities other than DER Holdings LLC, Douglas Elliman of California, Inc. and, for purposes of New York City UBT only, Douglas Elliman Realty, LLC. The amounts provided for income taxes were as follows: Year Ended December 31, 2022 2021 2020 Current: U.S. Federal $ 1,039 $ (64) $ (20) State and local 1,271 2,270 (14) 2,310 2,206 (34) Deferred: U.S. Federal 1,421 (48) 56 State and local 2,772 (25) 22 4,193 (73) 78 Total $ 6,503 $ 2,133 $ 44 The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities is as follows: December 31, 2022 December 31, 2021 Deferred tax assets: Allowance for doubtful accounts $ 212 $ 200 Basis differences on fixed and intangible assets 391 265 Various U.S. federal and state tax loss carryforwards 6,417 5,196 Operating lease liabilities 5,901 5,538 Other — 77 12,921 11,276 Less: Valuation allowance (6,417) (5,196) Net deferred tax assets $ 6,504 $ 6,080 Deferred tax liabilities: Basis differences on prepaid assets $ (204) $ (197) Revenue recognition (40) (167) Basis differences on long-term investments (954) — Basis differences on acquisition (14,340) (12,151) Operating lease right-of-use assets (5,320) (4,977) Other (113) — $ (20,971) $ (17,492) Net deferred tax liabilities $ (14,467) $ (11,412) The Company’s subsidiary, Douglas Elliman of California, Inc., files a consolidated U.S. income tax return that includes its wholly-owned U.S. subsidiaries. Standalone subsidiaries had tax-effected federal and state net operating loss (“NOL”) carryforwards of $6,417 and $5,196 at December 31, 2022 and 2021, respectively, with $4,388 expiring through tax year 2040 and the remaining carried forward indefinitely. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company had valuation allowances of $6,417 and $5,196 at December 31, 2022 and 2021, respectively. The valuation allowances at December 31, 2022 and 2021 related to federal and state net operating loss carryforwards and the deferred tax assets of Douglas Elliman of California, Inc. prior to March 1, 2019, which are limited for use in the future to the extent of the taxable income of Douglas Elliman of California, Inc. under the “Separate Return Limitation Year” rules of Internal Revenue Code Section 381. The combined consolidated balance sheets of the Company include deferred income tax assets and liabilities, which represent temporary differences in the application of accounting rules established by GAAP and income tax laws. Differences between the amounts provided for income taxes and amounts computed at the federal statutory tax rate are summarized as follows: Year Ended December 31, 2022 2021 2020 Income (loss) before provision for income taxes $ 104 $ 100,785 $ (46,328) Federal income tax expense (benefit) at statutory rate 22 21,165 (9,729) Less Federal income tax (expense) benefit attributable to pass through entities — (20,278) 7,915 State and local income taxes, net of federal income tax benefits 2,213 1,769 (418) Impact of non-controlling interest 163 — — Non-deductible expenses 1,715 361 568 Excess tax benefits on stock-based compensation 812 — — Loss carryforwards from tax consolidation of subsidiary (331) 1,145 — Changes in valuation allowance, net of equity and tax audit adjustments 1,221 (2,035) 1,708 Other 688 6 — Income tax expense $ 6,503 $ 2,133 $ 44 The Company’s income tax expense is principally attributable to the Company’s federal, state and local income taxes based on the Company’s earnings. The Company files U.S. and state and local income tax returns in jurisdictions with varying statutes of limitations. Liabilities for uncertain tax positions reflected as of December 31, 2022 and 2021 were not significant and it is not anticipated that they will materially change in the next 12 months. Douglas Elliman Realty, LLC is under an IRS audit for its 2018 tax return. Although the outcome of tax audits is always uncertain, Douglas Elliman Realty, LLC believes that its tax positions will generally be sustained under audit. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation | STOCK COMPENSATION On December 31, 2021, the Company granted equity compensation under its 2021 Plan. The 2021 Plan was adopted on December 22, 2021 and approved by the Company’s stockholder on December 24, 2021. The 2021 Plan provides for the Company to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted shares, restricted stock units, performance share awards, other stock-based awards and cash-based awards. Shares available for issuance under the 2021 Plan are 6,839,604 shares as of December 31, 2022. The Company may satisfy its obligations under any award granted under the 2021 Plan by issuing new shares. On December 31, 2021, the Company granted 3,490,000 restricted shares of the Company’s common stock (“the 2021 grants”) pursuant to the 2021 Plan to its executive officers, directors and certain employees. The shares vest over a period of four years and the Company will recognize $40,135 of expense over the vesting period of the 2021 grants. The Company recognized expense of $11,042 for the year ended December 31, 2022. In 2022, the Company granted 65,000 restricted shares, net of forfeitures, of the Company’s common stock (“the 2022 grants”) pursuant to the 2021 Plan. The shares vest over a period of four years and the Company will recognize $487 of expense over the vesting period. The Company recognized expense of $96 for the year ended December 31, 2022. A summary of employee restricted stock award transactions is presented below: Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 — $ — Granted 3,490,000 $ 11.50 Nonvested at December 31, 2021 3,490,000 $ 11.50 Granted 90,000 $ 8.25 Vested (953,750) $ 11.49 Forfeited (25,000) $ 10.21 Nonvested at December 31, 2022 2,601,250 $ 11.40 As of December 31, 2022, there was $29,484 of total unrecognized compensation costs related to nonvested restricted stock awards. The cost is expected to be recognized over a weighted-average period of approximately 1.93 years. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Year Ended December 31, 2022 2021 2020 Cash paid during the period for: Interest $ 177 $ 24 $ 1 Income taxes, net 11,083 681 — Non-cash investing and financing activities: Capital expenditures incurred but not paid 1,070 2 243 Transfers from Former Parent, net — 15,444 5,679 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS On December 29, 2021, Vector Group completed the Distribution and the Company and Vector Group entered into a distribution agreement (the “Distribution Agreement”) and several ancillary agreements for the purpose of accomplishing the Distribution. The Distribution Agreement includes an agreement that the Company and Vector Group will provide each other with appropriate indemnities with respect to liabilities arising out of the business retained by Vector Group and the business transferred to Douglas Elliman by Vector Group. These agreements also govern the Company’s relationship with Vector Group subsequent to the Distribution and provide for the allocation of employee benefit, tax and some other liabilities and obligations attributable to periods prior to, at and after the Distribution. These agreements also include arrangements with respect to transition services (the “Transition Services Agreement”). The Company and Vector Group entered into a Transition Services Agreement with respect to transition services and a number of ongoing commercial relationships. Under the agreement, the Company paid Vector Group $4,200 in 2022. The Company and Vector Group also entered into Aircraft Lease Agreements for the right to lease on a flight-by-flight basis certain aircraft owned by Vector. Under the agreements, the Company paid Vector Group $2,418 in 2022. Vector Group has agreed to indemnify the Company for certain tax matters under the Tax Disaffiliation Agreement. The Company received $589 and recorded the amount in Investment and other income in its combined consolidated statements of operations for the year ended December 31, 2022 related to the tax indemnifications. Following the Distribution, there is an overlap between certain officers of the Company and Vector Group. The President and Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and Treasurer, and the General Counsel and Secretary of Douglas Elliman serve in the same role at Vector Group. Furthermore, three of the members of Douglas Elliman’s Board of Directors also serve as directors of Vector Group. The Company has been engaged by certain developers as the sole broker or the co-broker for several of the real estate development projects that New Valley owns an interest in through its real estate venture investments. The Company had gross commissions of approximately $1,709, $8,956 and $10,783 from these projects for the years ended December 31, 2022, 2021 and 2020, respectively. The Company and a director each owned a 50% interest in an entity the assets and business of which were sold in 2019. The Company received $654 in May 2022 as a final distribution of an earn-out payment based on the performance of the entity in 2020 and 2021. The Company recorded equity in earnings from this equity-method investment of $654, $75 and $30 for the years ended December 31, 2022, 2021 and 2020, respectively. A son of the Company’s President and Chief Executive Officer is an associate broker with the Company and he received commissions and other payments of $1,490, $925 and $870, respectively, in accordance with brokerage activities in 2022, 2021 and 2020, respectively. The spouse of the President and Chief Executive Officer of Douglas Elliman Realty, LLC is a real estate agent whose license is held at a subsidiary of the Company, and who received commissions and other payments of $230, $420 and $40 in accordance with brokerage activities in 2022, 2021 and 2020, respectively. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | INVESTMENTS AND FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements as of December 31, 2022 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 153,941 $ 153,941 $ — $ — Certificates of deposit (2) 569 — 569 — PropTech convertible trading debt securities 1,875 — — 1,875 Long-term investments PropTech convertible trading debt securities 1,082 — — 1,082 Long-term investment securities at fair value (3) 3,262 — — — Total long-term investments 4,344 — — 1,082 Total assets $ 160,729 $ 153,941 $ 569 $ 2,957 _____________________________ (1) Amounts included in Cash and cash equivalents on the combined consolidated balance sheets, except for $4,985 that is included in current restricted cash and cash equivalents and $2,538 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the combined consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2021 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 51,492 $ 51,492 $ — $ — Certificates of deposit (2) 569 — 569 — Long-term investments PropTech convertible trading debt securities 2,222 — — 2,222 Long-term investment securities at fair value (3) 1,534 — — — Total long-term investments 3,756 — — 2,222 Total assets $ 55,817 $ 51,492 $ 569 $ 2,222 _____________________________ (1) Amounts included in Cash and cash equivalents on the combined consolidated balance sheets, except for $15,336 that is included in current restricted assets and $1,907 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the combined consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. The fair value of the Level 2 certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is the rate offered by the financial institution. The fair value of investment securities at fair value included in Level 1 is based on quoted market prices from various stock exchanges. The Level 2 investment securities at fair value are based on quoted market prices of securities that are thinly traded, quoted prices for identical or similar assets in markets that are not active or inputs other than quoted prices such as interest rates and yield curves. The fair values of the Level 3 PropTech convertible trading debt securities were derived using a discounted cash flow model utilizing a probability-weighted expected return method based on the probabilities of different potential outcomes for the convertible trading debt securities. The long-term investments are based on NAV per share provided by the partnerships based on the indicated market value of the underlying assets or investment portfolio. In accordance with Subtopic 820-10, these investments are not classified under the fair value hierarchy disclosed above because they are measured at fair value using the NAV practical expedient. The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2022: Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) PropTech convertible trading debt securities $ 2,957 Discounted cash flow Interest rate 4% - 8% Maturity Mar 2023 - Feb 2025 Volatility 60.7% - 103.3% Discount rate 29.39% - 186.15% The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2021: Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) PropTech convertible trading debt securities $ 2,222 Discounted cash flow Interest rate 5% Maturity Feb 2023 - Mar 2023 Volatility 37.7% - 86.8% Discount rate 27.25% - 46.83% In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets and liabilities are recorded at fair value on a nonrecurring basis as a result of impairment charges. The Company had no nonrecurring nonfinancial assets subject to fair value measurements as of December 31, 2022 and 2021, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company’s business segments were Real Estate Brokerage and Corporate and Other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2022, 2021, and 2020 was as follows: Real Estate Brokerage Corporate Total 2022 Revenues $ 1,153,177 $ — $ 1,153,177 Operating income (loss) 21,993 (26,534) (4,541) Identifiable assets 512,524 37,878 550,402 Depreciation and amortization 8,012 — 8,012 Capital expenditures 8,537 — 8,537 2021 Revenues $ 1,353,138 $ — $ 1,353,138 Operating income 102,098 — 102,098 Identifiable assets 548,217 46,952 595,169 Depreciation and amortization 8,561 — 8,561 Capital expenditures 4,106 — 4,106 2020 Revenues $ 773,987 $ — $ 773,987 Operating loss (1) (49,285) — (49,285) Identifiable assets 453,745 237 453,982 Depreciation and amortization 8,537 — 8,537 Capital expenditures 6,126 — 6,126 _____________________________ (1) Operating loss includes $58,252 of charges related to impairments of goodwill and intangible assets, $3,382 of restructuring charges and $1,169 of loss on sale of assets. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | DOUGLAS ELLIMAN INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (Dollars in Thousands) Description Balance at Additions Deductions Balance Year Ended December 31, 2022 Allowances for: Deferred tax valuation allowance $ 5,196 $ 1,221 $ — $ 6,417 Total $ 5,196 $ 1,221 $ — $ 6,417 Year Ended December 31, 2021 Allowances for: Deferred tax valuation allowance $ 7,231 $ — $ 2,035 $ 5,196 Total $ 7,231 $ — $ 2,035 $ 5,196 Year Ended December 31, 2020 Allowances for: Doubtful accounts $ 245 $ — $ 245 $ — Deferred tax valuation allowance 5,590 1,641 — 7,231 Total $ 5,835 $ 1,641 $ 245 $ 7,231 |
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 : Douglas Elliman Inc. (“Douglas Elliman” or the “Company”) i s engaged in the real estate services and property technology investment business and is seeking to acquire or invest in additional real estate services and property technology, or PropTech, companies. Douglas Elliman owns Douglas Elliman Realty, LLC, one of the largest residential brokerage companies in the New York metropolitan area and the sixth largest in the U.S. Douglas Elliman has approximately 120 offices with approximately 6,900 real estate agents in the New York metropolitan area as well as in Florida, California, Connecticut, Massachusetts, Colorado, New Jersey, and Texas. In August 2021, Douglas Elliman increased its ownership in Douglas Elliman Texas from 1% to 50%. Prior to December 29, 2021, the Company was wholly owned by Vector Group Ltd. (“Vector Group” and collectively, with its consolidated subsidiaries, “Former Parent”). In December 2021, the Vector Group board of directors approved the distribution of the operations of its real estate services and property technology business through a pro rata distribution of the Company’s stock to existing Vector Group stockholders. On December 29, 2021, Vector Group stockholders received one share of Douglas Elliman common stock for every two shares of Vector Group common stock held as of the close of business on December 20, 2021 (the “Distribution”). The accompanying combined consolidated financial statements include the accounts and transactions of Douglas Elliman, as well as the entities in which Douglas Elliman directly or indirectly has a controlling financial interest. These entities include DER Holdings LLC and New Valley Ventures LLC (“New Valley Ventures”), directly and indirectly wholly-owned subsidiaries of Vector Group. DER Holdings LLC owns Douglas Elliman Realty, LLC and Douglas Elliman of California, Inc. New Valley Ventures consists of minority investments in innovative and cutting-edge Property Technology companies (“PropTech”). The accompanying combined consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Douglas Elliman’s combined consolidated financial statements include certain indirect general and administrative costs allocated to it by Former Parent for certain functions and services including, but not limited to, executive office, finance and other administrative support. These expenses have been allocated to Douglas Elliman on the basis of direct usage, when identifiable, or a quarterly management fee of $500, which was charged quarterly until March 31, 2020. The management fee was suspended in connection with the impact of the COVID-19 pandemic. Douglas Elliman’s combined consolidated results of operations, financial position and cash flows may not be indicative of its future performance and do not necessarily reflect what its combined consolidated results of operations, financial position and cash flows would have been had Douglas Elliman operated as a separate, stand- alone entity during the periods presented, including changes in its operations and capitalization as a result of the separation and distribution from Vector Group. In presenting the combined consolidated financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. (b) Principles of Consolidation : The combined consolidated financial statements presented herein have been prepared on a standalone basis and, prior to December 29, 2021, are derived from the combined consolidated financial statements and accounting records of Vector Group. The combined consolidated financial statements include the assets, liabilities, revenues, expenses and cash flows of DER Holdings LLC and New Valley Ventures as well as all other entities in which Douglas Elliman has a controlling financial interest. All intercompany balances and transactions have been eliminated in the combined consolidated financial statements. When evaluating an entity for consolidation, Douglas Elliman first determines whether an entity is within the scope of the guidance for consolidation of variable interest entities (“VIE”) and if it is deemed to be a VIE. If the entity is considered to be a VIE, Douglas Elliman determines whether it would be considered the entity’s primary beneficiary. Douglas Elliman consolidates those VIEs for which it has determined that it is the primary beneficiary. If Douglas Elliman determines it does not have a controlling financial interest in an entity that is a VIE, it does not consolidate the entity. For entities where Douglas Elliman does not have a controlling financial interest, the investments in such entities are classified as available-for-sale securities or accounted for using the equity or cost method, as appropriate. |
Former Parent’s Net Investment | Former Parent’s Net Investment : The Former Parent’s net investment in the combined consolidated statement of stockholders’ equity represents Vector Group’s historical net investment in Douglas Elliman resulting from various transactions with and allocations from the Former Parent. Balances due to and due from the Former Parent and accumulated earnings attributable to Douglas Elliman operations have been presented as components of Former Parent’s net investment. |
Estimates and Assumptions | Estimates and Assumptions : |
Cash and Cash Equivalents | Cash and Cash Equivalents : |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | Reconciliation of Cash, Cash Equivalents and Restricted Cash : |
Investment Securities | Investment Securities : |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk : |
Receivables | Receivables : |
Property and equipment, net | Property and equipment, net : Property and equipment, net are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the respective assets, which are 3 to 10 years for furniture and equipment. The cost and related accumulated depreciation of property and equipment, net are removed from the accounts upon retirement or other disposition and any resulting gain or loss is reflected in operations. The cost of leasehold improvements is amortized over the lesser of the related leases or the estimated useful lives of the improvements. Costs of major additions and betterments are capitalized, while expenditures for routine maintenance and repairs are charged to expense as incurred. |
Investments accounted for under the equity-method of accounting | Investments accounted for under the equity-method of accounting : In accounting for its equity-method investments, the Company identified its participation in Variable Interest Entities (“VIE”), which are defined as (a) entities in which the equity investment at risk is not sufficient to finance its activities without additional subordinated financial support; (b) as a group, the equity investors at risk lack 1) the power to direct the activities of a legal entity that most significantly impact the entity’s economic performance, 2) the obligation to absorb the expected losses of the entity, or 3) the right to receive the expected residual returns of the entity; or (c) as a group, the equity investors have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company’s interest in VIEs is primarily in the form of equity ownership. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights exclusive of protective rights or voting rights and level of economic disproportionality between the Company and its other partner(s). Accounting guidance requires the consolidation of VIEs in which the Company is the primary beneficiary. The guidance requires consolidation of VIEs that an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s maximum exposure to loss in its investments in unconsolidated VIEs is limited to its investment in the VIE, any unfunded capital commitments to the VIE, and, in some cases, guarantees in connection with debt on the specific project. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets : Goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment on an annual basis, as of October 1, or whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. The Company follows ASC 350, Intangibles – Goodwill and Other , and subsequent updates including ASU 2011-08, Testing Goodwill for Impairment and ASU 2017-14, Simplifying the Test for Goodwill Impairment . The amendments permit entities to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company concludes that it is more likely than not that a reporting unit’s fair value is less than its carrying value or chooses to bypass the optional qualitative assessment, the Company then assesses recoverability by comparing the fair value of the reporting unit to its carrying amount; otherwise, no further impairment test would be required. The fair value of the intangible asset associated with the Douglas Elliman trademark is determined using a “relief from royalty payments” method. This approach involves two steps: (i) estimating reasonable royalty rates for its trademark associated with the Douglas Elliman trademark and (ii) applying these royalty rates to a net sales stream and discounting the resulting cash flows to determine fair value. This fair value is then compared with the carrying value of the trademark. As discussed in Note 9 to the Company’s combined consolidated financial statements, during the first quarter of 2020, the Company performed quantitative assessments of its goodwill and its trademark intangible asset in conjunction with its quarterly review for indicators of impairment. The quantitative assessments resulted in impairment charges $46,252 and to the trademark intangible asset of $12,000. The Company performed a qualitative assessment for the year ended December 31, 2022, which did not result in additional impairment charges related to its goodwill or trademark. Goodwill from acquisitions represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Factors that contribute to the recognition of goodwill in the Company’s acquisitions include (i) expected growth rates and profitability of the acquired companies, (ii) securing buyer-specific synergies that increase revenue and profits and are not otherwise available to market participants, (iii) significant cost savings opportunities, (iv) experienced workforce and (v) the Company’s strategies for growth in sales, income and cash flows. Intangible assets with finite lives are amortized over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment using a process similar to that used to evaluate long-lived assets described below. |
Impairment Long-Lived Assets | Impairment of Long-Lived Assets : |
Leases | Leases : The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and lease liabilities on the Company’s combined consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company’s obligation to make lease payments as determined by the lease agreement. Lease liabilities are recorded at commencement for the net present value of future lease payments over the lease term. The discount rate used is generally the Company’s estimated incremental borrowing rate unless the lessor’s implicit rate is readily determinable. Discount rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value, over a similar term, with a similar security. ROU assets are recorded and recognized at commencement for the lease liability amount, initial direct costs incurred and are reduced for lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. |
Stock Awards | Stock Awards : |
Income Taxes | Income Taxes : The Company accounts for income taxes under the liability method and records deferred taxes for the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes as well as tax credit carryforwards and loss carryforwards. These deferred taxes are measured by applying the enacted tax rates relative to when the deferred item is expected to reverse. A valuation allowance reduces deferred tax assets when it is deemed more likely than not that some portion or all deferred tax assets will not be realized. A current tax provision is recorded for income taxes currently payable. In 2021, the Company calculated its provision for income taxes for the two days subsequent to the Distribution based upon the taxable income attributable to its activity and the activity of its subsidiaries during this period. T he Company’s principal subsidiaries, Douglas Elliman Realty, LLC and New Valley Ventures LLC, are limited liability companies. The members of a limited liability company are taxed on their proportionate share of the Company’s taxable income. Accordingly, prior to the Distribution, no provision or liability for Federal income taxes was included in the financial statements, except for Douglas Elliman of California, Inc. which is taxed as a corporation and has net operating loss carryforwards, which have been fully reserved for with a valuation allowance. The Company is, however, subject to New York City Unincorporated Business Tax (“UBT”) and accordingly has recorded a provision for UBT in its combined consolidated financial statements. |
Contingencies | Contingencies : The Company and its subsidiaries record provisions in its combined consolidated financial statements for pending litigation when they determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated. |
Distributions and Dividends on Common Stock | Distributions and Dividends on Common Stock : |
Revenue Recognition | Revenue Recognition : Commissions and other brokerage income: Real estate commissions earned by the Company’s real estate brokerage businesses are recognized as revenue when the real estate sale is completed or lease agreement is executed, which is the point in time that the performance obligation is satisfied. Any commission and other payments received in advance are deferred until the satisfaction of the performance obligation. Corresponding agent commission expenses, including any advance commission or other direct expense payments, are deferred and recognized as agent commission expenses concurrently with related revenues. The accounting for these commissions and other brokerage income under Topic 606 are largely consistent with the previous accounting for these transactions under Topic 605, except for customer arrangements in the development marketing business and extended payments terms that exist in some commercial leasing contracts. Property management: Property management revenue arrangements consist of providing operational and administrative services to manage a subject property. Fees for these services are typically billed and collected monthly. Property management service fees are recognized as revenue over time using the output method as the performance obligations under the customer arrangement are satisfied each month. Ancillary services: Ancillary services revenue earned by the Company related primarily to title and escrow services. These services are recognized as revenue when the real estate sale is completed, which is the point in time that the performance obligation is satisfied. |
Real estate agent commissions | Real estate agent commissions : |
Sales and marketing expenses and General and administrative expenses | Sales and marketing expenses : General and administrative expenses : |
Operations and support expenses | Operations and support expenses : |
Technology expenses | Technology expenses : |
Restructuring | Restructuring : In response to COVID-19, the Company commenced a restructuring by realigning its administrative support function and office locations as well as adjusting its business model to serve its client more efficiently. This included a reduction of staff by approximately 25% at Douglas Elliman. For the years ended December 31, 2022 and 2021 , there were no restructuring charges. As of December 31, 2020 , there was no accrual for restructuring charges. |
Other Comprehensive Income | Other Comprehensive Income : |
Subsequent Events | Subsequent Events : |
New Accounting Pronouncements | New Accounting Pronouncements : Accounting Standards Updates (“ASUs”) to be adopted in future periods: In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In June 2022, the FASB issued ASU 2022-03 , Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The ASU clarifies the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. SEC Proposed Rule Changes On March 21, 2022, the SEC proposed rule changes that would require registrants to provide certain climate-related information in their registration statements and annual reports. The proposed rules would require information about a registrant's climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. The required information about climate-related risks would also include disclosure of a registrant's greenhouse gas emissions, which have become a commonly used metric to assess a registrant's exposure to such risks. In addition, under the proposed rules, certain climate-related financial metrics would be required in a registrant's audited financial statements. The Company is currently evaluating the impact of the proposed rule changes. |
Earnings Per Share | Basic EPS is computed by dividing net (loss) income available to common stockholders attributed to Douglas Elliman Inc. by the weighted-average number of shares outstanding, which will include vested restricted stock. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Components of Cash, Cash Equivalents and Restricted Cash | The components of “Cash, cash equivalents and restricted cash” in the combined consolidated statements of cash flows were as follows: December 31, December 31, December 31, Cash and cash equivalents $ 163,859 $ 211,623 $ 94,421 Restricted cash and cash equivalents included in current assets 4,985 15,336 10,374 Restricted cash and cash equivalents included in other assets 2,538 1,907 1,907 Total cash, cash equivalents, and restricted cash shown in the combined consolidated statements of cash flows $ 171,382 $ 228,866 $ 106,702 |
Schedule of Amounts Expensed for Restructuring | The following table summarizes amounts expensed for the year ended December 31, 2020: Year Ended December 31, 2020 Cash Charges: Employee severance and benefits $ 1,875 Other restructuring expenses 293 2,168 Non-Cash: Loss on fixed assets associated with consolidation of sales offices 1,214 Total restructuring charges $ 3,382 |
Schedule of Activity for Restructuring | The following table presents the activity under the restructuring plan for the year ended December 31, 2020: Employee Severance and Benefits Other Non-Cash Loss on Fixed Assets Total Accrual balance as of January 1, 2020 $ — $ — $ — $ — Restructuring charges 1,875 293 1,214 3,382 Utilized (1,875) (293) (1,214) (3,382) Accrual balance as of December 31, 2020 $ — $ — $ — $ — |
Schedule of Investments and Other Income | Investment and other income consists of the following: Year Ended December 31, 2022 2021 2020 Net gains recognized on PropTech convertible trading debt securities. $ 2,184 $ 60 $ — Net gains recognized on long-term investments at fair value 655 205 — Other income 1 264 843 Income related to Tax Disaffiliation indemnification 589 — — Investment and other income $ 3,429 $ 529 $ 843 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | In the following table, revenue is disaggregated by major services line and primary geographical market: Year Ended December 31, 2022 Total New York City Northeast Southeast West Revenues : Commission and other brokerage income - existing home sales $ 1,028,480 $ 359,417 $ 207,932 $ 263,468 $ 197,663 Commission and other brokerage income - development marketing 71,405 53,773 654 13,867 3,111 Property management revenue 36,022 35,421 601 — — Escrow and title fees 17,270 3,186 1,235 — 12,849 Total revenue $ 1,153,177 $ 451,797 $ 210,422 $ 277,335 $ 213,623 Year Ended December 31, 2021 Total New York City Northeast Southeast West Revenues : Commission and other brokerage income - existing home sales $ 1,210,469 $ 392,011 $ 249,195 $ 355,206 $ 214,057 Commission and other brokerage income - development marketing 81,947 48,167 — 32,292 1,488 Property management revenue 37,345 36,756 589 — — Escrow and title fees 23,377 5,200 1,755 — 16,422 Total revenue $ 1,353,138 $ 482,134 $ 251,539 $ 387,498 $ 231,967 Year Ended December 31, 2020 Total New York City Northeast Southeast West Revenues : Commission and other brokerage income - existing home sales $ 686,389 $ 186,229 $ 204,814 $ 160,404 $ 134,942 Commission and other brokerage income - development marketing 47,362 24,590 — 22,081 691 Property management revenue 35,115 34,209 906 — — Escrow and title fees 5,121 2,047 1,717 — 1,357 Total revenue $ 773,987 $ 247,075 $ 207,437 $ 182,485 $ 136,990 |
Schedule of Contract Balances | The following table provides information about contract assets and contract liabilities from development marketing and commercial leasing contracts with customers: December 31, 2022 December 31, 2021 Receivables, which are included in receivable $ 3,063 $ 2,749 Contract assets, net, which are included in other current assets 4,453 2,187 Contract assets, net, which are in other assets 38,913 28,996 Payables, which are included in other current liabilities 2,291 2,070 Contract liabilities, which are in current liabilities 8,222 6,689 Contract liabilities, which are in other liabilities 54,706 39,557 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Rollforward of Allowance for Credit Losses | The following table summarizes changes in the allowance for credit losses for the year ended December 31, 2022: January 1, Current Period Provision Write-offs Recoveries December 31, Allowance for credit losses: Real estate broker agent receivables $ 8,607 $ 4,064 (1) $ 1,755 $ — 10,916 _____________________________ (1) The current period provision for the real estate broker agent receivables is included in “General and administrative expenses” in the Company’s combined consolidated statements of operations. The following table summarizes changes in the allowance for credit losses for the year ended December 31, 2021: January 1, Current Period Provision Write-offs Recoveries December 31, Allowance for credit losses: Real estate broker agent receivables $ 7,038 $ 3,331 (1) $ 1,762 $ — 8,607 _____________________________ (1) The current period provision for the real estate broker agent receivables is included in “General and administrative expenses” in the Company’s combined consolidated statements of operations. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net income for purposes of determining basic and diluted EPS | As a result, in its calculation of basic and dilutive EPS for the years ended December 31, 2022, 2021 and 2020, respectively, the Company did not adjust its net (loss) income for the effect of these participating securities because the adjustment was negligible. For the year ended December 31, 2022 2021 2020 Net (loss) income attributed to Douglas Elliman Inc. $ (5,622) $ 98,838 $ (46,372) Income attributable to participating securities (704) (12) — Net (loss) income available to common stockholders attributed to Douglas Elliman Inc. $ (6,326) $ 98,826 $ (46,372) |
Schedule of Basic and diluted EPS calculation shares | Basic and diluted EPS were calculated using the following common shares for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, 2022 2021 2020 Weighted-average shares for basic and diluted EPS 77,728,081 77,720,626 77,720,626 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 Operating lease cost $ 33,248 $ 32,694 $ 32,926 Short-term lease cost 1,064 794 912 Variable lease cost 4,144 3,623 3,552 Less: Sublease income (579) (458) (325) Total lease cost $ 37,877 $ 36,653 $ 37,065 Supplemental cash flow information related to 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 $ 36,956 $ 38,416 $ 22,201 ROU assets obtained in exchange for lease obligations: Operating leases 14,856 9,102 12,977 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, December 31, 2022 2021 Weighted average remaining lease term in years: Operating leases 7.03 7.65 Weighted average discount rate: Operating leases 8.73 % 9.12 % |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Year Ending December 31: 2023 $ 34,607 2024 29,657 2025 24,936 2026 22,617 2027 19,792 Thereafter 64,121 Total lease payments 195,730 Less imputed interest (52,894) Total $ 142,836 |
Schedule of Maturities of Financing Lease Liabilities | As of December 31, 2022, maturities of lease liabilities were as follows: Operating Leases Year Ending December 31: 2023 $ 34,607 2024 29,657 2025 24,936 2026 22,617 2027 19,792 Thereafter 64,121 Total lease payments 195,730 Less imputed interest (52,894) Total $ 142,836 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Long-term Investment Securities | Long-term investments consisted of the following: December 31, 2022 December 31, 2021 PropTech convertible trading debt securities $ 2,957 $ 2,222 Long-term investment securities at fair value (1) 3,262 1,534 PropTech investments at cost 8,588 4,338 Total investments 14,807 8,094 PropTech current convertible trading debt securities (2) 1,875 — Total long-term investments $ 12,932 $ 8,094 _____________________________ (1) These assets are measured at net asset value (“NAV”) as a practical expedient under ASC 820. (2) These amounts are included in “Other current assets” on the combined consolidated balance sheets. Net gains recognized on long-term investment securities were as follows: Year Ended December 31, 2022 2021 2020 Net gains recognized on PropTech convertible trading debt securities $ 2,184 $ 60 $ — Net gains recognized on long-term investment securities at fair value 655 205 — Net gains recognized on long-term investment securities $ 2,839 $ 265 $ — |
Summary of Unrealized and Realized Net Gains | The following is a summary of unrealized and realized net gains recognized in net income on long-term investment securities at fair value during the years ended December 31, 2022, 2021 and 2020, respectively: Year Ended December 31, 2022 2021 2020 Net gains recognized on long-term investment securities $ 655 $ 205 $ — Less: Net gains recognized on long-term investment securities sold — — — Net unrealized gains recognized on long-term investment securities still held at the reporting date $ 655 $ 205 $ — |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment, net consisted of the following: December 31, December 31, Leasehold improvements $ 52,986 $ 51,571 Furniture and equipment 40,531 32,985 93,517 84,556 Less accumulated depreciation and amortization (51,800) (45,175) $ 41,717 $ 39,381 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Equity-method investments consisted of the following: December 31, 2022 December 31, 2021 Ancillary services ventures $ 1,629 $ 2,521 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | The components of Goodwill and other intangible assets were as follows: December 31, December 31, Goodwill $ 32,230 $ 32,571 Indefinite-life intangibles: Trademark - Douglas Elliman $ 68,000 $ 68,000 Intangibles with a finite life, net 5,666 6,421 Total other intangible assets, net $ 73,666 $ 74,421 The carrying amounts of goodwill and intangibles with a finite life, net related to acquisitions made in 2022 were as follows: Goodwill Intangibles with a finite life, net Balance as of January 1, 2022 $ 32,571 $ 6,421 Purchase price adjustment (1) (341) — Amortization — (755) Balance as of December 31, 2022 $ 32,230 $ 5,666 _____________________________ (1) Purchase price adjustment related to the Douglas Elliman Texas acquisition. Refer to Note 1, Summary of Significant Accounting Policies , for further information. The carrying amounts of goodwill and intangibles with a finite life, net related to the August 6, 2021 acquisition of an additional 49% ownership in Douglas Elliman Texas were as follows: Goodwill Intangibles with a finite life, net Balance as of January 1, 2021 $ 31,756 $ 310 Acquisitions (1) 815 6,527 Amortization — (416) Balance as of December 31, 2021 $ 32,571 $ 6,421 _____________________________ (1) Refer to Note 1, Summary of Significant Accounting Policies , for further information. |
Schedule of Intangible Asset and Contract Liabilities Assumed | Other intangible assets and contract liabilities assumed were as follows: Useful Lives in Years December 31, December 31, Trademark - Douglas Elliman Indefinite $ 68,000 $ 68,000 Other intangibles 1 - 10 11,216 11,216 11,216 11,216 Less: Accumulated amortization on amortizable intangibles (5,550) (4,795) Other intangibles, net $ 5,666 $ 6,421 |
Schedule of Intangible Asset and Contract Liabilities Assumed | Other intangible assets and contract liabilities assumed were as follows: Useful Lives in Years December 31, December 31, Trademark - Douglas Elliman Indefinite $ 68,000 $ 68,000 Other intangibles 1 - 10 11,216 11,216 11,216 11,216 Less: Accumulated amortization on amortizable intangibles (5,550) (4,795) Other intangibles, net $ 5,666 $ 6,421 |
Notes Payable and Other Oblig_2
Notes Payable and Other Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable and Other Obligations | Notes payable and other obligations consisted of the following: December 31, 2022 December 31, 2021 Notes payable $ — $ 12,500 Other — 203 Total notes payable and other obligations — 12,703 Less: Current maturities — (12,527) Amount due after one year $ — $ 176 |
Schedule of Fair Value of Notes Payable and Long-term Debt | The estimated fair value of the Company’s notes payable and long-term debt was as follows: December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Notes payable $ — $ — $ 12,500 $ 12,500 Other — — 203 203 Notes payable and other obligations $ — $ — $ 12,703 $ 12,703 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Amounts Provided for Income Taxes | The amounts provided for income taxes were as follows: Year Ended December 31, 2022 2021 2020 Current: U.S. Federal $ 1,039 $ (64) $ (20) State and local 1,271 2,270 (14) 2,310 2,206 (34) Deferred: U.S. Federal 1,421 (48) 56 State and local 2,772 (25) 22 4,193 (73) 78 Total $ 6,503 $ 2,133 $ 44 |
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and liabilities is as follows: December 31, 2022 December 31, 2021 Deferred tax assets: Allowance for doubtful accounts $ 212 $ 200 Basis differences on fixed and intangible assets 391 265 Various U.S. federal and state tax loss carryforwards 6,417 5,196 Operating lease liabilities 5,901 5,538 Other — 77 12,921 11,276 Less: Valuation allowance (6,417) (5,196) Net deferred tax assets $ 6,504 $ 6,080 Deferred tax liabilities: Basis differences on prepaid assets $ (204) $ (197) Revenue recognition (40) (167) Basis differences on long-term investments (954) — Basis differences on acquisition (14,340) (12,151) Operating lease right-of-use assets (5,320) (4,977) Other (113) — $ (20,971) $ (17,492) Net deferred tax liabilities $ (14,467) $ (11,412) |
Schedule of Effective Income Tax Rate Reconciliation | Differences between the amounts provided for income taxes and amounts computed at the federal statutory tax rate are summarized as follows: Year Ended December 31, 2022 2021 2020 Income (loss) before provision for income taxes $ 104 $ 100,785 $ (46,328) Federal income tax expense (benefit) at statutory rate 22 21,165 (9,729) Less Federal income tax (expense) benefit attributable to pass through entities — (20,278) 7,915 State and local income taxes, net of federal income tax benefits 2,213 1,769 (418) Impact of non-controlling interest 163 — — Non-deductible expenses 1,715 361 568 Excess tax benefits on stock-based compensation 812 — — Loss carryforwards from tax consolidation of subsidiary (331) 1,145 — Changes in valuation allowance, net of equity and tax audit adjustments 1,221 (2,035) 1,708 Other 688 6 — Income tax expense $ 6,503 $ 2,133 $ 44 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Award Transactions | A summary of employee restricted stock award transactions is presented below: Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 — $ — Granted 3,490,000 $ 11.50 Nonvested at December 31, 2021 3,490,000 $ 11.50 Granted 90,000 $ 8.25 Vested (953,750) $ 11.49 Forfeited (25,000) $ 10.21 Nonvested at December 31, 2022 2,601,250 $ 11.40 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, 2022 2021 2020 Cash paid during the period for: Interest $ 177 $ 24 $ 1 Income taxes, net 11,083 681 — Non-cash investing and financing activities: Capital expenditures incurred but not paid 1,070 2 243 Transfers from Former Parent, net — 15,444 5,679 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's Recurring Financial Assets and Liabilities Subject to Fair Value Measurements | The Company’s financial assets and liabilities subject to fair value measurements were as follows: Fair Value Measurements as of December 31, 2022 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 153,941 $ 153,941 $ — $ — Certificates of deposit (2) 569 — 569 — PropTech convertible trading debt securities 1,875 — — 1,875 Long-term investments PropTech convertible trading debt securities 1,082 — — 1,082 Long-term investment securities at fair value (3) 3,262 — — — Total long-term investments 4,344 — — 1,082 Total assets $ 160,729 $ 153,941 $ 569 $ 2,957 _____________________________ (1) Amounts included in Cash and cash equivalents on the combined consolidated balance sheets, except for $4,985 that is included in current restricted cash and cash equivalents and $2,538 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the combined consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. Fair Value Measurements as of December 31, 2021 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Money market funds (1) $ 51,492 $ 51,492 $ — $ — Certificates of deposit (2) 569 — 569 — Long-term investments PropTech convertible trading debt securities 2,222 — — 2,222 Long-term investment securities at fair value (3) 1,534 — — — Total long-term investments 3,756 — — 2,222 Total assets $ 55,817 $ 51,492 $ 569 $ 2,222 _____________________________ (1) Amounts included in Cash and cash equivalents on the combined consolidated balance sheets, except for $15,336 that is included in current restricted assets and $1,907 that is included in non-current restricted assets. (2) Amounts included in current restricted assets and non-current restricted assets on the combined consolidated balance sheets. (3) In accordance with Subtopic 820-10, investments that are measured at fair value using the NAV practical expedient are not classified in the fair value hierarchy. |
Schedule of Unobservable Inputs Related to the Valuations of the Level 3 Liabilities | The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2022: Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) PropTech convertible trading debt securities $ 2,957 Discounted cash flow Interest rate 4% - 8% Maturity Mar 2023 - Feb 2025 Volatility 60.7% - 103.3% Discount rate 29.39% - 186.15% The unobservable inputs related to the valuations of the Level 3 assets and liabilities were as follows at December 31, 2021: Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, Valuation Technique Unobservable Input Range (Actual) PropTech convertible trading debt securities $ 2,222 Discounted cash flow Interest rate 5% Maturity Feb 2023 - Mar 2023 Volatility 37.7% - 86.8% Discount rate 27.25% - 46.83% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for the Company’s Operations Before Taxes and Non-controlling Interests | Financial information for the Company’s operations before taxes and non-controlling interests for the years ended December 31, 2022, 2021, and 2020 was as follows: Real Estate Brokerage Corporate Total 2022 Revenues $ 1,153,177 $ — $ 1,153,177 Operating income (loss) 21,993 (26,534) (4,541) Identifiable assets 512,524 37,878 550,402 Depreciation and amortization 8,012 — 8,012 Capital expenditures 8,537 — 8,537 2021 Revenues $ 1,353,138 $ — $ 1,353,138 Operating income 102,098 — 102,098 Identifiable assets 548,217 46,952 595,169 Depreciation and amortization 8,561 — 8,561 Capital expenditures 4,106 — 4,106 2020 Revenues $ 773,987 $ — $ 773,987 Operating loss (1) (49,285) — (49,285) Identifiable assets 453,745 237 453,982 Depreciation and amortization 8,537 — 8,537 Capital expenditures 6,126 — 6,126 _____________________________ (1) Operating loss includes $58,252 of charges related to impairments of goodwill and intangible assets, $3,382 of restructuring charges and $1,169 of loss on sale of assets. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Basis of Presentation (Details) $ in Thousands | 12 Months Ended | 27 Months Ended | |||
Dec. 31, 2022 agent office | Mar. 31, 2020 USD ($) | Dec. 29, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | |
Number of offices | office | 120 | ||||
Number of real estate agents | agent | 6,900 | ||||
Number of common stock received (in shares) | 0.5 | ||||
Management fee | $ | $ 500 | ||||
Douglas Elliman Texas | Douglas Elliman Texas | |||||
Voting interest acquired | 50% | 1% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 163,859 | $ 211,623 | $ 94,421 | |
Restricted cash and cash equivalents included in current assets | 4,985 | 15,336 | 10,374 | |
Restricted cash and cash equivalents included in other assets | 2,538 | 1,907 | 1,907 | |
Total cash, cash equivalents, and restricted cash shown in the combined consolidated statements of cash flows | $ 171,382 | $ 228,866 | $ 106,702 | $ 79,068 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Receivables (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Commissions and other brokerage income | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Allowance for bad debt | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant and Equipment Narrative (Details) - Furniture and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2022 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment charges to goodwill | $ 46,252,000 | $ 0 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairments of goodwill and other intangible assets | |
Trademark - Douglas Elliman | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Impairment of intangibles | $ 12,000,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Stock Awards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Restricted Stock | 2021 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Payments of dividend equivalent rights on restricted stock awards | $ 704 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Other Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property management | |||
Segment Reporting Information [Line Items] | |||
Advertising costs | $ 29,937 | $ 26,091 | $ 18,875 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Restructuring (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Staff reduction | 25% | ||
Accrual for restructuring charges | $ 0 | ||
Cash Charges: | |||
Employee severance and benefits | 1,875,000 | ||
Other restructuring expenses | 293,000 | ||
Cash charges | $ 0 | $ 0 | 2,168,000 |
Non-Cash: | |||
Loss on fixed assets associated with consolidation of sales offices | 1,214,000 | ||
Total restructuring charges | $ 3,382,000 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Real Estate Segment Restructuring Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Accrual balance as of January 1, 2020 | $ 0 | ||
Non-cash portion of restructuring | $ 0 | 0 | $ 2,168,000 |
Accrual balance as of December 31, 2020 | 0 | ||
Real Estate | |||
Restructuring Reserve [Roll Forward] | |||
Accrual balance as of January 1, 2020 | 0 | 0 | |
Non-cash portion of restructuring | 3,382,000 | ||
Utilized | (3,382,000) | ||
Accrual balance as of December 31, 2020 | 0 | ||
Real Estate | Employee Severance and Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Accrual balance as of January 1, 2020 | 0 | 0 | |
Non-cash portion of restructuring | 1,875,000 | ||
Utilized | (1,875,000) | ||
Accrual balance as of December 31, 2020 | 0 | ||
Real Estate | Other | |||
Restructuring Reserve [Roll Forward] | |||
Accrual balance as of January 1, 2020 | 0 | 0 | |
Non-cash portion of restructuring | 293,000 | ||
Utilized | (293,000) | ||
Accrual balance as of December 31, 2020 | 0 | ||
Real Estate | Non-Cash Loss on Fixed Assets | |||
Restructuring Reserve [Roll Forward] | |||
Accrual balance as of January 1, 2020 | $ 0 | 0 | |
Non-cash portion of restructuring | 1,214,000 | ||
Utilized | (1,214,000) | ||
Accrual balance as of December 31, 2020 | $ 0 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Investments and Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net gains recognized on PropTech convertible trading debt securities. | $ 2,184 | $ 60 | $ 0 |
Net gains recognized on long-term investments at fair value | 655 | 205 | 0 |
Other income | 1 | 264 | 843 |
Income related to Tax Disaffiliation indemnification | 589 | 0 | 0 |
Investment and other income | $ 3,429 | $ 529 | $ 843 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Acquisitions (Details) - USD ($) $ in Thousands | Aug. 06, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Assets acquired excluding intangibles | $ 5,047 | |||
Goodwill | $ 32,230 | $ 32,571 | $ 31,756 | |
Amortization period | 10 years | |||
REAOH | ||||
Business Acquisition [Line Items] | ||||
Non-controlling interest | 50% | |||
REAOH | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 500 | |||
Intangible assets acquired | 6,527 | |||
Liabilities acquired | 11,389 | |||
Goodwill | $ 815 | |||
REAOH | Douglas Elliman Texas | ||||
Business Acquisition [Line Items] | ||||
Ownership interest acquired | 49% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,153,177 | $ 1,353,138 | $ 773,987 |
New York City | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 451,797 | 482,134 | 247,075 |
Northeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 210,422 | 251,539 | 207,437 |
Southeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 277,335 | 387,498 | 182,485 |
West | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 213,623 | 231,967 | 136,990 |
Commission and other brokerage income - existing home sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,028,480 | 1,210,469 | 686,389 |
Commission and other brokerage income - existing home sales | New York City | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 359,417 | 392,011 | 186,229 |
Commission and other brokerage income - existing home sales | Northeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 207,932 | 249,195 | 204,814 |
Commission and other brokerage income - existing home sales | Southeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 263,468 | 355,206 | 160,404 |
Commission and other brokerage income - existing home sales | West | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 197,663 | 214,057 | 134,942 |
Commission and other brokerage income - existing home sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 71,405 | 81,947 | 47,362 |
Commission and other brokerage income - existing home sales | New York City | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 53,773 | 48,167 | 24,590 |
Commission and other brokerage income - existing home sales | Northeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 654 | 0 | 0 |
Commission and other brokerage income - existing home sales | Southeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 13,867 | 32,292 | 22,081 |
Commission and other brokerage income - existing home sales | West | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,111 | 1,488 | 691 |
Property management revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 36,022 | 37,345 | 35,115 |
Property management revenue | New York City | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 35,421 | 36,756 | 34,209 |
Property management revenue | Northeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 601 | 589 | 906 |
Property management revenue | Southeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Property management revenue | West | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Escrow and title fees | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 17,270 | 23,377 | 5,121 |
Escrow and title fees | New York City | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,186 | 5,200 | 2,047 |
Escrow and title fees | Northeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,235 | 1,755 | 1,717 |
Escrow and title fees | Southeast | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 0 | 0 | 0 |
Escrow and title fees | West | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 12,849 | $ 16,422 | $ 1,357 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract assets, net | $ 38,913 | $ 28,996 |
Contract liabilities | 8,222 | 6,689 |
Contract liabilities, which are in other liabilities | 54,706 | 39,557 |
Accounts Receivable | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract assets, net, which are included in other current assets | 3,063 | 2,749 |
Other current assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract assets, net, which are included in other current assets | 4,453 | 2,187 |
Other assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract assets, net | 38,913 | 28,996 |
Other current liabilities | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities | 2,291 | 2,070 |
Current Liabilities | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities | 8,222 | 6,689 |
Other liabilities | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract liabilities, which are in other liabilities | $ 54,706 | $ 39,557 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Increase (decrease) in contract assets | $ 12,183,000 | ||
Increase payables | 221,000 | ||
Cash payments | 3,007,000 | ||
Advance payments received from customer | 26,884,000 | ||
Contract liabilities increase | 16,682,000 | ||
Contract liability advance payments received from customer | 38,461,000 | ||
Revenue recognized on contract liabilities | 6,776,000 | $ 9,988,000 | $ 8,846,000 |
Revenue recognized for performance obligations satisfied or partially satisfied in prior periods | $ 0 | $ 0 | $ 0 |
Minimum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Development marketing project period | 4 years | ||
Maximum | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Development marketing project period | 6 years | ||
Commercial Leasing Contracts | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Commercial leasing contracts extended payment term | 12 months | ||
Increase (decrease) in contract assets | $ 314,000 | ||
Cash collections | $ 3,985,000 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected revenue from contract liabilities | $ 8,222 |
Expected revenue from contract liabilities, period | 12 months |
Current Expected Credit Losse_2
Current Expected Credit Losses - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Real estate broker agent receivables | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Estimated credit losses | $ 10,916 | $ 8,607 | $ 7,038 |
Current Expected Credit Losse_3
Current Expected Credit Losses - Rollforward (Details) - Real estate broker agent receivables - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 8,607 | $ 7,038 |
Current Period Provision | 4,064 | 3,331 |
Write-offs | 1,755 | 1,762 |
Recoveries | 0 | 0 |
Ending balance | $ 10,916 | $ 8,607 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 29, 2021 | |
Earnings Per Share [Abstract] | |||
Common stock, shares issued (in shares) | 80,881,022 | 81,210,626 | 77,720,626 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Weighted-average shares (in shares) | 26,984 |
Earnings (Loss) Per Share - Net
Earnings (Loss) Per Share - Net Income (Loss) for Purposes of Determining Basic and Diluted EPS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributed to Douglas Elliman Inc. | $ (5,622) | $ 98,838 | $ (46,372) |
Income attributable to participating securities | (704) | (12) | 0 |
Net (loss) income available to common stockholders attributed to Douglas Elliman Inc. | $ (6,326) | $ 98,826 | $ (46,372) |
Earnings (Loss) Per Share - Bas
Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares for basic EPS (in shares) | 77,728,081 | 77,720,626 | 77,720,626 |
Weighted-average shares for diluted EPS (in shares) | 77,728,081 | 77,720,626 | 77,720,626 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | $ 142,836 | ||
Lease renewal term | 5 years | ||
Lease termination term | 1 year | ||
Lease not yet commenced | $ 217 | ||
Rental expense | 33,248 | $ 32,692 | $ 32,937 |
Amortization and impairment | 18,667 | 17,326 | |
Interest accretion | 12,627 | 14,025 | 15,611 |
Non-cash lease expense | $ 20,621 | $ 18,667 | $ 17,326 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 11 years |
Leases - Lease Expense and Supp
Leases - Lease Expense and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 33,248 | $ 32,694 | $ 32,926 |
Short-term lease cost | 1,064 | 794 | 912 |
Variable lease cost | 4,144 | 3,623 | 3,552 |
Less: Sublease income | (579) | (458) | (325) |
Total lease cost | 37,877 | 36,653 | 37,065 |
Cash paid for amounts included in measurement of lease liabilities: | |||
Operating cash flows from operating leases | 36,956 | 38,416 | 22,201 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | $ 14,856 | $ 9,102 | $ 12,977 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted average remaining lease term in years: | ||
Operating leases | 7 years 10 days | 7 years 7 months 24 days |
Weighted average discount rate: | ||
Operating leases | 8.73% | 9.12% |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 34,607 |
2024 | 29,657 |
2025 | 24,936 |
2026 | 22,617 |
2027 | 19,792 |
Thereafter | 64,121 |
Total lease payments | 195,730 |
Less imputed interest | (52,894) |
Total | $ 142,836 |
Long-Term Investments - Compone
Long-Term Investments - Components of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
PropTech convertible trading debt securities | $ 2,957 | $ 2,222 |
Long-term investment securities at fair value | 3,262 | 1,534 |
PropTech investments at cost | 8,588 | 4,338 |
Total investments | 14,807 | 8,094 |
PropTech current convertible trading debt securities | 1,875 | 0 |
Total long-term investments | $ 12,932 | $ 8,094 |
Long-Term Investments - Summary
Long-Term Investments - Summary of Unrealized and Realized Net Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net gains recognized on PropTech convertible trading debt securities. | $ 2,184 | $ 60 | $ 0 |
Net gains recognized on long-term investment securities at fair value | 655 | 205 | 0 |
Net gains recognized on long-term investment securities | $ 2,839 | $ 265 | $ 0 |
Long-Term Investments - Narrati
Long-Term Investments - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) security investment venture | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Unfunded commitments | $ 1,085 | ||
Purchase of equity securities | 2,100 | $ 3,975 | $ 0 |
PropTech investments at cost | $ 8,588 | $ 4,338 | |
Affiliated Entity | New Valley Ventures L L C | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of investees | investment | 1 | ||
Purchase of equity securities | $ 500 | ||
Number of converted trading debt securities | security | 1 | ||
Prop Tech | Affiliated Entity | New Valley Ventures L L C | |||
Debt Securities, Available-for-sale [Line Items] | |||
Number of investees | venture | 4 | ||
Purchase of equity securities | $ 1,500 | ||
Prop Tech | Affiliated Entity | New Valley Ventures L L C | PropTech convertible trading debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Invested amount | $ 701 | ||
Number of investees | investment | 2 |
Long-Term Investments - Gross R
Long-Term Investments - Gross Realized Gains and Losses on Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net gains recognized on long-term investment securities | $ 655 | $ 205 | $ 0 |
Less: Net gains recognized on long-term investment securities sold | 0 | 0 | 0 |
Net unrealized gains recognized on long-term investment securities still held at the reporting date | $ 655 | $ 205 | $ 0 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 93,517 | $ 84,556 | |
Less accumulated depreciation and amortization | (51,800) | (45,175) | |
Property, plant and equipment, net | 41,717 | 39,381 | |
Depreciation and amortization | 7,257 | 8,144 | $ 8,373 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 52,986 | 51,571 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 40,531 | $ 32,985 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Ancillary services ventures | $ 1,629 | $ 2,521 |
Ancillary services ventures | ||
Schedule of Equity Method Investments [Line Items] | ||
Ancillary services ventures | $ 1,629 | $ 2,521 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Investments [Line Items] | |
Maximum exposure on guarantees | $ 1,629 |
Minimum | Ancillary services ventures | |
Schedule of Investments [Line Items] | |
Equity method ownership percentage | 17% |
Maximum | Ancillary services ventures | |
Schedule of Investments [Line Items] | |
Equity method ownership percentage | 50% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 32,230 | $ 32,571 | $ 31,756 |
Intangibles with a finite life, net | 5,666 | 6,421 | $ 310 |
Total other intangible assets, net | 73,666 | 74,421 | |
Trademark - Douglas Elliman | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite life intangibles | $ 68,000 | $ 68,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 06, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment charges to goodwill | $ 46,252,000 | $ 0 | |||
Amortization | $ 755,000 | $ 416,000 | $ 164,000 | ||
Trademark - Douglas Elliman | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of intangibles | $ 12,000,000 | ||||
Trademark - Douglas Elliman | Douglas Elliman Texas | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Ownership percentage | 49% |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | |||
Beginning balance | $ 32,571 | $ 31,756 | |
Acquisition | 815 | ||
Purchase price adjustment | (341) | ||
Ending balance | 32,230 | 32,571 | $ 31,756 |
Intangibles with a finite life, net | |||
Beginning balance | 6,421 | 310 | |
Acquisition | 6,527 | ||
Purchase price adjustment | 0 | ||
Amortization | (755) | (416) | (164) |
Ending balance | $ 5,666 | $ 6,421 | $ 310 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Intangible Asset and Contract Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 11,216 | $ 11,216 | |
Less: Accumulated amortization on amortizable intangibles | (5,550) | (4,795) | |
Other intangibles, net | 5,666 | 6,421 | $ 310 |
Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangibles | $ 11,216 | 11,216 | |
Minimum | Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives in Years | 1 year | ||
Maximum | Other intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives in Years | 10 years | ||
Trademark - Douglas Elliman | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite life intangibles | $ 68,000 | $ 68,000 |
Notes Payable and Other Oblig_3
Notes Payable and Other Obligations - Schedule of Components of Debt and Other Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total notes payable and other obligations | $ 0 | $ 12,703 |
Less: Current maturities | 0 | (12,527) |
Amount due after one year | 0 | 176 |
Notes payable | ||
Debt Instrument [Line Items] | ||
Total notes payable and other obligations | 0 | 12,500 |
Other | ||
Debt Instrument [Line Items] | ||
Total notes payable and other obligations | $ 0 | $ 203 |
Notes Payable and Other Oblig_4
Notes Payable and Other Obligations - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 0 | $ 12,703 | ||
Remaining principal due in 2022 | 12,528 | 361 | $ 63 | |
Douglas Elliman | ||||
Debt Instrument [Line Items] | ||||
Voting interest acquired | 29.41% | |||
Notes payable | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | 0 | $ 12,500 | ||
Notes Payable Issued by New Valley | Notes payable | ||||
Debt Instrument [Line Items] | ||||
Notes payable, long-term debt and other obligations | $ 30,000 | |||
Remaining principal due in 2022 | $ 12,500 |
Notes Payable and Other Oblig_5
Notes Payable and Other Obligations - Fair Value of Notes Payable and Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and other obligations | $ 0 | $ 12,703 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and other obligations | 0 | 12,703 |
Notes payable | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and other obligations | 0 | 12,500 |
Notes payable | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and other obligations | 0 | 12,500 |
Other | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and other obligations | 0 | 203 |
Other | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable and other obligations | $ 0 | $ 203 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Retirement Benefits [Abstract] | |||
Number of plans | plan | 2 | ||
401 (k) plan cost recognized | $ | $ 689 | $ 598 | $ 370 |
Income Taxes - Schedule of Amou
Income Taxes - Schedule of Amounts Provided for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
U.S. Federal | $ 1,039 | $ (64) | $ (20) |
State and local | 1,271 | 2,270 | (14) |
Current Total | 2,310 | 2,206 | (34) |
Deferred: | |||
U.S. Federal | 1,421 | (48) | 56 |
State and local | 2,772 | (25) | 22 |
Deferred Total | 4,193 | (73) | 78 |
Income tax expense | $ 6,503 | $ 2,133 | $ 44 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 212 | $ 200 |
Basis differences on fixed and intangible assets | 391 | 265 |
Various U.S. federal and state tax loss carryforwards | 6,417 | 5,196 |
Operating lease liabilities | 5,901 | 5,538 |
Other | 0 | 77 |
Deferred tax assets | 12,921 | 11,276 |
Less: Valuation allowance | (6,417) | (5,196) |
Net deferred tax assets | 6,504 | 6,080 |
Deferred tax liabilities: | ||
Basis differences on prepaid assets | 204 | 197 |
Revenue recognition | (40) | (167) |
Basis differences on long-term investments | (954) | 0 |
Basis differences on acquisition | (14,340) | (12,151) |
Operating lease right-of-use assets | (5,320) | (4,977) |
Other | (113) | 0 |
Deferred tax liabilities | (20,971) | (17,492) |
Net deferred tax liabilities | $ (14,467) | $ (11,412) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Various U.S. federal and state tax loss carryforwards | $ 6,417 | $ 5,196 |
Operating loss carryforward, subject to expiration | 4,388 | |
Valuation allowance | $ 6,417 | $ 5,196 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before provision for income taxes | $ 104 | $ 100,785 | $ (46,328) |
Federal income tax expense (benefit) at statutory rate | 22 | 21,165 | (9,729) |
Less Federal income tax (expense) benefit attributable to pass through entities | 0 | (20,278) | 7,915 |
State and local income taxes, net of federal income tax benefits | 2,213 | 1,769 | (418) |
Impact of non-controlling interest | 163 | 0 | 0 |
Non-deductible expenses | 1,715 | 361 | 568 |
Excess tax benefits on stock-based compensation | 812 | 0 | 0 |
Loss carryforwards from tax consolidation of subsidiary | (331) | 1,145 | 0 |
Changes in valuation allowance, net of equity and tax audit adjustments | 1,221 | (2,035) | 1,708 |
Other | 688 | 6 | 0 |
Income tax expense | $ 6,503 | $ 2,133 | $ 44 |
Stock Compensation - Narrative
Stock Compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
2021 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance (shares) | 6,839,604 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 90,000 | 3,490,000 |
Total compensation cost not yet recognized | $ 29,484 | |
Total compensation cost not yet recognized, period for recognition | 1 year 11 months 4 days | |
Restricted Stock | 2022 Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 65,000 | |
Award vesting period | 4 years | |
Total compensation cost not yet recognized | $ 487 | |
Stock-based compensation | 96 | |
Restricted Stock | 2021 Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 3,490,000 | |
Award vesting period | 4 years | |
Total compensation cost not yet recognized | $ 40,135 | |
Stock-based compensation | $ 11,042 |
Stock Compensation (Summary of
Stock Compensation (Summary of Restricted Stock Award Transactions) (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Nonvested beginning balance (in shares) | 3,490,000 | 0 |
Granted (in shares) | 90,000 | 3,490,000 |
Vested (in shares) | (953,750) | |
Forfeited (in shares) | (25,000) | |
Nonvested ending balance (in shares) | 2,601,250 | 3,490,000 |
Weighted Average Grant Date Fair Value | ||
Nonvested beginning balance (in dollars per share) | $ 11.50 | $ 0 |
Weighted-average expense per share (in dollars per share) | 8.25 | 11.50 |
Vested, Weighted average grant date fair value (in dollars per share) | 11.49 | |
Forfeited, Weighted average grant date fair value (in dollars per share) | 10.21 | |
Nonvested ending balance (in dollars per share) | $ 11.40 | $ 11.50 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid during the period for: | |||
Interest | $ 177 | $ 24 | $ 1 |
Income taxes, net | 11,083 | 681 | 0 |
Non-cash investing and financing activities: | |||
Capital expenditures incurred but not paid | 1,070 | 2 | 243 |
Transfers from Former Parent, net | $ 0 | $ 15,444 | $ 5,679 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) board_member | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Number of shared board members | board_member | 3 | ||||
Equity in losses from equity-method investments | $ (563) | $ (278) | $ (225) | ||
Entity Sold In 2019 | |||||
Related Party Transaction [Line Items] | |||||
Earn-out payment | $ 654 | ||||
Equity in losses from equity-method investments | $ 654 | 75 | 30 | ||
Entity Sold In 2019 | Entity Sold In 2019 | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50% | ||||
Entity Sold In 2019 | Entity Sold In 2019 | Directors | |||||
Related Party Transaction [Line Items] | |||||
Non-controlling interest | 50% | ||||
Douglas Elliman Realty, LLC | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from commissions received | 1,709 | 8,956 | 10,783 | ||
Vector Group Ltd. | Transition Services Agreement | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | 4,200 | ||||
Vector Group Ltd. | Aviation Agreements | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amounts of transaction | 2,418 | ||||
Vector Group Ltd. | Tax Indemnifications | |||||
Related Party Transaction [Line Items] | |||||
Receivable from related party | 589 | ||||
Douglas Elliman Realty, LLC | Commissions paid to son | President and Chief Executive Officer family | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | 1,490 | 925 | 870 | ||
Douglas Elliman Realty, LLC | Commissions paid to spouse | President and Chief Executive Officer family | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | $ 230 | $ 420 | $ 40 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
PropTech convertible trading debt securities | $ 2,957 | $ 2,222 |
Long-term investments | ||
Long-term investment securities at fair value | 3,262 | 1,534 |
Total long-term investments | 6,219 | 3,756 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Long-term investments | ||
Current restricted assets | 4,985 | 15,336 |
Non-current restricted assets | 2,538 | 1,907 |
Recurring | ||
Assets: | ||
PropTech convertible trading debt securities | 1,875 | |
Long-term investments | ||
PropTech convertible trading debt securities | 1,082 | 2,222 |
Long-term investment securities at fair value | 3,262 | 1,534 |
Total long-term investments | 4,344 | 3,756 |
Total assets | 160,729 | 55,817 |
Recurring | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 153,941 | 51,492 |
Recurring | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 569 | 569 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
PropTech convertible trading debt securities | 0 | |
Long-term investments | ||
PropTech convertible trading debt securities | 0 | 0 |
Long-term investment securities at fair value | 0 | 0 |
Total long-term investments | 0 | 0 |
Total assets | 153,941 | 51,492 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 153,941 | 51,492 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
PropTech convertible trading debt securities | 0 | |
Long-term investments | ||
PropTech convertible trading debt securities | 0 | 0 |
Long-term investment securities at fair value | 0 | 0 |
Total long-term investments | 0 | 0 |
Total assets | 569 | 569 |
Recurring | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 569 | 569 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
PropTech convertible trading debt securities | 1,875 | |
Long-term investments | ||
PropTech convertible trading debt securities | 1,082 | 2,222 |
Long-term investment securities at fair value | 0 | 0 |
Total long-term investments | 1,082 | 2,222 |
Total assets | 2,957 | 2,222 |
Recurring | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | $ 0 | $ 0 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | $ 2,957 | $ 2,222 |
Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | 1,875 | |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | 1,875 | |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
PropTech convertible trading debt securities | $ 2,957 | $ 2,222 |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.05 | |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Interest rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.04 | |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Interest rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.08 | |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Volatility | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.607 | 0.377 |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Volatility | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 1.033 | 0.868 |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 0.2939 | 0.2725 |
Significant Unobservable Inputs (Level 3) | Recurring | PropTech convertible trading debt securities | Discounted cash flow | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Convertible trading debt securities input | 1.8615 | 0.4683 |
Segment Information - Operation
Segment Information - Operations Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,153,177 | $ 1,353,138 | $ 773,987 |
Operating income (loss) | (4,541) | 102,098 | (49,285) |
Identifiable assets | 550,402 | 595,169 | 453,982 |
Depreciation and amortization | 8,012 | 8,561 | 8,537 |
Capital expenditures | 8,537 | 4,106 | 6,126 |
Impairments of goodwill and other intangible assets | 0 | 0 | 58,252 |
Restructuring | 0 | 0 | 3,382 |
Loss on disposal of assets | 0 | 0 | 1,169 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Operating income (loss) | (26,534) | 0 | 0 |
Identifiable assets | 37,878 | 46,952 | 237 |
Depreciation and amortization | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Real Estate Brokerage | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,153,177 | 1,353,138 | 773,987 |
Operating income (loss) | 21,993 | 102,098 | (49,285) |
Identifiable assets | 512,524 | 548,217 | 453,745 |
Depreciation and amortization | 8,012 | 8,561 | 8,537 |
Capital expenditures | $ 8,537 | $ 4,106 | $ 6,126 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 5,196 | $ 7,231 | $ 5,835 |
Additions Charged to Costs and Expenses | 1,221 | 0 | 1,641 |
Deductions | 0 | 2,035 | 245 |
Balance at End of Period | 6,417 | 5,196 | 7,231 |
Doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 0 | 245 | |
Additions Charged to Costs and Expenses | 0 | ||
Deductions | 245 | ||
Balance at End of Period | 0 | ||
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 5,196 | 7,231 | 5,590 |
Additions Charged to Costs and Expenses | 1,221 | 0 | 1,641 |
Deductions | 0 | 2,035 | 0 |
Balance at End of Period | $ 6,417 | $ 5,196 | $ 7,231 |