Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 17, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | SOTHEBYS | ||
Entity Central Index Key | 823,094 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 61,942,422 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,814,809,682 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Agency commissions and fees | $ 791,920 | $ 825,126 | $ 793,639 |
Inventory sales | 108,699 | 69,958 | 30,638 |
Finance | 50,489 | 33,013 | 21,277 |
License fees | 9,820 | 8,484 | 6,902 |
Other | 566 | 1,472 | 1,222 |
Total revenues | 961,494 | 938,053 | 853,678 |
Expenses: | |||
Agency direct costs | 91,919 | 86,524 | 84,594 |
Cost of inventory sales | 111,090 | 68,037 | 30,307 |
Cost of Finance revenues | 15,780 | 8,740 | 0 |
Marketing | 19,332 | 16,566 | 22,487 |
Salaries and related | 302,825 | 310,934 | 297,450 |
General and administrative | 159,148 | 158,796 | 175,458 |
Depreciation and amortization | 19,481 | 20,575 | 19,435 |
CEO separation and transition costs | 4,232 | 7,591 | 0 |
Special charges, net | 0 | 20,008 | 1,372 |
Total expenses | 759,773 | 712,009 | 631,103 |
Operating income | 201,721 | 226,044 | 222,575 |
Interest income | 1,776 | 1,883 | 2,801 |
Interest expense | (32,745) | (35,189) | (42,712) |
Other (expense) income | (1,453) | 283 | 3,029 |
Income before taxes | 169,299 | 193,021 | 185,693 |
Equity in earnings of investees | 5,327 | 732 | 15 |
Income tax expense | 131,145 | 75,761 | 55,702 |
Net income | 43,481 | 117,992 | 130,006 |
Less: Net (loss) income attributable to noncontrolling interest | (246) | 197 | 0 |
Net income attributable to Sotheby's | $ 43,727 | $ 117,795 | $ 130,006 |
Basic earnings per share - Sotheby's common shareholders | $ 0.64 | $ 1.69 | $ 1.90 |
Diluted earnings per share - Sotheby's common shareholders | 0.63 | 1.68 | 1.88 |
Cash dividends declared per common share | $ 0.40 | $ 4.74 | $ 0.2 |
Voluntary separation incentive programs | |||
Expenses: | |||
Restructuring charges, net | $ 36,938 | $ 0 | $ 0 |
2014 Restructuring plan | |||
Expenses: | |||
Restructuring charges, net | $ (972) | $ 14,238 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 43,481 | $ 117,992 | $ 130,006 |
Foreign currency translation adjustments: | |||
Cumulative foreign currency translation adjustments, net of tax of ($6,345), ($2,376), and $1,601 | (17,854) | (31,461) | 13,874 |
Reclassification of cumulative foreign currency translation adjustments included in net income | (105) | 2,058 | 0 |
Total foreign currency translation adjustments | (17,959) | (29,403) | 13,874 |
Derivative financial instruments: | |||
Unrealized losses on cash flow hedges, net of tax of ($3,126), $0, and $0 | (4,994) | 0 | 0 |
Realized losses on cash flow hedges included in net income, net of tax of $430, $0, and $0 | 688 | 0 | 0 |
Total derivative financial instruments | (4,306) | 0 | 0 |
Defined benefit pension plan: | |||
Net unrecognized gains (losses), net of tax of $6,445, ($2,447), and ($1,016) | 29,363 | (9,787) | (4,065) |
Amortization of previously unrecognized net pension losses and prior service costs included in net income, net of tax of $867, $469, and $335 | 3,464 | 1,877 | 1,113 |
Total defined benefit pension plan net gain (loss) | 32,827 | (7,910) | (2,952) |
Total other comprehensive income (loss) | 10,562 | (37,313) | 10,922 |
Comprehensive income | 54,043 | 80,679 | 140,928 |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (246) | 197 | 0 |
Comprehensive income attributable to Sotheby's | $ 54,289 | $ 80,482 | $ 140,928 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidated Statement of Comprehensive Income [Abstract] | |||
Tax - Foreign Currency Translation Adjustment | $ (6,345) | $ (2,376) | $ 1,601 |
Tax - Change in Fair Value of Cash Flow Hedges | (3,126) | 0 | 0 |
Tax - Realized Loss from Settled Cash Flow Hedges Included in Net Income | 430 | 0 | 0 |
Tax - Net Unrealizable Loss/Gain on Deferred Benefit Pension Plan | 6,445 | (2,447) | (1,016) |
Tax - Amortization of previously unrecognized net pension losses | $ 867 | $ 469 | $ 335 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 848,697 | $ 693,829 |
Restricted cash | 29,568 | 32,837 |
Accounts receivable (net) | 875,265 | 913,743 |
Notes receivable (net) | 101,441 | 130,796 |
Inventory | 215,020 | 217,132 |
Income tax receivables | 5,819 | 795 |
Deferred income taxes (see Note 1) | 0 | 16,283 |
Prepaid expenses and other current assets | 33,929 | 34,107 |
Total Current Assets | 2,109,739 | 2,039,522 |
Notes receivable | 611,899 | 568,942 |
Fixed assets (net) | 354,494 | 364,382 |
Goodwill and other intangible assets (net) | 13,945 | 14,341 |
Equity method investments | 41,744 | 10,210 |
Trust assets related to deferred compensation liability | 37,843 | 50,490 |
Pension asset | 66,859 | 28,993 |
Income tax receivables | 3,178 | 5,755 |
Deferred income taxes | 7,916 | 32,447 |
Other long-term assets | 26,512 | 19,738 |
Total Assets | 3,274,129 | 3,134,820 |
Current Liabilities | ||
Due to consignors | 692,606 | 980,470 |
Due to related party consignor (see Note 17) | 285,418 | 0 |
Accounts payable and accrued liabilities | 192,049 | 200,554 |
Current portion of York Property Mortgage | 7,302 | 218,728 |
Accrued income taxes | 11,095 | 13,469 |
Deferred income taxes (see Note 1) | 0 | 359 |
Other current liabilities | 9,113 | 15,627 |
Total Current Liabilities | 1,197,583 | 1,429,207 |
Credit facility borrowings | 541,500 | 445,000 |
Long-term debt | 614,767 | 300,000 |
Deferred compensation liability | 39,013 | 49,633 |
Accrued income taxes | 18,529 | 20,224 |
Deferred income taxes | 40,424 | 968 |
Other long-term liabilities | 15,609 | 11,550 |
Total Liabilities | $ 2,467,425 | $ 2,256,582 |
Commitments and contingencies (see Note 14) | ||
Shareholders' Equity: | ||
Common Stock, $0.01 par value, Authorized shares - 200,000,000, Issued shares - 70,054,948 and 69,550,073, Outstanding shares - 65,791,119 and 68,991,902 | $ 700 | $ 695 |
Additional paid-in capital | 435,696 | 408,874 |
Treasury stock, at cost: 4,263,829 shares and 558,171 shares at December 31, 2015 and 2014, respectively | (150,000) | (25,000) |
Retained earnings | 586,235 | 569,894 |
Accumulated other comprehensive loss | (66,204) | (76,766) |
Total Shareholders’ Equity | 806,427 | 877,697 |
Noncontrolling interest | 277 | 541 |
Total Equity | 806,704 | 878,238 |
Total Liabilities and Equity | $ 3,274,129 | $ 3,134,820 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 70,054,948 | 69,550,073 |
Common stock, shares outstanding | 65,791,119 | 68,991,902 |
Treasury stock, shares | 4,263,829 | 558,171 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||
Net income attributable to Sotheby's | $ 43,727 | $ 117,795 | $ 130,006 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 19,481 | 20,575 | 19,435 |
(Gain) loss from recognition of cumulative translation adjustment upon liquidation of foreign subsidiary | (105) | 2,058 | 0 |
Deferred income tax expense | 81,689 | 8,833 | 9,668 |
Share-based payments | 33,700 | 27,061 | 22,350 |
Net pension cost (benefit) | 1,577 | (688) | (1,160) |
Inventory writedowns and bad debt provisions | 21,729 | 10,383 | 10,325 |
Amortization of debt discount | 1,782 | 3,564 | 7,361 |
Excess tax benefits from share-based payments | (1,064) | (3,625) | (3,521) |
Equity in earnings of investees | (5,327) | (732) | (15) |
Other | 45 | 3,223 | 971 |
Changes in assets and liabilities: | |||
Accounts receivable | (14,190) | (178,335) | (194,665) |
Due to consignors | (268,234) | 79,180 | 299,512 |
Due to related party consignor (see Note 17) | 285,418 | 0 | 0 |
Inventory | (18,828) | (59,475) | (83,237) |
Prepaid expenses and other current assets | (6,562) | (9,559) | (2,668) |
Other long-term assets | 14,931 | 5,372 | (21,066) |
Income tax receivables and deferred income tax assets | 22,144 | 7,168 | 6,476 |
Accrued income taxes and deferred income tax liabilities | (27,325) | (9,309) | 2,770 |
Accounts payable and accrued liabilities and other liabilities | (29,530) | 20,776 | 34,885 |
Net cash provided by operating activities | 155,058 | 44,265 | 237,427 |
Investing Activities: | |||
Funding of notes receivable | (334,989) | (592,022) | (378,650) |
Collections of notes receivable | 355,103 | 476,522 | 308,428 |
Capital expenditures | (11,338) | (10,868) | (23,467) |
Funding of equity method investment | (30,725) | 0 | 0 |
Distributions from equity investees | 4,515 | 2,160 | 65 |
Proceeds from the sale of equity method investment | 275 | 300 | 1,225 |
Decrease (increase) in restricted cash | 457 | (4,655) | 1,300 |
Net cash used by investing activities | (16,702) | (128,563) | (91,099) |
Financing Activities: | |||
Debt issuance and other borrowing costs | (9,642) | (5,394) | 0 |
Proceeds from credit facility borrowings | 186,500 | 507,500 | 0 |
Repayments of credit facility borrowings | (90,000) | (62,500) | 0 |
Proceeds from refinancing of York Property Mortgage | 325,000 | 0 | 0 |
Repayments of York Property Mortgage | (223,440) | (3,614) | (3,162) |
Repayment of Convertible Notes | 0 | 0 | (197,371) |
Proceeds from settlement of Convertible Note Hedges | 0 | 0 | 15,503 |
Repurchases of Common Stock | (125,000) | (25,000) | 0 |
Dividends paid | (29,784) | (331,535) | (13,754) |
Proceeds from exercise of employee stock options | 0 | 967 | 4,049 |
Excess tax benefits from share-based payments | 1,064 | 3,625 | 3,521 |
Funding of employee tax obligations upon the vesting of share-based payments | (8,978) | (11,848) | (11,399) |
Contribution from noncontrolling interest | 0 | 0 | 322 |
Net cash provided (used) by financing activities | 25,720 | 72,201 | (202,291) |
Effect of exchange rate changes on cash and cash equivalents | (9,208) | (15,389) | 8,931 |
Increase (decrease) in cash and cash equivalents | 154,868 | (27,486) | (47,032) |
Cash and cash equivalents at beginning of period | 693,829 | 721,315 | 768,347 |
Cash and cash equivalents at end of period | $ 848,697 | $ 693,829 | $ 721,315 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes in Shareholders Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at beginning of period at Dec. 31, 2012 | $ 992,826 | $ 677 | $ 368,173 | $ 0 | $ 674,351 | $ (50,375) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income attributable to Sotheby's | 130,006 | 130,006 | ||||
Other comprehensive loss, net of tax | 10,922 | 10,922 | ||||
Stock options exercised | 4,049 | 2 | 4,047 | |||
Warrants exercised | 0 | 7 | (7) | |||
Common stock shares withheld to satisfy employee tax obligations | (11,399) | (11,399) | ||||
Restricted stock units vested, net | 0 | 4 | (4) | |||
Amortization of share-based payment expense | 22,350 | 22,350 | ||||
Net tax benefit associated with the vesting or exercise of share-based payments | 3,521 | 3,521 | ||||
Shares and deferred stock units issued to directors | 797 | 1 | 796 | |||
Cash dividends, (2013: $0.20, 2014: $4.74, 2015: $0.40) per common share | (13,754) | (13,754) | ||||
Balance at end of period at Dec. 31, 2013 | 1,139,318 | 691 | 387,477 | 0 | 790,603 | (39,453) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income attributable to Sotheby's | 117,795 | 117,795 | ||||
Other comprehensive loss, net of tax | (37,313) | (37,313) | ||||
Stock options exercised | 967 | 967 | ||||
Common stock shares withheld to satisfy employee tax obligations | (11,848) | (11,848) | ||||
Restricted stock units vested, net | 0 | 4 | (4) | |||
Amortization of share-based payment expense | 27,061 | 27,061 | ||||
Net tax benefit associated with the vesting or exercise of share-based payments | 3,625 | 3,625 | ||||
Shares and deferred stock units issued to directors | 1,596 | 1,596 | ||||
Repurchase of common stock | (25,000) | (25,000) | ||||
Cash dividends, (2013: $0.20, 2014: $4.74, 2015: $0.40) per common share | (327,754) | (327,754) | ||||
Cash dividend equivalents related to share-based payments | (3,781) | (3,781) | ||||
Cash dividend equivalents accrued on share-based payments | (6,969) | (6,969) | ||||
Balance at end of period at Dec. 31, 2014 | 877,697 | 695 | 408,874 | (25,000) | 569,894 | (76,766) |
Balance at beginning of period at Dec. 31, 2013 | 1,139,318 | 691 | 387,477 | 0 | 790,603 | (39,453) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividend equivalents related to share-based payments | (5,800) | |||||
Balance at end of period at Dec. 31, 2015 | 806,427 | 700 | 435,696 | (150,000) | 586,235 | (66,204) |
Balance at beginning of period at Dec. 31, 2014 | 877,697 | 695 | 408,874 | (25,000) | 569,894 | (76,766) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income attributable to Sotheby's | 43,727 | 43,727 | ||||
Other comprehensive loss, net of tax | 10,562 | 10,562 | ||||
Common stock shares withheld to satisfy employee tax obligations | (8,978) | (8,978) | ||||
Restricted stock units vested, net | 0 | $ 5 | (5) | |||
Amortization of share-based payment expense | 33,700 | 33,700 | ||||
Net tax benefit associated with the vesting or exercise of share-based payments | 1,064 | 1,064 | ||||
Shares and deferred stock units issued to directors | 1,041 | 1,041 | ||||
Repurchase of common stock | (125,000) | (125,000) | ||||
Cash dividends, (2013: $0.20, 2014: $4.74, 2015: $0.40) per common share | (27,107) | (27,107) | ||||
Cash dividend equivalents related to share-based payments | (279) | (279) | ||||
Balance at end of period at Dec. 31, 2015 | $ 806,427 | $ 700 | $ 435,696 | $ (150,000) | $ 586,235 | $ (66,204) |
Consolidated Statements Of Cha9
Consolidated Statements Of Changes in Shareholders’ Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (usd per share) | $ 0.4 | $ 4.74 | $ 0.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Sotheby's is a global art business whose operations are organized under two segments—Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated works of art through the auction or private sale process. To a much lesser extent, Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby's, an equity investee that operates as an auction house for investment-quality automobiles (see Note 5). The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art (see Note 4). Basis of Presentation —The Consolidated Financial Statements included herein have been prepared by Sotheby's (the "Company" or "Sotheby's") pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and are in conformity with generally accepted accounting principles ("GAAP") in the United States (the "U.S."). In the Consolidated Financial Statements, unless otherwise stated, the terms "art" or "works of art" or "artwork" or "property" refer to authenticated fine art, decorative art, jewelry, wine, and collectibles. In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and liabilities as non-current in a classified balance sheet, instead of separating into current and non-current amounts. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, on a prospective or retrospective basis. Early adoption is permitted for all companies in any interim or annual period. Sotheby's early adopted ASU 2015-17 as of December 31, 2015 on a prospective basis. Accordingly, prior period information has not been adjusted to reflect the new presentation of deferred tax assets and liabilities. Adjustments to Prior Period Presentation —See Note 3 for information regarding a change in Sotheby's segment reporting that became effective in the second quarter of 2015. All prior period segment information has been updated to reflect this change. Principles of Consolidation —The Consolidated Financial Statements include the accounts of Sotheby's wholly-owned subsidiaries and Sotheby's Beijing Auction Co., Ltd. ("Sotheby's Beijing"), a joint venture formed in September 2012 in which Sotheby's has a controlling 80% ownership interest. The net income attributable to the minority owner of Sotheby's Beijing is reported as "Net (Loss) Income Attributable to Noncontrolling Interest" in the Consolidated Income Statements and the non-controlling 20% ownership interest is recorded as "Noncontrolling Interest" within the Equity section of the Consolidated Balance Sheets. Intercompany transactions and balances among Sotheby's subsidiaries have been eliminated. Equity investments through which Sotheby's exercises significant influence over the investee, but does not control, are accounted for using the equity method. Under the equity method, Sotheby's share of investee earnings or losses is recorded within Equity in Earnings of Investees in the Consolidated Income Statements. Sotheby's interest in the net assets of the investee is recorded within Equity Method Investments on the Consolidated Balance Sheets. Sotheby's equity method investees include RM Sotheby's and Acquavella Modern Art. See Note 5 for information related to Sotheby's equity method investments. Foreign Currency Translation —Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenues, expenses, gains, and losses recorded in foreign currencies are translated using the monthly average exchange rates prevailing during the period in which they are recognized. Translation adjustments resulting from this process are recorded to Other Comprehensive Income (Loss) and reported on the Consolidated Balance Sheets within Accumulated Other Comprehensive Loss until the subsidiary is sold or liquidated. Restricted Cash —Restricted Cash includes net auction proceeds owed to consignors in certain foreign jurisdictions where such funds are legally required to be maintained in segregated bank accounts, as well as other cash deposits whose use is restricted by law, contract or management statement of intention. Valuation of Inventory and Loan Collateral —The market for art is not a highly liquid trading market. As a result, the valuation of art is inherently subjective and the realizable value of art often fluctuates over time. In estimating the realizable value of art held in inventory and art pledged as collateral for Finance segment loans, management considers the following complex array of factors: (i) whether the property is expected to be offered at auction or sold privately, and the timing of any such sale; (ii) the supply and demand for the property, taking into account current art market conditions, as well as changing trends as to which collecting categories and artists are most sought after; (iii) recent sale prices achieved for comparable items within a particular collecting category and/or by a particular artist; (iv) the state of the global economy and financial markets; and (v) management's intent and ability to hold the property in order to maximize the realizable value. Due to the inherent subjectivity involved in estimating the realizable value of art held in inventory and art pledged as collateral for Finance segment loans, management's estimates of realizable value may prove, with the benefit of hindsight, to be different than the amount ultimately realized upon sale. See below for a detailed discussion of Sotheby's accounting policies with respect to Notes Receivable and Inventory. Accounts Receivable and Allowance for Doubtful Accounts —Accounts Receivable principally includes amounts due from buyers as a result of auction and private sale transactions. The recorded amount reflects the purchase price of the property, including Sotheby's commission. The Allowance for Doubtful Accounts principally includes estimated losses associated with situations when Sotheby's has paid the net sale proceeds to the seller, also known as a consignor, and it is probable that payment will not be collected from the buyer. The Allowance for Doubtful Accounts also includes an estimate of probable losses inherent in the remainder of the Accounts Receivable balance. The amount of the required allowance is based on the facts available to management, including the value of any property held as collateral, and is reevaluated and adjusted as additional facts become known. Based on all available information, management believes that the Allowance for Doubtful Accounts is adequate as of December 31, 2015 ; however, actual losses may ultimately exceed the recorded allowance. As of December 31, 2015 and 2014 , the allowance for doubtful accounts was $8.6 million and $7.3 million , respectively. See Note 4 for information related to Accounts Receivable. Notes Receivable and Allowance for Credit Losses —Notes Receivable principally includes secured loans issued by the Finance segment. The classification of a loan as current or non-current on the Consolidated Balance Sheets takes into account the contractual maturity date of the loan, as well as the likelihood of renewing the loan on or before its contractual maturity. The determination of whether a specific loan is impaired and the amount of any required allowance is based on the facts available to management and is reevaluated and adjusted as additional facts become known. A loan is considered to be impaired when management determines that it is probable that a portion of the principal and interest owed by the borrower will not be recovered after taking into account the estimated realizable value of the collateral securing the loan, as well as the ability of the borrower to repay any shortfall between the value of the collateral and the amount of the loan. An allowance is also established for probable losses inherent in the remainder of the loan portfolio based on historical data related to loan losses. See Note 4 for information related to Notes Receivable. Inventory —Inventory consists of artworks owned by Sotheby's and includes the following general classifications: (i) art that has been obtained as a result of the failure of guaranteed property to sell at auction (see Note 16), (ii) art that has been purchased opportunistically, including property acquired for sale at auction, and (iii) other objects obtained incidental to the auction process (e.g., as a result of buyer default). Inventory is valued on a specific identification basis at the lower of cost or management's estimate of realizable value (i.e., the expected sale price upon disposition). If there is evidence that the estimated realizable value of a specific item held in Inventory is less than its carrying value, a writedown is recorded to reflect management's revised estimate of realizable value. In 2015, 2014, and 2013, inventory writedowns totaled $20.1 million , $10 million , and $8.8 million , respectively. Although all of the items held in Inventory are available for immediate sale, the timing of eventual sale is difficult to predict due to the high value and unique nature of each item, as well as the cyclical nature of the global art market. Management expects that the items held in Inventory will be sold in the ordinary course of Sotheby's business during the normal operating cycle for such items. Fixed Assets —Fixed Assets are stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful life of the asset. Buildings are depreciated over a useful life of up to 50 years . Building improvements are depreciated over a useful life of up to 20 years . Furniture and fixtures are depreciated over a useful life of up to 7 years. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the related lease or the estimated useful life of the improvement. Computer software consists of the capitalized cost of purchased computer software, as well as direct external and internal computer software development costs incurred in the acquisition or development of software for internal use. These costs are amortized on a straight-line basis over the estimated useful life of the software, which is typically between 7 to 10 years for enterprise systems and 3 years for other types of software. See Note 6 for information related to Fixed Assets. Goodwill and Other Intangible Assets —Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but it is tested annually for impairment at the reporting unit level as of October 31 and between annual tests if indicators of potential impairment exist. These indicators could include a decline in Sotheby's stock price and market capitalization, a significant change in the outlook for the reporting unit's business, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a reporting unit. An impairment loss is recognized for any amount by which the carrying value of a reporting unit's goodwill exceeds its fair value. The fair value of a reporting unit is estimated by management using a discounted cash flow methodology. Goodwill is attributable to reporting units in the Agency segment and totaled $13.6 million and $14 million as of December 31, 2015 and 2014 , respectively, with the changes in the carrying value being attributable solely to foreign currency exchange rate movements. Other intangible assets include an indefinite lived license obtained in conjunction with Sotheby's purchase of a retail wine business in 2008. As of December 31, 2015 and 2014 , the net book value of other intangible assets was $0.3 million , and the accumulated amortization related to other intangible assets was $5.1 million and $6.1 million , respectively. Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. In such situations, long-lived assets are considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset and its eventual disposition are less than the asset's carrying amount. In such situations, the asset is written down to the present value of the estimated future cash flows. Factors that are considered when evaluating long-lived assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used. Valuation of Deferred Tax Assets —A valuation allowance is recorded to reduce Sotheby's deferred tax assets to the amount that is more likely than not to be realized. In assessing the need for the valuation allowance, management considers, among other things, projections of future taxable income and ongoing prudent and feasible tax planning strategies. If management determines that sufficient negative evidence exists (for example, if Sotheby's experiences cumulative three-year losses in a certain jurisdiction), then management will consider recording a valuation allowance against a portion or all of the deferred tax assets in that jurisdiction. If, after recording a valuation allowance, management's projections of future taxable income and other positive evidence considered in evaluating the need for a valuation allowance prove, with the benefit of hindsight, to be inaccurate, it could prove to be more difficult to support the realization of Sotheby's deferred tax assets. As a result, an additional valuation allowance could be required, which would have an adverse impact on Sotheby's effective income tax rate and results. Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which it recorded the valuation allowance (for example, if Sotheby's is no longer in a three-year cumulative loss position in the jurisdiction, and management expects to have future taxable income in that jurisdiction based upon its forecasts and the expected timing of deferred tax asset reversals), management may reverse a portion or all of the valuation allowance in that jurisdiction. In such situations, the adjustment made to the deferred tax asset would have a favorable impact on Sotheby's effective income tax rate and results in the period such determination was made. See Note 8 for information related to Income Taxes. Auction Guarantees —From time-to-time in the ordinary course of its business, Sotheby's will guarantee to a consignor a minimum sale price in connection with the sale of property at auction (an "auction guarantee"). In the event that the property sells for less than the guaranteed price, Sotheby's must perform under the auction guarantee by funding the difference between the sale price at auction and the amount of the auction guarantee. If the property does not sell, the amount of the auction guarantee must be paid, but Sotheby's takes ownership of the unsold property and may recover the amount paid through its future sale. The estimated fair value of Sotheby's obligation to perform under its auction guarantees is recorded on the Consolidated Balance Sheets within Accounts Payable and Accrued Liabilities. This estimated fair value is based on an analysis of historical loss experience related to auction guarantees and does not include the impact of risk-sharing arrangements that may have mitigated all or a portion of any historical losses. See Note 16 for information related to auction guarantees. Financial Instruments —Sotheby's material financial instruments include: (i) Cash and Cash Equivalents, (ii) Restricted Cash, (iii) Notes Receivable, (iv) credit facility borrowings, (v) the York Property Mortgage, (vi) the interest rate swap and interest rate collar associated with the York Property Mortgage, (vii) other long-term debt, (viii) the Deferred Compensation Liability and related trust assets, and (ix) outstanding forward exchange contracts. The carrying amounts of Cash and Cash Equivalents, Restricted Cash, Notes Receivable, the York Property Mortgage, and credit facility borrowings do not materially differ from their estimated fair values due to their nature and the variable interest rates associated with each of these financial instruments. See Notes 7, 15, and 18 for information on the fair value of Sotheby's other financial instruments. Revenue Recognition (Agency Commissions and Fees) —Through its Agency segment, Sotheby's accepts property on consignment, stimulates buyer interest through professional marketing techniques, and matches sellers, also known as consignors, to buyers through the auction or private sale process. Prior to offering a work of art for sale, Sotheby's specialists perform significant due diligence activities to authenticate and determine the ownership history of the property being sold. The revenue recognition policy for each of the principal components of Agency Commissions and Fees is described below. (1) Auction Commission Revenues —In its role as auctioneer, Sotheby's accepts property on consignment and matches sellers to buyers through the auction process. Following the auction, Sotheby's invoices the buyer for the purchase price of the property (including the commission owed by the buyer), collects payment from the buyer, and remits to the consignor the net sale proceeds after deducting its commissions, expenses and applicable taxes and royalties. Sotheby's auction commissions include those paid by the buyer ("buyer's premium") and those paid by the seller ("seller's commission") (collectively, "auction commission revenue"), both of which are calculated as a percentage of the hammer price of the property sold at auction. On the fall of the auctioneer's hammer, the highest bidder becomes legally obligated to pay the full purchase price, which includes the hammer price of the property purchased plus the buyer's premium, and the seller is legally obligated to relinquish the property in exchange for the hammer price less any seller's commissions. Auction commission revenue is recognized on the date of the auction sale upon the fall of the auctioneer's hammer, which is the point in time when Sotheby's has substantially accomplished what it must do to be entitled to the benefits represented by the auction commission revenue. Subsequent to the date of the auction sale, Sotheby's remaining obligations for its auction services relate only to the collection of the purchase price from the buyer and the remittance of the net sale proceeds to the seller. These remaining service obligations are not an essential part of the auction services provided by Sotheby's. Under the standard terms and conditions of its auction sales, Sotheby's is not obligated to pay the consignor for property that has not been paid for by the buyer. If a buyer defaults on payment, the sale may be cancelled, and the property will be returned to the consignor. Management continually evaluates the collectability of amounts due from individual buyers and only recognizes auction commission revenue when the collection of the amount due from the buyer is reasonably assured. If management determines that it is probable that the buyer will default, a cancelled sale is recorded in the period in which that determination is made and the associated Accounts Receivable balance, including Sotheby's auction commission, is reversed. Management's judgments regarding the collectability of Accounts Receivable are based on an assessment of the buyer's payment history, discussions with the buyer, and the value of any property held as security against the buyer's payment obligation. Management's judgments with respect to the collectability of amounts due from buyers for auction purchases may prove, with the benefit of hindsight, to be incorrect. Historically, cancelled sales have not been material in relation to the aggregate hammer price of property sold at auction. Auction commission revenues are recorded net of commissions owed to third parties, which are principally the result of situations when the buyer's premium is shared with the consignor or with the counterparty in an auction guarantee risk and reward sharing arrangement (see Note 16 ). Additionally, in certain situations, auction commissions are shared with third parties who introduce Sotheby's to consignors who sell property at auction or otherwise facilitate the sale of property at auction. (2) Private Sale Commission Revenues —Private sale commission revenues are earned through the direct brokering of purchases and sales of art. Similar to auction sales, the primary service that Sotheby's provides in a private sale transaction is the matching of the seller to a buyer in a legally binding transaction. Private sales are initiated either by a client wishing to sell property with Sotheby's acting as its exclusive agent in the transaction or a prospective buyer who is interested in purchasing a certain work of art privately. Such arrangements are evidenced by a legally binding agreement between Sotheby's and the seller (a "Seller Agreement"), which outlines the terms of the arrangement, including the desired sale price and the amount or rate of commission to be earned. In certain situations, Sotheby's may also execute a legally binding agreement with the buyer stipulating the terms of the transaction (a "Buyer Agreement"). The timing of revenue recognition for private sale commissions is evaluated on a case-by-case basis, and in large part, is dependent upon whether a Buyer Agreement has been executed. Additionally, a careful analysis of the individual facts and circumstances is performed for each transaction to fully understand Sotheby's obligations and performance requirements related to the transaction. In transactions with a Buyer Agreement, Sotheby's services are performed on the date that the Buyer Agreement is executed. At this point, any remaining service obligations are considered to be inconsequential and perfunctory. Such remaining service obligations normally relate only to the collection of the purchase price from the buyer and the remittance of the net sale proceeds to the seller. These remaining service obligations are not an essential part of the services that Sotheby's provides in a private sale transaction. In the absence of an executed Buyer Agreement, revenue recognition is deferred until Sotheby's has performed its substantive service obligations in the transaction and the buyer has paid the full purchase price thereby evidencing the terms of the arrangement. Private sale commission revenues are recorded within Agency Commissions and Fees in the Consolidated Income Statements. Private sale commission revenues are recorded net of commissions owed to third parties. In certain situations, commissions are shared with third parties who introduce Sotheby's to consignors who sell property through a private sale transaction. (3) Auction Guarantees, Net —This component of Agency Commissions and Fees includes Sotheby's share of overage or shortfall related to guaranteed property offered or sold at auction. The overage or shortfall related to guaranteed property is generally recognized in the period in which the property is offered at auction. However, a shortfall is recognized prior to the date of the auction if management determines that a loss related to an auction guarantee is probable. In such situations, the amount of the loss is estimated by management based on the difference between the amount of the auction guarantee and the expected selling price of the property, including buyer's premium. Revenue Recognition (Inventory Sales) —Inventory sales are recognized in the period in which the sale is completed, title to the property passes to the purchaser and Sotheby's has fulfilled any other obligations that may be relevant to the transaction, including, but not limited to, delivery of the property. In instances when Inventory is sold at auction, the associated buyer's premium is recorded within Inventory Sales. The carrying value of Inventory sold during a period is recorded within Cost of Inventory Sales. Revenue Recognition (Finance Revenues) —Finance revenues consist principally of interest income earned on Notes Receivable. Such interest income is recognized when earned, based on the amount of the outstanding loan, the applicable interest rate on the loan, and the length of time the loan is outstanding during the period. A non-accrual loan is a loan for which future Finance revenue is not recorded due to management's determination that it is probable that future interest on the loan is not collectible. Any cash receipts subsequently received on non-accrual loans are first applied to reduce the recorded principal balance of the loan, with any proceeds in excess of the principal balance then applied to interest owed by the borrower. The recognition of Finance revenue may resume on a non-accrual loan if sufficient additional collateral is provided by the borrower or if management becomes aware of other circumstances that indicate that it is probable that the borrower will make future interest payments on the loan. Sales, Use and Value-Added Taxes —Sales, use and value-added taxes assessed by governmental authorities that are both imposed on and concurrent with revenue-producing transactions between Sotheby's and its clients are reported on a net basis within revenues. Agency Direct Costs —A large portion of Agency Direct Costs relate to sale marketing expenses such as catalogue production and distribution, advertising and promotion costs, and traveling exhibition costs. Such costs are deferred and recorded on the Consolidated Balance Sheets within Prepaid Expenses and Other Current Assets until the date of the sale when they are recognized in the Consolidated Income Statements. Cost of Finance Revenues —The Cost of Finance Revenues includes borrowing costs related to the Finance segment's revolving credit facility, including interest expense, commitment fees, and the amortization of amendment and arrangement fees. See Note 7 for information related to the Finance segment's revolving credit facility. Share-Based Payments —Sotheby's grants share-based payment awards as compensation to certain employees. The amount of compensation expense recognized for share-based payments is based on management's estimate of the number of shares ultimately expected to vest as a result of employee service. For share-based payment awards that vest annually over a multi-year period of service, compensation expense is amortized over the requisite service period according to a graded vesting schedule. For share-based payment awards that vest at the end of a service period, compensation expense is amortized on a straight-line basis over the requisite service period. A substantial portion of the share-based payment awards vest only if Sotheby's achieves established profitability targets. The amount and timing of compensation expense recognized for such performance-based awards is dependent upon management's quarterly assessment of the likelihood and timing of achieving these future profitability targets. Accordingly, if management's projections of future profitability prove, with the benefit of hindsight, to be inaccurate, the amount of life-to-date and future compensation expense related to share-based payments could significantly increase or decrease. In 2015, Sotheby's granted a share-based payment award to Thomas S. Smith, Jr., its President and Chief Executive Officer, with a single vesting opportunity after a five -year service period contingent upon the achievement of pre-determined levels of Sotheby's stock price appreciation. The compensation expense recognized for this share-based payment is based on management's estimate of the grant date fair value of the award. In developing this estimate, management considers current market conditions, historical data, and any other relevant data. Dividend equivalents related to share-based payments to employees are charged to Retained Earnings. See Note 12 for information related to share-based payments. Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and could change in the short-term. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share —Basic earnings per share attributable to Sotheby's common shareholders is computed under the two-class method using the weighted average number of common shares outstanding during the period. The two-class method requires that the amount of net income attributable to participating securities be deducted from consolidated net income in the computation of basic earnings per share. In periods with a net loss, the net loss attributable to participating securities is not deducted from consolidated net loss in the computation of basic loss per share as the impact would be anti-dilutive. Sotheby's participating securities include unvested restricted stock units and unvested restricted stock shares, both of which have non-forfeitable rights to dividends. Diluted earnings per share —Diluted earnings per share attributable to Sotheby's common shareholders is computed in a similar manner to basic earnings per share under the two-class method, using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential common shares outstanding during the period. Sotheby's potential common shares include unvested performance share units held by employees, incremental common shares issuable upon the exercise of employee stock options, and deferred stock units held by members of the Board of Directors. In 2013, Sotheby's potential common shares also included the net shares that would have been delivered to settle the premium upon conversion of then-outstanding convertible debt, as well as the net shares that would have been issued upon the exercise of then-outstanding common stock warrants. See Note 7 for information on Sotheby's 3.125% Convertible Notes, which were settled in June 2013, and the related common stock warrants that were settled in the fourth quarter of 2013. See Note 12 for information on Sotheby's share-based payment programs. For the years ended December 31, 2015 , 2014 , and 2013 , 0.9 million , 1.1 million , and 1 million potential common shares, respectively, related to unvested performance share units were excluded from the computation of diluted earnings per share because the profitability or stock price targets inherent in such awards were not achieved as of the respective balance sheet dates. The table below summarizes the computation of basic and diluted earnings per share for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars, except per share amounts): 2015 2014 2013 Basic: Numerator: Net income attributable to Sotheby's $ 43,727 $ 117,795 $ 130,006 Less: Net income attributable to participating securities 354 1,047 60 Net income attributable to Sotheby's common shareholders $ 43,373 $ 116,748 $ 129,946 Denominator: Weighted average common shares outstanding 68,121 69,016 68,374 Basic earnings per share - Sotheby's common shareholders $ 0.64 $ 1.69 $ 1.90 Diluted: Numerator: Net income attributable to Sotheby's $ 43,727 $ 117,795 $ 130,006 Less: Net income attributable to participating securities 354 1,047 60 Net income attributable to Sotheby's common shareholders $ 43,373 $ 116,748 $ 129,946 Denominator: Weighted average common shares outstanding 68,121 69,016 68,374 Weighted average effect of dilutive potential common shares: Convertible debt — — 97 Performance share units 438 407 428 Deferred stock units 167 162 150 Stock options 18 21 77 Warrants — — 49 Weighted average dilutive potential common shares outstanding 623 590 801 Weighted average diluted shares outstanding 68,744 69,606 69,175 Diluted earnings per share - Sotheby's common shareholders $ 0.63 $ 1.68 $ 1.88 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Segment Reporting Overview —Sotheby's is a global art business whose operations are organized under two segments—Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated works of art through the auction or private sale process. To a much lesser extent, Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby's, an equity investee that operates as an auction house for investment-quality automobiles (see Note 5). The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art (see Note 4). Prior to the second quarter of 2015, Sotheby's also separately reported the results of the Principal segment, which consisted of its dealer-related activities and primarily included the sale of artworks purchased opportunistically by Sotheby's. In the second quarter of 2015, Sotheby's transitioned to its new CEO (and chief operating decision maker), and the information regularly reviewed for the purpose of allocating resources and assessing performance was updated to reflect a simplified internal reporting structure. As a result, beginning in the second quarter of 2015, the sale of artworks purchased opportunistically by Sotheby's is reported as part of the Agency segment. The remaining activities of the former Principal segment are reported within All Other. Such activities include Sotheby's retail wine operations, Acquavella Modern Art ("AMA"), an equity investee (see Note 5), and sales of the remaining inventory of Noortman Master Paintings, an art dealer that was owned and operated by Sotheby's from its acquisition in June 2006 until its closure in December 2013. Prior period amounts have been restated to reflect this new segment presentation. Agency Segment —Through the Agency segment, Sotheby's accepts property on consignment, stimulates buyer interest through professional marketing techniques, and matches sellers, also known as consignors, to buyers through the auction or private sale process. Prior to offering a work of art for sale, Sotheby's specialists perform significant due diligence activities to authenticate and determine the ownership history of the property being sold. To a much lesser extent, Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process (see Note 1). The Agency segment is an aggregation of the auction, private sale, and other related activities conducted by Sotheby's operating segments in the Americas, Europe, and Asia, which have similar economic characteristics and are similar in their services, customers, and the manner in which their services are provided. Finance Segment —The Finance segment provides certain collectors and art dealers with financing secured by works of art that Sotheby's either has in its possession or permits borrowers to possess. The Finance segment generally makes two types of secured loans: (1) advances secured by consigned property where the borrowers are contractually committed, in the near term, to sell the property through the Agency segment (a "consignor advance"); and (2) general purpose term loans secured by property not presently intended for sale (a "term loan"). All Other —All Other includes the remaining activities of the former Principal segment, as discussed above, as well as the results of Sotheby's brand licensing activities and other ancillary businesses, which are not material to Sotheby's consolidated financial statements. The accounting policies of Sotheby's segments are the same as those described in Note 1. For auction commissions, revenues are attributed to geographic areas based on the location of the auction. For private sale commissions, revenues are attributed to geographic areas based on the location of the entities which significantly contributed to the completion of the sale. For inventory activities, revenues are attributed to geographic areas based on the location of the entity that holds legal title to the property sold. Finance segment revenues are attributed to geographic areas based on the location of the entity that originated the loan. The following table presents Sotheby's segment information for 2015 , 2014 , and 2013 (in thousands of dollars): Year ended December 31, 2015 Agency Finance All Other Reconciling items Total Revenues $ 892,030 $ 65,248 $ 18,975 $ (14,759 ) (a) $ 961,494 Interest income $ 1,773 $ 3 $ — $ — $ 1,776 Interest expense $ 32,745 $ — $ — $ — $ 32,745 Depreciation and amortization $ 19,233 $ 124 $ 124 $ — $ 19,481 Segment income before taxes $ 139,942 $ 41,303 $ 10,864 $ (22,810 ) $ 169,299 Year ended December 31, 2014 Revenues $ 885,293 $ 47,290 $ 19,747 $ (14,277 ) (a) $ 938,053 Interest income $ 1,857 $ 18 $ 8 $ — $ 1,883 Interest expense $ 35,189 $ — $ — $ — $ 35,189 Depreciation and amortization $ 20,110 $ 130 $ 335 $ — $ 20,575 Segment income before taxes $ 182,763 $ 31,763 (b) $ 7,424 $ (28,929 ) $ 193,021 Year ended December 31, 2013 Revenues $ 799,886 $ 32,792 $ 32,515 $ (11,515 ) (a) $ 853,678 Interest income $ 3,860 $ — $ 31 $ (1,090 ) (c) $ 2,801 Interest expense $ 42,636 $ 67 $ 9 $ — $ 42,712 Depreciation and amortization $ 19,072 $ 125 $ 238 $ — $ 19,435 Segment income (loss) before taxes $ 164,348 $ 23,009 (b) $ (265 ) $ (1,399 ) $ 185,693 (a) The reconciling items related to Revenues consist principally of amounts charged by the Finance segment to the Agency segment, including interest and facility fees related to certain loans made to Agency segment clients, as well as, beginning on January 1, 2015, fees charged for term loan collateral sold at auction or privately through the Agency segment. In 2015, fees related to such collateral sales totaled $7.8 million . Prior period segment results for 2014 and 2013 have been adjusted to include $5.3 million and $1.6 million , respectively, of such fees. (b) In 2014 and 2013, Finance segment income before taxes includes $2.1 million and $2.7 million , respectively, of intercompany charges from Sotheby's global treasury function. Beginning in 2015, these charges are no longer applicable due to the financing of the Finance segment's loan portfolio with debt. See Notes 3 and 7 for information on the capital structure of the Finance segment and the financing of client loans with debt. (c) In 2013, the reconciling item related to Interest Income relates to charges from the Agency segment to the Finance segment for intercompany borrowing costs. Beginning in 2014, these charges are no longer applicable due to the financing of the Finance segment's loan portfolio with debt. See Notes 3 and 7 for information on the capital structure of the Finance segment and the financing of client loans with debt. For the years ended December 31, 2015 , 2014 , and 2013 Agency segment revenues consisted of the following (in thousands of dollars): 2015 2014 2013 Auction commissions $ 719,152 $ 758,213 $ 687,853 Private sale commissions 61,256 60,183 88,171 Auction guarantees (net) (11,567 ) (15,462 ) (2,186 ) Other (a) 23,079 22,192 19,801 Total Agency commissions and fees 791,920 825,126 793,639 Inventory Sales 100,110 60,167 6,247 Total Agency segment revenues $ 892,030 $ 885,293 $ 799,886 (a) Includes commissions and other fees earned by Sotheby's on sales brokered by third parties, fees charged to consignors for property withdrawn prior to auction and for catalogue production and insurance, and catalogue subscription and advertising revenues. The table below provides a reconciliation of segment revenues to consolidated revenues for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars): 2015 2014 2013 Agency $ 892,030 $ 885,293 $ 799,886 Finance 65,248 47,290 32,792 All Other 18,975 19,747 32,515 Segment revenues 976,253 952,330 865,193 Reconciling items: Intercompany charges from Finance to Agency (a) (14,759 ) (14,277 ) (11,515 ) Total revenues $ 961,494 $ 938,053 $ 853,678 (a) Includes interest charged for secured loans issued with an interest rate below the Finance segment's target rate, as well as facility fees charged for secured loans where the facility fee owed by the borrower is either reduced or waived. The reduction or waiver of such interest and fees is done as an accommodation to the Agency segment to secure a consignment or enhance a client relationship. Also, beginning on January 1, 2015, this reconciling item includes fees charged for term loan collateral sold at auction or privately through the Agency segment. Such fees are paid to compensate the Finance segment for generating auction and private sale consignments. The table below details the unallocated amounts and reconciling items related to segment income before taxes and provides a reconciliation of segment income before taxes to consolidated income before taxes for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars): 2015 2014 2013 Agency $ 139,942 $ 182,763 $ 164,348 Finance 41,303 31,763 23,009 All Other 10,864 7,424 (265 ) Segment income before taxes 192,109 221,950 187,092 Unallocated amounts and reconciling items: Leadership transition severance costs (a) (13,251 ) — — CEO separation and transition costs (see Note 20) (4,232 ) (7,591 ) — Special charges (net) (see Note 22) — (20,008 ) (1,372 ) Equity in earnings of investees (b) (5,327 ) (1,330 ) (27 ) Income before taxes $ 169,299 $ 193,021 $ 185,693 (a) In 2015, Sotheby's incurred severance costs of $13.3 million associated with the termination of certain executive officers, including its former Chief Financial Officer and former Chief Operating Officer, in conjunction with Sotheby's recent leadership transition. (b) For segment reporting purposes, Sotheby's share of earnings related to its equity investees is included as part of income before taxes. However, such earnings are reported separately below income before taxes in the Consolidated Income Statements. In 2015, Agency segment results includes $2.5 million of equity earnings related to RM Sotheby's. In 2015 and 2014, All Other includes $2.8 million and $1.3 million , respectively, of equity earnings related to Acquavella Modern Art. See Note 5 for information related to Sotheby's equity method investments. The table below presents geographic information about revenues for the years ended December 31, 2015 , 2014 , and 2013 for all countries which exceeded 5% of total revenues (in thousands of dollars): 2015 2014 2013 United States $ 463,129 $ 402,385 $ 353,474 United Kingdom (the "U.K.") 257,336 271,505 230,304 Hong Kong and China 146,262 165,066 153,909 Switzerland 50,134 46,226 41,150 France 41,803 48,032 46,891 Other countries 17,589 19,116 39,465 Reconciling item: Intercompany revenue (14,759 ) (14,277 ) (11,515 ) Total $ 961,494 $ 938,053 $ 853,678 The table below presents assets for Sotheby's segments, as well as a reconciliation of segment assets to consolidated assets as of December 31, 2015 , 2014 and 2013 (in thousands of dollars): December 31, 2015 2014 2013 Agency $ 2,510,257 $ 2,391,763 $ 2,314,356 Finance 721,781 658,710 480,103 All Other 25,178 29,067 31,182 Total segment assets 3,257,216 3,079,540 2,825,641 Unallocated amounts: Deferred tax assets and income tax receivable 16,913 55,280 67,905 Consolidated assets $ 3,274,129 $ 3,134,820 $ 2,893,546 Substantially all of Sotheby's capital expenditures in 2015 , 2014 , and 2013 were attributable to the Agency segment. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Accounts and Notes Receivable, Net [Abstract] | |
Receivables | Receivables Accounts Receivable (Net) —Through its Agency segment, Sotheby's accepts property on consignment and matches sellers, also known as consignors, to buyers through the auction or private sale process. Following an auction or private sale, Sotheby's invoices the buyer for the purchase price of the property (including any commissions owed by the buyer), collects payment from the buyer, and remits to the consignor the net sale proceeds after deducting its commissions, expenses and applicable taxes and royalties. Under Sotheby's standard auction payment terms, payments from buyers are due no more than 30 days from the sale date and payments to consignors are due 35 days from the sale date. For private sales, payment from the buyer is typically due on the sale date, with the net sale proceeds due to the consignor shortly thereafter. Extended payment terms are sometimes provided to an auction or private sale buyer. For auctions, the extent to which extended payment terms are provided to buyers can vary considerably from selling season to selling season. Extended payment terms typically extend the payment due date to a date that is no longer than one year from the sale date. In limited circumstances, the payment due date may be extended to a date that is beyond one year from the sale date. When providing extended payment terms, Sotheby's attempts to match the timing of cash receipt from the buyer with the timing of payment to the consignor, but is not always successful in doing so. All extended payment term arrangements are approved by management under Sotheby's internal corporate governance policy. In the limited circumstances when the payment due date is extended to a date that is beyond one year from the sale date, if the consignor does not provide Sotheby's matched payment terms (i.e., Sotheby's pays the consignor prior to receiving payment from the buyer), the receivable balance is reclassified from Accounts Receivable to Notes Receivable in the Consolidated Balance Sheets. As of December 31, 2015 and 2014 , Notes Receivable within the Agency segment included $24.3 million and $22.7 million of amounts reclassified from Accounts Receivable. See discussion of Agency segment Notes Receivable below. Under the standard terms and conditions of its auction and private sales, Sotheby's is not obligated to pay the consignor for property that has not been paid for by the buyer. If a buyer defaults on payment, the sale may be cancelled, and the property will be returned to the consignor. Alternatively, the consignor may reoffer the property at a future Sotheby's auction or negotiate a private sale with Sotheby's acting as its agent. In certain instances and subject to management approval under Sotheby's internal corporate governance policy, the consignor may be paid the net sale proceeds before payment is collected from the buyer and/or the buyer may be allowed to take possession of the property before making payment. In situations when the buyer takes possession of the property before making payment, Sotheby's is liable to the seller for the net sales proceeds whether or not the buyer makes payment. As of December 31, 2015 and 2014 , Accounts Receivable (net) includes $165.2 million and $116 million , respectively, related to situations when Sotheby's paid the consignor all or a portion of the net sales proceeds before payment was collected from the buyer. As of December 31, 2015 and 2014 , Accounts Receivable (net) also includes $93.1 million and $96.5 million , respectively, related to situations in which the buyer has taken possession of the property before making payment to Sotheby's. Notes Receivable (Finance Segment) —The Finance segment provides certain collectors and art dealers with financing secured by works of art that Sotheby's either has in its possession or permits borrowers to possess. The Finance segment generally makes two types of secured loans: (1) advances secured by consigned property where the borrowers are contractually committed, in the near term, to sell the property through Sotheby's Agency segment (a "consignor advance") and (2) general purpose term loans secured by property not presently intended for sale (a "term loan"). Consignor advances allow sellers to receive funds upon consignment for an auction or private sale that will typically occur up to one year in the future and normally have short-term maturities. Term loans allow Sotheby's to establish or enhance mutually beneficial relationships with borrowers and may generate future auction or private sale consignments and/or purchases. In certain situations, term loans are also made to refinance accounts receivable generated by clients' auction and private sale purchases. Term loans normally have initial maturities of up to two years and typically carry a variable market rate of interest. Prior to 2014, the lending activities of the Finance segment were funded primarily by the operating cash flows of the Agency segment, with the ability to supplement those cash flows with revolving credit facility borrowings. In January 2014, in order to reduce the Finance segment's cost of capital and enhance returns, Sotheby's established a separate capital structure for the Finance segment through which client loans are predominantly funded with borrowings drawn from a dedicated revolving credit facility. The establishment of the Finance segment's dedicated revolving credit facility has allowed Sotheby's to finance a substantial portion of the Finance segment loan portfolio with debt. Cash balances are also used to fund a portion of the Finance segment loan portfolio, as appropriate. See Note 7 for information related to the Finance segment's dedicated revolving credit facility. As of December 31, 2015 and 2014 , Notes Receivable (net) related to the Finance segment consisted of the following (in thousands of dollars): December 31, 2015 2014 Consignor advances $ 30,180 $ 25,994 Term loans 652,078 618,447 Total Finance segment Notes Receivable (net) $ 682,258 $ 644,441 As of December 31, 2015 and 2014 , the table above includes $108.8 million and $90.4 million , respectively, of term loans made by the Finance segment to refinance clients' auction and private sale purchases. For the years ended December 31, 2015 and 2014 , the Finance Segment made $50.2 million and $65.6 million , respectively, of such loans. These loans are accounted for as non-cash transfers between Accounts Receivable (net) and Notes Receivable (net) and are, therefore, not reflected as the funding of Notes Receivable within Investing Activities in the Consolidated Statements of Cash Flows. Upon repayment, the cash received in settlement of such loans is classified within Operating Activities in the Consolidated Statements of Cash Flows. In 2015 and 2014 , such repayments totaled $31.8 million and $38.1 million , respectively. The collection of secured loans can be adversely impacted by a decline in the art market in general or in the value of the collateral, which is concentrated within certain collecting categories. In addition, in situations when there are competing claims on the collateral and/or when a borrower becomes subject to bankruptcy or insolvency laws, Sotheby's ability to realize on its collateral may be limited or delayed. Management aims to mitigate the risks associated with potential collateral devaluation by targeting a 50% loan-to-value ("LTV") ratio (i.e., the principal loan amount divided by the low auction estimate of the collateral). Loans may also be made with LTV ratios between 51% and 60% as the Finance segment credit facility permits borrowings on loans with an LTV of up to 60% . In rare circumstances, loans are also made at an initial LTV ratio higher than 60% . In addition, the LTV ratio of certain loans may increase above the 50% target due to decreases in the low auction estimates of the collateral. The revaluation of loan collateral is performed by Sotheby's specialists on an annual basis or more frequently if there is a material change in circumstances related to the loan, the value of the collateral, the disposal plans for the collateral, or if an event of default occurs. Management believes that the LTV ratio is a critical credit quality indicator for Finance segment secured loans. The table below provides the aggregate LTV ratio for the Finance segment loan portfolio of secured loans as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Finance segment secured loans $ 682,258 $ 644,441 Low auction estimate of collateral $ 1,380,022 $ 1,349,094 Aggregate LTV ratio 49 % 48 % The table below provides the aggregate LTV ratio for Finance segment secured loans with an LTV above 50% as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Finance segment secured loans with an LTV ratio above 50% $ 354,049 $ 329,135 Low auction estimate of collateral related to Finance segment secured loans with an LTV above 50% $ 626,829 $ 556,662 Aggregate LTV ratio of Finance segment secured loans with an LTV above 50% 56% 59% The table below provides other credit quality information regarding Finance segment secured loans as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Total secured loans $ 682,258 $ 644,441 Loans past due $ 11,819 $ 22,409 Loans more than 90 days past due $ 7,828 $ — Non-accrual loans $ — $ — Impaired loans $ — $ — Allowance for credit losses: Allowance for credit losses for impaired loans $ — $ — Allowance for credit losses based on historical data 1,458 1,166 Total allowance for credit losses - secured loans $ 1,458 $ 1,166 Management considers a loan to be past due when principal payments are not paid in accordance with the stated terms of the loan. As of December 31, 2015 , $11.8 million of the Notes Receivable (net) balance was considered to be past due, of which $7.8 million was more than 90 days past due. The collateral securing these loans has low auction estimates of approximately $28.5 million and $16.9 million , respectively, resulting in an LTV ratio for these loans of 41% and 46% , respectively. Sotheby's is continuing to accrue interest on these past due loans. In consideration of payments received to-date in the first quarter of 2016 , the collateral value related to these loans, current collateral disposal plans, and negotiations with the borrowers, management believes that the principal and interest amounts due for these loans will be collected. A non-accrual loan is a loan for which future Finance revenue is not recorded due to management's determination that it is probable that future interest on the loan is not collectible. Any cash receipts subsequently received on non-accrual loans are first applied to reduce the recorded principal balance of the loan, with any proceeds in excess of the principal balance then applied to interest owed by the borrower. The recognition of Finance revenue may resume on a non-accrual loan if sufficient additional collateral is provided by the borrower or if management becomes aware of other circumstances that indicate that it is probable that the borrower will make future interest payments on the loan. As of December 31, 2015 and 2014 , there were no non-accrual loans outstanding. A loan is considered to be impaired when management determines that it is probable that a portion of the principal and interest owed by the borrower will not be recovered after taking into account the estimated realizable value of the collateral securing the loan, as well as the ability of the borrower to repay any shortfall between the value of the collateral and the amount of the loan. If a loan is considered to be impaired, Finance Revenue is no longer recognized and bad debt expense is recorded for any principal or accrued interest that is deemed uncollectible. As of December 31, 2015 and 2014 , there were no impaired loans outstanding. During the period January 1, 2014 to December 31, 2015 , activity related to the Allowance for Credit Losses was as follows (in thousands of dollars): Allowance for Credit Losses as of January 1, 2014 $ 1,746 Change in loan loss provision (580 ) Allowance for Credit Losses as of December 31, 2014 1,166 Change in loan loss provision 292 Allowance for Credit Losses as of December 31, 2015 $ 1,458 As of December 31, 2015 , unfunded commitments to extend additional credit through Sotheby's Finance segment were $7.6 million . Notes Receivable (Agency Segment) —Sotheby's is obligated under the terms of certain auction guarantees to advance a portion of the guaranteed amount prior to the auction. In addition, in certain limited situations, the Agency segment will also provide advances to consignors that are secured by property scheduled to be offered at auction in the near term. Such auction guarantee and Agency segment consignor advances are recorded on the Consolidated Balance Sheets within Notes Receivable (net). As of December 31, 2014 , auction guarantee advances totaled $25 million . There were no auction guarantee advances or Agency segment consignor advances outstanding as of December 31, 2015. See Note 16 for information related to auction guarantees. In the limited circumstances when the payment due date for an auction or private sale receivable is extended to a date that is beyond one year from the sale date, if the consignor does not provide Sotheby's matched payment terms, the receivable balance is reclassified from Accounts Receivable to Notes Receivable in the Consolidated Balance Sheets. As of December 31, 2015 , Notes Receivable within the Agency segment included $24.3 million of amounts reclassified from Accounts Receivable against which Sotheby's holds $7.2 million of collateral. As of December 31, 2014 , Notes Receivable within the Agency segment included $22.7 million of such loans, against which Sotheby's held $3.9 million of collateral. These Notes Receivable are accounted for as non-cash transfers between Accounts Receivable (net) and Notes Receivable (net) and are, therefore, not reflected within Investing Activities in the Consolidated Statements of Cash Flows. Upon repayment, the cash received in settlement of such Notes Receivable is classified within Operating Activities in the Consolidated Statements of Cash Flows. Under certain circumstances, Sotheby's provides loans to certain art dealers to finance the purchase of works of art. In these situations, Sotheby's acquires a partial ownership interest or a security interest in the purchased property in addition to providing the loan. Upon the eventual sale of the property acquired, the loan is repaid. As of December 31, 2015 and 2014 , such unsecured loans totaled $4.2 million and $4.9 million , respectively. Sotheby's is no longer accruing interest with respect to one of these loans with a balance of $2.1 million , but management believes that this balance is collectible. Notes Receivable (Other) —In the second quarter of 2013, Sotheby's sold its interest in an equity method investee for $4.3 million , and, as a result, recognized a gain of $0.3 million in Other Income. The sale price was funded by an upfront cash payment to Sotheby's of $0.8 million and the issuance of a $3.5 million unsecured loan. This loan matures in December 2018, is being charged a variable market rate of interest, and requires monthly payments during the loan term. As of December 31, 2015 and 2014 , the carrying value of this loan was $2.4 million and $2.7 million . |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |
Equity Method Investments | Equity Method Investments Acquavella Modern Art ("AMA")— On May 23, 1990, Sotheby's purchased the common stock of the Pierre Matisse Gallery Corporation ("Matisse") for approximately $153 million . The assets of Matisse consisted of a collection of fine art (the "Matisse Inventory"). Upon consummation of the purchase, Sotheby's entered into an agreement with Acquavella Contemporary Art, Inc. ("ACA") to form AMA, a partnership through which the Matisse Inventory would be sold. Sotheby's contributed the Matisse Inventory to AMA in exchange for a 50% interest in the partnership. Although the original term of the AMA partnership agreement was for ten years and was due to expire in 2000, it has been renewed on an annual basis since then. Pursuant to the AMA partnership agreement, upon the death of the majority shareholder of ACA, the successors-in-interest to ACA have the right, but not the obligation, to require Sotheby's to purchase their interest in AMA at a price equal to the fair market value of such interest. The fair market value shall be determined pursuant to a process and a formula set forth in the partnership agreement that includes an appraisal of the works of art held by AMA at such time. Upon dissolution of AMA, if Sotheby's and ACA elect not to liquidate the property and assets of AMA, any assets remaining after the payment of expenses and any other liabilities of AMA will be distributed to Sotheby's and AMA as tenants-in-common or in some other reasonable manner. The net assets of AMA consist almost entirely of the Matisse Inventory. As of December 31, 2015 and 2014 , the carrying value of the Matisse Inventory was $41.4 million and $44.8 million , respectively. As of December 31, 2015 and 2014 , the carrying value of Sotheby's investment in AMA was $8.5 million and $10.2 million , respectively. In 2015, 2014, and 2013, Sotheby's results include $2.8 million , $0.7 million , and ($0.1) million , respectively, of equity earnings (losses) related to AMA. From time-to-time, Sotheby's transacts with the principal shareholder of ACA in the normal course of its business. RM Sotheby's— On February 18, 2015, Sotheby's acquired a 25% ownership interest in RM Auctions, an auction house for investment-quality automobiles, for $30.7 million . Following this investment, RM Auctions is now known as RM Sotheby's. In addition to the initial 25% ownership interest, Sotheby's has governance participation and a comprehensive partnership agreement to work together to drive growth in the business. Over time, Sotheby's will have opportunities to increase its ownership stake as the partnership evolves and grows. As of December 31, 2015 , the carrying value of Sotheby's investment in RM Sotheby's was $33.2 million . In 2015, Sotheby's results include $2.5 million of equity earnings related to RM Sotheby's. Other— In the second quarter of 2013, Sotheby's sold its interest in another equity method investee for $4.3 million and, as a result, recognized a gain of $0.3 million in Other Income. The sale price was funded by an upfront cash payment to Sotheby's of $0.8 million and the issuance of a $3.5 million unsecured loan (see Note 4). |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets As of December 31, 2015 and 2014 , Fixed Assets consisted of the following (in thousands of dollars): December 31, 2015 2014 Land $ 93,078 $ 93,353 Buildings and building improvements 226,530 226,465 Leasehold improvements 82,011 83,643 Computer hardware and software 73,728 71,422 Furniture, fixtures and equipment 78,529 78,182 Construction in progress 2,090 1,401 Other 2,015 1,176 Sub-total 557,981 555,642 Less: Accumulated depreciation and amortization (203,487 ) (191,260 ) Total Fixed Assets, net $ 354,494 $ 364,382 In 2015 , 2014 , and 2013 , Depreciation and Amortization related to Fixed Assets was $19.5 million , $20.6 million , and $19.4 million , respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Debt | Debt Revolving Credit Facility —Sotheby's and certain of its wholly-owned subsidiaries are parties to a credit agreement with an international syndicate of lenders, which provides for separate dedicated revolving credit facilities for the Agency segment (the "Agency Credit Facility") and the Finance segment (the "Finance Credit Facility") (the "Credit Agreement"). On June 15, 2015, the Credit Agreement was amended to increase the commitments under the Finance Credit Facility in order to further support the lending activities of the Finance segment and to extend the maturity date of the Credit Agreement by one year to August 22, 2020. The Agency Credit Facility is an asset-based revolving credit facility the proceeds of which may be used primarily for the working capital and other general corporate needs of the Agency segment. The Finance Credit Facility is an asset-based revolving credit facility the proceeds of which may be used primarily for the working capital and other general corporate needs of the Finance segment, including the funding of client loans. The Credit Agreement allows Sotheby's to transfer the proceeds of borrowings under each of the revolving credit facilities between the Agency and Finance segments. The maximum aggregate borrowing capacity of the Credit Agreement, subject to a borrowing base, is approximately $1.335 billion , with $300 million committed to the Agency segment and $1.035 billion committed to the Finance segment, including a $485 million increase that was secured for the Finance segment in conjunction with the June 2015 amendment. The borrowing capacity of the Agency Credit Facility includes a $50 million incremental revolving credit facility with higher advance rates against certain assets and higher commitment and borrowing costs (the "Incremental Facility"). The Incremental Facility has a maturity date of August 22, 2016, which may be extended for an additional 365 days on an annual basis with the consent of the lenders who agree to extend their commitments under the Incremental Facility. The Credit Agreement has a sub-limit of $400 million for borrowings in the U.K. and Hong Kong, with up to $50 million available for foreign borrowings under the Agency Credit Facility and up to $350 million available for foreign borrowings under the Finance Credit Facility. The Credit Agreement also includes an accordion feature, which allows Sotheby's to seek an increase to the combined borrowing capacity of the Credit Agreement until February 23, 2020 by an amount not to exceed $150 million in the aggregate. Though new commitments would need to be obtained, the uncommitted accordion feature permits Sotheby's to seek an increase to the aggregate commitments of either or both of the Agency and Finance Credit Facilities under an expedited arrangement process. The borrowing base under the Agency Credit Facility is determined by a calculation that is primarily based upon a percentage of the carrying values of certain auction guarantee advances (see Note 4), a percentage of the carrying value of certain inventory, a percentage of the carrying value of certain extended payment term receivables arising from auction or private sale transactions (see Note 4), and the fair value of certain of Sotheby's trademarks. The borrowing base under the Finance Credit Facility is determined by a calculation that is primarily based upon a percentage of the carrying values of certain loans in the Finance segment loan portfolio and the fair value of certain of Sotheby's trademarks. The borrowing base of the Incremental Facility is determined by a calculation that is based on a percentage of the carrying value of certain inventory and the fair value of certain of Sotheby's trademarks. The obligations under the Credit Agreement are cross-guaranteed and cross-collateralized. Domestic borrowers are jointly and severally liable for all obligations under the Credit Agreement and, subject to certain limitations, borrowers in the U.K. and Sotheby's Hong Kong Limited are jointly and severally liable for all obligations of the foreign borrowers under the Credit Agreement. In addition, the obligations of the borrowers under the Credit Agreement are guaranteed by certain of their subsidiaries. Sotheby's obligations under the Credit Agreement are secured by liens on all or substantially all of the personal property of the entities that are borrowers and guarantors under the Credit Agreement. The Credit Agreement contains certain customary affirmative and negative covenants including, but not limited to, limitations on capital expenditures and limitations on the use of proceeds from borrowings under the Credit Agreement. The Credit Agreement also has a covenant that provides for a limitation on net outstanding auction guarantees (i.e., the aggregate financial exposure under outstanding auction guarantees less the impact of related risk and reward sharing arrangements). On September 16, 2015, the Credit Agreement was amended to temporarily increase this limit to $800 million until February 29, 2016, after which it reverts to $600 million for the duration of the Credit Agreement. The Credit Agreement does not limit dividend payments and Common Stock repurchases provided that, both before and after giving effect thereto: (i) there are no events of default, (ii) the aggregate available borrowing capacity equals or exceeds $100 million , and (iii) the Liquidity Amount, as defined in the Credit Agreement, equals or exceeds $200 million . The Credit Agreement also contains certain financial covenants, which are only applicable during certain defined compliance periods. These financial covenants were not applicable for the twelve month period ended December 31, 2015 . Since August 2009, Sotheby's has incurred aggregate fees of approximately $21.4 million in conjunction with the establishment of and subsequent amendments to its credit agreement with General Electric Capital Corporation. These fees are being amortized on a straight-line basis through the August 22, 2020 maturity date of the Credit Agreement. The following tables summarize information relevant to the Credit Agreement as of and for the years ended December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 Agency Credit Facility Finance Credit Facility Total Maximum borrowing capacity (a) $ 300,000 $ 1,035,000 $ 1,335,000 Borrowing base (b) $ 225,642 $ 547,586 $ 773,228 Borrowings outstanding $ — $ 541,500 $ 541,500 Available borrowing capacity (c) $ 225,642 $ 6,086 $ 231,728 Average borrowings outstanding $ — $ 541,004 $ 541,004 Borrowing Costs - interest $ — (d) $ 14,060 (e) $ 14,060 Borrowing Costs - fee amortization $ 2,752 (d) $ 1,720 (e) $ 4,472 December 31, 2014 Agency Credit Facility Finance Credit Facility Total Maximum borrowing capacity (a) $ 300,000 $ 550,000 $ 850,000 Borrowing base (b) $ 237,830 $ 519,255 $ 757,085 Borrowings outstanding $ — $ 445,000 $ 445,000 Available borrowing capacity (c) $ 237,830 $ 74,255 $ 312,085 Average borrowings outstanding $ — $ 306,448 $ 306,448 Borrowing Costs - interest $ — (d) $ 7,751 (e) $ 7,751 Borrowing Costs - fee amortization $ 2,240 (d) $ 989 (e) $ 3,229 Legend: (a) In June 2015, the Credit Agreement was amended to, among other things, increase the maximum borrowing capacity of the Credit Agreement from $850 million to approximately $1.335 billion . (b) The borrowing base under the Agency Credit Facility is determined by a calculation that is primarily based upon a percentage of the carrying values of certain auction guarantee advances (see Note 4), a percentage of the carrying value of certain inventory, a percentage of the carrying value of certain extended payment term receivables arising from auction or private sale transactions (see Note 4), and the fair value of certain of Sotheby's trademarks. The borrowing base under the Finance Credit Facility is determined by a calculation that is primarily based upon a percentage of the carrying values of certain loans in the Finance segment loan portfolio and the fair value of certain of Sotheby's trademarks. The borrowing base of the Incremental Facility is determined by a calculation that is based on a percentage of the carrying value of certain inventory and the fair value of certain of Sotheby's trademarks. (c) The available borrowing capacity is calculated as the borrowing base less borrowings outstanding. (d) Borrowing costs related to the Agency Credit Facility, which include interest and fee amortization, are reflected in the Consolidated Income Statements within Interest Expense. See the table below for additional information related to Interest Expense associated with the Agency Credit Facility. (e) Borrowing costs related to the Finance Credit Facility are reflected in the Consolidated Income Statements within Cost of Finance Revenues. For the years ended December 31, 2015 and 2014 , the weighted average cost of borrowings related to the Finance Credit Facility was approximately 2.9% . Long-Term Debt —As of December 31, 2015 and 2014 , Long-Term Debt consisted of the following (in thousands of dollars): December 31, 2015 2014 York Property Mortgage, net of unamortized discount of $0 and $1,782 $ 322,069 $ 218,728 2022 Senior Notes 300,000 300,000 Less current portion: York Property Mortgage (7,302 ) (218,728 ) Total Long-Term Debt $ 614,767 $ 300,000 See the captioned sections below for information related to the York Property Mortgage and the 2022 Senior Notes, as well as information on the other debt instruments that were outstanding during the periods covered by this report. York Property Mortgage —On February 6, 2009, Sotheby's purchased the land and building located at 1334 York Avenue, New York, New York (the "York Property") from RFR Holding Corp. ("RFR") for a purchase price of $370 million . The York Property is home to Sotheby's sole North American auction salesroom and principal North American exhibition space, including S|2, Sotheby's private sale exhibition gallery. The York Property is also home to the U.S. operations of the Finance segment, as well as its corporate offices. Sotheby's financed the $370 million purchase price through an initial $50 million cash payment made in conjunction with the signing of the related purchase and sale agreement on January 11, 2008, an $85 million cash payment made when the purchase was consummated on February 6, 2009, and the assumption of a $235 million mortgage that carried an initial annual rate of interest of approximately 5.6% (the "York Property Mortgage"). The York Property Mortgage was due to mature on July 1, 2035, but had an optional pre-payment date of July 1, 2015, after which the annual rate of interest was scheduled to increase to 10.6% . On July 1, 2015, Sotheby's entered into a seven -year, $325 million mortgage loan to refinance the original York Property Mortgage. After the repayment of the original York Property Mortgage and the funding of all closing costs, reserves, and expenses, Sotheby's received net cash proceeds of approximately $98 million . The new York Property Mortgage bears interest based on the one -month LIBOR rate (the "LIBOR rate") plus a spread of 2.25% and is being amortized based on a twenty-five -year mortgage-style amortization schedule over the seven -year term of the mortgage, with the then-remaining principal balance of $268.2 million due to be paid on the July 1, 2022 maturity date. In connection with the new York Property Mortgage, Sotheby's entered into interest rate protection agreements secured by the York Property, consisting of a two -year interest rate swap effective as of July 1, 2015 and a five -year interest rate collar effective as of July 1, 2017. Both instruments have a notional amount equal to the applicable principal balance of the York Property Mortgage and have an identical amortization schedule to that of the mortgage. These interest rate protection agreements effectively hedge the LIBOR rate on the entire outstanding principal balance of the York Property Mortgage at an annual rate equal to 0.877% for the first two years, and then at an annual rate of no less than 1.917% but no more than 3.75% for the remainder of the seven -year term. After taking into account the interest rate protection agreements, the annual interest rate for the first two years of the new York Property Mortgage will be approximately 3.127% and then will be between a floor of 4.167% and a cap of 6% for the remainder of the seven-year term. See Note 18 for additional information related to the interest rate protection agreements. The loan agreement governing the new York Property Mortgage contains the following financial covenants, which are subject to additional terms and conditions as provided in the underlying loan agreement: • As of July 1, 2020, the LTV ratio may not exceed 65% (the "Maximum LTV") based on the then-outstanding principal balance of the mortgage. If the LTV ratio exceeds the Maximum LTV, Sotheby's may, at its option, post cash or a letter of credit or pay down the mortgage without any prepayment penalty or premium, in an amount that will cause the LTV ratio not to exceed the Maximum LTV. • At all times during the term of the mortgage, the Debt Yield (as defined in the loan agreement governing the mortgage) will not be less than 8.5% (the "Minimum Debt Yield"). If the Debt Yield falls below the Minimum Debt Yield, Sotheby's has the option to post cash or a letter of credit or prepay the mortgage without any prepayment penalty or premium, in an amount that will cause the Debt Yield to exceed the Minimum Debt Yield. • If Sotheby's corporate credit rating from Standard & Poor's Rating Services ("S&P") is downgraded to BB-, cash management accounts (the "Cash Management Accounts") may be established under the control of the lender for monthly debt service, insurance, and tax payments. If the rating is downgraded to B+ or B, Sotheby's may be required to deposit a certain amount of debt service into the Cash Management Accounts (estimated to be approximately 6 to 12 months of debt service). If the rating is downgraded to lower than B, Sotheby's must make principal payments on the mortgage such that the LTV ratio does not exceed 65% . On February 9, 2016, Sotheby's corporate credit rating from S&P was downgraded to "BB-" from "BB". As a result, as discussed above, at Cash Management Accounts will be established under the control of the lender for monthly debt service, insurance, and tax payments. The lender will retain any excess cash after debt service, insurance, and taxes as security (estimated to be approximately $6 million annually). • At all times during the term of the mortgage, Sotheby's is required to maintain a net worth of at least $425 million , subject to a cure period. The York Property and the related mortgage are held by 1334 York, LLC, a separate legal entity of Sotheby's that maintains its own books and records and whose results are ultimately consolidated into Sotheby's financial statements. The assets of 1334 York, LLC are not available to satisfy the obligations of other Sotheby's affiliates or any other entity. As of December 31, 2015 , the fair value of the York Property Mortgage approximates its book value due to the variable interest rate associated with the mortgage. This fair value measurement is considered to be a Level 2 fair value measurement in the fair value hierarchy as per Accounting Standards Codification 820, Fair Value Measurements ("ASC 820"). 2022 Senior Notes —On September 27, 2012, Sotheby's issued $300 million aggregate principal amount of 5.25% Senior Notes, due October 1, 2022 (the "2022 Senior Notes"). The 2022 Senior Notes were offered only to qualified institutional buyers in accordance with Rule 144A and to non-U.S. Persons under Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). Holders of the 2022 Senior Notes do not have registration rights, and the 2022 Senior Notes have not been and will not be registered under the Securities Act. The net proceeds from the issuance of the 2022 Senior Notes were approximately $300 million , after deducting fees paid to the initial purchasers, and were principally used to retire $80 million of unsecured debt that was due in June 2015 and Sotheby's 3.125% Convertible Notes, as discussed below. The 2022 Senior Notes are guaranteed, jointly and severally, on a senior unsecured basis by certain of Sotheby's existing and future domestic subsidiaries to the extent and on the same basis that such subsidiaries guarantee borrowings under the New Credit Agreement. Interest on the 2022 Senior Notes is payable semi-annually in cash on April 1 and October 1 of each year. The 2022 Senior Notes are redeemable by Sotheby's, in whole or in part, on or after October 1, 2017, at specified redemption prices set forth in the underlying indenture, plus accrued and unpaid interest to, but excluding, the redemption date. Prior to October 1, 2017, the 2022 Senior Notes are redeemable, in whole or in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, plus a premium equal to the greater of 1% of the principal amount of the 2022 Senior Notes and a make-whole premium (as defined in the underlying indenture). The 2022 Senior Notes are not callable by holders unless Sotheby's is in default under the terms of the underlying indenture. As of December 31, 2015 , the $300 million principal amount of 2022 Senior Notes had a fair value of approximately $276 million based on a broker quoted price derived via a pricing model using observable and unobservable inputs. As such, this fair value measurement is considered to be a Level 3 fair value measurement in the fair value hierarchy as per ASC 820. Convertible Notes —On June 17, 2008, Sotheby's issued $200 million aggregate principal amount of 3.125% Convertible Notes, due June 15, 2013 . The net proceeds from the issuance of the Convertible Notes were approximately $194.3 million , after deducting transaction costs. The Convertible Notes were payable in cash, shares of Sotheby's Common Stock, or a combination thereof, at the option of Sotheby's, based on a conversion rate, as adjusted, of 29.5920 shares of Common Stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price, as adjusted, of approximately $33.79 per share. On January 1, 2009, upon the adoption of Accounting Standards Codification 470-20, Debt - Debt With Conversion and Other Options , the liability and equity components of the Convertible Notes were separately accounted for in Sotheby's financial statements. The liability component was initially valued at $161.8 million using Sotheby's nonconvertible debt borrowing rate, which was estimated to be 7.75% at the date of adoption, and was accounted for as Long-Term Debt. The equity component (i.e., the embedded conversion option) was initially valued at $38.2 million ( $21 million , net of tax) and was accounted for as a component of Additional Paid-In Capital within Shareholders' Equity. The corresponding debt discount was amortized to Interest Expense over the life of the Convertible Notes using the effective interest rate method. The Convertible Notes were convertible at the option of the bondholders for a period beginning on April 1, 2011 and ending on June 30, 2011 as a result of the stock price trigger in the underlying indenture being met in the first quarter of 2011. In June 2011, Sotheby's received conversion requests resulting in a conversion obligation of $22.5 million , which consisted of $18.1 million related to principal and approximately $4.4 million related to the conversion premium. This conversion obligation was settled entirely in cash in August 2011. As a result of the cash settlement of these conversion requests, $8.2 million ( $5.4 million , net of tax) of the amount originally attributed to the embedded conversion option and initially recorded within Shareholders' Equity no longer met the conditions for equity classification. Accordingly, this amount was reclassified to Other Current Liabilities on Sotheby's June 30, 2011 balance sheet prior to settlement of the conversion obligation in August 2011. In August 2011, simultaneous with the settlement of the June 2011 conversion requests, Sotheby's received $4.4 million in cash to fund the conversion premium through its exercise of a portion of the Convertible Note Hedges, as discussed below. In the third quarter of 2011, Sotheby's recognized a $1.5 million loss representing the write-off of a proportionate amount of the unamortized discount and deferred transaction costs related to the Convertible Notes redeemed. The remaining Convertible Notes became convertible on March 15, 2013, for a period ending on the close of business on June 14, 2013, when Sotheby's became obligated to pay the conversion obligation of $197.4 million , which consisted of $181.9 million related to principal and $15.5 million related to the conversion premium. As of March 31, 2013, management evaluated the remaining amount originally attributed to the embedded conversion option and initially recorded within Shareholders' Equity and concluded that it no longer met the conditions for equity classification as a result of Sotheby's irrevocable election in the first quarter of 2013 to settle any remaining conversion obligation related to the Convertible Notes solely in cash. Accordingly, as of March 31, 2013, the $21.8 million fair value of the embedded conversion option was reclassified to Other Current Liabilities, with a corresponding reduction to Shareholders' Equity of $12 million , net of tax. In June 2013, the conversion obligation was settled entirely in cash and Sotheby's simultaneously received $15.5 million in cash to offset the conversion premium through the exercise of its Convertible Note Hedges, as discussed below. Convertible Note Hedges and Warrant Transactions —On June 11, 2008, in conjunction with the issuance of the Convertible Notes, Sotheby's entered into convertible note hedge transactions (the "Convertible Note Hedges") at a cost of $40.6 million ( $22.5 million , net of tax) that allowed Sotheby's to purchase its Common Stock from affiliates of Bank of America and Goldman Sachs & Co. (collectively, the "Counterparties") at a price equal to the conversion price of the Convertible Notes. The Convertible Note Hedges were entered into to offset the impact of any premium paid, either in cash or in shares of Sotheby's Common Stock, upon the settlement of the Convertible Notes. The Convertible Note Hedges initially met the conditions for equity classification and, as a result, in June 2008, the related $40.6 million ( $22.5 million , net of tax) was recorded on Sotheby's balance sheet as a component of Additional Paid-In Capital within Shareholders' Equity. As previously discussed in this footnote, in June 2011, Sotheby's received conversion requests totaling a principal amount of $18.1 million from holders of the Convertible Notes. As a result, in June 2011, Sotheby's exercised the portion of the Convertible Note Hedges related to these conversion requests, which enabled it to receive $4.4 million in cash, which was equal to the amount of the conversion premium paid upon settlement of the conversion obligation in August 2011. As a result of the cash settlement of this portion of the Convertible Note Hedges, $8.2 million ( $5.3 million , net of tax) of the amount originally recorded in Shareholders' Equity no longer met the conditions for equity classification as of June 30, 2011. Accordingly, this amount was reclassified to Other Current Assets on Sotheby's June 30, 2011 balance sheet prior to settlement of the conversion obligation in August 2011. As of March 31, 2013, management evaluated the Convertible Note Hedges and concluded that the remaining amount in Shareholders' Equity no longer met the conditions for equity classification as a result of Sotheby's irrevocable election in the first quarter of 2013 to settle the remaining Convertible Note Hedges solely in cash. Accordingly, as of March 31, 2013, the $21.8 million fair value of the remaining Convertible Note Hedges was reclassified to Other Current Assets, with a corresponding increase to Shareholders' Equity of $12 million , net of tax. In June 2013, Sotheby's settled the remaining conversion obligation related to the Convertible Notes entirely in cash. As a result, the Convertible Note Hedges were exercised, and Sotheby's received $15.5 million in cash to offset the conversion premium related to the Convertible Notes. On June 11, 2008, Sotheby's also entered into warrant transactions, whereby it sold to the Counterparties warrants (the "Warrants") to acquire, subject to customary anti-dilution adjustments, approximately 5.9 million shares of Sotheby's Common Stock at a price of approximately $44.50 per share, as adjusted. The net proceeds received by Sotheby's in June 2008 from the sale of the Warrants was $22.3 million and was recorded as a component of Additional Paid-In Capital within Shareholders' Equity. The warrants were automatically exercisable subject to a limit of approximately 118,348 warrants per day for each day in the 50 trading days that began on September 17, 2013 and ended on November 25, 2013. The settlement of warrant exercises resulted in the issuance of 722,288 shares of Sotheby's Common Stock in the fourth quarter of 2013. Future Principal and Interest Payments —The aggregate future principal and interest payments due under the York Property Mortgage, the 2022 Senior Notes, and Sotheby's revolving credit facility during the five year period after the December 31, 2015 balance sheet date are as follows (in thousands of dollars): Year Amount 2016 $ 33,186 2017 $ 34,925 2018 $ 36,587 2019 $ 36,598 2020 $ 578,108 In consideration of the interest rate protection agreements relating to the York Property Mortgage, the table above assumes that the annual interest rate for the first two years of the mortgage will be approximately 3.127% , and then will be at the interest rate collar's floor rate of 4.167% for the remainder of the seven-year term. Interest Expense —For the years ended December 31, 2015 , 2014 , and 2013 , Interest Expense consisted of the following (in thousands of dollars): December 31, 2015 2014 2013 Agency Segment Credit Facility: Amendment and arrangement fees $ 1,167 $ 1,096 $ 1,279 Commitment fees 1,585 1,144 1,532 Sub-total 2,752 2,240 2,811 York Property Mortgage 13,537 16,335 16,512 2022 Senior Notes 16,394 16,394 16,394 Convertible Notes — — 6,894 Other interest expense 62 220 101 Total Interest Expense $ 32,745 $ 35,189 $ 42,712 In the table above, Interest Expense related to the York Property Mortgage, the 2022 Senior Notes, and the Convertible Notes includes the amortization of debt issuance costs and, when applicable, the amortization of discount. For the year ended December 31, 2013 , Interest Expense related to the Convertible Notes consisted of the following (in thousands of dollars): 2013 Contractual coupon interest expense $ 2,621 Discount amortization 3,796 Debt issuance cost amortization 477 Total $ 6,894 Interest Paid —In 2015 , 2014 , and 2013 , interest paid totaled $53.5 million , $42.4 million , and $33.2 million , respectively. Interest paid in 2015 and 2014 includes $36 million and $31.2 million , respectively, attributable to the Agency segment, which primarily relates to the York Property Mortgage (including $7.1 million of amounts paid to refinance the mortgage in July 2015), Sotheby's long-term debt securities, and revolving credit facility fees. Interest paid in 2015 and 2014 includes $17.5 million and $11.2 million , respectively, attributable to the Finance segment, which relates to revolving credit facility borrowings and fees. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the years ended December 31, 2015 , 2014 , and 2013 , the significant components of income tax expense consisted of the following (in thousands of dollars): December 31, 2015 2014 2013 Income before taxes: Domestic $ 11,414 $ 21,976 $ 45,093 Foreign 157,885 171,045 140,600 Total $ 169,299 $ 193,021 $ 185,693 Income tax expense—current: Domestic $ 10,455 $ 22,220 $ 8,131 State and local 5,958 6,946 8,301 Foreign 33,043 37,762 29,602 Sub-total 49,456 66,928 46,034 Income tax expense (benefit)—deferred: Domestic 69,835 5,406 2,543 State and local 6,378 6,314 (241 ) Foreign 5,476 (2,887 ) 7,366 Sub-total 81,689 8,833 9,668 Total $ 131,145 $ 75,761 $ 55,702 As of December 31, 2015 and 2014 , the components of Deferred Tax Assets and Deferred Tax Liabilities consisted of the following (in thousands of dollars): December 31, 2015 2014 Deferred Tax Assets: Asset provisions and liabilities $ 13,720 $ 10,452 Inventory writedowns 10,621 8,756 Tax loss and credit carryforwards 2,887 2,748 Difference between book and tax basis of depreciable and amortizable assets 17,857 18,737 Share-based payments and deferred compensation 34,165 36,494 Sub-total 79,250 77,187 Valuation allowance (2,437 ) (2,224 ) Total deferred tax assets 76,813 74,963 Deferred Tax Liabilities: Difference between book and tax basis of other assets and liabilities 2,361 3,323 Pension obligations 11,231 3,921 Basis differences in equity method investments 3,805 3,884 Undistributed earnings of foreign subsidiaries 91,924 16,432 Total deferred tax liabilities 109,321 27,560 Total net deferred tax (liabilities) assets $ (32,508 ) $ 47,403 In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and liabilities as non-current in a classified balance sheet, instead of separating into current and non-current amounts. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, on a prospective or retrospective basis. Early adoption is permitted for all companies in any interim or annual period. Sotheby's early adopted ASU 2015-17 as of December 31, 2015 on a prospective basis. Accordingly, prior period information has not been adjusted to reflect the new presentation of deferred tax assets and liabilities. As of December 31, 2015, Sotheby's had deferred tax assets related to various foreign and state loss and tax credit carryforwards totaling $2.9 million that begin to expire in 2020. As of December 31, 2015 and 2014, Sotheby's had provided valuation allowances of $2.4 million and $2.2 million , respectively, relating to net operating loss carryforwards. The net increase in the valuation allowance in 2015 is due to an increase in losses in certain jurisdictions, partially offset by a decrease in the valuation allowance due to changes in foreign exchange rates. For the years ended December 31, 2015 , 2014 , and 2013 , the effective income tax rate varied from the statutory tax rate as follows: 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 2.3 % 2.5 % 2.8 % Foreign taxes at rates different from U.S. rates (14.9 %) (13.5 %) (11.1 %) Tax effect of undistributed earnings of foreign subsidiaries 48.2 % 9.6 % 11.0 % Deemed income from foreign subsidiaries, net 2.3 % 3.0 % 2.2 % Valuation allowance 0.3 % (0.2 %) (4.5 %) Effect of enacted tax legislation 2.5 % 2.0 % 0.1 % Worthless stock deduction 0.0 % 0.0 % (3.7 %) Other 1.8 % 0.8 % (1.8 %) Effective income tax rate 77.5 % 39.2 % 30.0 % The comparison of the effective income tax rate between periods is significantly influenced by the level and mix of earnings and losses by taxing jurisdiction, foreign tax rate differentials, the relative impact of permanent book to tax differences (e.g., non-deductible expenses) on pre-tax results by taxing jurisdiction, new tax legislation, and changes in valuation allowances and tax reserves. Sotheby's effective income tax rate was 77.5% in 2015 , compared to 39.2% in 2014 . The increase in the effective income tax rate is primarily due to income tax expense of $65.7 million recorded in the fourth quarter of 2015 to recognize a deferred tax liability for incremental taxes associated with accumulated foreign earnings relating to years prior to 2014 that are no longer deemed to be indefinitely reinvested outside of the U.S. (see “Repatriation of Foreign Earnings” below). In 2015 and 2014, income tax expense of approximately $14.2 million and $18.6 million , respectively, was recorded to recognize deferred tax liabilities for incremental taxes associated with Sotheby’s foreign earnings in those years that were deemed to not be indefinitely reinvested outside of the U.S. The effective income tax rate for the current year also includes income tax expense of approximately $4 million to write-down certain deferred tax assets as a result of New York City tax legislation enacted in April 2015. The legislation reduced the amount of Sotheby’s taxable income apportioned to New York City, thereby reducing Sotheby’s state and local effective income tax rate. This income tax expense was recorded discretely in the second quarter of 2015 and reduced the value of certain deferred tax assets to the amount that will be recognized in the future as a result of the reduction of the New York City effective income tax rate. The effective income tax rate for 2014 included income tax expense of approximately $3.9 million related to the write-down of certain deferred tax assets as a result of the New York State 2014-2015 Budget Act that was enacted in 2014. In 2014, the effective income tax rate increased as compared to 2013 due to the effect of the New York State 2014-2015 Budget Act and two tax benefits that were recorded in 2013 for which there were no comparable benefits in 2014. In 2013, a $10 million income tax benefit was recorded to reverse a valuation allowance recorded against foreign tax credits which management determined were more likely than not to be realized as a result of a repatriation of earnings from Sotheby’s foreign subsidiaries that were previously considered to be indefinitely reinvested. In 2013, a $6.8 million income tax benefit was recorded, net of a related liability for uncertain tax benefits, for a worthless stock deduction Sotheby’s claimed on its 2013 U.S. federal income tax return related to the tax basis of a foreign subsidiary. Also in 2013, net income tax expense of $8.7 million was recorded as a result of management's decision to repatriate $250 million of accumulated foreign earnings related to periods prior to 2014 to help fund a $300 million special dividend that was paid to shareholders in the first quarter of 2014. Repatriation of Foreign Earnings —In prior periods, based on Sotheby’s projections and planned uses of U.S. and foreign earnings, management had intended that approximately $400 million of accumulated foreign earnings relating to years prior to 2014 would be indefinitely reinvested outside of the U.S. As a result, Sotheby’s did not record deferred income taxes on these earnings in its financial statements. Due to the resignation of William F. Ruprecht as Sotheby’s President and Chief Executive Officer in November 2014 and the subsequent hiring of Thomas S. Smith, Jr. as his replacement in March 2015, and the resulting reevaluation of the Company's strategic priorities, the Board of Directors and management reassessed Sotheby’s U.S. and foreign cash needs in the fourth quarter of 2015. As a result of this reassessment and in consideration of the recent expansion of Sotheby's Common Stock repurchase program (see Note 11), as well as the need for cash in the U.S. to fund other corporate strategic initiatives, in the fourth quarter of 2015, it became apparent that these foreign earnings will instead be repatriated to the U.S. in the foreseeable future. Consequently, in the fourth quarter of 2015, Sotheby's recognized a non-cash income tax charge of $65.7 million (net of foreign tax credits) for the deferred income taxes on these foreign earnings. The specific timing of the repatriation of these foreign earnings and cash payment of the associated taxes is currently being evaluated. Total net income tax payments during 2015 , 2014 , and 2013 were $53.9 million , $60.3 million , and $36.2 million , respectively. |
Uncertain Tax Positions
Uncertain Tax Positions | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Uncertainties [Abstract] | |
Uncertain Tax Positions | Uncertain Tax Positions As of December 31, 2015 , 2014 , and 2013 , the liability for unrecognized tax benefits, excluding interest and penalties, was $22 million , $22.8 million , and $25.4 million , respectively, and is recorded within long-term Accrued Income Taxes on the Consolidated Balance Sheets. As of December 31, 2015 and 2014 , the total amount of unrecognized tax benefits that, if recognized, would favorably affect Sotheby's effective income tax rate was $12.8 million and $12.3 million , respectively. The table below presents a reconciliation of the beginning and ending balances of the liability for unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars): 2015 2014 2013 Balance at January 1 $ 22,798 $ 25,423 $ 35,400 Increases in unrecognized tax benefits related to the current year 2,917 2,229 8,999 Increases in unrecognized tax benefits related to prior years 2,276 167 9 Decreases in unrecognized tax benefits related to prior years (1,973 ) (134 ) (16,651 ) Decreases in unrecognized tax benefits related to settlements (437 ) (590 ) (555 ) Decreases in unrecognized tax benefits due to the lapse of the applicable statute of limitations (3,539 ) (4,297 ) (1,779 ) Balance at December 31 $ 22,042 $ 22,798 $ 25,423 In 2015 and 2014, the net decreases to the liability for unrecognized tax benefits are primarily attributable to the expiration of the statute of limitations for certain tax years, the closing of tax audits in the current year, and the settlement of an audit in the prior year, partially offset by the accrual of tax reserves related to transfer pricing and other U.S. federal and state and foreign matters. In 2013, the net decrease to the liability for unrecognized tax benefits is primarily attributable to the settlement of an audit and the expiration of the statute of limitations for certain tax years. The decrease is partially offset by a liability recognized for a portion of a tax benefit recorded during the year related to a worthless stock deduction Sotheby’s claimed on its 2013 U.S. federal income tax return related to the tax basis of a foreign subsidiary. Sotheby's recognizes interest expense and penalties related to unrecognized tax benefits as a component of income tax expense in the Consolidated Income Statements. During 2015 , 2014 , and 2013 , Sotheby's recognized a net benefit of $38 thousand , a net expense of $0.2 million , and a net benefit of $0.2 million , respectively, for interest expense and penalties related to unrecognized tax benefits. As of December 31, 2015 , 2014 , and 2013 , the liability for tax-related interest and penalties included on the Consolidated Balance Sheets was $1.8 million , $1.8 million , and $1.6 million , respectively. The net decrease in 2015 is primarily attributable to the closing of certain tax audits, partially offset by the accrual of tax reserves related to transfer pricing. The net increase in 2014 is due primarily to the accrual of additional interest, partially offset by the reversal of the interest accrued on unrecognized tax benefits that were recognized during the year. Sotheby’s is subject to taxation in the U.S. and various state and foreign jurisdictions and, as a result, is subject to ongoing tax audits in various jurisdictions. Sotheby’s is currently under examination by various U.S. state and foreign taxing authorities. The earliest open tax year for the major jurisdictions in which Sotheby’s does business, which includes the U.S. (including various state and local jurisdictions), the U.K., and Hong Kong, is 2007. Management believes it is reasonably possible that a decrease of $5.1 million in the balance of unrecognized tax benefits can occur within 12 months of the December 31, 2015 balance sheet date primarily as a result of the expiration of statutes of limitation and the expected settlements of ongoing tax audits. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Lease Commitments | Lease Commitments Sotheby's conducts business on premises leased in various locations under long-term operating leases expiring at various dates through 2060. In 2015 , 2014 , and 2013 , net rental expense under Sotheby's operating leases was $17.5 million , $18.2 million , and $17.8 million , respectively, which was recorded in General and Administrative Expenses in the Consolidated Income Statements. Future minimum lease payments due under non-cancellable operating leases in effect at December 31, 2015 were as follows (in thousands of dollars): 2016 $ 17,288 2017 13,730 2018 6,718 2019 5,983 2020 5,539 Thereafter 34,705 Total future minimum lease payments $ 83,963 The future minimum lease payments in the table above exclude future minimum sublease rental receipts of $1.9 million owed to Sotheby's under noncancellable subleases. In addition to the operating lease payments in the table above, under the terms of certain leases, Sotheby's is required to pay real estate taxes and utility costs and may be subject to escalations in the amount of future minimum lease payments based on certain contractual provisions. |
Shareholders' Equity and Divide
Shareholders' Equity and Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity and Dividends [Abstract] | |
Shareholders' Equity and Dividends | Shareholders' Equity and Dividends Common Stock —The principal U.S. market for Sotheby's Common Stock is the New York Stock Exchange (the "NYSE") (Symbol: BID). Each share of Sotheby's Common Stock has a par value of $0.01 per share and is entitled to one vote. Preferred Stock —Sotheby's has the authority to issue 50 million shares of no par value preferred stock. No shares of preferred stock were outstanding as of December 31, 2015 , 2014 , and 2013 . Quarterly Cash Dividends —The following table summarizes regular quarterly cash dividends declared and paid during the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars, except per share amounts): Year Dividends Per Common Share Total Dividends 2015 $ 0.40 $ 27,107 2014 $ 0.40 $ 27,636 2013 $ 0.20 $ 13,754 In December 2012, the Board of Directors declared and Sotheby's paid accelerated first and second quarter of 2013 cash dividends of $13.6 million ( $0.20 per common share). These accelerated dividends were paid in lieu of quarterly dividends that would have otherwise been declared and paid in the first and second quarters of 2013. On January 21, 2016, in light of management's recent capital allocation analysis, the Board of Directors decided to eliminate Sotheby's $0.10 per share quarterly cash dividend and allocate the capital instead to repurchase shares of Common Stock, as discussed in more detail below under "Common Stock Repurchase Program." Special Dividend —In January 2014, the Board of Directors declared a special dividend of $300 million ( $4.34 per share) that was paid on March 17, 2014. The special dividend was funded principally by the repatriation of $250 million of cash from Sotheby's foreign subsidiaries, with the remaining $50 million funded by then existing domestic cash balances (see Note 8). In conjunction with this special dividend, dividend equivalents of approximately $11 million were accrued on share-based payments to Sotheby's employees and charged against retained earnings. Through December 31, 2015, approximately $5.8 million of such dividends has been paid to employees, with $2 million being paid in March 2015 and $3.8 million being paid in March 2014. Common Stock Repurchase Program —In January 2014, the Board of Directors authorized a 5 -year, $150 million Common Stock repurchase program. In March 2014, Sotheby's repurchased 558,171 shares of its Common Stock for an aggregate purchase price of $25 million ( $44.79 per share) pursuant to an accelerated stock repurchase ("ASR") agreement. On August 6, 2015, the Board of Directors approved an increase of $125 million to Sotheby's share repurchase authorization, which resulted in a total share repurchase authorization of $250 million as of that date. On August 13, 2015, Sotheby's entered into an ASR agreement (the "August 2015 ASR Agreement") pursuant to which it received an initial delivery of 2,667,378 shares of its Common Stock for an initial purchase price of $125 million . The initial shares received by Sotheby's on August 13, 2015 had a value of $100 million , or $37.49 per share. In November 2015, the counterparty to the August 2015 ASR Agreement elected to conclude the agreement, and Sotheby's received an additional 1,038,280 shares of its Common Stock. Accordingly, the August 2015 ASR Agreement resulted in the total repurchase of 3,705,658 shares of Sotheby's Common Stock for an average price of $33.73 per share. On January 21, 2016, in light of management's recent capital allocation analysis, the Board of Directors approved a $200 million increase to Sotheby's remaining $125 million share repurchase authorization, resulting in an updated total share repurchase authorization of $325 million . Through February 25, 2016, Sotheby's has repurchased 3,998,381 shares of its Common Stock for $90.9 million at an average price of $22.74 per share under this authorization through open market purchases. Management expects to continue to repurchase shares of Common Stock under this authorization through additional open market purchases and/or accelerated share repurchase agreements, subject to the factors described in the following paragraph. The timing of share repurchases and the actual amount purchased will depend on a variety of factors including the market price of Sotheby's Common Stock, general market and economic conditions, and other corporate considerations. Repurchases may be made pursuant to plans intended to comply with Rule 10b5-1 under the Exchange Act, which could allow Sotheby's to purchase its shares during periods when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. The repurchase authorization does not require the purchase of a specific number of shares and is subject to suspension or termination by the Board of Directors at any time. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2015 | |
Dividends, Share-based Compensation [Abstract] | |
Share-Based Payments | Share-Based Payments Share-Based Payments —Share-based payments to employees include performance-based stock unit awards, market-based stock unit awards, restricted stock units, restricted stock shares, and stock options. A description of each of these share-based payments is provided below. For the years ended December 31, 2015 , 2014 , and 2013 , compensation expense related to share-based payments was reflected in the following accounts in the Consolidated Income Statements (in thousands of dollars): 2015 2014 2013 Salaries and related costs $ 28,632 $ 23,470 $ 22,350 Voluntary separation incentive programs (see Note 19) 3,068 — — CEO separation and transition costs (see Note 20) 2,000 3,591 — Total share-based payment expense (pre-tax) $ 33,700 $ 27,061 $ 22,350 Total share-based payment expense (after-tax) $ 22,992 $ 17,683 $ 15,299 In 2015 , 2014 , and 2013 , Sotheby's realized $1.1 million , $3.6 million , and $3.5 million , respectively, of excess tax benefits related to share-based payment arrangements. These tax benefits represent the amount by which the tax deduction resulting from the exercise or vesting of share-based payments exceeded the tax benefit initially recognized in Sotheby's financial statements upon the amortization of compensation expense for these awards. Such excess tax benefits are recognized in the Consolidated Balance Sheets as an increase to Additional Paid-in Capital and are classified within Financing Activities in the Consolidated Statements of Cash Flows. As of December 31, 2015 , unrecognized compensation expense related to the unvested portion of share-based payments was $26.3 million . This compensation expense is expected to be amortized over a weighted-average period of approximately 2.4 years. Sotheby's does not capitalize any compensation expense related to share-based payments to employees. Sotheby's Restricted Stock Unit Plan —Sotheby's Second Amended and Restated Restricted Stock Unit Plan (the "Restricted Stock Unit Plan") provides for the issuance of Restricted Stock Units ("RSU's") to employees, subject to the approval of the Compensation Committee of the Board of Directors (the "Compensation Committee"). In making awards under the Restricted Stock Unit Plan, the Compensation Committee takes into account the nature of the services rendered by employees, their present and potential future contributions to Sotheby's success, and such other factors as the Compensation Committee in its discretion deems relevant. RSU's issued under the Restricted Stock Unit Plan generally vest evenly over a three -year service period. Prior to vesting, holders of RSU's do not have voting rights, but are entitled to receive dividend equivalents if, when, and at the same rate as dividends are paid on Sotheby's Common Stock. Dividend equivalents paid to holders of unvested RSU's are not forfeitable. RSU's may not be sold, assigned, transferred, pledged or otherwise encumbered until they vest. Performance Share Units (or "PSU's") are RSU's that are generally earned over three or four years, subject to the achievement of certain profitability targets (for awards granted prior to 2016) or certain return on invested capital targets (for awards granted in February 2016). Prior to being earned, holders of PSU's do not have voting rights and are not entitled to receive dividends or dividend equivalents. Dividend equivalents are generally credited to holders of PSU's if, when, and at the same rate as dividends are paid on Sotheby's Common Stock, but are only paid for PSU's that vest and become shares of Common Stock. PSU's may not be sold, assigned, transferred, pledged, or otherwise encumbered until they vest. As discussed in more detail below, in the first quarter of 2015, Sotheby's awarded Thomas S. Smith, Jr. 94,140 PSU's under the Restricted Stock Unit Plan upon the commencement of his employment as Sotheby's President and CEO. These PSU's have a single vesting opportunity after a five -year service period contingent upon the achievement of pre-determined levels of Sotheby's stock price appreciation. These PSU's do not have any voting or dividend equivalent rights. In addition, as discussed in more detail below under "CEO Share-Based Payment Awards," in the first quarter of 2015, Sotheby's also granted to Mr. Smith 158,638 restricted stock shares and 47,070 fully-vested RSU's outside of the Restricted Stock Unit Plan. For the year ended December 31, 2015 , in addition to the PSU's granted to Mr. Smith, Sotheby's issued share-based payment awards under the Restricted Stock Unit Plan with a total grant date fair value of $29.3 million , as follows: • 384,664 PSU's with a grant date fair value of $16.9 million and a single vesting opportunity after a three -year service period, including: ◦ 304,882 PSU's with a grant date fair value of $13.4 million , and ◦ 79,782 PSU's with a grant date fair value of $3.5 million issued to William F. Ruprecht, Sotheby's former President and CEO. In accordance with the terms of his amended employment agreement, upon the termination of his employment on March 31, 2015, Mr. Ruprecht forfeited 60,109 PSU's from this award. Accordingly, Mr. Ruprecht ultimately retained 19,673 PSU's with a fair value of $0.9 million . • 289,065 RSU's with annual vesting over a three -year service period and a grant date fair value of $12.4 million . CEO Share-Based Payment Awards —In the first quarter of 2015, share-based payment awards with a grant date fair value of $16.5 million were granted to Thomas S. Smith, Jr. upon the commencement of his employment as Sotheby's President and CEO on March 31, 2015. These awards consist of the following: • An inducement award of 158,638 shares of restricted stock with a grant date fair value of $6.5 million , with periodic vesting opportunities between March 4, 2016 and September 1, 2017, which substantially correspond to the times when forfeited opportunities at Mr. Smith's previous employer would otherwise have become eligible to vest. These restricted stock shares were not issued pursuant to the Restricted Stock Unit Plan and have not been registered with the Securities and Exchange Commission. These shares have voting rights and a non-forfeitable right to dividends. • An inducement award of 47,070 fully-vested RSU's with a grant date fair value of $2 million aw arded to Mr. Smith to compensate him for a portion of the annual bonus that he would have received from his previous employer. The Common Stock shares associated with this award will be distributed in three approximately equal installments on the third, fourth, and fifth anniversaries of the grant date. These RSU's were not issued pursuant to the Restricted Stock Unit Plan and have not been registered with the Securities and Exchange Commission. These RSU's will be credited with dividend equivalents in the form of additional RSU's if, when, and at the same rate as dividends are paid on Sotheby's Common Stock. • An award of 94,140 PSU's under the Restricted Stock Unit Plan with a grant date fair value of $8 million and with a single vesting opportunity after a five -year service period contingent upon the achievement of pre-determined levels of Sotheby's stock price appreciation. This award provides opportunities to vest in incremental PSU's up to 350% of the initial award, such that the maximum number of shares that may be payable with respect to this award is 329,490 shares. These PSU's do not have a right to earn dividend equivalents. Subsequent Event: February 2016 Share-Based Payment Awards —On February 9, 2016, Sotheby's Compensation Committee approved share-based payment awards with a total grant date fair value of $22.5 million , as follows: • 604,297 PSU's with a grant date fair value of $14.2 million and a single vesting opportunity after a three -year service period, consisting of 123,352 PSU's with a grant date fair value of $2.9 million to Sotheby's CEO, Thomas S. Smith, Jr., and 480,945 PSU's with a grant date fair value of $11.3 million to other officers of Sotheby's. These PSU awards provide opportunities to vest in incremental PSU's of up to 200% of the initial awards subject to the achievement of certain return on invested capital targets. The maximum number of shares of Common Stock that may be payable with respect to these awards is 1,208,594 . • 352,914 RSU's with annual vesting over a three -year service period and a grant date fair value of $8.3 million . Summary of Outstanding Share-Based Payment Awards —For the year ended December 31, 2015 , changes to the number of outstanding RSU's, PSU's, and Restricted Stock were as follows (shares in thousands): Restricted Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 1,806 $ 40.32 Granted 973 $ 47.02 Vested (549 ) $ 39.31 Canceled (211 ) $ 41.63 Outstanding at December 31, 2015 2,019 $ 43.61 As of December 31, 2015 , 3.2 million shares were available for future awards pursuant to the Restricted Stock Unit Plan. The aggregate fair value of RSU's and PSU's that vested during 2015 , 2014 , and 2013 was $22.9 million , $28.1 million , and $26.9 million , respectively, based on the closing stock price on the dates the shares vested. Stock Options —Stock options issued pursuant to the Sotheby's 1997 Stock Option Plan are exercisable into authorized but unissued shares of Common Stock. Stock options vest evenly over four years and generally expire 10 years after the date of grant. As of December 31, 2015 , 104,100 shares of Common Stock were available for the issuance of stock options under the Stock Option Plan. As of December 31, 2015 , 50,000 stock options were outstanding and exercisable with a weighted average exercise price of $22.11 per share, a weighted average remaining contractual term of 4.1 years , and an aggregate intrinsic value of $0.2 million . No stock options were exercised or granted during 2015. The aggregate intrinsic value of options exercised during 2014 and 2013 was $1.2 million and $3.5 million , respectively. Cash received from stock options that were exercised during 2014 and 2013 totaled $1 million and $4 million , respectively. In 2014 and 2013 , the related excess tax benefit realized from the exercise of stock options was $0.3 million and $0.7 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following is a summary of the changes in Accumulated Other Comprehensive Loss during the period January 1, 2013 to December 31, 2015 (in thousands of dollars): Foreign Currency Items Defined Benefit Pension Items Derivative Financial Instruments Total Balance at January 1, 2013 $ (16,084 ) $ (34,291 ) $ — $ (50,375 ) Other comprehensive income (loss) before reclassifications 14,732 (858 ) — 13,874 Net unrecognized loss — (4,065 ) — (4,065 ) Amounts reclassified from accumulated other comprehensive loss — 1,113 — 1,113 Net other comprehensive income (loss) 14,732 (3,810 ) — 10,922 Balance at December 31, 2013 (1,352 ) (38,101 ) — (39,453 ) Other comprehensive (loss) income before reclassifications (33,929 ) 2,468 — (31,461 ) Net unrecognized loss — (9,787 ) — (9,787 ) Amounts reclassified from accumulated other comprehensive loss 2,058 1,877 — 3,935 Net other comprehensive loss (31,871 ) (5,442 ) — (37,313 ) Balance at December 31, 2014 (33,223 ) (43,543 ) — (76,766 ) Other comprehensive (loss) income before reclassifications (18,951 ) 1,097 (4,994 ) (22,848 ) Net unrecognized gain — 29,363 — 29,363 Amounts reclassified from accumulated other comprehensive loss (105 ) 3,464 688 4,047 Net other comprehensive (loss) income (19,056 ) 33,924 (4,306 ) 10,562 Balance at December 31, 2015 $ (52,279 ) $ (9,619 ) $ (4,306 ) $ (66,204 ) In 2015 , 2014 , and 2013, included in Other Comprehensive Income (Loss) before reclassifications are $1.1 million , $2.5 million , and ($0.9) million , respectively, related to changes in the foreign currency translation adjustment account associated with accumulated unrealized losses related to the U.K. Pension Plan. In 2015 , 2014 , and 2013, $3.5 million , $1.9 million , and $1.1 million (each net of tax), respectively, were reclassified from Accumulated Other Comprehensive Loss and recognized on a pre-tax basis within Salaries and Related Costs in the Consolidated Income Statements as a result of the amortization of actuarial losses related to Sotheby's defined benefit pension plan in the U.K. In 2015 and 2014, ($0.1) million and $2.1 million , respectively, were reclassified from Accumulated Other Comprehensive Loss to Other (Expense) Income in the Consolidated Income Statements as a result of the cumulative translation adjustment that was recognized upon the liquidation of foreign subsidiaries. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Compensation Arrangements —As of December 31, 2015 , Sotheby's had employment arrangements with certain senior employees, which expire at various points between February 29, 2016 and March 31, 2020. Such arrangements may provide, among other benefits, for minimum salary levels and for compensation under Sotheby's incentive compensation programs that are payable only if specified Company and individual goals are attained. Additionally, under certain circumstances, certain of these arrangements provide annual share-based payments, severance payments, and other cash compensation. The aggregate remaining commitment for salaries and other cash compensation related to these compensation arrangements, excluding any participation in Sotheby's incentive compensation programs, was approximately $14.5 million as of December 31, 2015 . Legal Actions —Sotheby's becomes involved in various claims and lawsuits incidental to the ordinary course of its business, including the matters described below. Management is required to assess the likelihood of any adverse judgments or outcomes in these matters, as well as potential ranges of probable or reasonably possible losses. A determination of the amount of losses, if any, to be recorded or disclosed as a result of these contingencies is based on a careful analysis of each individual exposure with, in some cases, the assistance of outside legal counsel. The amount of losses recorded or disclosed for such contingencies may change in the future due to new developments in each matter or a change in settlement strategy. Management does not believe that the outcome of any of these pending claims or proceedings, individually and in the aggregate, will have a material adverse effect on Sotheby's consolidated results of operations, financial condition and/or cash flows. Estate of Robert Graham, et al. v. Sotheby's, Inc. is a purported class action commenced in the U.S. District Court for the Central District of California in October 2011 on behalf of U.S. artists (and their estates) whose artworks were sold by Sotheby's in the State of California or at auction by California sellers and for which a royalty was allegedly due under the California Resale Royalties Act (the "Resale Royalties Act"). Plaintiffs seek unspecified damages, punitive damages and injunctive relief for alleged violations of the Resale Royalties Act and the California Unfair Competition Law. In January 2012, Sotheby's filed a motion to dismiss the action on the grounds, among others, that the Resale Royalties Act violates the U.S. Constitution and is preempted by the U.S. Copyright Act of 1976. In February 2012, the plaintiffs filed their response to Sotheby's motion to dismiss. The court heard oral arguments on the motion to dismiss on March 12, 2012. On May 17, 2012, the court issued an order dismissing the action on the ground that the Resale Royalties Act violated the Commerce Clause of the U.S. Constitution. The plaintiffs appealed this ruling. On May 5, 2015, an en banc panel of the U.S. Court of Appeals for the Ninth Circuit issued a decision affirming the lower court decision that the Resale Royalties Act was unconstitutional insofar as it sought to apply to sales outside of the state of California. The plaintiffs filed a motion for certiorari to the U.S. Supreme Court, which was denied on January 11, 2016. The plaintiffs filed a motion on February 1, 2016 seeking the dismissal of the remaining claims in the action, which relate to sales that occurred in California. See Note 4 for information related to unfunded commitments to extend additional credit through Sotheby's Finance segment. See Note 5 for information on a contingent obligation related to Sotheby's interest in an equity method investment. See Note 7 for information related to debt commitments. See Note 9 for information related to income tax contingencies. See Note 10 for information related to lease commitments. See Note 16 for information related to Sotheby's auction guarantees. |
Pension Arrangements
Pension Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension Arrangements | Pension Arrangements Retirement Savings Plan —Sotheby's sponsors a qualified defined contribution plan for its U.S. employees (the "Retirement Savings Plan"). Participants in the Retirement Savings Plan may elect to contribute between 2% and 50% of their eligible compensation, on a pre-tax or after-tax Roth basis. Participant savings are matched by a contribution from Sotheby's of up to 3% of eligible compensation. Sotheby's may also contribute an annual discretionary amount to the Retirement Savings Plan, which varies as a percentage of each participant's eligible compensation depending on Company profitability. In 2015 , 2014 , and 2013 , Sotheby's accrued discretionary contributions of $1.3 million , $1.3 million , and $1.2 million , respectively, related to the Retirement Savings Plan, which is equal to 2% of eligible compensation paid during those years. In 2015 , 2014 , and 2013 , total pension expense related to matching and discretionary contributions to the Retirement Savings Plan, net of forfeitures, was $2.4 million , $2.4 million , and $2.3 million , respectively. Both participant and Company contributions to the Retirement Savings Plan are subject to limitations under Internal Revenue Service ("IRS") regulations. Deferred Compensation Plan —Sotheby's sponsors the non-qualified Deferred Compensation Plan (the "DCP") which is available to certain U.S. officers for whom contributions to the Retirement Savings Plan are limited by IRS regulations. The DCP provides participants with a menu of investment crediting options which track a portfolio of various deemed investment funds. Sotheby's credits participant accounts on the same basis as matching and discretionary contributions to the Retirement Savings Plan, as discussed above. In 2015 , 2014 , and 2013 , Sotheby's recorded discretionary accruals of $0.3 million , $0.4 million , and $0.4 million , respectively, related to the DCP, which is equal to 2% of eligible compensation paid during those years. In 2015 , 2014 , and 2013 , total pension expense related to Sotheby's matching and discretionary DCP accruals was $0.8 million , $0.9 million , and $0.9 million , respectively. Employee deferrals and Sotheby's accruals to the DCP are informally funded into a rabbi trust which provides benefit security by sheltering assets in the event of a change-in-control of Sotheby's and certain other situations. DCP liabilities are financed through the trust almost entirely by using company-owned variable life insurance ("COLI"), and, to a much lesser extent, investments in money market mutual funds. As of December 31, 2015 and 2014 , the DCP liability was $39 million and $49.6 million , respectively, and the assets held in the rabbi trust consisted of the following (in thousands of dollars): December 31, 2015 2014 Company-owned variable life insurance $ 37,155 $ 45,895 Money market mutual fund investments 688 4,595 Total $ 37,843 $ 50,490 The decrease in the DCP assets and liabilities when compared to 2014 is due in large part to distributions made to employees who separated from service. The COLI and money market mutual fund investments are aggregated and recorded on the Consolidated Balance Sheets within Trust Assets Related to Deferred Compensation Liability. The COLI is reflected at its cash surrender value. The money market mutual fund investments are classified as trading securities and reflected at their fair value. Changes in the fair value of the DCP liability, which result from gains and losses in deemed participant investments, are recognized in earnings within Salaries and Related Costs in the period in which they occur. Gains in deemed participant investments increase the DCP liability, as well as Salaries and Related Costs. Losses in deemed participant investments decrease the DCP liability, as well as Salaries and Related Costs. In 2015 , 2014 , and 2013 , net (losses) gains in deemed participant investments totaled ($0.5) million , $1.9 million , and $5.1 million , respectively. Gains and losses resulting from changes in the cash surrender value of the COLI and the fair value of the money market mutual fund investments, as well as related COLI expenses, are recognized in earnings below Operating Income within Other (Expense) Income in the period in which they occur. In 2015 , 2014 , and 2013 , net (losses) gains related to the COLI and the money market mutual fund investments were ($2.7) million , $0.3 million , and $3.7 million , respectively. In 2015, Other (Expense) Income also includes a $1.6 million death benefit recognized in the fourth quarter of 2015 under the COLI policy. U.K. Defined Contribution Plan —Beginning on April 1, 2004, a defined contribution plan was made available to employees in the U.K. (the "U.K. Defined Contribution Plan"). Beginning in 2015, Sotheby's may also contribute an annual discretionary amount to the U.K. Defined Contribution Plan, which varies as a percentage of each participant's eligible compensation depending on Company profitability. In 2015 , Sotheby's accrued discretionary contributions of $0.7 million related to the U.K. Defined Contribution Plan, which is equal to 2% of eligible compensation paid during the year. In 2015 , 2014 , and 2013 , pension expense related to the U.K. Defined Contribution Plan was $3.1 million , $2.2 million , and $1.3 million , respectively. U.K. Defined Benefit Plan —Sotheby's sponsors a defined benefit pension plan in the U.K. (the "U.K. Pension Plan"). Effective April 1, 2004, participation in the U.K. Pension Plan was closed to new employees. Management is currently in consultation with active participants regarding an amendment to the U.K. Pension Plan, which would close the plan to accrual of future service costs for these employees. This consultation process is being conducted in accordance with local statutory requirements, and the resulting amendment is expected to be enacted in the first quarter of 2016. The tables below present detailed information related to the U.K. Pension Plan, including the recognition of a $17.9 million curtailment gain resulting from this expected plan amendment. Benefit Obligation, Plan Assets, and Funded Status The table below details the changes in the projected benefit obligation, plan assets, and funded status of the U.K. Pension Plan, as well as the net pension asset recognized on the Consolidated Balance Sheets, as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Reconciliation of benefit obligation Benefit obligation at beginning of year $ 381,935 $ 360,185 Service cost 4,497 4,499 Interest cost 12,923 15,633 Contributions by plan participants 877 1,164 Actuarial (gain) loss (27,885 ) 33,568 Curtailment gain (17,895 ) — Benefits paid (10,745 ) (11,128 ) Foreign currency exchange rate changes (17,464 ) (21,986 ) Projected benefit obligation at end of year 326,243 381,935 Reconciliation of plan assets Fair value of plan assets at beginning of year 410,928 397,469 Actual return on plan assets 9,996 44,343 Employer contributions 2,163 2,740 Contributions by plan participants 877 1,164 Benefits paid (10,745 ) (11,128 ) Foreign currency exchange rate changes (20,117 ) (23,660 ) Fair value of plan assets at end of year 393,102 410,928 Funded Status Net pension asset $ 66,859 $ 28,993 As of December 31, 2015 and 2014 , the accumulated benefit obligation for the U.K. Pension Plan was $325.8 million and $367.2 million , respectively. Components of Net Pension Cost (Benefit) For the years ended December 31, 2015 , 2014 , and 2013 , the components of the net pension cost (benefit) related to the U.K. Pension Plan were (in thousands of dollars): 2015 2014 2013 Service cost $ 4,497 $ 4,499 $ 3,682 Interest cost 12,923 15,633 13,359 Expected return on plan assets (20,174 ) (23,166 ) (19,659 ) Amortization of actuarial loss 3,967 2,346 1,458 Amortization of prior service cost 364 — — Net pension cost (benefit) $ 1,577 $ (688 ) $ (1,160 ) Net Gain (Loss) Recognized in Other Comprehensive Income (Loss) The net gain (loss) related to the U.K. Pension Plan, which is recognized net of tax in Other Comprehensive Income (Loss), is generally the result of: (i) actual results being different from previous actuarial assumptions (for example, the expected return on plan assets), (ii) changes in actuarial assumptions between balance sheet dates (for example, the discount rate), and/or (iii) curtailment gains. In 2015 and 2014 , the net gain (loss) related to the U.K. Pension Plan was $29.4 million and ($9.8) million , respectively. Net Loss Included in Accumulated Other Comprehensive Loss Net gains and (losses) related to the U.K. Pension Plan recognized in Other Comprehensive Income (Loss) are recorded net of tax in the Shareholders' Equity section of the Consolidated Balance Sheets within Accumulated Other Comprehensive Loss. If the amount recorded in Accumulated Other Comprehensive Loss exceeds 10% of the greater of (i) the market-related value of plan assets or (ii) the benefit obligation, that excess amount is amortized as a component of future net pension cost or benefit over the average expected remaining service period of active plan participants, which is approximately 12.4 years. The market-related value of plan assets adjusts the market value of plan assets by recognizing changes in fair value over a period of five years. As of December 31, 2015 and 2014 , the net loss related to the U.K. Pension Plan recorded in Accumulated Other Comprehensive Loss was ($10) million and ($44) million , respectively. Assumptions In 2015 , 2014 , and 2013 , the following assumptions were used in determining the benefit obligation and net pension cost (benefit) related to the U.K. Pension Plan: Benefit Obligation 2015 2014 Weighted average discount rate 3.7% 3.5% Weighted average rate of compensation increase —% 4.1% Net Pension Cost (Benefit) 2015 2014 2013 Weighted average discount rate 3.5% 4.4% 4.4% Weighted average rate of compensation increase 4.1% 4.6% 4.0% Weighted average expected long-term rate of return on plan assets 5.4% 6.1% 6.2% The discount rate represents the approximate weighted average rate at which the obligations of the U.K. Pension Plan could be effectively settled and is based on a yield curve for a selection of high-quality corporate bonds with maturity dates approximating the length of time remaining until individual benefit payment dates. The assumption for future annual compensation increases is determined after considering historical salary data for Sotheby's U.K. employees and management's expectations for future salary growth, as well as current economic data for inflation. The measurement of the benefit obligation as of December 31, 2015 does not include an assumption for future annual compensation increases due to the expected closure of the U.K. Pension Plan to the accrual of future service costs, as discussed above. The expected long-term rate of return is weighted according to the composition of invested assets and is based on expected future appreciation, as well as dividend and interest yields currently available in the equity and bond markets. In particular, the expected rate of return for growth assets represents management's estimate of median annualized returns by asset class. The expected rate of return on debt securities is based on interest yields currently available on long-dated U.K. government bonds and highly-rated corporate bonds. No allowance is made in the expected rate of return for potential market out-performance by fund managers. Plan Assets The investment policy for the U.K. Pension Plan is established by its Trustees in consultation with Sotheby's management. The Trustees' investment objective is to maximize the return on assets while controlling the level of risk so as to ensure that sufficient assets are available to pay participants' benefits as and when they arise. In order to avoid an undue concentration of risk, a diverse spread of assets is held within the portfolio. The diversification is both within and across asset categories. Professional investment managers are provided target allocation percentages for different categories within each asset class; actual allocation percentages are permitted to fall within a reasonable range of these targets. In setting specific asset allocation targets, the Trustees take advice as required from professional investment advisors and require that the majority of the assets be realizable at short notice. In 2014, the Trustees altered the asset allocation so that approximately 60% was allocated to growth assets and approximately 40% was allocated to debt securities and cash. In conjunction with the expected closure of the U.K. Pension Plan to the accrual of future service costs, as discussed above, and a resulting improvement in funded status, it is likely that a further change in asset allocation will be implemented in mid-2016. This change in asset allocation is intended to reduce investment risk and is expected to result in an approximate allocation of 50% to growth assets and 50% to debt securities and cash. A small holding in real estate will be retained and is not subject to this allocation methodology. The investment managers for the U.K. Pension Plan have full discretion in making investment decisions, subject to broad guidelines established by the Trustees. It is the Trustees' policy not to invest in shares of Sotheby's or any of its subsidiaries. The performance of the investment managers is benchmarked against suitable indices. The table below presents the fair value of U.K. Pension Plan assets, by investment category, as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 % of Total 2014 % of Total Growth assets $ 240,214 61.1 % $ 247,393 60.2 % Debt securities : Corporate 36,772 9.4 % 37,929 9.2 % Index-linked 112,049 28.5 % 120,507 29.3 % Total debt securities 148,821 37.9 % 158,436 38.6 % Real estate mutual funds 3,148 0.8 % 2,976 0.7 % Cash and cash equivalents 919 0.2 % 2,123 0.5 % Total fair value of plan assets $ 393,102 $ 410,928 The assets of the U.K. Pension Plan, which are measured at fair value, are classified and disclosed according to one of the following categories: • Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Level 1 inputs generally provide the most reliable evidence of fair value. • Level 2—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value may be determined through the use of models or other valuation methodologies. • Level 3—Pricing inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The table below provides fair value measurement information for the U.K. Pension Plan assets as of December 31, 2015 (in thousands of dollars): Fair Value Measurements Using: Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Growth assets $ 240,214 $ 165,891 $ 74,323 $ — Debt securities: Corporate 36,772 12,023 24,749 — Index-linked 112,049 112,049 — — Total debt securities 148,821 124,072 24,749 — Real estate mutual funds 3,148 — 3,148 — Cash and cash equivalents 919 919 — — Total fair value of plan assets $ 393,102 $ 290,882 $ 102,220 $ — As of December 31, 2015 , the following U.K. Pension Plan assets are classified as Level 1 fair value measurements: Growth Assets —Includes investments in publicly-traded mutual funds and other publicly-traded stocks, the fair values of which are based on exchange quoted prices in active markets. Debt Securities —Includes investments in publicly-traded bond mutual funds and other publicly-traded bonds, the fair values of which are based on exchange quoted prices in active markets. Cash and Cash Equivalents —Includes investments in cash and money market instruments that are highly liquid and for which book value approximates fair value. As of December 31, 2015 , the following U.K. Pension Plan assets are classified as Level 2 fair value measurements: Growth Assets —Includes investments in pooled funds which do not have directly observable quoted market prices, but for which the underlying value is determined by publicly-traded stocks that have directly observable exchange quoted prices in active markets. Debt Securities —Includes investments in pooled funds which do not have directly observable quoted market prices, but for which the underlying value is determined by publicly-traded bonds that have directly observable exchange quoted prices in active markets. Real Estate Mutual Funds —Includes investments in real estate mutual funds, the fair value of which are based on directly and indirectly observable real estate prices, including comparable prices. Estimated Future Benefit Payments Estimated future benefit payments related to the U.K. Pension Plan, which reflect expected future service, as appropriate, are as follows (in thousands of dollars): Year Benefit Payments 2016 $ 11,006 2017 $ 9,557 2018 $ 10,610 2019 $ 10,748 2020 $ 12,759 2021 to 2025 $ 69,460 Contributions In 2015 , Sotheby's contributed $2.2 million to the U.K. Pension Plan. Sotheby's currently expects to contribute approximately $1.9 million to the U.K. Pension Plan in 2016 . |
Auction Guarantees
Auction Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Auction Guarantees [Abstract] | |
Auction Guarantees | Auction Guarantees From time-to-time in the ordinary course of its business, Sotheby's will guarantee to a consignor a minimum sale price in connection with the sale of property at auction (an "auction guarantee"). Sotheby's is generally entitled to a share of the excess proceeds (the "overage") if the property under the auction guarantee sells above the guaranteed price. In the event that the property sells for less than the guaranteed price, Sotheby's must perform under the auction guarantee by funding the difference between the sale price at auction and the amount of the auction guarantee. The amount of any such shortfall recorded in Sotheby's financial statements is reduced by any auction commissions earned on property sold under the auction guarantee. If the property does not sell, the amount of the auction guarantee must be paid, but Sotheby's takes ownership of the unsold property and may recover the amount paid through its future sale. Depending on the mix of items subject to a guarantee, in advance of peak selling seasons, a small number of guaranteed items may represent a substantial portion of the aggregate amount of outstanding auction guarantees. In situations when guaranteed property does not sell, the property is recorded as Inventory on the Consolidated Balance Sheets at the lower of cost (i.e., the amount paid under the auction guarantee) or management's estimate of the property's net realizable value (i.e., the expected sale price upon its eventual disposition). The proceeds ultimately realized by Sotheby's on the sale of previously guaranteed property may equal, exceed, or be less than the estimated net realizable value recorded as Inventory on the Consolidated Balance Sheets. Sotheby's may reduce its financial exposure under auction guarantees through contractual risk and reward sharing arrangements. Such auction guarantee risk and reward sharing arrangements include irrevocable bids and partner sharing arrangements. An irrevocable bid is an arrangement under which a counterparty commits to bid a predetermined price on the guaranteed property. If the irrevocable bid is the winning bid, the counterparty purchases the property at the predetermined price plus the applicable buyer's premium, which is the same amount that any other successful bidder would pay at that price. If the irrevocable bid is not the winning bid, the counterparty is generally entitled to receive a share of the auction commission earned on the sale and/or a share of any overage. In a partner sharing arrangement, a counterparty commits to fund: (i) a share of the difference between the sale price at auction and the amount of the auction guarantee if the property sells for less than the minimum guaranteed price or (ii) a share of the minimum guaranteed price if the property does not sell while taking ownership of a proportionate share of the unsold property. In exchange for accepting a share of the financial exposure under the auction guarantee, the counterparty in a partner sharing arrangement is generally entitled to receive a share of the auction commission earned if the property sells and/or a share of any overage. The counterparties to Sotheby's auction guarantee risk and reward sharing arrangements are typically major international art dealers or major art collectors. Sotheby's could be exposed to losses in the event any of these counterparties do not perform according to the terms of these contractual arrangements. Although irrevocable bid and partner sharing arrangements may be used to reduce the risk associated with auction guarantees, Sotheby's may also enter into auction guarantees without securing such arrangements. In these circumstances, Sotheby's could be exposed to auction guarantee losses and/or deterioration in auction commission margins if the underlying property fails to sell at the minimum guaranteed price. Furthermore, in such situations, Sotheby's liquidity could be reduced. Sotheby's credit agreement has a covenant that imposes a limitation on net outstanding auction guarantees (i.e., the aggregate financial exposure under outstanding auction guarantees less the impact of related risk and reward sharing arrangements). On September 16, 2015, the Credit Agreement was amended to temporarily increase this limit to $800 million until February 29, 2016, after which it reverts to $600 million for the duration of the Credit Agreement (see Note 7). In addition to compliance with this covenant, Sotheby's use of auction guarantees and related risk and reward sharing arrangements is also subject to management and, in some cases, Board of Directors, approval. As of December 31, 2015 , Sotheby's had outstanding auction guarantees totaling $62.1 million . Sotheby's financial exposure under these auction guarantees is reduced by irrevocable bids totaling $28.7 million . Each of these auction guarantees has a minimum guaranteed price that is within the range of the pre-sale auction estimates for the underlying property. The property related to these auction guarantees is being offered at auctions in 2016. Sotheby's is obligated under the terms of certain auction guarantees to advance all or a portion of the guaranteed amount prior to auction. As of December 31, 2015, there were no auction guarantee advances outstanding. As of December 31, 2015 and 2014, the carrying value of the liability representing the estimated fair value of Sotheby's obligation to perform under its auction guarantees totaled $1 million and $5.3 million , respectively, and is recorded within Accounts Payable and Accrued Liabilities on the Consolidated Balance Sheets. On September 2, 2015, Sotheby's entered into an arrangement with the Estate of A. Alfred Taubman (the "Estate") under which Sotheby's is selling works of art from the collection of A. Alfred Taubman (the "Taubman Collection"). Robert S. Taubman, a director of Sotheby's, is a trustee and beneficiary of the Estate. In connection with this arrangement, Sotheby's provided an auction guarantee of $509 million , which takes into account items withdrawn by the Estate prior to sale. As of December 31, 2015 , outstanding auction guarantees included $33.3 million related to this arrangement. The remaining outstanding auction guarantee attributable to the Taubman Collection as of February 24, 2016 is $3.4 million , relating to property scheduled to be offered at auction in 2016. See Note 17 for additional information related to this related party auction guarantee. As of February 24, 2016, Sotheby's had outstanding auction guarantees totaling $59.7 million . Each of the auction guarantees outstanding as of February 24, 2016 had a minimum guaranteed price that was within the range of the pre-sale auction estimates for the underlying property. The property related to these auction guarantees is being offered at auctions in the second and third quarters of 2016. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions From time-to-time, in the ordinary course of business, related parties, such as members of the Board of Directors and employees, transact with Sotheby's to buy and sell property at auction and through private sales. For the years ended December 31, 2015 , 2014 , and 2013 , Sotheby's recognized Agency Commissions and Fees of $2.7 million , $3.1 million , and $4.8 million , respectively, for property consigned or purchased by related parties. On September 2, 2015, Sotheby's entered into an arrangement with the Estate of A. Alfred Taubman under which Sotheby's is selling works of art from the collection of A. Alfred Taubman. Robert S. Taubman, a director of Sotheby's, is a trustee and beneficiary of the Estate. In connection with this arrangement, Sotheby's provided an auction guarantee of $509 million , which takes into account items withdrawn by the Estate prior to sale. Through February 24, 2016, total aggregate proceeds (i.e., the hammer price plus buyer's premium) from sales of Taubman Collection property were $470 million . The results of these sales, combined with the estimated value of items which were taken into inventory after failing to sell at auction ( $33 million ) and the estimated aggregate proceeds of the remaining property to be offered at future auctions ( $3 million ), result in a projected loss on the auction guarantee of approximately $3 million , which was recognized in the fourth quarter of 2015. Also, because the sale results will fall short of the guaranteed amount, Sotheby's will not recognize any net auction commission revenue from this consignment. As of December 31, 2015 , Sotheby's owed $285.4 million to the Estate for property offered for sale through the end of the year. As of February 24, 2016, $221.7 million of this amount was paid to the Estate. The remaining outstanding auction guarantee attributable to the Taubman Collection as of February 24, 2016 is $3.4 million , relating to property scheduled to be offered at auction in 2016. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative Financial Instruments Designated as Cash Flow Hedges —On July 1, 2015, Sotheby's entered into a seven -year, $325 million mortgage loan to refinance the York Property Mortgage. The new York Property Mortgage bears interest based on the one -month LIBOR rate plus a spread of 2.25% and is being amortized based on a 25 -year mortgage-style amortization schedule over the seven -year term of the mortgage. In connection with the new York Property Mortgage, Sotheby's entered into interest rate protection agreements secured by the York Property, consisting of a two -year interest rate swap (the "Swap"), effective as of July 1, 2015 , and a five -year interest rate collar (the "Collar"), effective as of July 1, 2017 . Both of these instruments have a notional amount equal to the applicable principal balance of the new York Property Mortgage and have an identical amortization schedule to that of the mortgage. See Note 7 for information related to the York Property Mortgage. As of December 31, 2015 , the notional value of the Swap was equal to the $322.1 million principal balance of the new York Property Mortgage on that date, and the notional value of the Collar was $310.3 million , which is equal to the forecasted principal mortgage balance as of the Collar's effective date. These interest rate protection agreements effectively hedge the LIBOR rate on the entire outstanding principal balance of the new York Property Mortgage at an annual rate equal to 0.877% for the first two years, and then at an annual rate of no less than 1.917% , but no more than 3.75% , for the remainder of the seven -year term. After taking into account the interest rate protection agreements, the annual interest rate for the first two years of the new York Property Mortgage will be approximately 3.127% and then will be between a floor of 4.167% and a cap of 6% for the remainder of the seven -year term. At their inception, the Swap and the Collar were each individually designated as cash flow hedges of the risk associated with the variability in expected cash outflows related to the monthly one-month LIBOR-indexed interest payments on the new York Property Mortgage. Accordingly, to the extent that the Swap and the Collar are effective, any unrealized gains and losses related to changes in their fair value are recorded to Accumulated Other Comprehensive Loss on the Consolidated Balance Sheets and then reclassified to Interest Expense in the Consolidated Income Statements as interest expense related to the mortgage is recorded. Any hedge ineffectiveness is immediately recognized in Interest Expense. There was no hedge ineffectiveness related to the Swap or the Collar during the year ended December 31, 2015 . Sotheby's performs a quarterly assessment to determine whether the Swap and the Collar continue to be highly effective in hedging the risk associated with the variability in expected cash outflows related to the monthly one-month LIBOR-indexed interest payments on the new York Property Mortgage. As of December 31, 2015 , the fair value of the Swap recorded in Other Current Liabilities on the Consolidated Balance Sheets was $0.4 million . For the year ended December 31, 2015 , the loss in fair value associated with the Swap recognized in Other Comprehensive Loss was $0.8 million (net of tax) and the amount reclassified to Interest Expense during the period was $0.7 million (net of tax). As of December 31, 2015 , the fair value of the Collar recorded in Other Long-Term Liabilities on the Consolidated Balance Sheets was $6.8 million . For the year ended December 31, 2015 , the loss in fair value associated with the Collar recognized in Other Comprehensive Loss was $4.2 million (net of tax). The Swap and the Collar liabilities have been designated as Level 2 fair value measurements within the fair value hierarchy provided by ASC 820. Level 2 fair value measurements have pricing inputs other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value may be determined through the use of models or other valuation methodologies. The fair value of the Swap is based on a discounted cash flow methodology using the contractual terms of the instrument and observable LIBOR-curve rates that are consistent with the frequency of the interest cash flows of the new York Property Mortgage. The fair value of the Collar is based on an option pricing model using observable LIBOR-curve rates for each forecasted monthly settlement, with the projected cash flows discounted using the contractual terms of the instrument, which are consistent with the frequency of the interest cash flows of the new York Property Mortgage. Derivative Financial Instruments Not Designated as Hedging Instruments —Sotheby's utilizes forward exchange contracts to hedge cash flow exposures related to foreign currency exchange rate movements, which primarily arise from short-term foreign currency denominated intercompany balances and, to a much lesser extent, foreign currency denominated client payable balances, as well as foreign currency denominated auction guarantee obligations. Such forward exchange contracts are typically short-term with settlement dates less than six months from their inception. Additionally, on rare occasions, Sotheby's may purchase foreign currency option contracts to hedge risks associated with foreign currency denominated client payable balances. All instruments used to offset cash flow exposures related to foreign currency exchange rate movements are not designated as hedging instruments for accounting purposes. Accordingly, changes in the fair value of these instruments are recognized in the Income Statements in Other (Expense) Income. As of December 31, 2015 , the notional value of outstanding forward exchange contracts was $64.4 million . Notional values do not quantify risk or represent assets or liabilities of Sotheby's, but are used to calculate cash settlements under outstanding forward exchange contracts. Sotheby's is exposed to credit-related risks in the event of nonperformance by the two counterparties to its outstanding forward exchange contracts. Sotheby's does not expect either of these counterparties to fail to meet their obligations, given their high short-term (A1/P1) credit ratings. As of December 31, 2015 , the fair values of these contracts were not material to Sotheby's consolidated financial statements. |
Voluntary Separation Incentive
Voluntary Separation Incentive Programs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Voluntary Separation Incentive Programs | Voluntary Separation Incentive Programs On November 13, 2015, Sotheby's announced a series of regional voluntary separation incentive programs (the "Programs") aimed at reducing headcount and associated compensation costs. The Programs were offered to Sotheby's employees in jurisdictions where it was practical to do so. Employees who elected to participate in the Programs were accepted only upon approval by Sotheby's management. In the fourth quarter of 2015, Sotheby's recognized a charge of $36.9 million as a result of the Programs, consisting of $33.8 million in cash severance benefits and $3.1 million in accelerated equity compensation expense related to awards that will continue to vest after termination of employment, subject to Sotheby's achievement of the underlying profitability targets, when applicable. The liability related to the $33.8 million in cash severance benefits is recorded on the December 31, 2015 Consolidated Balance Sheet within Accounts Payable and Accrued Liabilities and includes $4.7 million related to 2015 incentive compensation that would have been paid to participants had they not participated in the Programs. This liability is expected to be settled through cash payments made principally in the first half of 2016. Employee transitions under the Programs commenced on December 31, 2015 and will occur throughout 2016. Management currently expects that the Programs will result in a net reduction of approximately 5% of its global headcount of approximately 1,600 employees prior to the implementation of the Programs. Restructuring Charges (Net) On July 16, 2014, the Board of Directors approved a restructuring plan (the "2014 Restructuring Plan") principally impacting Sotheby's operations in the United States and the U.K. The 2014 Restructuring Plan resulted in net Restructuring Charges of $14.2 million recognized in 2014, consisting of $13.9 million in employee termination benefits and approximately $0.3 million in lease exit costs. In 2015, Sotheby's recognized a benefit of $1 million in Restructuring Charges (net) as a result of adjustments to the initial accrual for employee termination benefits. The headcount reductions resulting from the 2014 Restructuring Plan were completed in the third quarter of 2015 and the associated liability has been fully settled. |
CEO Separation and Transition C
CEO Separation and Transition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Compensation Related Costs [Abstract] | |
CEO Separation and Transition Costs | CEO Separation and Transition Costs CEO Separation and Transition Costs consist of compensation-related charges of $7.6 million recognized in the fourth quarter of 2014, related to the resignation of William F. Ruprecht as Sotheby's President and Chief Executive Officer, and charges of $4.2 million recognized in the first quarter of 2015, associated with the subsequent hiring of Thomas S. Smith, Jr. as his replacement. The charges recognized in the fourth quarter of 2014 consist of the accrual of a $4 million cash severance benefit and $3.6 million in accelerated equity compensation expense triggered by the terms of Mr. Ruprecht's employment agreement. The charges recognized in the first quarter of 2015 principally relate to compensation of $3.1 million owed to Mr. Smith to replace incentive compensation that he expected to receive from his previous employer, consisting of a fully-vested restricted stock unit award with a fair value of $2 million granted on March 31, 2015 and a $1.1 million cash payment that was paid in September 2015. There was no required service period associated with this compensation. The CEO Separation and Transition Costs recognized in the first quarter of 2015 also include approximately $1.1 million in recruitment and other professional fees associated with the CEO hiring process. |
Restructuring Charges (Net)
Restructuring Charges (Net) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges (Net) | Voluntary Separation Incentive Programs On November 13, 2015, Sotheby's announced a series of regional voluntary separation incentive programs (the "Programs") aimed at reducing headcount and associated compensation costs. The Programs were offered to Sotheby's employees in jurisdictions where it was practical to do so. Employees who elected to participate in the Programs were accepted only upon approval by Sotheby's management. In the fourth quarter of 2015, Sotheby's recognized a charge of $36.9 million as a result of the Programs, consisting of $33.8 million in cash severance benefits and $3.1 million in accelerated equity compensation expense related to awards that will continue to vest after termination of employment, subject to Sotheby's achievement of the underlying profitability targets, when applicable. The liability related to the $33.8 million in cash severance benefits is recorded on the December 31, 2015 Consolidated Balance Sheet within Accounts Payable and Accrued Liabilities and includes $4.7 million related to 2015 incentive compensation that would have been paid to participants had they not participated in the Programs. This liability is expected to be settled through cash payments made principally in the first half of 2016. Employee transitions under the Programs commenced on December 31, 2015 and will occur throughout 2016. Management currently expects that the Programs will result in a net reduction of approximately 5% of its global headcount of approximately 1,600 employees prior to the implementation of the Programs. Restructuring Charges (Net) On July 16, 2014, the Board of Directors approved a restructuring plan (the "2014 Restructuring Plan") principally impacting Sotheby's operations in the United States and the U.K. The 2014 Restructuring Plan resulted in net Restructuring Charges of $14.2 million recognized in 2014, consisting of $13.9 million in employee termination benefits and approximately $0.3 million in lease exit costs. In 2015, Sotheby's recognized a benefit of $1 million in Restructuring Charges (net) as a result of adjustments to the initial accrual for employee termination benefits. The headcount reductions resulting from the 2014 Restructuring Plan were completed in the third quarter of 2015 and the associated liability has been fully settled. |
Special Charges (Net)
Special Charges (Net) | 12 Months Ended |
Dec. 31, 2015 | |
Special Charges [Abstract] | |
Special Charges (Net) | Special Charges (Net) In 2014 and 2013, Sotheby's recognized Special Charges (net) of $20 million and $1.4 million , respectively, related to third party advisory, legal, and other professional service fees directly associated with issues related to shareholder activism, the resulting proxy contest with Third Point LLC ("Third Point"), and the litigation concerning Sotheby's former shareholder rights plan and the change in control provision in its credit agreement. The amount recognized in 2014 is net of a $4.6 million insurance recovery pertaining to certain professional services fees incurred in defense of the litigation concerning the former shareholder rights plan and the change in control provision in Sotheby's credit agreement. Included in Special Charges (net) in 2014 is a $10 million charge related to the reimbursement by Sotheby's of Third Point's documented, out-of-pocket expenses incurred in connection with the proxy contest and the litigation concerning Sotheby's former shareholder rights plan. This reimbursement is part of a support agreement Sotheby's entered into with Third Point, Daniel S. Loeb, Olivier Reza, Harry J. Wilson and other entities affiliated with Third Point (together with Third Point, the "Third Point Entities") on May 4, 2014 pursuant to which Sotheby's and Third Point settled the previously pending proxy contest for the election of directors (the "Support Agreement"). Pursuant to the Support Agreement, on May 4, 2014, Mr. Loeb, Mr. Reza, and Mr. Wilson (the "Third Point Nominees") were appointed to Sotheby's Board of Directors. The Support Agreement also contains various other terms and provisions, including with respect to standstill and voting commitments entered into by Third Point, Third Point's withdrawal of the litigation concerning Sotheby's former shareholder rights plan, and the accelerated expiration of Sotheby's former shareholder rights plan. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which introduces a new five-step framework for revenue recognition. The core principal of the standard is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This ASU also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of Effective Date , which defers the effective date of ASU 2014-09 to January 1, 2018 with early adoption beginning January 1, 2017. Management is currently assessing the potential impact of adopting this new accounting standard on Sotheby’s financial statements. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis , which eliminates the deferral of the requirements of ASU 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities , for certain interests in investment funds and provides a scope exception from Accounting Standards Codification Topic 810 for certain investments in money market funds. ASU 2015-02 also makes several modifications to the consolidation guidance for variable interest entities ("VIEs") and general partners' investments in limited partnerships, as well as modifications to the evaluation of whether limited partnerships are VIEs or voting interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. Management is currently assessing the potential impact of adopting this new accounting standard on Sotheby's financial statements. In March 2015 and August 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , respectively, which change the presentation of debt issuance costs on the balance sheet. These standards require unamortized debt issuance costs to be included as a direct deduction from the related debt liability on the balance sheet, but permit companies to continue to record unamortized debt issuance costs related to revolving credit arrangements as assets. Under the current guidance, all unamortized debt issuance costs are reported as assets in the balance sheet. Sotheby's will adopt and apply these standards retrospectively on their January 1, 2016 effective date. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and liabilities as non-current in a classified balance sheet, instead of separating into current and non-current amounts. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, on a prospective or retrospective basis. Early adoption is permitted for all companies in any interim or annual period. Sotheby's early adopted ASU 2015-17 as of December 31, 2015 on a prospective basis. Accordingly, prior period information has not been adjusted to reflect the new presentation of deferred tax assets and liabilities. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On January 11, 2016, Sotheby's acquired certain entities comprising the business of Art Agency, Partners ("AAP"), a firm that provides a range of art-related services to art collectors, for initial cash consideration of $50 million . Sotheby's has agreed to make earn-out payments not to exceed $35 million in the aggregate over the course of the next four to five years that are contingent on the achievement of a minimum level of financial performance. Through this acquisition, Sotheby's aims to grow its auction and private sale revenues by enhancing its relationships with art collectors and improving its position in the fine art market, particularly in Impressionist, Modern and Contemporary Art. Also, as a result of this acquisition, Sotheby's will add a new revenue stream by assimilating AAP's existing art advisory services, providing a new avenue for growth. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) The worldwide art auction market has two principal selling seasons, which generally occur in the second and fourth quarters of the year. In the aggregate, second and fourth quarter Net Auction Sales 1 represented 78% and 79% of total annual Net Auction Sales in 2015 and 2014 , respectively, with auction commission revenues comprising approximately 75% and 81% , respectively, of Sotheby's total revenues in these years. Accordingly, Sotheby's financial results are seasonal, with peak revenues and operating income generally occurring in the second and fourth quarters. Consequently, first and third quarter results have historically reflected lower revenues when compared to the second and fourth quarters and, typically, a net loss due to the fixed nature of many of Sotheby's expenses. First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Year Ended December 31, 2015 Net Auction Sales $ 755,817 $ 1,856,643 $ 370,928 $ 2,033,350 Income Statement Data: Revenues: Agency commissions and fees $ 127,882 $ 310,377 $ 69,222 $ 284,439 Inventory sales 12,983 7,005 53,226 35,485 Finance 12,687 11,970 12,933 12,899 License fees 1,974 2,468 2,539 2,839 Other 149 186 72 159 Total revenues $ 155,675 $ 332,006 $ 137,992 $ 335,821 Operating income (loss) $ 18,404 $ 116,458 $ (21,707 ) $ 88,566 Net income (loss) attributable to Sotheby's $ 5,202 $ 67,572 $ (17,894 ) $ (11,153 ) Per Share Amounts: Basic earnings (loss) per share - Sotheby's common shareholders $ 0.07 $ 0.97 $ (0.26 ) $ (0.17 ) Diluted earnings (loss) per share - Sotheby's common shareholders $ 0.07 $ 0.96 $ (0.26 ) $ (0.17 ) Shares Outstanding: Basic 69,090 69,332 67,946 66,118 Diluted 69,705 69,884 67,946 66,118 Year Ended December 31, 2014 Net Auction Sales $ 734,370 $ 1,971,338 $ 322,973 $ 2,122,738 Income Statement Data: Revenues: Agency commissions and fees $ 123,128 $ 316,187 $ 76,229 $ 309,582 Inventory sales 26,001 8,733 6,273 28,951 Finance 5,682 8,140 8,917 10,274 License fees 1,697 2,462 2,376 1,949 Other 303 295 406 468 Total revenues $ 156,811 $ 335,817 $ 94,201 $ 351,224 Operating income (loss) $ 4,091 $ 130,431 $ (37,469 ) $ 128,991 Net (loss) income attributable to Sotheby's $ (6,114 ) $ 77,632 $ (27,726 ) $ 74,003 Per Share Amounts: Basic (loss) earnings per share - Sotheby's common shareholders $ (0.09 ) $ 1.12 $ (0.40 ) $ 1.07 Diluted (loss) earnings per share - Sotheby's common shareholders $ (0.09 ) $ 1.11 $ (0.40 ) $ 1.06 Shares Outstanding: Basic 69,143 68,938 68,990 68,992 Diluted 69,143 69,491 68,990 69,707 __________________________________________________________________ 1 Net Auction Sales represents the hammer or sale price of property sold at auction. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | SCHEDULE II SOTHEBY'S VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2015 , 2014 , AND 2013 Column A Column B Column C Column D Column E Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period (Thousands of dollars) Valuation reserve deducted in the balance sheet from the asset to which it applies: Receivables: 2015 Allowance for doubtful accounts and credit losses $ 8,484 $ 2,607 $ — $ 992 $ 10,099 2014 Allowance for doubtful accounts and credit losses $ 8,685 $ 1,893 $ — $ 2,094 $ 8,484 2013 Allowance for doubtful accounts and credit losses $ 7,969 $ 1,444 $ — $ 728 $ 8,685 Deferred tax assets: 2015 Valuation allowance $ 2,224 $ 461 $ — $ 248 $ 2,437 2014 Valuation allowance $ 3,227 $ 29 $ — $ 1,032 $ 2,224 2013 Valuation allowance $ 10,235 $ 1,735 $ 66 $ 8,809 $ 3,227 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The Consolidated Financial Statements included herein have been prepared by Sotheby's (the "Company" or "Sotheby's") pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and are in conformity with generally accepted accounting principles ("GAAP") in the United States (the "U.S."). In the Consolidated Financial Statements, unless otherwise stated, the terms "art" or "works of art" or "artwork" or "property" refer to authenticated fine art, decorative art, jewelry, wine, and collectibles. |
Adjustments to Prior Period Presentation | Adjustments to Prior Period Presentation —See Note 3 for information regarding a change in Sotheby's segment reporting that became effective in the second quarter of 2015. All prior period segment information has been updated to reflect this change. |
Principles of Consolidation | Principles of Consolidation —The Consolidated Financial Statements include the accounts of Sotheby's wholly-owned subsidiaries and Sotheby's Beijing Auction Co., Ltd. ("Sotheby's Beijing"), a joint venture formed in September 2012 in which Sotheby's has a controlling 80% ownership interest. The net income attributable to the minority owner of Sotheby's Beijing is reported as "Net (Loss) Income Attributable to Noncontrolling Interest" in the Consolidated Income Statements and the non-controlling 20% ownership interest is recorded as "Noncontrolling Interest" within the Equity section of the Consolidated Balance Sheets. Intercompany transactions and balances among Sotheby's subsidiaries have been eliminated. Equity investments through which Sotheby's exercises significant influence over the investee, but does not control, are accounted for using the equity method. Under the equity method, Sotheby's share of investee earnings or losses is recorded within Equity in Earnings of Investees in the Consolidated Income Statements. Sotheby's interest in the net assets of the investee is recorded within Equity Method Investments on the Consolidated Balance Sheets. Sotheby's equity method investees include RM Sotheby's and Acquavella Modern Art. See Note 5 for information related to Sotheby's equity method investments. |
Foreign Currency Translation | Foreign Currency Translation —Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenues, expenses, gains, and losses recorded in foreign currencies are translated using the monthly average exchange rates prevailing during the period in which they are recognized. Translation adjustments resulting from this process are recorded to Other Comprehensive Income (Loss) and reported on the Consolidated Balance Sheets within Accumulated Other Comprehensive Loss until the subsidiary is sold or liquidated. |
Restricted Cash | Restricted Cash —Restricted Cash includes net auction proceeds owed to consignors in certain foreign jurisdictions where such funds are legally required to be maintained in segregated bank accounts, as well as other cash deposits whose use is restricted by law, contract or management statement of intention. |
Valuation of Inventory and Loan Collateral | Valuation of Inventory and Loan Collateral —The market for art is not a highly liquid trading market. As a result, the valuation of art is inherently subjective and the realizable value of art often fluctuates over time. In estimating the realizable value of art held in inventory and art pledged as collateral for Finance segment loans, management considers the following complex array of factors: (i) whether the property is expected to be offered at auction or sold privately, and the timing of any such sale; (ii) the supply and demand for the property, taking into account current art market conditions, as well as changing trends as to which collecting categories and artists are most sought after; (iii) recent sale prices achieved for comparable items within a particular collecting category and/or by a particular artist; (iv) the state of the global economy and financial markets; and (v) management's intent and ability to hold the property in order to maximize the realizable value. Due to the inherent subjectivity involved in estimating the realizable value of art held in inventory and art pledged as collateral for Finance segment loans, management's estimates of realizable value may prove, with the benefit of hindsight, to be different than the amount ultimately realized upon sale. See below for a detailed discussion of Sotheby's accounting policies with respect to Notes Receivable and Inventory. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts —Accounts Receivable principally includes amounts due from buyers as a result of auction and private sale transactions. The recorded amount reflects the purchase price of the property, including Sotheby's commission. The Allowance for Doubtful Accounts principally includes estimated losses associated with situations when Sotheby's has paid the net sale proceeds to the seller, also known as a consignor, and it is probable that payment will not be collected from the buyer. The Allowance for Doubtful Accounts also includes an estimate of probable losses inherent in the remainder of the Accounts Receivable balance. The amount of the required allowance is based on the facts available to management, including the value of any property held as collateral, and is reevaluated and adjusted as additional facts become known. Based on all available information, management believes that the Allowance for Doubtful Accounts is adequate as of December 31, 2015 ; however, actual losses may ultimately exceed the recorded allowance. |
Notes Receivable and Allowance for Credit Losses | Notes Receivable and Allowance for Credit Losses —Notes Receivable principally includes secured loans issued by the Finance segment. The classification of a loan as current or non-current on the Consolidated Balance Sheets takes into account the contractual maturity date of the loan, as well as the likelihood of renewing the loan on or before its contractual maturity. The determination of whether a specific loan is impaired and the amount of any required allowance is based on the facts available to management and is reevaluated and adjusted as additional facts become known. A loan is considered to be impaired when management determines that it is probable that a portion of the principal and interest owed by the borrower will not be recovered after taking into account the estimated realizable value of the collateral securing the loan, as well as the ability of the borrower to repay any shortfall between the value of the collateral and the amount of the loan. An allowance is also established for probable losses inherent in the remainder of the loan portfolio based on historical data related to loan losses. |
Inventory | Inventory —Inventory consists of artworks owned by Sotheby's and includes the following general classifications: (i) art that has been obtained as a result of the failure of guaranteed property to sell at auction (see Note 16), (ii) art that has been purchased opportunistically, including property acquired for sale at auction, and (iii) other objects obtained incidental to the auction process (e.g., as a result of buyer default). Inventory is valued on a specific identification basis at the lower of cost or management's estimate of realizable value (i.e., the expected sale price upon disposition). If there is evidence that the estimated realizable value of a specific item held in Inventory is less than its carrying value, a writedown is recorded to reflect management's revised estimate of realizable value. In 2015, 2014, and 2013, inventory writedowns totaled $20.1 million , $10 million , and $8.8 million , respectively. Although all of the items held in Inventory are available for immediate sale, the timing of eventual sale is difficult to predict due to the high value and unique nature of each item, as well as the cyclical nature of the global art market. Management expects that the items held in Inventory will be sold in the ordinary course of Sotheby's business during the normal operating cycle for such items. |
Fixed Assets | Fixed Assets —Fixed Assets are stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful life of the asset. Buildings are depreciated over a useful life of up to 50 years . Building improvements are depreciated over a useful life of up to 20 years . Furniture and fixtures are depreciated over a useful life of up to 7 years. Leasehold improvements are amortized using the straight-line method over the lesser of the term of the related lease or the estimated useful life of the improvement. Computer software consists of the capitalized cost of purchased computer software, as well as direct external and internal computer software development costs incurred in the acquisition or development of software for internal use. These costs are amortized on a straight-line basis over the estimated useful life of the software, which is typically between 7 to 10 years for enterprise systems and 3 years for other types of software. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets —Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but it is tested annually for impairment at the reporting unit level as of October 31 and between annual tests if indicators of potential impairment exist. These indicators could include a decline in Sotheby's stock price and market capitalization, a significant change in the outlook for the reporting unit's business, lower than expected operating results, increased competition, legal factors, or the sale or disposition of a significant portion of a reporting unit. An impairment loss is recognized for any amount by which the carrying value of a reporting unit's goodwill exceeds its fair value. The fair value of a reporting unit is estimated by management using a discounted cash flow methodology. Goodwill is attributable to reporting units in the Agency segment and totaled $13.6 million and $14 million as of December 31, 2015 and 2014 , respectively, with the changes in the carrying value being attributable solely to foreign currency exchange rate movements. Other intangible assets include an indefinite lived license obtained in conjunction with Sotheby's purchase of a retail wine business in 2008. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. In such situations, long-lived assets are considered impaired when estimated future cash flows (undiscounted and without interest charges) resulting from the use of the asset and its eventual disposition are less than the asset's carrying amount. In such situations, the asset is written down to the present value of the estimated future cash flows. Factors that are considered when evaluating long-lived assets for impairment include a current expectation that it is more likely than not that the long-lived asset will be sold significantly before the end of its useful life, a significant decrease in the market price of the long-lived asset, and a significant change in the extent or manner in which the long-lived asset is being used. |
Valuation of Deferred Tax Assets | Valuation of Deferred Tax Assets —A valuation allowance is recorded to reduce Sotheby's deferred tax assets to the amount that is more likely than not to be realized. In assessing the need for the valuation allowance, management considers, among other things, projections of future taxable income and ongoing prudent and feasible tax planning strategies. If management determines that sufficient negative evidence exists (for example, if Sotheby's experiences cumulative three-year losses in a certain jurisdiction), then management will consider recording a valuation allowance against a portion or all of the deferred tax assets in that jurisdiction. If, after recording a valuation allowance, management's projections of future taxable income and other positive evidence considered in evaluating the need for a valuation allowance prove, with the benefit of hindsight, to be inaccurate, it could prove to be more difficult to support the realization of Sotheby's deferred tax assets. As a result, an additional valuation allowance could be required, which would have an adverse impact on Sotheby's effective income tax rate and results. Conversely, if, after recording a valuation allowance, management determines that sufficient positive evidence exists in the jurisdiction in which it recorded the valuation allowance (for example, if Sotheby's is no longer in a three-year cumulative loss position in the jurisdiction, and management expects to have future taxable income in that jurisdiction based upon its forecasts and the expected timing of deferred tax asset reversals), management may reverse a portion or all of the valuation allowance in that jurisdiction. In such situations, |
Auction Guarantees | Auction Guarantees —From time-to-time in the ordinary course of its business, Sotheby's will guarantee to a consignor a minimum sale price in connection with the sale of property at auction (an "auction guarantee"). In the event that the property sells for less than the guaranteed price, Sotheby's must perform under the auction guarantee by funding the difference between the sale price at auction and the amount of the auction guarantee. If the property does not sell, the amount of the auction guarantee must be paid, but Sotheby's takes ownership of the unsold property and may recover the amount paid through its future sale. The estimated fair value of Sotheby's obligation to perform under its auction guarantees is recorded on the Consolidated Balance Sheets within Accounts Payable and Accrued Liabilities. This estimated fair value is based on an analysis of historical loss experience related to auction guarantees and does not include the impact of risk-sharing arrangements that may have mitigated all or a portion of any historical losses. |
Financial Instruments | Financial Instruments —Sotheby's material financial instruments include: (i) Cash and Cash Equivalents, (ii) Restricted Cash, (iii) Notes Receivable, (iv) credit facility borrowings, (v) the York Property Mortgage, (vi) the interest rate swap and interest rate collar associated with the York Property Mortgage, (vii) other long-term debt, (viii) the Deferred Compensation Liability and related trust assets, and (ix) outstanding forward exchange contracts. The carrying amounts of Cash and Cash Equivalents, Restricted Cash, Notes Receivable, the York Property Mortgage, and credit facility borrowings do not materially differ from their estimated fair values due to their nature and the variable interest rates associated with each of these financial instruments. |
Revenue Recognition | Revenue Recognition (Agency Commissions and Fees) —Through its Agency segment, Sotheby's accepts property on consignment, stimulates buyer interest through professional marketing techniques, and matches sellers, also known as consignors, to buyers through the auction or private sale process. Prior to offering a work of art for sale, Sotheby's specialists perform significant due diligence activities to authenticate and determine the ownership history of the property being sold. The revenue recognition policy for each of the principal components of Agency Commissions and Fees is described below. (1) Auction Commission Revenues —In its role as auctioneer, Sotheby's accepts property on consignment and matches sellers to buyers through the auction process. Following the auction, Sotheby's invoices the buyer for the purchase price of the property (including the commission owed by the buyer), collects payment from the buyer, and remits to the consignor the net sale proceeds after deducting its commissions, expenses and applicable taxes and royalties. Sotheby's auction commissions include those paid by the buyer ("buyer's premium") and those paid by the seller ("seller's commission") (collectively, "auction commission revenue"), both of which are calculated as a percentage of the hammer price of the property sold at auction. On the fall of the auctioneer's hammer, the highest bidder becomes legally obligated to pay the full purchase price, which includes the hammer price of the property purchased plus the buyer's premium, and the seller is legally obligated to relinquish the property in exchange for the hammer price less any seller's commissions. Auction commission revenue is recognized on the date of the auction sale upon the fall of the auctioneer's hammer, which is the point in time when Sotheby's has substantially accomplished what it must do to be entitled to the benefits represented by the auction commission revenue. Subsequent to the date of the auction sale, Sotheby's remaining obligations for its auction services relate only to the collection of the purchase price from the buyer and the remittance of the net sale proceeds to the seller. These remaining service obligations are not an essential part of the auction services provided by Sotheby's. Under the standard terms and conditions of its auction sales, Sotheby's is not obligated to pay the consignor for property that has not been paid for by the buyer. If a buyer defaults on payment, the sale may be cancelled, and the property will be returned to the consignor. Management continually evaluates the collectability of amounts due from individual buyers and only recognizes auction commission revenue when the collection of the amount due from the buyer is reasonably assured. If management determines that it is probable that the buyer will default, a cancelled sale is recorded in the period in which that determination is made and the associated Accounts Receivable balance, including Sotheby's auction commission, is reversed. Management's judgments regarding the collectability of Accounts Receivable are based on an assessment of the buyer's payment history, discussions with the buyer, and the value of any property held as security against the buyer's payment obligation. Management's judgments with respect to the collectability of amounts due from buyers for auction purchases may prove, with the benefit of hindsight, to be incorrect. Historically, cancelled sales have not been material in relation to the aggregate hammer price of property sold at auction. Auction commission revenues are recorded net of commissions owed to third parties, which are principally the result of situations when the buyer's premium is shared with the consignor or with the counterparty in an auction guarantee risk and reward sharing arrangement (see Note 16 ). Additionally, in certain situations, auction commissions are shared with third parties who introduce Sotheby's to consignors who sell property at auction or otherwise facilitate the sale of property at auction. (2) Private Sale Commission Revenues —Private sale commission revenues are earned through the direct brokering of purchases and sales of art. Similar to auction sales, the primary service that Sotheby's provides in a private sale transaction is the matching of the seller to a buyer in a legally binding transaction. Private sales are initiated either by a client wishing to sell property with Sotheby's acting as its exclusive agent in the transaction or a prospective buyer who is interested in purchasing a certain work of art privately. Such arrangements are evidenced by a legally binding agreement between Sotheby's and the seller (a "Seller Agreement"), which outlines the terms of the arrangement, including the desired sale price and the amount or rate of commission to be earned. In certain situations, Sotheby's may also execute a legally binding agreement with the buyer stipulating the terms of the transaction (a "Buyer Agreement"). The timing of revenue recognition for private sale commissions is evaluated on a case-by-case basis, and in large part, is dependent upon whether a Buyer Agreement has been executed. Additionally, a careful analysis of the individual facts and circumstances is performed for each transaction to fully understand Sotheby's obligations and performance requirements related to the transaction. In transactions with a Buyer Agreement, Sotheby's services are performed on the date that the Buyer Agreement is executed. At this point, any remaining service obligations are considered to be inconsequential and perfunctory. Such remaining service obligations normally relate only to the collection of the purchase price from the buyer and the remittance of the net sale proceeds to the seller. These remaining service obligations are not an essential part of the services that Sotheby's provides in a private sale transaction. In the absence of an executed Buyer Agreement, revenue recognition is deferred until Sotheby's has performed its substantive service obligations in the transaction and the buyer has paid the full purchase price thereby evidencing the terms of the arrangement. Private sale commission revenues are recorded within Agency Commissions and Fees in the Consolidated Income Statements. Private sale commission revenues are recorded net of commissions owed to third parties. In certain situations, commissions are shared with third parties who introduce Sotheby's to consignors who sell property through a private sale transaction. (3) Auction Guarantees, Net —This component of Agency Commissions and Fees includes Sotheby's share of overage or shortfall related to guaranteed property offered or sold at auction. The overage or shortfall related to guaranteed property is generally recognized in the period in which the property is offered at auction. However, a shortfall is recognized prior to the date of the auction if management determines that a loss related to an auction guarantee is probable. In such situations, the amount of the loss is estimated by management based on the difference between the amount of the auction guarantee and the expected selling price of the property, including buyer's premium. Revenue Recognition (Inventory Sales) —Inventory sales are recognized in the period in which the sale is completed, title to the property passes to the purchaser and Sotheby's has fulfilled any other obligations that may be relevant to the transaction, including, but not limited to, delivery of the property. In instances when Inventory is sold at auction, the associated buyer's premium is recorded within Inventory Sales. The carrying value of Inventory sold during a period is recorded within Cost of Inventory Sales. Revenue Recognition (Finance Revenues) —Finance revenues consist principally of interest income earned on Notes Receivable. Such interest income is recognized when earned, based on the amount of the outstanding loan, the applicable interest rate on the loan, and the length of time the loan is outstanding during the period. A non-accrual loan is a loan for which future Finance revenue is not recorded due to management's determination that it is probable that future interest on the loan is not collectible. Any cash receipts subsequently received on non-accrual loans are first applied to reduce the recorded principal balance of the loan, with any proceeds in excess of the principal balance then applied to interest owed by the borrower. The recognition of Finance revenue may resume on a non-accrual loan if sufficient additional collateral is provided by the borrower or if management becomes aware of other circumstances that indicate that it is probable that the borrower will make future interest payments on the loan. |
Sales, Use and Value-Added Taxes | Sales, Use and Value-Added Taxes —Sales, use and value-added taxes assessed by governmental authorities that are both imposed on and concurrent with revenue-producing transactions between Sotheby's and its clients are reported on a net basis within revenues. |
Agency Direct Costs | Agency Direct Costs —A large portion of Agency Direct Costs relate to sale marketing expenses such as catalogue production and distribution, advertising and promotion costs, and traveling exhibition costs. Such costs are deferred and recorded on the Consolidated Balance Sheets within Prepaid Expenses and Other Current Assets until the date of the sale when they are recognized in the Consolidated Income Statements. |
Cost of Finance Revenues | Cost of Finance Revenues —The Cost of Finance Revenues includes borrowing costs related to the Finance segment's revolving credit facility, including interest expense, commitment fees, and the amortization of amendment and arrangement fees. See Note 7 |
Share-Based Payments | Share-Based Payments —Sotheby's grants share-based payment awards as compensation to certain employees. The amount of compensation expense recognized for share-based payments is based on management's estimate of the number of shares ultimately expected to vest as a result of employee service. For share-based payment awards that vest annually over a multi-year period of service, compensation expense is amortized over the requisite service period according to a graded vesting schedule. For share-based payment awards that vest at the end of a service period, compensation expense is amortized on a straight-line basis over the requisite service period. A substantial portion of the share-based payment awards vest only if Sotheby's achieves established profitability targets. The amount and timing of compensation expense recognized for such performance-based awards is dependent upon management's quarterly assessment of the likelihood and timing of achieving these future profitability targets. Accordingly, if management's projections of future profitability prove, with the benefit of hindsight, to be inaccurate, the amount of life-to-date and future compensation expense related to share-based payments could significantly increase or decrease. In 2015, Sotheby's granted a share-based payment award to Thomas S. Smith, Jr., its President and Chief Executive Officer, with a single vesting opportunity after a five -year service period contingent upon the achievement of pre-determined levels of Sotheby's stock price appreciation. The compensation expense recognized for this share-based payment is based on management's estimate of the grant date fair value of the award. In developing this estimate, management considers current market conditions, historical data, and any other relevant data. Dividend equivalents related to share-based payments to employees are charged to Retained Earnings. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and could change in the short-term. |
Earnings Per Share | Basic earnings per share —Basic earnings per share attributable to Sotheby's common shareholders is computed under the two-class method using the weighted average number of common shares outstanding during the period. The two-class method requires that the amount of net income attributable to participating securities be deducted from consolidated net income in the computation of basic earnings per share. In periods with a net loss, the net loss attributable to participating securities is not deducted from consolidated net loss in the computation of basic loss per share as the impact would be anti-dilutive. Sotheby's participating securities include unvested restricted stock units and unvested restricted stock shares, both of which have non-forfeitable rights to dividends. Diluted earnings per share —Diluted earnings per share attributable to Sotheby's common shareholders is computed in a similar manner to basic earnings per share under the two-class method, using the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential common shares outstanding during the period. Sotheby's potential common shares include unvested performance share units held by employees, incremental common shares issuable upon the exercise of employee stock options, and deferred stock units held by members of the Board of Directors. In 2013, Sotheby's potential common shares also included the net shares that would have been delivered to settle the premium upon conversion of then-outstanding convertible debt, as well as the net shares that would have been issued upon the exercise of then-outstanding common stock warrants. See Note 7 for information on Sotheby's 3.125% Convertible Notes, which were settled in June 2013, and the related common stock warrants that were settled in the fourth quarter of 2013. See Note 12 for information on Sotheby's share-based payment programs. |
Segment Reporting | otheby's is a global art business whose operations are organized under two segments—Agency and Finance. The Agency segment earns commissions by matching buyers and sellers of authenticated works of art through the auction or private sale process. To a much lesser extent, Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process and the activities of RM Sotheby's, an equity investee that operates as an auction house for investment-quality automobiles (see Note 5). The Finance segment earns interest income through art-related financing activities by making loans that are secured by works of art (see Note 4). Prior to the second quarter of 2015, Sotheby's also separately reported the results of the Principal segment, which consisted of its dealer-related activities and primarily included the sale of artworks purchased opportunistically by Sotheby's. In the second quarter of 2015, Sotheby's transitioned to its new CEO (and chief operating decision maker), and the information regularly reviewed for the purpose of allocating resources and assessing performance was updated to reflect a simplified internal reporting structure. As a result, beginning in the second quarter of 2015, the sale of artworks purchased opportunistically by Sotheby's is reported as part of the Agency segment. The remaining activities of the former Principal segment are reported within All Other. Such activities include Sotheby's retail wine operations, Acquavella Modern Art ("AMA"), an equity investee (see Note 5), and sales of the remaining inventory of Noortman Master Paintings, an art dealer that was owned and operated by Sotheby's from its acquisition in June 2006 until its closure in December 2013. Prior period amounts have been restated to reflect this new segment presentation. Agency Segment —Through the Agency segment, Sotheby's accepts property on consignment, stimulates buyer interest through professional marketing techniques, and matches sellers, also known as consignors, to buyers through the auction or private sale process. Prior to offering a work of art for sale, Sotheby's specialists perform significant due diligence activities to authenticate and determine the ownership history of the property being sold. To a much lesser extent, Agency segment activities also include the sale of artworks that are principally acquired incidental to the auction process (see Note 1). The Agency segment is an aggregation of the auction, private sale, and other related activities conducted by Sotheby's operating segments in the Americas, Europe, and Asia, which have similar economic characteristics and are similar in their services, customers, and the manner in which their services are provided. Finance Segment —The Finance segment provides certain collectors and art dealers with financing secured by works of art that Sotheby's either has in its possession or permits borrowers to possess. The Finance segment generally makes two types of secured loans: (1) advances secured by consigned property where the borrowers are contractually committed, in the near term, to sell the property through the Agency segment (a "consignor advance"); and (2) general purpose term loans secured by property not presently intended for sale (a "term loan"). All Other —All Other includes the remaining activities of the former Principal segment, as discussed above, as well as the results of Sotheby's brand licensing activities and other ancillary businesses, which are not material to Sotheby's consolidated financial statements. The accounting policies of Sotheby's segments are the same as those described in Note 1. For auction commissions, revenues are attributed to geographic areas based on the location of the auction. For private sale commissions, revenues are attributed to geographic areas based on the location of the entities which significantly contributed to the completion of the sale. For inventory activities, revenues are attributed to geographic areas based on the location of the entity that holds legal title to the property sold. Finance segment revenues are attributed to geographic areas based on the location of the entity that originated the loan. |
Recently Issued Accounting Standards | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which introduces a new five-step framework for revenue recognition. The core principal of the standard is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This ASU also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. On August 12, 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of Effective Date , which defers the effective date of ASU 2014-09 to January 1, 2018 with early adoption beginning January 1, 2017. Management is currently assessing the potential impact of adopting this new accounting standard on Sotheby’s financial statements. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis , which eliminates the deferral of the requirements of ASU 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities , for certain interests in investment funds and provides a scope exception from Accounting Standards Codification Topic 810 for certain investments in money market funds. ASU 2015-02 also makes several modifications to the consolidation guidance for variable interest entities ("VIEs") and general partners' investments in limited partnerships, as well as modifications to the evaluation of whether limited partnerships are VIEs or voting interest entities. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. Management is currently assessing the potential impact of adopting this new accounting standard on Sotheby's financial statements. In March 2015 and August 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , respectively, which change the presentation of debt issuance costs on the balance sheet. These standards require unamortized debt issuance costs to be included as a direct deduction from the related debt liability on the balance sheet, but permit companies to continue to record unamortized debt issuance costs related to revolving credit arrangements as assets. Under the current guidance, all unamortized debt issuance costs are reported as assets in the balance sheet. Sotheby's will adopt and apply these standards retrospectively on their January 1, 2016 effective date. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and liabilities as non-current in a classified balance sheet, instead of separating into current and non-current amounts. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, on a prospective or retrospective basis. Early adoption is permitted for all companies in any interim or annual period. Sotheby's early adopted ASU 2015-17 as of December 31, 2015 on a prospective basis. Accordingly, prior period information has not been adjusted to reflect the new presentation of deferred tax assets and liabilities. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The table below summarizes the computation of basic and diluted earnings per share for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars, except per share amounts): 2015 2014 2013 Basic: Numerator: Net income attributable to Sotheby's $ 43,727 $ 117,795 $ 130,006 Less: Net income attributable to participating securities 354 1,047 60 Net income attributable to Sotheby's common shareholders $ 43,373 $ 116,748 $ 129,946 Denominator: Weighted average common shares outstanding 68,121 69,016 68,374 Basic earnings per share - Sotheby's common shareholders $ 0.64 $ 1.69 $ 1.90 Diluted: Numerator: Net income attributable to Sotheby's $ 43,727 $ 117,795 $ 130,006 Less: Net income attributable to participating securities 354 1,047 60 Net income attributable to Sotheby's common shareholders $ 43,373 $ 116,748 $ 129,946 Denominator: Weighted average common shares outstanding 68,121 69,016 68,374 Weighted average effect of dilutive potential common shares: Convertible debt — — 97 Performance share units 438 407 428 Deferred stock units 167 162 150 Stock options 18 21 77 Warrants — — 49 Weighted average dilutive potential common shares outstanding 623 590 801 Weighted average diluted shares outstanding 68,744 69,606 69,175 Diluted earnings per share - Sotheby's common shareholders $ 0.63 $ 1.68 $ 1.88 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Segment Information | The following table presents Sotheby's segment information for 2015 , 2014 , and 2013 (in thousands of dollars): Year ended December 31, 2015 Agency Finance All Other Reconciling items Total Revenues $ 892,030 $ 65,248 $ 18,975 $ (14,759 ) (a) $ 961,494 Interest income $ 1,773 $ 3 $ — $ — $ 1,776 Interest expense $ 32,745 $ — $ — $ — $ 32,745 Depreciation and amortization $ 19,233 $ 124 $ 124 $ — $ 19,481 Segment income before taxes $ 139,942 $ 41,303 $ 10,864 $ (22,810 ) $ 169,299 Year ended December 31, 2014 Revenues $ 885,293 $ 47,290 $ 19,747 $ (14,277 ) (a) $ 938,053 Interest income $ 1,857 $ 18 $ 8 $ — $ 1,883 Interest expense $ 35,189 $ — $ — $ — $ 35,189 Depreciation and amortization $ 20,110 $ 130 $ 335 $ — $ 20,575 Segment income before taxes $ 182,763 $ 31,763 (b) $ 7,424 $ (28,929 ) $ 193,021 Year ended December 31, 2013 Revenues $ 799,886 $ 32,792 $ 32,515 $ (11,515 ) (a) $ 853,678 Interest income $ 3,860 $ — $ 31 $ (1,090 ) (c) $ 2,801 Interest expense $ 42,636 $ 67 $ 9 $ — $ 42,712 Depreciation and amortization $ 19,072 $ 125 $ 238 $ — $ 19,435 Segment income (loss) before taxes $ 164,348 $ 23,009 (b) $ (265 ) $ (1,399 ) $ 185,693 (a) The reconciling items related to Revenues consist principally of amounts charged by the Finance segment to the Agency segment, including interest and facility fees related to certain loans made to Agency segment clients, as well as, beginning on January 1, 2015, fees charged for term loan collateral sold at auction or privately through the Agency segment. In 2015, fees related to such collateral sales totaled $7.8 million . Prior period segment results for 2014 and 2013 have been adjusted to include $5.3 million and $1.6 million , respectively, of such fees. (b) In 2014 and 2013, Finance segment income before taxes includes $2.1 million and $2.7 million , respectively, of intercompany charges from Sotheby's global treasury function. Beginning in 2015, these charges are no longer applicable due to the financing of the Finance segment's loan portfolio with debt. See Notes 3 and 7 for information on the capital structure of the Finance segment and the financing of client loans with debt. (c) In 2013, the reconciling item related to Interest Income relates to charges from the Agency segment to the Finance segment for intercompany borrowing costs. Beginning in 2014, these charges are no longer applicable due to the financing of the Finance segment's loan portfolio with debt. See Notes 3 and 7 for information on the capital structure of the Finance segment and the financing of client loans with debt. |
Schedule of Agency Segment Revenue | For the years ended December 31, 2015 , 2014 , and 2013 Agency segment revenues consisted of the following (in thousands of dollars): 2015 2014 2013 Auction commissions $ 719,152 $ 758,213 $ 687,853 Private sale commissions 61,256 60,183 88,171 Auction guarantees (net) (11,567 ) (15,462 ) (2,186 ) Other (a) 23,079 22,192 19,801 Total Agency commissions and fees 791,920 825,126 793,639 Inventory Sales 100,110 60,167 6,247 Total Agency segment revenues $ 892,030 $ 885,293 $ 799,886 (a) Includes commissions and other fees earned by Sotheby's on sales brokered by third parties, fees charged to consignors for property withdrawn prior to auction and for catalogue production and insurance, and catalogue subscription and advertising revenues. |
Reconciliation from Segments to Consolidated Revenues | The table below provides a reconciliation of segment revenues to consolidated revenues for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars): 2015 2014 2013 Agency $ 892,030 $ 885,293 $ 799,886 Finance 65,248 47,290 32,792 All Other 18,975 19,747 32,515 Segment revenues 976,253 952,330 865,193 Reconciling items: Intercompany charges from Finance to Agency (a) (14,759 ) (14,277 ) (11,515 ) Total revenues $ 961,494 $ 938,053 $ 853,678 (a) Includes interest charged for secured loans issued with an interest rate below the Finance segment's target rate, as well as facility fees charged for secured loans where the facility fee owed by the borrower is either reduced or waived. The reduction or waiver of such interest and fees is done as an accommodation to the Agency segment to secure a consignment or enhance a client relationship. Also, beginning on January 1, 2015, this reconciling item includes fees charged for term loan collateral sold at auction or privately through the Agency segment. Such fees are paid to compensate the Finance segment for generating auction and private sale consignments. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The table below details the unallocated amounts and reconciling items related to segment income before taxes and provides a reconciliation of segment income before taxes to consolidated income before taxes for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars): 2015 2014 2013 Agency $ 139,942 $ 182,763 $ 164,348 Finance 41,303 31,763 23,009 All Other 10,864 7,424 (265 ) Segment income before taxes 192,109 221,950 187,092 Unallocated amounts and reconciling items: Leadership transition severance costs (a) (13,251 ) — — CEO separation and transition costs (see Note 20) (4,232 ) (7,591 ) — Special charges (net) (see Note 22) — (20,008 ) (1,372 ) Equity in earnings of investees (b) (5,327 ) (1,330 ) (27 ) Income before taxes $ 169,299 $ 193,021 $ 185,693 (a) In 2015, Sotheby's incurred severance costs of $13.3 million associated with the termination of certain executive officers, including its former Chief Financial Officer and former Chief Operating Officer, in conjunction with Sotheby's recent leadership transition. (b) For segment reporting purposes, Sotheby's share of earnings related to its equity investees is included as part of income before taxes. However, such earnings are reported separately below income before taxes in the Consolidated Income Statements. In 2015, Agency segment results includes $2.5 million of equity earnings related to RM Sotheby's. In 2015 and 2014, All Other includes $2.8 million and $1.3 million , respectively, of equity earnings related to Acquavella Modern Art. See Note 5 for information related to Sotheby's equity method investments. |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The table below presents geographic information about revenues for the years ended December 31, 2015 , 2014 , and 2013 for all countries which exceeded 5% of total revenues (in thousands of dollars): 2015 2014 2013 United States $ 463,129 $ 402,385 $ 353,474 United Kingdom (the "U.K.") 257,336 271,505 230,304 Hong Kong and China 146,262 165,066 153,909 Switzerland 50,134 46,226 41,150 France 41,803 48,032 46,891 Other countries 17,589 19,116 39,465 Reconciling item: Intercompany revenue (14,759 ) (14,277 ) (11,515 ) Total $ 961,494 $ 938,053 $ 853,678 |
Reconciliation Of Segment Assets To Consolidated Assets | The table below presents assets for Sotheby's segments, as well as a reconciliation of segment assets to consolidated assets as of December 31, 2015 , 2014 and 2013 (in thousands of dollars): December 31, 2015 2014 2013 Agency $ 2,510,257 $ 2,391,763 $ 2,314,356 Finance 721,781 658,710 480,103 All Other 25,178 29,067 31,182 Total segment assets 3,257,216 3,079,540 2,825,641 Unallocated amounts: Deferred tax assets and income tax receivable 16,913 55,280 67,905 Consolidated assets $ 3,274,129 $ 3,134,820 $ 2,893,546 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts and Notes Receivable, Net [Abstract] | |
Schedule Of Notes Receivable by Segment | As of December 31, 2015 and 2014 , Notes Receivable (net) related to the Finance segment consisted of the following (in thousands of dollars): December 31, 2015 2014 Consignor advances $ 30,180 $ 25,994 Term loans 652,078 618,447 Total Finance segment Notes Receivable (net) $ 682,258 $ 644,441 |
Financing Receivable Credit Quality Indicators | The table below provides the aggregate LTV ratio for the Finance segment loan portfolio of secured loans as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Finance segment secured loans $ 682,258 $ 644,441 Low auction estimate of collateral $ 1,380,022 $ 1,349,094 Aggregate LTV ratio 49 % 48 % The table below provides the aggregate LTV ratio for Finance segment secured loans with an LTV above 50% as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Finance segment secured loans with an LTV ratio above 50% $ 354,049 $ 329,135 Low auction estimate of collateral related to Finance segment secured loans with an LTV above 50% $ 626,829 $ 556,662 Aggregate LTV ratio of Finance segment secured loans with an LTV above 50% 56% 59% |
Summary Of Other Credit Quality Information Regarding Finance Segment Secured Loans | The table below provides other credit quality information regarding Finance segment secured loans as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Total secured loans $ 682,258 $ 644,441 Loans past due $ 11,819 $ 22,409 Loans more than 90 days past due $ 7,828 $ — Non-accrual loans $ — $ — Impaired loans $ — $ — Allowance for credit losses: Allowance for credit losses for impaired loans $ — $ — Allowance for credit losses based on historical data 1,458 1,166 Total allowance for credit losses - secured loans $ 1,458 $ 1,166 |
Activity Related To Allowance For Credit Losses | During the period January 1, 2014 to December 31, 2015 , activity related to the Allowance for Credit Losses was as follows (in thousands of dollars): Allowance for Credit Losses as of January 1, 2014 $ 1,746 Change in loan loss provision (580 ) Allowance for Credit Losses as of December 31, 2014 1,166 Change in loan loss provision 292 Allowance for Credit Losses as of December 31, 2015 $ 1,458 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary Of Fixed Assets | As of December 31, 2015 and 2014 , Fixed Assets consisted of the following (in thousands of dollars): December 31, 2015 2014 Land $ 93,078 $ 93,353 Buildings and building improvements 226,530 226,465 Leasehold improvements 82,011 83,643 Computer hardware and software 73,728 71,422 Furniture, fixtures and equipment 78,529 78,182 Construction in progress 2,090 1,401 Other 2,015 1,176 Sub-total 557,981 555,642 Less: Accumulated depreciation and amortization (203,487 ) (191,260 ) Total Fixed Assets, net $ 354,494 $ 364,382 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Schedule of Credit Agreements | The following tables summarize information relevant to the Credit Agreement as of and for the years ended December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 Agency Credit Facility Finance Credit Facility Total Maximum borrowing capacity (a) $ 300,000 $ 1,035,000 $ 1,335,000 Borrowing base (b) $ 225,642 $ 547,586 $ 773,228 Borrowings outstanding $ — $ 541,500 $ 541,500 Available borrowing capacity (c) $ 225,642 $ 6,086 $ 231,728 Average borrowings outstanding $ — $ 541,004 $ 541,004 Borrowing Costs - interest $ — (d) $ 14,060 (e) $ 14,060 Borrowing Costs - fee amortization $ 2,752 (d) $ 1,720 (e) $ 4,472 December 31, 2014 Agency Credit Facility Finance Credit Facility Total Maximum borrowing capacity (a) $ 300,000 $ 550,000 $ 850,000 Borrowing base (b) $ 237,830 $ 519,255 $ 757,085 Borrowings outstanding $ — $ 445,000 $ 445,000 Available borrowing capacity (c) $ 237,830 $ 74,255 $ 312,085 Average borrowings outstanding $ — $ 306,448 $ 306,448 Borrowing Costs - interest $ — (d) $ 7,751 (e) $ 7,751 Borrowing Costs - fee amortization $ 2,240 (d) $ 989 (e) $ 3,229 Legend: (a) In June 2015, the Credit Agreement was amended to, among other things, increase the maximum borrowing capacity of the Credit Agreement from $850 million to approximately $1.335 billion . (b) The borrowing base under the Agency Credit Facility is determined by a calculation that is primarily based upon a percentage of the carrying values of certain auction guarantee advances (see Note 4), a percentage of the carrying value of certain inventory, a percentage of the carrying value of certain extended payment term receivables arising from auction or private sale transactions (see Note 4), and the fair value of certain of Sotheby's trademarks. The borrowing base under the Finance Credit Facility is determined by a calculation that is primarily based upon a percentage of the carrying values of certain loans in the Finance segment loan portfolio and the fair value of certain of Sotheby's trademarks. The borrowing base of the Incremental Facility is determined by a calculation that is based on a percentage of the carrying value of certain inventory and the fair value of certain of Sotheby's trademarks. (c) The available borrowing capacity is calculated as the borrowing base less borrowings outstanding. (d) Borrowing costs related to the Agency Credit Facility, which include interest and fee amortization, are reflected in the Consolidated Income Statements within Interest Expense. See the table below for additional information related to Interest Expense associated with the Agency Credit Facility. (e) Borrowing costs related to the Finance Credit Facility are reflected in the Consolidated Income Statements within Cost of Finance Revenues. For the years ended December 31, 2015 and 2014 , the weighted average cost of borrowings related to the Finance Credit Facility was approximately 2.9% . |
Schedule of Debt | As of December 31, 2015 and 2014 , Long-Term Debt consisted of the following (in thousands of dollars): December 31, 2015 2014 York Property Mortgage, net of unamortized discount of $0 and $1,782 $ 322,069 $ 218,728 2022 Senior Notes 300,000 300,000 Less current portion: York Property Mortgage (7,302 ) (218,728 ) Total Long-Term Debt $ 614,767 $ 300,000 |
Aggregate Future Principal And Interest Payments | The aggregate future principal and interest payments due under the York Property Mortgage, the 2022 Senior Notes, and Sotheby's revolving credit facility during the five year period after the December 31, 2015 balance sheet date are as follows (in thousands of dollars): Year Amount 2016 $ 33,186 2017 $ 34,925 2018 $ 36,587 2019 $ 36,598 2020 $ 578,108 |
Components Of Interest Expense | For the years ended December 31, 2015 , 2014 , and 2013 , Interest Expense consisted of the following (in thousands of dollars): December 31, 2015 2014 2013 Agency Segment Credit Facility: Amendment and arrangement fees $ 1,167 $ 1,096 $ 1,279 Commitment fees 1,585 1,144 1,532 Sub-total 2,752 2,240 2,811 York Property Mortgage 13,537 16,335 16,512 2022 Senior Notes 16,394 16,394 16,394 Convertible Notes — — 6,894 Other interest expense 62 220 101 Total Interest Expense $ 32,745 $ 35,189 $ 42,712 In the table above, Interest Expense related to the York Property Mortgage, the 2022 Senior Notes, and the Convertible Notes includes the amortization of debt issuance costs and, when applicable, the amortization of discount. |
Convertible Note Interest Expenses | For the year ended December 31, 2013 , Interest Expense related to the Convertible Notes consisted of the following (in thousands of dollars): 2013 Contractual coupon interest expense $ 2,621 Discount amortization 3,796 Debt issuance cost amortization 477 Total $ 6,894 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | For the years ended December 31, 2015 , 2014 , and 2013 , the significant components of income tax expense consisted of the following (in thousands of dollars): December 31, 2015 2014 2013 Income before taxes: Domestic $ 11,414 $ 21,976 $ 45,093 Foreign 157,885 171,045 140,600 Total $ 169,299 $ 193,021 $ 185,693 Income tax expense—current: Domestic $ 10,455 $ 22,220 $ 8,131 State and local 5,958 6,946 8,301 Foreign 33,043 37,762 29,602 Sub-total 49,456 66,928 46,034 Income tax expense (benefit)—deferred: Domestic 69,835 5,406 2,543 State and local 6,378 6,314 (241 ) Foreign 5,476 (2,887 ) 7,366 Sub-total 81,689 8,833 9,668 Total $ 131,145 $ 75,761 $ 55,702 |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2015 and 2014 , the components of Deferred Tax Assets and Deferred Tax Liabilities consisted of the following (in thousands of dollars): December 31, 2015 2014 Deferred Tax Assets: Asset provisions and liabilities $ 13,720 $ 10,452 Inventory writedowns 10,621 8,756 Tax loss and credit carryforwards 2,887 2,748 Difference between book and tax basis of depreciable and amortizable assets 17,857 18,737 Share-based payments and deferred compensation 34,165 36,494 Sub-total 79,250 77,187 Valuation allowance (2,437 ) (2,224 ) Total deferred tax assets 76,813 74,963 Deferred Tax Liabilities: Difference between book and tax basis of other assets and liabilities 2,361 3,323 Pension obligations 11,231 3,921 Basis differences in equity method investments 3,805 3,884 Undistributed earnings of foreign subsidiaries 91,924 16,432 Total deferred tax liabilities 109,321 27,560 Total net deferred tax (liabilities) assets $ (32,508 ) $ 47,403 |
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, 2015 , 2014 , and 2013 , the effective income tax rate varied from the statutory tax rate as follows: 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State and local taxes, net of federal tax benefit 2.3 % 2.5 % 2.8 % Foreign taxes at rates different from U.S. rates (14.9 %) (13.5 %) (11.1 %) Tax effect of undistributed earnings of foreign subsidiaries 48.2 % 9.6 % 11.0 % Deemed income from foreign subsidiaries, net 2.3 % 3.0 % 2.2 % Valuation allowance 0.3 % (0.2 %) (4.5 %) Effect of enacted tax legislation 2.5 % 2.0 % 0.1 % Worthless stock deduction 0.0 % 0.0 % (3.7 %) Other 1.8 % 0.8 % (1.8 %) Effective income tax rate 77.5 % 39.2 % 30.0 % |
Uncertain Tax Positions (Tables
Uncertain Tax Positions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Uncertainties [Abstract] | |
Summary of Income Tax Contingencies | The table below presents a reconciliation of the beginning and ending balances of the liability for unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars): 2015 2014 2013 Balance at January 1 $ 22,798 $ 25,423 $ 35,400 Increases in unrecognized tax benefits related to the current year 2,917 2,229 8,999 Increases in unrecognized tax benefits related to prior years 2,276 167 9 Decreases in unrecognized tax benefits related to prior years (1,973 ) (134 ) (16,651 ) Decreases in unrecognized tax benefits related to settlements (437 ) (590 ) (555 ) Decreases in unrecognized tax benefits due to the lapse of the applicable statute of limitations (3,539 ) (4,297 ) (1,779 ) Balance at December 31 $ 22,042 $ 22,798 $ 25,423 |
Lease Commitments Lease Commitm
Lease Commitments Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments due under non-cancellable operating leases in effect at December 31, 2015 were as follows (in thousands of dollars): 2016 $ 17,288 2017 13,730 2018 6,718 2019 5,983 2020 5,539 Thereafter 34,705 Total future minimum lease payments $ 83,963 |
Shareholders' Equity and Divi45
Shareholders' Equity and Dividends (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity and Dividends [Abstract] | |
Schedule of Quarterly Dividends Declared and Paid | The following table summarizes regular quarterly cash dividends declared and paid during the years ended December 31, 2015 , 2014 , and 2013 (in thousands of dollars, except per share amounts): Year Dividends Per Common Share Total Dividends 2015 $ 0.40 $ 27,107 2014 $ 0.40 $ 27,636 2013 $ 0.20 $ 13,754 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Dividends, Share-based Compensation [Abstract] | |
Compensation Expense Related To Share-Based Payments | For the years ended December 31, 2015 , 2014 , and 2013 , compensation expense related to share-based payments was reflected in the following accounts in the Consolidated Income Statements (in thousands of dollars): 2015 2014 2013 Salaries and related costs $ 28,632 $ 23,470 $ 22,350 Voluntary separation incentive programs (see Note 19) 3,068 — — CEO separation and transition costs (see Note 20) 2,000 3,591 — Total share-based payment expense (pre-tax) $ 33,700 $ 27,061 $ 22,350 Total share-based payment expense (after-tax) $ 22,992 $ 17,683 $ 15,299 |
Changes In Number Of Outstanding Restricted Stock, RSU's And PSU's | For the year ended December 31, 2015 , changes to the number of outstanding RSU's, PSU's, and Restricted Stock were as follows (shares in thousands): Restricted Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 1,806 $ 40.32 Granted 973 $ 47.02 Vested (549 ) $ 39.31 Canceled (211 ) $ 41.63 Outstanding at December 31, 2015 2,019 $ 43.61 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following is a summary of the changes in Accumulated Other Comprehensive Loss during the period January 1, 2013 to December 31, 2015 (in thousands of dollars): Foreign Currency Items Defined Benefit Pension Items Derivative Financial Instruments Total Balance at January 1, 2013 $ (16,084 ) $ (34,291 ) $ — $ (50,375 ) Other comprehensive income (loss) before reclassifications 14,732 (858 ) — 13,874 Net unrecognized loss — (4,065 ) — (4,065 ) Amounts reclassified from accumulated other comprehensive loss — 1,113 — 1,113 Net other comprehensive income (loss) 14,732 (3,810 ) — 10,922 Balance at December 31, 2013 (1,352 ) (38,101 ) — (39,453 ) Other comprehensive (loss) income before reclassifications (33,929 ) 2,468 — (31,461 ) Net unrecognized loss — (9,787 ) — (9,787 ) Amounts reclassified from accumulated other comprehensive loss 2,058 1,877 — 3,935 Net other comprehensive loss (31,871 ) (5,442 ) — (37,313 ) Balance at December 31, 2014 (33,223 ) (43,543 ) — (76,766 ) Other comprehensive (loss) income before reclassifications (18,951 ) 1,097 (4,994 ) (22,848 ) Net unrecognized gain — 29,363 — 29,363 Amounts reclassified from accumulated other comprehensive loss (105 ) 3,464 688 4,047 Net other comprehensive (loss) income (19,056 ) 33,924 (4,306 ) 10,562 Balance at December 31, 2015 $ (52,279 ) $ (9,619 ) $ (4,306 ) $ (66,204 ) |
Pension Arrangements (Tables)
Pension Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Trust assets related to deferred compensation liability | As of December 31, 2015 and 2014 , the DCP liability was $39 million and $49.6 million , respectively, and the assets held in the rabbi trust consisted of the following (in thousands of dollars): December 31, 2015 2014 Company-owned variable life insurance $ 37,155 $ 45,895 Money market mutual fund investments 688 4,595 Total $ 37,843 $ 50,490 |
Change In Benefit Obligation, Change in Fair Value of Plan Assets, and Funded Status | The table below details the changes in the projected benefit obligation, plan assets, and funded status of the U.K. Pension Plan, as well as the net pension asset recognized on the Consolidated Balance Sheets, as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 2014 Reconciliation of benefit obligation Benefit obligation at beginning of year $ 381,935 $ 360,185 Service cost 4,497 4,499 Interest cost 12,923 15,633 Contributions by plan participants 877 1,164 Actuarial (gain) loss (27,885 ) 33,568 Curtailment gain (17,895 ) — Benefits paid (10,745 ) (11,128 ) Foreign currency exchange rate changes (17,464 ) (21,986 ) Projected benefit obligation at end of year 326,243 381,935 Reconciliation of plan assets Fair value of plan assets at beginning of year 410,928 397,469 Actual return on plan assets 9,996 44,343 Employer contributions 2,163 2,740 Contributions by plan participants 877 1,164 Benefits paid (10,745 ) (11,128 ) Foreign currency exchange rate changes (20,117 ) (23,660 ) Fair value of plan assets at end of year 393,102 410,928 Funded Status Net pension asset $ 66,859 $ 28,993 |
Pension Benefit Plan | For the years ended December 31, 2015 , 2014 , and 2013 , the components of the net pension cost (benefit) related to the U.K. Pension Plan were (in thousands of dollars): 2015 2014 2013 Service cost $ 4,497 $ 4,499 $ 3,682 Interest cost 12,923 15,633 13,359 Expected return on plan assets (20,174 ) (23,166 ) (19,659 ) Amortization of actuarial loss 3,967 2,346 1,458 Amortization of prior service cost 364 — — Net pension cost (benefit) $ 1,577 $ (688 ) $ (1,160 ) |
Benefit Obligation And Net Pension Benefit | In 2015 , 2014 , and 2013 , the following assumptions were used in determining the benefit obligation and net pension cost (benefit) related to the U.K. Pension Plan: Benefit Obligation 2015 2014 Weighted average discount rate 3.7% 3.5% Weighted average rate of compensation increase —% 4.1% Net Pension Cost (Benefit) 2015 2014 2013 Weighted average discount rate 3.5% 4.4% 4.4% Weighted average rate of compensation increase 4.1% 4.6% 4.0% Weighted average expected long-term rate of return on plan assets 5.4% 6.1% 6.2% |
Components Of Net Pension Benefits Related To U.K. Pension Plan Assets | The table below presents the fair value of U.K. Pension Plan assets, by investment category, as of December 31, 2015 and 2014 (in thousands of dollars): December 31, 2015 % of Total 2014 % of Total Growth assets $ 240,214 61.1 % $ 247,393 60.2 % Debt securities : Corporate 36,772 9.4 % 37,929 9.2 % Index-linked 112,049 28.5 % 120,507 29.3 % Total debt securities 148,821 37.9 % 158,436 38.6 % Real estate mutual funds 3,148 0.8 % 2,976 0.7 % Cash and cash equivalents 919 0.2 % 2,123 0.5 % Total fair value of plan assets $ 393,102 $ 410,928 |
Fair Value Measurement Information U.K. Pension Plan Assets | The table below provides fair value measurement information for the U.K. Pension Plan assets as of December 31, 2015 (in thousands of dollars): Fair Value Measurements Using: Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Growth assets $ 240,214 $ 165,891 $ 74,323 $ — Debt securities: Corporate 36,772 12,023 24,749 — Index-linked 112,049 112,049 — — Total debt securities 148,821 124,072 24,749 — Real estate mutual funds 3,148 — 3,148 — Cash and cash equivalents 919 919 — — Total fair value of plan assets $ 393,102 $ 290,882 $ 102,220 $ — |
Estimated Future Benefit Payments | Estimated future benefit payments related to the U.K. Pension Plan, which reflect expected future service, as appropriate, are as follows (in thousands of dollars): Year Benefit Payments 2016 $ 11,006 2017 $ 9,557 2018 $ 10,610 2019 $ 10,748 2020 $ 12,759 2021 to 2025 $ 69,460 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Results | First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands, except per share data) Year Ended December 31, 2015 Net Auction Sales $ 755,817 $ 1,856,643 $ 370,928 $ 2,033,350 Income Statement Data: Revenues: Agency commissions and fees $ 127,882 $ 310,377 $ 69,222 $ 284,439 Inventory sales 12,983 7,005 53,226 35,485 Finance 12,687 11,970 12,933 12,899 License fees 1,974 2,468 2,539 2,839 Other 149 186 72 159 Total revenues $ 155,675 $ 332,006 $ 137,992 $ 335,821 Operating income (loss) $ 18,404 $ 116,458 $ (21,707 ) $ 88,566 Net income (loss) attributable to Sotheby's $ 5,202 $ 67,572 $ (17,894 ) $ (11,153 ) Per Share Amounts: Basic earnings (loss) per share - Sotheby's common shareholders $ 0.07 $ 0.97 $ (0.26 ) $ (0.17 ) Diluted earnings (loss) per share - Sotheby's common shareholders $ 0.07 $ 0.96 $ (0.26 ) $ (0.17 ) Shares Outstanding: Basic 69,090 69,332 67,946 66,118 Diluted 69,705 69,884 67,946 66,118 Year Ended December 31, 2014 Net Auction Sales $ 734,370 $ 1,971,338 $ 322,973 $ 2,122,738 Income Statement Data: Revenues: Agency commissions and fees $ 123,128 $ 316,187 $ 76,229 $ 309,582 Inventory sales 26,001 8,733 6,273 28,951 Finance 5,682 8,140 8,917 10,274 License fees 1,697 2,462 2,376 1,949 Other 303 295 406 468 Total revenues $ 156,811 $ 335,817 $ 94,201 $ 351,224 Operating income (loss) $ 4,091 $ 130,431 $ (37,469 ) $ 128,991 Net (loss) income attributable to Sotheby's $ (6,114 ) $ 77,632 $ (27,726 ) $ 74,003 Per Share Amounts: Basic (loss) earnings per share - Sotheby's common shareholders $ (0.09 ) $ 1.12 $ (0.40 ) $ 1.07 Diluted (loss) earnings per share - Sotheby's common shareholders $ (0.09 ) $ 1.11 $ (0.40 ) $ 1.06 Shares Outstanding: Basic 69,143 68,938 68,990 68,992 Diluted 69,143 69,491 68,990 69,707 __________________________________________________________________ 1 Net Auction Sales represents the hammer or sale price of property sold at auction. |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Number of operating segments (in segment) | segment | 2 | ||
Controlling ownership interest percentage by parent | 80.00% | ||
Noncontrolling ownership interest percentage | 20.00% | ||
Allowance for doubtful accounts receivable | $ 8.6 | $ 7.3 | |
Inventory Write-down | 20.1 | 10 | $ 8.8 |
Goodwill | 13.6 | 14 | |
Net book value of other intangible assets | 0.3 | ||
Accumulated amortization related to other intangible assets | $ 5.1 | $ 6.1 | |
Building | |||
Fixed assets useful life | 50 years | ||
Building Improvements | |||
Fixed assets useful life | 20 years | ||
Furniture and Fixtures | |||
Fixed assets useful life | 7 years | ||
Enterprise Systems | Minimum | |||
Fixed assets useful life | 7 years | ||
Enterprise Systems | Maximum | |||
Fixed assets useful life | 10 years | ||
Software | |||
Fixed assets useful life | 3 years |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Debt instrument stated interest percentage | 3.125% | ||
Potential common share excluded from computation of diluted earnings per share (shares) | 0.9 | 1.1 | 1 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 11, 2008 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ||||||||||||
Net income attributable to Sotheby's | $ (11,153) | $ (17,894) | $ 67,572 | $ 5,202 | $ (27,726) | $ 77,632 | $ (6,114) | $ 74,003 | $ 43,727 | $ 117,795 | $ 130,006 | |
Less: Net income attributable to participating securities | 354 | 1,047 | 60 | |||||||||
Net income attributable to Sotheby's common shareholders | $ 43,373 | $ 116,748 | $ 129,946 | |||||||||
Weighted average common shares outstanding (shares) | 66,118 | 67,946 | 69,332 | 69,090 | 68,990 | 68,938 | 69,143 | 68,992 | 68,121 | 69,016 | 68,374 | |
Basic earnings per share - Sotheby's common shareholders | $ (0.17) | $ (0.26) | $ 0.97 | $ 0.07 | $ (0.40) | $ 1.12 | $ (0.09) | $ 1.07 | $ 0.64 | $ 1.69 | $ 1.90 | |
Less: Net income attributable to participating securities | $ 354 | $ 1,047 | $ 60 | |||||||||
Net income attributable to Sotheby's common shareholders | $ 43,373 | $ 116,748 | $ 129,946 | |||||||||
Convertible debt (shares) | 0 | 0 | 97 | |||||||||
Performance share units (shares) | 438 | 407 | 428 | |||||||||
Deferred stock units (shares) | 167 | 162 | 150 | |||||||||
Stock options (shares) | 18 | 21 | 77 | |||||||||
Warrants (shares) | 5,900 | 0 | 49 | |||||||||
Weighted average dilutive potential common shares outstanding (shares) | 623 | 590 | 801 | |||||||||
Denominator for calculation of diluted earnings per share (shares) | 66,118 | 67,946 | 69,884 | 69,705 | 68,990 | 69,491 | 69,143 | 69,707 | 68,744 | 69,606 | 69,175 | |
Diluted earnings (loss) per share - Sotheby’s common shareholders (usd per share) | $ (0.17) | $ (0.26) | $ 0.96 | $ 0.07 | $ (0.40) | $ 1.11 | $ (0.09) | $ 1.06 | $ 0.63 | $ 1.68 | $ 1.88 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments (in segment) | segment | 2 | ||
NMP's remaining inventory carrying value | $ 215,020 | $ 217,132 | |
Segment income (loss) before taxes | 169,299 | 193,021 | $ 185,693 |
Increase (Decrease) in Inventories | $ 18,828 | 59,475 | 83,237 |
Revenue from external customers as a percentage of total revenue | 5.00% | ||
Intercompany charges | Finance | |||
Segment Reporting Information [Line Items] | |||
Segment income (loss) before taxes | $ 2,100 | $ 2,700 |
Segment Reporting (Schedule Of
Segment Reporting (Schedule Of Revenue And (Loss) Income Before Taxes by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Line Items] | |||||||||||
Revenues | $ 335,821 | $ 137,992 | $ 332,006 | $ 155,675 | $ 94,201 | $ 335,817 | $ 156,811 | $ 351,224 | $ 961,494 | $ 938,053 | $ 853,678 |
Interest income | 1,776 | 1,883 | 2,801 | ||||||||
Interest expense | 32,745 | 35,189 | 42,712 | ||||||||
Depreciation and amortization | 19,481 | 20,575 | 19,435 | ||||||||
Segment income (loss) before taxes | 169,299 | 193,021 | 185,693 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | (14,759) | (14,277) | (11,515) | ||||||||
Intersegment Eliminations [Member] | Agency | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 7,800 | 5,300 | 1,600 | ||||||||
Intersegment Eliminations [Member] | Finance | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Segment income (loss) before taxes | 2,100 | 2,700 | |||||||||
Operating Segments | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 976,253 | 952,330 | 865,193 | ||||||||
Operating Segments | Agency | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 892,030 | 885,293 | 799,886 | ||||||||
Interest income | 1,773 | 1,857 | 3,860 | ||||||||
Interest expense | 32,745 | 35,189 | 42,636 | ||||||||
Depreciation and amortization | 19,233 | 20,110 | 19,072 | ||||||||
Segment income (loss) before taxes | 139,942 | 182,763 | 164,348 | ||||||||
Operating Segments | Finance | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 65,248 | 47,290 | 32,792 | ||||||||
Interest income | 3 | 18 | |||||||||
Interest expense | 67 | ||||||||||
Depreciation and amortization | 124 | 130 | 125 | ||||||||
Segment income (loss) before taxes | 41,303 | 31,763 | 23,009 | ||||||||
Operating Segments | All Other | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | 18,975 | 19,747 | 32,515 | ||||||||
Interest income | 8 | 31 | |||||||||
Interest expense | 0 | 9 | |||||||||
Depreciation and amortization | 124 | 335 | 238 | ||||||||
Segment income (loss) before taxes | 10,864 | 7,424 | (265) | ||||||||
Reconciling Items | |||||||||||
Segment Reporting [Line Items] | |||||||||||
Revenues | (14,759) | (14,277) | (11,515) | ||||||||
Interest income | 0 | 0 | (1,090) | ||||||||
Segment income (loss) before taxes | $ (22,810) | $ (28,929) | $ (1,399) |
Segment Reporting (Schedule o55
Segment Reporting (Schedule of Auction Segment Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Agency commissions and fees | $ 284,439 | $ 69,222 | $ 310,377 | $ 127,882 | $ 76,229 | $ 316,187 | $ 123,128 | $ 309,582 | $ 791,920 | $ 825,126 | $ 793,639 |
Inventory sales | 35,485 | 53,226 | 7,005 | 12,983 | 6,273 | 8,733 | 26,001 | 28,951 | 108,699 | 69,958 | 30,638 |
Revenues | $ 335,821 | $ 137,992 | $ 332,006 | $ 155,675 | $ 94,201 | $ 335,817 | $ 156,811 | $ 351,224 | 961,494 | 938,053 | 853,678 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 976,253 | 952,330 | 865,193 | ||||||||
Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (14,759) | (14,277) | (11,515) | ||||||||
Agency | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Auction commissions | 719,152 | 758,213 | 687,853 | ||||||||
Private sale commissions | 61,256 | 60,183 | 88,171 | ||||||||
Auction guarantees (net) | (11,567) | (15,462) | (2,186) | ||||||||
Other Agency revenues | 23,079 | 22,192 | 19,801 | ||||||||
Agency commissions and fees | 791,920 | 825,126 | 793,639 | ||||||||
Inventory sales | 100,110 | 60,167 | 6,247 | ||||||||
Revenues | $ 892,030 | $ 885,293 | $ 799,886 |
Segment Reporting Segment Repor
Segment Reporting Segment Reporting (Reconciliation of Segment Revenues to Consolidated Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 335,821 | $ 137,992 | $ 332,006 | $ 155,675 | $ 94,201 | $ 335,817 | $ 156,811 | $ 351,224 | $ 961,494 | $ 938,053 | $ 853,678 |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 976,253 | 952,330 | 865,193 | ||||||||
Operating Segments | Agency | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 892,030 | 885,293 | 799,886 | ||||||||
Operating Segments | Finance | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 65,248 | 47,290 | 32,792 | ||||||||
Operating Segments | All Other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 18,975 | 19,747 | 32,515 | ||||||||
Intercompany charges | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | (14,759) | (14,277) | (11,515) | ||||||||
Intercompany charges | Agency | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 7,800 | $ 5,300 | $ 1,600 |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation Of Segment (Loss) Income Before Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Line Items] | ||||
Special charges (net) (see Note 22) | $ 0 | $ (20,008) | $ (1,372) | |
CEO separation and transition costs (see Note 20) | $ (4,200) | (4,232) | (7,591) | 0 |
Equity in earnings of investees | (5,327) | (732) | (15) | |
Income before taxes | 169,299 | 193,021 | 185,693 | |
Corporate, Non-Segment [Member] | ||||
Segment Reporting [Line Items] | ||||
Severance Costs | (13,251) | |||
Operating Segments | ||||
Segment Reporting [Line Items] | ||||
Segment (loss) income before taxes | 192,109 | 221,950 | 187,092 | |
Operating Segments | Agency | ||||
Segment Reporting [Line Items] | ||||
Segment (loss) income before taxes | 139,942 | 182,763 | 164,348 | |
Income before taxes | 139,942 | 182,763 | 164,348 | |
Operating Segments | Finance | ||||
Segment Reporting [Line Items] | ||||
Segment (loss) income before taxes | 41,303 | 31,763 | 23,009 | |
Income before taxes | 41,303 | 31,763 | 23,009 | |
Operating Segments | All Other | ||||
Segment Reporting [Line Items] | ||||
Segment (loss) income before taxes | 10,864 | 7,424 | (265) | |
Income before taxes | 10,864 | 7,424 | (265) | |
Reconciling Items | ||||
Segment Reporting [Line Items] | ||||
Special charges (net) (see Note 22) | 0 | 20,008 | 1,372 | |
CEO separation and transition costs (see Note 20) | (4,232) | (7,591) | 0 | |
Leadership transition severance costs | (13,251) | 0 | 0 | |
Equity in earnings of investees | (5,327) | 1,330 | (27) | |
Income before taxes | (22,810) | (28,929) | (1,399) | |
RM Auctions | ||||
Segment Reporting [Line Items] | ||||
Equity in earnings of investees | (2,500) | |||
AMA | ||||
Segment Reporting [Line Items] | ||||
Equity in earnings of investees | $ (2,800) | (700) | $ 100 | |
Acquavella Modern Art [Member] | ||||
Segment Reporting [Line Items] | ||||
Equity in earnings of investees | $ 1,300 |
Segment Reporting (Schedule o58
Segment Reporting (Schedule of Revenues by Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | $ 335,821 | $ 137,992 | $ 332,006 | $ 155,675 | $ 94,201 | $ 335,817 | $ 156,811 | $ 351,224 | $ 961,494 | $ 938,053 | $ 853,678 |
Reconciling Items Member | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | (14,759) | (14,277) | (11,515) | ||||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | 463,129 | 402,385 | 353,474 | ||||||||
United Kingdom (the U.K.) | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | 257,336 | 271,505 | 230,304 | ||||||||
Hong Kong and China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | 146,262 | 165,066 | 153,909 | ||||||||
Switzerland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | 50,134 | 46,226 | 41,150 | ||||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | 41,803 | 48,032 | 46,891 | ||||||||
Other countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Agency commissions and fees | $ 17,589 | $ 19,116 | $ 39,465 |
Segment Reporting (Reconcilia59
Segment Reporting (Reconciliation Of Segment Assets To Consolidated Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting [Line Items] | |||
Assets | $ 3,274,129 | $ 3,134,820 | $ 2,893,546 |
Deferred tax assets and income tax receivable | 16,913 | 55,280 | 67,905 |
Operating Segments | |||
Segment Reporting [Line Items] | |||
Assets | 3,257,216 | 3,079,540 | 2,825,641 |
Operating Segments | Agency | |||
Segment Reporting [Line Items] | |||
Assets | 2,510,257 | 2,391,763 | 2,314,356 |
Operating Segments | Finance | |||
Segment Reporting [Line Items] | |||
Assets | 721,781 | 658,710 | 480,103 |
Operating Segments | All Other | |||
Segment Reporting [Line Items] | |||
Assets | $ 25,178 | $ 29,067 | $ 31,182 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013USD ($) | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Maximum buyer payment term | 30 days | |||
Consignor payment term | 35 days | |||
Buyer receivables classified within other long term assets | $ 24,300,000 | $ 22,700,000 | ||
Net accounts receivable | $ 875,265,000 | 913,743,000 | ||
Number of types of secured loans (in loan) | loan | 2 | |||
Number of years for consignor advance sale | 1 year | |||
Term loan, maturity | 2 years | |||
Balance of secured loan to refinance auction or private sale receivable | $ 108,800,000 | 90,400,000 | ||
Secured loan issued to refinance auction or private sale receivable | 50,200,000 | 65,600,000 | ||
Collections of loans originally issued to refinance auction or private sale | $ 31,800,000 | 38,100,000 | ||
Loan-to-value ratio | 50.00% | |||
Loans past due | $ 11,819,000 | 22,409,000 | ||
Loans more than 90 days past due accruing interest | 7,828,000 | 0 | ||
Non-accrual loans | 0 | 0 | ||
Impaired loan | 0 | 0 | ||
Unfunded lending commitment to extend additional credit | 7,600,000 | |||
Equity method investment gain on disposal | $ 300,000 | |||
Equity interest sold | 4,300,000 | |||
Proceeds from the sale of equity method investment | 275,000 | 300,000 | $ 1,225,000 | |
Unsecured Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Equity interest sold | 3,500,000 | |||
Proceeds from the sale of equity method investment | 4,300,000 | |||
Up-front Payment Arrangement | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from the sale of equity method investment | $ 800,000 | |||
All Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unsecured loan | $ 2,425,000 | $ 2,700,000 | ||
Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan to Value (LTV) Ratio | 60.00% | |||
Loan-to-value ratio | 49.00% | 48.00% | ||
Low auction estimate of collateral | $ 1,380,022,000 | $ 1,349,094,000 | ||
Non-accrual loans | 0 | 0 | ||
Impaired loan | 0 | 0 | ||
Agency | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Low auction estimate of collateral | 7,200,000 | 3,900,000 | ||
Auction guarantee advances outstanding | 0 | 25,000,000 | ||
Unsecured loan | 4,163,000 | 4,900,000 | ||
Agency | Non Accrual Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unsecured loan | 2,100,000 | |||
Accounts Rec, Consignor Paid | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net accounts receivable | 165,200,000 | 116,000,000 | ||
Transfer Of Possession Without Payment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net accounts receivable | $ 93,100,000 | $ 96,500,000 | ||
Notes receivable past due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan-to-value ratio | 41.00% | |||
Low auction estimate of collateral | $ 28,500,000 | |||
Loans greater than 90 days past due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan-to-value ratio | 46.00% | |||
Low auction estimate of collateral | $ 16,900,000 | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan to Value (LTV) Ratio | 51.00% | |||
Loan-to-value ratio | 50.00% | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan to Value (LTV) Ratio | 60.00% |
Receivables Schedule of Notes R
Receivables Schedule of Notes Receivable by Segment (Details) - Finance - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consignor advances | $ 30,180 | $ 25,994 |
Term loans | 652,078 | 618,447 |
Total Finance segment Notes Receivable (net) | $ 682,258 | $ 644,441 |
Receivables Schedule of Financi
Receivables Schedule of Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Aggregate LTV ratio of Finance segment secured loans | 50.00% | |
Loan To Value Ratio Above Fifty Percent | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance segment secured loans | $ 354,049 | $ 329,135 |
Low auction estimate of collateral | $ 626,829 | $ 556,662 |
Aggregate LTV ratio of Finance segment secured loans | 56.00% | 59.00% |
Finance | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Finance segment secured loans | $ 682,258 | $ 644,441 |
Low auction estimate of collateral | $ 1,380,022 | $ 1,349,094 |
Aggregate LTV ratio of Finance segment secured loans | 49.00% | 48.00% |
Receivables (Summary Of Other C
Receivables (Summary Of Other Credit Quality Information Regarding Finance Segment Secured Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts and Notes Receivable, Net [Abstract] | |||
Total secured loans | $ 682,258 | $ 644,441 | |
Loans past due | 11,819 | 22,409 | |
Loans more than 90 days past due | 7,828 | 0 | |
Non-accrual loans | 0 | 0 | |
Impaired loan | 0 | 0 | |
Allowance for credit losses - impaired loans | 0 | 0 | |
Allowance for credit losses based on historical data | 1,458 | 1,166 | |
Total Allowance for Credit Losses - secured loans | $ 1,458 | $ 1,166 | $ 1,746 |
Receivables (Activity Related T
Receivables (Activity Related To Allowance For Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning balance | $ 1,166 | $ 1,746 |
Change in loan loss provision | 292 | (580) |
Allowance for credit losses, ending balance | $ 1,458 | $ 1,166 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | Feb. 18, 2015 | May. 23, 1990 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 30,725 | $ 0 | $ 0 | |||
Carrying value of the Matisse Inventory | 41,400 | 44,800 | ||||
Carrying value of the Sotheby's investment | 41,744 | 10,210 | ||||
Equity earnings | 5,327 | 732 | 15 | |||
Proceeds from the sale of equity method investment | $ 275 | 300 | 1,225 | |||
Equity method investment gain on disposal | $ 300 | |||||
Equity interest sold | 4,300 | |||||
Unsecured Loan | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from the sale of equity method investment | 4,300 | |||||
Equity interest sold | 3,500 | |||||
Up-front Payment Arrangement | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from the sale of equity method investment | $ 800 | |||||
AMA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 153,000 | |||||
Inventory exchange rate of interest in partnership | 50.00% | |||||
Period of AMA partnership agreement | 10 years | |||||
Carrying value of the Sotheby's investment | $ 8,500 | 10,200 | ||||
Equity earnings | 2,800 | $ 700 | $ (100) | |||
RM Auctions | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire equity method investments | $ 30,700 | |||||
Inventory exchange rate of interest in partnership | 25.00% | |||||
Carrying value of the Sotheby's investment | 33,200 | |||||
Equity earnings | $ 2,500 |
Fixed Assets Fixed Assets (Deta
Fixed Assets Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 93,078 | $ 93,353 | |
Buildings and building improvements | 226,530 | 226,465 | |
Leasehold improvements | 82,011 | 83,643 | |
Computer hardware and software | 73,728 | 71,422 | |
Furniture, fixtures and equipment | 78,529 | 78,182 | |
Construction in progress | 2,090 | 1,401 | |
Other | 2,015 | 1,176 | |
Sub-total | 557,981 | 555,642 | |
Less: Accumulated depreciation and amortization | (203,487) | (191,260) | |
Total Fixed Assets, net | 354,494 | 364,382 | |
Depreciation and amortization | 19,481 | 20,575 | $ 19,435 |
Fixed Assets | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 19,500 | $ 20,600 | $ 19,400 |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility) (Details) - USD ($) | 12 Months Ended | 76 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Mar. 01, 2016 | Sep. 30, 2015 | Sep. 16, 2015 | Mar. 31, 2015 | |
Debt [Line Items] | |||||||
Maximum borrowing capacity | $ 1,335,000,000 | $ 850,000,000 | $ 1,335,000,000 | ||||
Borrowing base | $ 773,228,000 | 757,085,000 | 773,228,000 | ||||
Incremental Facility extension period | 365 days | ||||||
Maximum net outstanding auction guarantees permitted | $ 800,000,000 | 800,000,000 | $ 800,000,000 | ||||
Covenants for issuing dividends, minimum aggregate borrowing availability | 100,000,000 | 100,000,000 | |||||
Covenants for issuing dividends, minimum total liquidity amount | 200,000,000 | 200,000,000 | |||||
Amortization of fees | 4,472,000 | 3,229,000 | |||||
Forecast | |||||||
Debt [Line Items] | |||||||
Maximum net outstanding auction guarantees permitted | $ 600,000,000 | ||||||
New Credit Agreement | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | 1,335,000,000 | 1,335,000,000 | $ 850,000,000 | ||||
Increase in borrowing capacity, credit facility | 485,000,000 | ||||||
Line of credit, sub limit | 400,000,000 | 400,000,000 | |||||
Maximum increase in borrowing capacity | 150,000,000 | 150,000,000 | |||||
Aggregate fees paid | 21,400,000 | ||||||
Incremental Credit Facility | |||||||
Debt [Line Items] | |||||||
Borrowing base | 50,000,000 | 50,000,000 | |||||
Agency Segment Credit Agreement | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | ||||
Borrowing base | 225,642,000 | 237,830,000 | 225,642,000 | ||||
Line of credit, sub limit | $ 50,000,000 | ||||||
Amortization of fees | 2,752,000 | 2,240,000 | |||||
Finance Segment Credit Agreement | |||||||
Debt [Line Items] | |||||||
Maximum borrowing capacity | 1,035,000,000 | 550,000,000 | 1,035,000,000 | ||||
Borrowing base | 547,586,000 | 519,255,000 | 547,586,000 | ||||
Line of credit, sub limit | 350,000,000 | $ 350,000,000 | |||||
Amortization of fees | $ 1,720,000 | $ 989,000 | |||||
Weighted average cost of borrowings (as a percent) | 2.90% | 2.90% |
Debt (Schedule of Line of Credi
Debt (Schedule of Line of Credit Facilities) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,335,000,000 | $ 850,000,000 |
Borrowing base | 773,228,000 | 757,085,000 |
Credit facility borrowings | 541,500,000 | 445,000,000 |
Available borrowing capacity | 231,728,000 | 312,085,000 |
Average borrowings outstanding | 541,004,000 | 306,448,000 |
Borrowing Costs - interest | 14,060,000 | 7,751,000 |
Borrowing Costs - fee amortization | 4,472,000 | 3,229,000 |
Agency Segment Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 300,000,000 | 300,000,000 |
Borrowing base | 225,642,000 | 237,830,000 |
Credit facility borrowings | 0 | 0 |
Available borrowing capacity | 225,642,000 | 237,830,000 |
Average borrowings outstanding | 0 | 0 |
Borrowing Costs - interest | 0 | 0 |
Borrowing Costs - fee amortization | 2,752,000 | 2,240,000 |
Finance Segment Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,035,000,000 | 550,000,000 |
Borrowing base | 547,586,000 | 519,255,000 |
Credit facility borrowings | 541,500,000 | 445,000,000 |
Available borrowing capacity | 6,086,000 | 74,255,000 |
Average borrowings outstanding | 541,004,000 | 306,448,000 |
Borrowing Costs - interest | 14,060,000 | 7,751,000 |
Borrowing Costs - fee amortization | $ 1,720,000 | $ 989,000 |
Debt (Summary Of Long-Term Debt
Debt (Summary Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt [Line Items] | ||
Total Long-Term Debt, net | $ 614,767 | $ 300,000 |
York Property Mortgage | ||
Debt [Line Items] | ||
Convertible notes, net of discount | 322,069 | 218,728 |
Less current portion | (7,302) | (218,728) |
Unamortized discount | 0 | 1,782 |
Senior Notes | ||
Debt [Line Items] | ||
Convertible notes, net of discount | $ 300,000 | $ 300,000 |
Debt (York Property Mortgage) (
Debt (York Property Mortgage) (Details) | Jul. 01, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Feb. 06, 2009USD ($) | Jan. 11, 2008USD ($) |
Debt [Line Items] | ||||||
Interest paid | $ 53,500,000 | $ 42,400,000 | $ 33,200,000 | |||
Debt instrument stated interest percentage | 3.125% | |||||
York Property Mortgage | ||||||
Debt [Line Items] | ||||||
Final amount to be repaid on maturity date | $ 268,200,000 | |||||
Minimum | York Property Mortgage | ||||||
Debt [Line Items] | ||||||
Debt instrument stated interest percentage | 5.60% | |||||
Maximum | York Property Mortgage | ||||||
Debt [Line Items] | ||||||
Debt instrument stated interest percentage | 10.60% | |||||
Mortgages | New Mortgage Loan | ||||||
Debt [Line Items] | ||||||
Debt term | 7 years | |||||
Principal amount | $ 325,000,000 | |||||
Net cash proceeds from debt | $ 98,000,000 | |||||
Amortization period | 25 years | |||||
Derivative contract term | 7 years | |||||
Maximum Loan-To-Value ratio under agreement (as a percent) | 0.65 | |||||
Cash Segregated under Other Regulations | $ 6,000,000 | |||||
Minimum debt yield under agreement (as a percent) | 8.50% | |||||
Minimum net worth under agreement | $ 425,000,000 | |||||
Mortgages | New Mortgage Loan | Swap | ||||||
Debt [Line Items] | ||||||
Derivative contract term | 2 years | |||||
Annual interest rate (as a percent) | 0.877% | 0.877% | ||||
Effective interest rate (as a percent) | 3.127% | |||||
Mortgages | New Mortgage Loan | Collar | ||||||
Debt [Line Items] | ||||||
Derivative contract term | 5 years | |||||
Mortgages | New Mortgage Loan | LIBOR | ||||||
Debt [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.25% | |||||
Mortgages | Minimum | New Mortgage Loan | Collar | ||||||
Debt [Line Items] | ||||||
Annual interest rate (as a percent) | 1.917% | |||||
Effective interest rate (as a percent) | 4.167% | |||||
Mortgages | Maximum | New Mortgage Loan | Collar | ||||||
Debt [Line Items] | ||||||
Annual interest rate (as a percent) | 3.75% | |||||
Effective interest rate (as a percent) | 6.00% | |||||
Purchase Consummated On February 6, 2009 | ||||||
Debt [Line Items] | ||||||
Property acquisition price | $ 370,000,000 | |||||
Components of purchase price of land and buildings | 85,000,000 | |||||
Signing Of Related Purchase And Sale Agreement On January 11, 2008 | ||||||
Debt [Line Items] | ||||||
Components of purchase price of land and buildings | $ 50,000,000 | |||||
Assumption Of Existing Mortgage | ||||||
Debt [Line Items] | ||||||
Components of purchase price of land and buildings | $ 235,000,000 |
Debt (2022 Senior Notes) (Detai
Debt (2022 Senior Notes) (Details) - USD ($) | Sep. 28, 2012 | Jun. 17, 2008 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 23, 2012 | Sep. 27, 2012 |
Debt [Line Items] | ||||||
Debt instrument stated interest percentage | 3.125% | |||||
Senior Notes | ||||||
Debt [Line Items] | ||||||
Unsecured debt retired | $ 80,000,000 | |||||
2022 Senior Notes | ||||||
Debt [Line Items] | ||||||
Principal amount | $ 300,000,000 | |||||
Debt instrument stated interest percentage | 5.25% | |||||
Debt instrument maturity date | Oct. 1, 2022 | |||||
Net proceeds from issuance of long term debt | $ 300,000,000 | |||||
Percentage of senior notes principal as part of redemption price | 100.00% | |||||
Percentage of principal amount debt as component of premium price | 1.00% | |||||
Fair value | $ 276,000,000 | |||||
Convertible Notes | ||||||
Debt [Line Items] | ||||||
Principal amount | $ 200,000,000 | |||||
Debt instrument maturity date | Jun. 15, 2013 | |||||
Stated interest rate of convertible debt | 3.125% |
Debt (Convertible Notes) (Detai
Debt (Convertible Notes) (Details) - USD ($) | Jun. 17, 2008 | Jun. 11, 2008 | Jun. 30, 2013 | Aug. 31, 2011 | Jun. 30, 2011 | Jun. 14, 2013 | Mar. 31, 2013 | Sep. 30, 2011 | Jun. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt [Line Items] | ||||||||||||
Conversion per principal value of convertible notes | $ 1,000 | |||||||||||
Conversion requests on debt | $ 0 | $ 0 | $ 197,371,000 | |||||||||
Conversion of principal | $ 181,900,000 | |||||||||||
Liability for conversion of debt | $ 21,800,000 | $ 8,200,000 | ||||||||||
Liability for conversion of debt, net of tax | $ 12,000,000 | $ 5,400,000 | ||||||||||
Proceeds from the settlement of Convertible Note Hedges | $ (40,600,000) | $ (15,500,000) | $ 4,400,000 | $ 0 | $ 0 | $ 15,503,000 | ||||||
Convertible Notes | ||||||||||||
Debt [Line Items] | ||||||||||||
Principal amount | $ 200,000,000 | |||||||||||
Stated interest rate of convertible debt | 3.125% | |||||||||||
Debt instrument maturity date | Jun. 15, 2013 | |||||||||||
Net proceeds from convertible notes | $ 194,300,000 | |||||||||||
Convertible notes conversion ratio | 29.5920 | |||||||||||
Convertible notes conversion price (usd per share) | $ 33.79 | |||||||||||
Convertible notes payable | $ 161,800,000 | |||||||||||
Estimated debt rate | 7.75% | |||||||||||
Reclassification to equity | $ 38,200,000 | |||||||||||
Equity component of convertible debt, net of tax | $ 21,000,000 | |||||||||||
Conversion requests on debt | $ 22,500,000 | 197,400,000 | ||||||||||
Conversion of principal | 18,100,000 | |||||||||||
Conversion premium on debt | $ 4,400,000 | $ 15,500,000 | ||||||||||
Write off of deferred debt issuance cost | $ 1,500,000 |
Debt (Convertible Note Hedges a
Debt (Convertible Note Hedges and Warrant Transactions) (Details) $ / shares in Units, $ in Thousands | Jun. 11, 2008USD ($)warrant$ / sharesshares | Jun. 30, 2013USD ($) | Aug. 31, 2011USD ($) | Jun. 30, 2011USD ($) | Dec. 31, 2013shares | Jun. 14, 2013USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)shares | Jul. 01, 2015 | Mar. 31, 2013USD ($) |
Debt [Line Items] | |||||||||||
Payments for (proceeds from) Convertible Notes Hedging Instrument | $ 40,600 | $ 15,500 | $ (4,400) | $ 0 | $ 0 | $ (15,503) | |||||
Carrying value of convertible note hedge recorded in equity, net of taxes | $ 12,000 | ||||||||||
Conversion requests of principal | $ 181,900 | ||||||||||
Convertible note hedge reclassification | $ 8,200 | ||||||||||
Convertible note hedge reclassification net of taxes | 5,300 | ||||||||||
Reclassification of Convertible Note Hedges to Other Current Assets | $ 21,800 | ||||||||||
Incremental common shares attributable to call options and warrants (shares) | shares | 5,900,000 | 0 | 49,000 | ||||||||
Warrant exercise price (usd per share) | $ / shares | $ 44.50 | ||||||||||
Net proceeds from sale of warrant | $ 22,300 | ||||||||||
Maximum warrant daily exercise limit (in shares) | warrant | 118,348 | ||||||||||
Trading window for warrant exercises | 50 days | ||||||||||
Shares issued during period to settle warrants (in shares) | shares | 722,288 | ||||||||||
Convertible Note Hedge And Warrant Transactions | |||||||||||
Debt [Line Items] | |||||||||||
Carrying value of convertible note hedge recorded in equity, net of taxes | $ 22,500 | ||||||||||
Convertible Notes | |||||||||||
Debt [Line Items] | |||||||||||
Conversion requests of principal | $ 18,100 | ||||||||||
Swap | New Mortgage Loan | Mortgages | |||||||||||
Debt [Line Items] | |||||||||||
Effective interest rate (as a percent) | 3.127% |
Debt (Aggregate Future Principa
Debt (Aggregate Future Principal And Interest Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Instruments [Abstract] | |
2,016 | $ 33,186 |
2,017 | 34,925 |
2,018 | 36,587 |
2,019 | 36,598 |
2,020 | $ 578,108 |
Debt (Components Of Interest Ex
Debt (Components Of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt [Line Items] | |||
Amortization of fees | $ 4,472 | $ 3,229 | |
Amortization of amendment and arrangement fees | 1,167 | 1,096 | $ 1,279 |
Commitment fees | 1,585 | 1,144 | 1,532 |
Sub-total | 2,752 | 2,240 | 2,811 |
Interest expense | 32,745 | 35,189 | 42,712 |
Other interest expense | 62 | 220 | 101 |
York Property Mortgage | |||
Debt [Line Items] | |||
Interest expense | 13,537 | 16,335 | 16,512 |
Senior Notes | |||
Debt [Line Items] | |||
Interest expense | 16,394 | 16,394 | 16,394 |
Convertible Notes | |||
Debt [Line Items] | |||
Interest expense | $ 0 | $ 0 | 6,894 |
Convertible Notes | |||
Debt [Line Items] | |||
Amortization of fees | $ 477 |
Debt (Interest Expenses) (Detai
Debt (Interest Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Conversion [Line Items] | |||
Discount amortization | $ 1,782 | $ 3,564 | $ 7,361 |
Amortization of fees | 4,472 | 3,229 | |
Interest paid | 53,500 | 42,400 | 33,200 |
New Mortgage Loan | |||
Debt Conversion [Line Items] | |||
Interest paid | 7,100 | ||
Agency Segment Credit Agreement | |||
Debt Conversion [Line Items] | |||
Amortization of fees | 2,752 | 2,240 | |
Interest paid | 36,000 | 31,200 | |
Finance Segment Credit Agreement | |||
Debt Conversion [Line Items] | |||
Amortization of fees | 1,720 | 989 | |
Interest paid | $ 17,500 | $ 11,200 | |
Convertible Notes | |||
Debt Conversion [Line Items] | |||
Contractual coupon interest expense | 2,621 | ||
Discount amortization | 3,796 | ||
Amortization of fees | 477 | ||
Contractual coupon interest expense | $ 6,894 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Mar. 17, 2014 | Jan. 31, 2014 | Dec. 31, 2015 | Jun. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets, foreign and state loss and tax credit carryforwards | $ 2,900 | $ 2,900 | |||||
Valuation allowance | 2,437 | $ 2,437 | $ 2,224 | ||||
Decrease in valuation allowance | $ 10,000 | ||||||
Effective income tax rate | 77.50% | 39.20% | 30.00% | ||||
Net income tax benefit deduction foreign subsidiary | $ 6,800 | ||||||
Income tax expense from enacted legislation | $ 4,000 | $ 3,900 | |||||
Income tax expense (benefit) | (131,145) | (75,761) | $ (55,702) | ||||
Undistributed foreign earnings intended for indefinite reinvestment outside the U.S. | 400,000 | 400,000 | |||||
Net income tax payments | 53,900 | 60,300 | 36,200 | ||||
Repatriation Impact on Income Statement | |||||||
Income tax expense (benefit) | $ (65,700) | $ (8,700) | |||||
U.S Taxes Accrued on Foreign Earnings Income Statement | |||||||
Income tax expense (benefit) | $ (14,200) | $ (18,600) | |||||
Special Dividend [Member] | |||||||
Dividends, Common Stock | $ 300,000 | ||||||
All Countries [Domain] | |||||||
Foreign Earnings Repatriated | $ 250,000 |
Income Taxes (Summary Of Signif
Income Taxes (Summary Of Significant Components Of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income before taxes: | |||
Domestic | $ 11,414 | $ 21,976 | $ 45,093 |
Foreign | 157,885 | 171,045 | 140,600 |
Income before taxes | 169,299 | 193,021 | 185,693 |
Income tax expense—current: | |||
Domestic | 10,455 | 22,220 | 8,131 |
State and local | 5,958 | 6,946 | 8,301 |
Foreign | 33,043 | 37,762 | 29,602 |
Sub-total | 49,456 | 66,928 | 46,034 |
Income tax expense (benefit)—deferred: | |||
Domestic | 69,835 | 5,406 | 2,543 |
State and local | 6,378 | 6,314 | (241) |
Foreign | 5,476 | (2,887) | 7,366 |
Sub-total | 81,689 | 8,833 | 9,668 |
Income tax expense, Total | $ 131,145 | $ 75,761 | $ 55,702 |
Income Taxes (Summary Of Compon
Income Taxes (Summary Of Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets: | ||
Asset provisions and liabilities | $ 13,720 | $ 10,452 |
Inventory writedowns | 10,621 | 8,756 |
Tax loss and credit carryforwards | 2,887 | 2,748 |
Difference between book and tax basis of depreciable and amortizable assets | 17,857 | 18,737 |
Share-based payments and deferred compensation | 34,165 | 36,494 |
Sub-total | 79,250 | 77,187 |
Valuation allowance | (2,437) | (2,224) |
Total deferred tax assets | 76,813 | 74,963 |
Deferred Tax Liabilities: | ||
Difference between book and tax basis of other assets and liabilities | 2,361 | 3,323 |
Pension obligations | 11,231 | 3,921 |
Basis differences in equity method investments | 3,805 | 3,884 |
Undistributed earnings of foreign subsidiaries | 91,924 | 16,432 |
Total deferred tax liabilities | 109,321 | 27,560 |
Total net deferred tax liabilities | $ (32,508) | |
Total net deferred tax assets | $ 47,403 |
Income Taxes (Summary Of Effect
Income Taxes (Summary Of Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 2.30% | 2.50% | 2.80% |
Foreign taxes at rates different from U.S. rates | (14.90%) | (13.50%) | (11.10%) |
Tax effect of undistributed earnings of foreign subsidiaries | 48.20% | 9.60% | 11.00% |
Deemed income from foreign subsidiaries, net | 2.30% | 3.00% | 2.20% |
Valuation allowance | 0.30% | (0.20%) | (4.50%) |
Effect of enacted tax legislation | 2.50% | 2.00% | 0.10% |
Worthless stock deduction | (0.00%) | (0.00%) | (3.70%) |
Other | 1.80% | 0.80% | (1.80%) |
Effective income tax rate | 77.50% | 39.20% | 30.00% |
Uncertain Tax Positions (Narrat
Uncertain Tax Positions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Uncertainties [Abstract] | ||||
Unrecognized tax benefits | $ 22,042 | $ 22,798 | $ 25,423 | $ 35,400 |
Unrecognized tax benefits that would impact effective tax rate | 12,800 | 12,300 | ||
Unrecognized tax benefits, income tax and interest penalties (benefits) | 0 | 200 | 200 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 1,800 | $ 1,800 | $ 1,600 | |
Decrease in unrecognized tax benefits within 12 months | $ 5,100 |
Uncertain Tax Positions (Reconc
Uncertain Tax Positions (Reconciliation Of Beginning And Ending Balances Of Liability For Unrecognized Tax Benefits, Excluding Interest And Penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 22,798 | $ 25,423 | $ 35,400 |
Increases in unrecognized tax benefits related to the current year | 2,917 | 2,229 | 8,999 |
Increases in unrecognized tax benefits related to prior years | 2,276 | 167 | 9 |
Decreases in unrecognized tax benefits related to prior years | (1,973) | (134) | (16,651) |
Decreases in unrecognized tax benefits related to settlements | (437) | (590) | (555) |
Decreases in unrecognized tax benefits due to the lapse of the applicable statute of limitations | (3,539) | (4,297) | (1,779) |
Balance at December 31 | $ 22,042 | $ 22,798 | $ 25,423 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases, Operating [Abstract] | |||
Rental expense under operating leases | $ 17.5 | $ 18.2 | $ 17.8 |
Future minimum sublease rental receipts | $ 1.9 |
Lease Commitments (Schedule Of
Lease Commitments (Schedule Of Future Minimum Rental Payments For Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 17,288 |
2,017 | 13,730 |
2,018 | 6,718 |
2,019 | 5,983 |
2,020 | 5,539 |
Thereafter | 34,705 |
Total future minimum lease payments | $ 83,963 |
Shareholders' Equity and Divi85
Shareholders' Equity and Dividends (Details) - USD ($) | Jan. 21, 2016 | Aug. 13, 2015 | Aug. 06, 2015 | Mar. 17, 2014 | Feb. 25, 2016 | Nov. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 | ||||||||||
Accelerated dividend declared | $ 13,600,000 | ||||||||||||||
Accelerated dividend declared (usd per share) | $ 0.20 | ||||||||||||||
Dividends declared (usd per share) | $ 0.4 | $ 4.74 | $ 0.2 | ||||||||||||
Share-based compensation based on special dividends | $ 11,000,000 | ||||||||||||||
Cash dividend equivalents paid on share-based payments | $ 2,000,000 | $ 3,781,000 | $ 279,000 | $ 3,781,000 | 5,800,000 | ||||||||||
Stock repurchase program, period in force | 5 years | ||||||||||||||
Stock repurchase program, authorized amount | $ 250,000,000 | $ 150,000,000 | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||||||
Stock repurchased during period, shares | 558,171 | ||||||||||||||
Stock repurchased during period, value | $ 25,000,000 | ||||||||||||||
Share price of stock repurchased (usd per share) | $ 44.79 | ||||||||||||||
Increase in share repurchase authorization | $ 125,000,000 | ||||||||||||||
Treasury stock acquired (in shares) | 2,667,378 | 3,705,658 | 1,038,280 | ||||||||||||
Initial purchase price | $ 125,000,000 | ||||||||||||||
Value of stock acquired | $ 100,000,000 | ||||||||||||||
Cost per share of stock acquired (usd per share) | $ 37.49 | $ 33.73 | |||||||||||||
Subsequent Event | |||||||||||||||
Stock repurchase program, authorized amount | $ 325,000,000 | ||||||||||||||
Increase in share repurchase authorization | $ 200,000,000 | ||||||||||||||
Treasury stock acquired (in shares) | 3,998,381 | ||||||||||||||
Value of stock acquired | $ 90,900,000 | ||||||||||||||
Cost per share of stock acquired (usd per share) | $ 22.74 | ||||||||||||||
All Countries [Domain] | |||||||||||||||
Foreign earnings repatriated | $ 250,000,000 | ||||||||||||||
Dividend Declared | |||||||||||||||
Dividends declared (usd per share) | $ 0.10 | ||||||||||||||
Special Dividend [Member] | |||||||||||||||
Dividends declared (usd per share) | $ 4.34 | ||||||||||||||
Dividends, common stock | $ 300,000,000 | ||||||||||||||
Funding of dividend by domestic cash | $ 50,000,000 |
Shareholders' Equity and Divi86
Shareholders' Equity and Dividends (Schedule of Quarterly Dividends Declared and Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Dividends Payable [Line Items] | |||
Dividends declared (usd per share) | $ 0.4 | $ 4.74 | $ 0.2 |
Quarterly Dividend | |||
Dividends Payable [Line Items] | |||
Dividends declared (usd per share) | $ 0.40 | $ 0.40 | $ 0.2 |
Dividends, common stock | $ 27,107 | $ 27,636 | $ 13,754 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess tax benefits related to share-based payment arrangements | $ 1,064 | $ 3,625 | $ 3,521 | ||
Unrecognized compensation expense related to the unvested portion of share-based payments | $ 26,300 | ||||
Compensation expense is expected to be amortized over a weighted-average period | 2 years 4 months 24 days | ||||
Granted (shares) | 973,000 | ||||
Maximum percentage of performance shares that could be earned | 350.00% | ||||
Stock options, expiration term | 10 years | ||||
Options exercisable (shares) | 50,000 | ||||
Aggregate intrinsic value of option exercised | 1,200 | 3,500 | |||
Stock options exercised (in shares) | 0 | ||||
Granted (stock options) | 0 | ||||
Proceeds from exercise of employee stock options | $ 0 | 967 | 4,049 | ||
Excess tax benefit from exercise of stock options | 300 | 700 | |||
New CEO 2015 Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of stock granted during period | $ 16,500 | ||||
Sotheby S Incentive Compensation Programs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of stock granted during period | $ 29,300 | ||||
Mr Ruprecht September2010 Employment Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 79,782 | ||||
Fair value of stock granted during period | $ 3,500 | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 384,664 | ||||
Fair value of stock granted during period | $ 16,900 | ||||
Performance Shares | New CEO 2015 Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 94,140 | ||||
Award service period | 5 years | ||||
Fair value of stock granted during period | $ 8,000 | ||||
Performance Shares | Sotheby S Incentive Compensation Programs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 304,882 | ||||
Fair value of stock granted during period | $ 13,400 | ||||
Performance Shares | Mr Ruprecht September2010 Employment Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 19,673 | ||||
Fair value of stock granted during period | $ 900 | ||||
Shares forfeited in period (shares) | 60,109 | ||||
Performance Shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Performance Shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Performance Shares | Maximum | New CEO 2015 Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 329,490 | ||||
Restricted Stock | New CEO 2015 Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 158,638 | ||||
Award service period | 5 years | ||||
Fair value of stock granted during period | $ 6,500 | ||||
Equity Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Shares available for future awards (shares) | 104,100 | ||||
Options outstanding (shares) | 50,000 | ||||
Options outstanding, weighted average exercise price (usd per share) | $ 22.11 | ||||
Options outstanding, weighted-average remaining contractual term | 4 years 1 month 6 days | ||||
Options outstanding, aggregate intrinsic value | $ 200 | ||||
Restricted Stock Units (RSUs) | New CEO 2015 Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 47,070 | ||||
Fair value of stock granted during period | $ 2,000 | ||||
Restricted Stock Units (RSUs) | Sotheby S Incentive Compensation Programs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Granted (shares) | 289,065 | ||||
Fair value of stock granted during period | $ 12,400 | ||||
Restricted Stock Restricted Stock Unit And Performance Share Unit | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for future awards (shares) | 3,200,000 | ||||
Fair value of share vested | $ 22,900 | $ 28,100 | $ 26,900 | ||
Subsequent Event | Sotheby S Incentive Compensation Programs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of stock granted during period | $ 22,500 | ||||
Subsequent Event | Sotheby S Incentive Compensation Programs | Single vesting opportunity after three years of service | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 480,945 | ||||
Fair value of stock granted during period | $ 11,300 | ||||
Subsequent Event | Mr Ruprecht September2010 Employment Agreement | Single vesting opportunity after three years of service | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 123,352 | ||||
Fair value of stock granted during period | $ 2,900 | ||||
Subsequent Event | Performance Shares | Single vesting opportunity after three years of service | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Granted (shares) | 604,297 | ||||
Fair value of stock granted during period | $ 14,200 | ||||
Subsequent Event | Performance Shares | Maximum | Single vesting opportunity after three years of service | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (shares) | 1,208,594 | ||||
Maximum vesting percentage for incremental PSU's | 200.00% | ||||
Subsequent Event | Restricted Stock Units (RSUs) | Sotheby S Incentive Compensation Programs | Annual vesting over three years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Granted (shares) | 352,914 | ||||
Fair value of stock granted during period | $ 8,300 |
Share-Based Payments (Compensat
Share-Based Payments (Compensation Expense Related To Share-Based Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation Expense Related to Share-Based Payments | |||
Share-based payment expense (pre-tax) | $ 33,700 | $ 27,061 | $ 22,350 |
Total share-based payment expense (after-tax) | 22,992 | 17,683 | 15,299 |
Salaries and related costs | |||
Compensation Expense Related to Share-Based Payments | |||
Share-based payment expense (pre-tax) | 28,632 | 23,470 | 22,350 |
CEO separation and transition costs (see Note 20) | |||
Compensation Expense Related to Share-Based Payments | |||
Share-based payment expense (pre-tax) | 2,000 | 3,591 | 0 |
Voluntary separation incentive programs | Voluntary separation incentive programs (see Note 19) | |||
Compensation Expense Related to Share-Based Payments | |||
Share-based payment expense (pre-tax) | $ 3,068 | $ 0 | $ 0 |
Share-Based Payments (Changes I
Share-Based Payments (Changes In Number Of Outstanding Restricted Stock, RSU's And PSU's) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Restricted Stock Shares, RSU's and PSU's | |
Outstanding beginning balance, Shares | shares | 1,806 |
Granted, Shares | shares | 973 |
Vested, Shares | shares | (549) |
Canceled, Shares | shares | (211) |
Outstanding ending balance, Shares | shares | 2,019 |
Weighted Average Grant Date Fair Value | |
Outstanding beginning balance (usd per share) | $ / shares | $ 40.32 |
Granted (usd per share) | $ / shares | 47.02 |
Vested (usd per share) | $ / shares | 39.31 |
Canceled (usd per share) | $ / shares | 41.63 |
Outstanding ending balance (usd per share) | $ / shares | $ 43.61 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | $ (76,766) | $ (39,453) | $ (50,375) |
Other comprehensive income (loss) before reclassifications | (22,848) | (31,461) | 13,874 |
Net unrecognized loss | 29,363 | (9,787) | (4,065) |
Amounts reclassified from accumulated other comprehensive loss | 4,047 | 3,935 | 1,113 |
Total other comprehensive income (loss) | 10,562 | (37,313) | 10,922 |
Balance at end of period | (66,204) | (76,766) | (39,453) |
Foreign Currency Items | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | (33,223) | (1,352) | (16,084) |
Other comprehensive income (loss) before reclassifications | (18,951) | (33,929) | 14,732 |
Net unrecognized loss | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | (105) | 2,058 | 0 |
Total other comprehensive income (loss) | (19,056) | (31,871) | 14,732 |
Balance at end of period | (52,279) | (33,223) | (1,352) |
Defined Benefit Pension Items | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | (43,543) | (38,101) | (34,291) |
Other comprehensive income (loss) before reclassifications | 1,097 | 2,468 | (858) |
Net unrecognized loss | 29,363 | (9,787) | (4,065) |
Amounts reclassified from accumulated other comprehensive loss | 3,464 | 1,877 | 1,113 |
Total other comprehensive income (loss) | 33,924 | (5,442) | (3,810) |
Balance at end of period | (9,619) | (43,543) | (38,101) |
Derivative Financial Instruments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of period | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications | (4,994) | 0 | 0 |
Net unrecognized loss | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 688 | 0 | 0 |
Total other comprehensive income (loss) | (4,306) | 0 | 0 |
Balance at end of period | $ (4,306) | $ 0 | $ 0 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment for salaries and other cash compensation under employment arrangement | $ 14.5 |
Pension Arrangements (Narrative
Pension Arrangements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Death benefit recognized | $ (1,453) | $ 283 | $ 3,029 |
Curtailment gain | 17,895 | ||
Net unrecognized loss | $ 29,363 | $ (9,787) | (4,065) |
Threshold for recognizing net actuarial gains (losses) | 10.00% | ||
Expected remaining service lives | 12 years 4 months 24 days | ||
Market value of plan assets changes period | 5 years | ||
Expected contributions to U.K. pension plan | $ 1,900 | ||
Growth assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation of plan assets (as a percent) | 50.00% | 60.00% | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation of plan assets (as a percent) | 50.00% | 40.00% | |
Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment gain | $ 17,895 | $ 0 | |
Accumulated benefit obligation | 325,800 | 367,200 | |
Accumulated Other Comprehensive Loss, net of taxes not yet recognized | (10,000) | (44,000) | |
Employer contributions | $ 2,163 | 2,740 | |
Plan for U.S. Employees | Retirement Savings Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum annual contributions, percentage | 50.00% | ||
Accrued discretionary contribution | $ 1,300 | $ 1,300 | $ 1,200 |
Accrued discretionary contribution, percentage | 2.00% | 2.00% | 2.00% |
Contribution expense related to matching and discretionary contributions | $ 2,400 | $ 2,400 | $ 2,300 |
Plan for U.S. Employees | Retirement Savings Plan | Post May 2009 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching, percentage | 3.00% | ||
Plan for U.S. Employees | Retirement Savings Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pre-tax compensation, percentage | 2.00% | ||
Plan for U.S. Employees | Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued discretionary contribution | $ 300 | 400 | 400 |
Accrued discretionary contribution, percentage | 2.00% | ||
Contribution expense related to matching and discretionary contributions | $ 800 | 900 | 900 |
DCP Liability | 39,000 | 49,600 | |
Gains (losses) in deemed participant investments | (500) | 1,900 | 5,100 |
Net gains (losses) related to COLI and mutual fund investments | (2,700) | 300 | 3,700 |
Death benefit recognized | $ 1,600 | ||
Foreign Postretirement Benefit Plan [Member] | U.K. Defined Contribution Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued discretionary contribution, percentage | 2.00% | ||
Contribution expense related to matching and discretionary contributions | $ 3,100 | $ 2,200 | $ 1,300 |
Accrued discretionary employer contribution | $ 700 |
Pension Arrangements (Assets He
Pension Arrangements (Assets Held In Rabbi Trust) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assets held in rabbi trust | $ 37,843 | $ 50,490 |
Company-owned variable life insurance | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assets held in rabbi trust | 37,155 | 45,895 |
Mutual fund investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assets held in rabbi trust | $ 688 | $ 4,595 |
Pension Arrangements (Change In
Pension Arrangements (Change In Benefit Obligation, Change In Fair Value Of Plan Assets, Funded Status And Amounts Recognized In Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Curtailment gain | $ (17,895) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 410,928 | ||
Fair value of plan assets at end of year | 393,102 | $ 410,928 | |
Foreign Pension Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 381,935 | 360,185 | |
Service cost | 4,497 | 4,499 | $ 3,682 |
Interest cost | 12,923 | 15,633 | 13,359 |
Contributions by plan participants | 877 | 1,164 | |
Actuarial loss (gain) | (27,885) | 33,568 | |
Curtailment gain | (17,895) | 0 | |
Benefits paid | (10,745) | (11,128) | |
Foreign currency exchange rate changes | (17,464) | (21,986) | |
Benefit obligation at end of year | 326,243 | 381,935 | 360,185 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 410,928 | 397,469 | |
Actual return on plan assets | 9,996 | 44,343 | |
Employer contributions | 2,163 | 2,740 | |
Contributions by plan participants | 877 | 1,164 | |
Benefits paid | (10,745) | (11,128) | |
Foreign currency exchange rate changes | (20,117) | (23,660) | |
Fair value of plan assets at end of year | 393,102 | 410,928 | $ 397,469 |
Net pension asset recognized | $ 66,859 | $ 28,993 |
Pension Arrangements (Component
Pension Arrangements (Components Of Net Pension Benefits Related To U.K. Pension Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net pension benefit | $ 1,577 | $ (688) | $ (1,160) |
Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4,497 | 4,499 | 3,682 |
Interest cost | 12,923 | 15,633 | 13,359 |
Expected return on plan assets | (20,174) | (23,166) | (19,659) |
Amortization of actuarial loss | 3,967 | 2,346 | 1,458 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 364 | 0 | 0 |
Net pension benefit | $ 1,577 | $ (688) | $ (1,160) |
Pension Arrangements (Benefit O
Pension Arrangements (Benefit Obligation And Net Pension Benefit) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||
Benefit Obligation, Weighted average discount rate | 3.70% | 3.50% | |
Benefit Obligation, Weighted average rate of compensation increase | 0.00% | 4.10% | |
Net Pension Benefit, Weighted average discount rate | 3.50% | 4.40% | 4.40% |
Net Pension Benefit, Weighted average rate of compensation increase | 4.10% | 4.60% | 4.00% |
Net Pension Benefit, Weighted average expected long-term rate of return on plan assets | 5.40% | 6.10% | 6.20% |
Pension Arrangements (Compone97
Pension Arrangements (Components Of U.K. Pension Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assets held in rabbi trust | $ 37,843 | $ 50,490 |
Total fair value of plan assets | 393,102 | 410,928 |
Growth assets | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 240,214 | $ 247,393 |
Total debt securities, % of total | 61.10% | 60.20% |
Debt securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 148,821 | $ 158,436 |
Total debt securities, % of total | 37.90% | 38.60% |
Debt securities | Corporate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 36,772 | $ 37,929 |
Total debt securities, % of total | 9.40% | 9.20% |
Debt securities | Index-Linked [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 112,049 | $ 120,507 |
Total debt securities, % of total | 28.50% | 29.30% |
Real estate mutual funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 3,148 | $ 2,976 |
Total debt securities, % of total | 0.80% | 0.70% |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 919 | $ 2,123 |
Total debt securities, % of total | 0.20% | 0.50% |
Pension Arrangements (Fair Valu
Pension Arrangements (Fair Value Measurement Information U.K. Pension Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 393,102 | $ 410,928 |
Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 290,882 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 102,220 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Growth assets | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 240,214 | 247,393 |
Growth assets | Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 165,891 | |
Growth assets | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 74,323 | |
Growth assets | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Debt securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 148,821 | 158,436 |
Debt securities | Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 124,072 | |
Debt securities | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 24,749 | |
Debt securities | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Debt securities | Corporate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 36,772 | 37,929 |
Debt securities | Corporate [Member] | Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 12,023 | |
Debt securities | Corporate [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 24,749 | |
Debt securities | Corporate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Debt securities | Index-Linked [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 112,049 | 120,507 |
Debt securities | Index-Linked [Member] | Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 112,049 | |
Debt securities | Index-Linked [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Debt securities | Index-Linked [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Real estate mutual funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 3,148 | 2,976 |
Real estate mutual funds | Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Real estate mutual funds | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 3,148 | |
Real estate mutual funds | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 919 | $ 2,123 |
Cash and cash equivalents | Quoted Pricesin Active Markets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 919 | |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | 0 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Total fair value of plan assets | $ 0 |
Pension Arrangements (Estimated
Pension Arrangements (Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
2,015 | $ 11,006 |
2,016 | 9,557 |
2,017 | 10,610 |
2,018 | 10,748 |
2,019 | 12,759 |
2020 to 2024 | $ 69,460 |
Auction Guarantees (Details)
Auction Guarantees (Details) - USD ($) | Mar. 01, 2016 | Feb. 24, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 16, 2015 | Sep. 02, 2015 | Dec. 31, 2014 |
Maximum net outstanding auction guarantees permitted | $ 800,000,000 | $ 800,000,000 | |||||
Outstanding guarantee maximum exposure | 62,100,000 | ||||||
Irrevocable bids | 28,700,000 | ||||||
Estimated fair value of obligation to perform under auction guarantees | 1,000,000 | $ 5,300,000 | |||||
Subsequent Event | |||||||
Outstanding guarantee maximum exposure | $ 59,700,000 | ||||||
Fair value auction guarantee | A. Alfred Taubman | |||||||
Outstanding guarantee maximum exposure | $ 33,300,000 | $ 509,000,000 | $ 509,000,000 | ||||
Fair value auction guarantee | A. Alfred Taubman | Subsequent Event | |||||||
Outstanding guarantee maximum exposure | $ 3,400,000 | ||||||
Forecast | |||||||
Maximum net outstanding auction guarantees permitted | $ 600,000,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 24, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 02, 2015 | |
Related Party Transactions [Abstract] | |||||||||||||
Auction commission revenues | $ 2,700,000 | $ 3,100,000 | $ 4,800,000 | ||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Outstanding guarantee maximum exposure | $ 62,100,000 | 62,100,000 | |||||||||||
Net Auction Sales | 2,033,350,000 | $ 370,928,000 | $ 1,856,643,000 | $ 755,817,000 | $ 322,973,000 | $ 1,971,338,000 | $ 734,370,000 | $ 2,122,738,000 | |||||
Increase (Decrease) in Inventories | 18,828,000 | $ 59,475,000 | $ 83,237,000 | ||||||||||
Subsequent Event | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Outstanding guarantee maximum exposure | $ 59,700,000 | ||||||||||||
Director | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Estimated aggregate proceeds of future auction sales | 3,000,000 | 3,000,000 | |||||||||||
Projected loss on guarantee | 3,000,000 | 3,000,000 | |||||||||||
Due to related parties | 285,400,000 | 285,400,000 | |||||||||||
Director | Subsequent Event | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Net Auction Sales | 470,000,000 | ||||||||||||
Increase (Decrease) in Inventories | 33,000,000 | ||||||||||||
Due to consignors | 221,700,000 | ||||||||||||
Director | Fair value auction guarantee | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Outstanding guarantee maximum exposure | $ 33,300,000 | $ 509,000,000 | $ 33,300,000 | $ 509,000,000 | |||||||||
Director | Fair value auction guarantee | Subsequent Event | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Outstanding guarantee maximum exposure | $ 3,400,000 |
Derivative Financial Instrum102
Derivative Financial Instruments (Details) - USD ($) | Jul. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||||
Notional value of derivatives | $ 64,400,000 | |||
Change in fair value recognized in Other Comprehensive Loss, net of tax | (4,994,000) | $ 0 | $ 0 | |
Amount reclassified to Interest Expense | (688,000) | 0 | $ 0 | |
Swap | ||||
Derivative [Line Items] | ||||
Fair value recorded in Other Current Liabilities | 400,000 | |||
Change in fair value recognized in Other Comprehensive Loss, net of tax | 800,000 | |||
Amount reclassified to Interest Expense | 700,000 | |||
Collar | ||||
Derivative [Line Items] | ||||
Notional value of derivatives | 310,300,000 | |||
Change in fair value recognized in Other Comprehensive Loss, net of tax | 4,200,000 | |||
Fair value recorded in Other Long-Term Liabilities | 6,800,000 | |||
York Property Mortgage | ||||
Derivative [Line Items] | ||||
Carrying amount of debt | $ 322,069,000 | $ 218,728,000 | ||
2015 York Property Mortgage Loan | Mortgages | ||||
Derivative [Line Items] | ||||
Debt term | 7 years | |||
Principal amount | $ 325,000,000 | |||
Amortization period | 25 years | |||
Derivative contract term | 7 years | |||
2015 York Property Mortgage Loan | Mortgages | Swap | ||||
Derivative [Line Items] | ||||
Derivative contract term | 2 years | |||
Effective interest rate (as a percent) | 3.127% | |||
Annual interest rate (as a percent) | 0.877% | 0.877% | ||
2015 York Property Mortgage Loan | Mortgages | Collar | ||||
Derivative [Line Items] | ||||
Derivative contract term | 5 years | |||
2015 York Property Mortgage Loan | Mortgages | Collar | Minimum | ||||
Derivative [Line Items] | ||||
Effective interest rate (as a percent) | 4.167% | |||
Annual interest rate (as a percent) | 1.917% | |||
2015 York Property Mortgage Loan | Mortgages | Collar | Maximum | ||||
Derivative [Line Items] | ||||
Effective interest rate (as a percent) | 6.00% | |||
Annual interest rate (as a percent) | 3.75% | |||
2015 York Property Mortgage Loan | Mortgages | LIBOR | ||||
Derivative [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.25% |
Voluntary Separation Incenti103
Voluntary Separation Incentive Programs (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($)employee | Dec. 31, 2016 | Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Total number of employees | employee | 1,600 | 1,600 | |||
Voluntary separation incentive programs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance charges | $ 36,938 | $ 36,938 | $ 0 | $ 0 | |
Voluntary separation incentive programs | Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected percent headcount reduction | 5.00% | ||||
Voluntary separation incentive programs | Employee severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance charges | 33,800 | ||||
Voluntary separation incentive programs | Employee severance | Accrued Salaries and Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 33,800 | 33,800 | |||
Voluntary separation incentive programs | Incentive compensation earned | Accrued Salaries and Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 4,700 | $ 4,700 | |||
Voluntary separation incentive programs | Accelerated equity compensation expense | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance charges | $ 3,100 |
CEO Separation and Transitio104
CEO Separation and Transition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation-related costs | $ 4,200 | $ 4,232 | $ 7,591 | $ 0 | |
Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation-related costs | $ 7,600 | 3,100 | |||
Severance costs | 4,000 | ||||
Share-based payment accelerated recognition | $ 3,600 | ||||
Fair value of fully-vested restricted stock unit award | 2,000 | ||||
Compensation | 1,100 | ||||
Recruitment and other professional fees | $ 1,100 |
Restructuring Charges (Net) (De
Restructuring Charges (Net) (Details) - 2014 Restructuring plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ (972) | $ 14,238 | $ 0 |
Employee severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | 13,900 | ||
Lease Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ 300 |
Special Charges (Net) (Details)
Special Charges (Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Special Charges [Abstract] | |||
Special charges, net | $ 0 | $ 20,008 | $ 1,372 |
Insurance recoveries | 4,600 | ||
Expected reimbursement | $ 10,000 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Jan. 11, 2016USD ($) |
Subsequent Event [Line Items] | |
Initial cash consideration | $ 50 |
Maximum earn-out payments | $ 35 |
Quarterly Results (Unaudited108
Quarterly Results (Unaudited) (Schedule Of Quarterly Results) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)principal_selling_season$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Mar. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2015USD ($)principal_selling_season$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Number of principal selling seasons | principal_selling_season | 2 | 2 | ||||||||||
Q2 and Q4 Net Auction Sales as Percentage of Total Net Auction Sales | 78.00% | 79.00% | ||||||||||
Auction Commission Revenues as Percentage of Total Revenues | 75.00% | 81.00% | ||||||||||
Net Auction Sales | $ 2,033,350 | $ 370,928 | $ 1,856,643 | $ 755,817 | $ 322,973 | $ 1,971,338 | $ 734,370 | $ 2,122,738 | ||||
Agency commissions and fees | 284,439 | 69,222 | 310,377 | 127,882 | 76,229 | 316,187 | 123,128 | 309,582 | $ 791,920 | $ 825,126 | $ 793,639 | |
Inventory sales | 35,485 | 53,226 | 7,005 | 12,983 | 6,273 | 8,733 | 26,001 | 28,951 | 108,699 | 69,958 | 30,638 | |
Finance | 12,899 | 12,933 | 11,970 | 12,687 | 8,917 | 8,140 | 5,682 | 10,274 | 50,489 | 33,013 | 21,277 | |
License fees | 2,839 | 2,539 | 2,468 | 1,974 | 2,376 | 2,462 | 1,697 | 1,949 | 9,820 | 8,484 | 6,902 | |
Other | 159 | 72 | 186 | 149 | 406 | 295 | 303 | 468 | 566 | 1,472 | 1,222 | |
Revenues | 335,821 | 137,992 | 332,006 | 155,675 | 94,201 | 335,817 | 156,811 | 351,224 | 961,494 | 938,053 | 853,678 | |
Operating income (loss) | 88,566 | (21,707) | 116,458 | 18,404 | $ 128,991 | (37,469) | 130,431 | 4,091 | 201,721 | 226,044 | 222,575 | |
Net (loss) income attributable to Sotheby's | $ (11,153) | $ (17,894) | $ 67,572 | $ 5,202 | $ (27,726) | $ 77,632 | $ (6,114) | $ 74,003 | $ 43,727 | $ 117,795 | $ 130,006 | |
Basic earnings (loss) per share - Sotheby’s common shareholders (usd per share) | $ / shares | $ (0.17) | $ (0.26) | $ 0.97 | $ 0.07 | $ (0.40) | $ 1.12 | $ (0.09) | $ 1.07 | $ 0.64 | $ 1.69 | $ 1.90 | |
Diluted earnings (loss) per share - Sotheby’s common shareholders (usd per share) | $ / shares | $ (0.17) | $ (0.26) | $ 0.96 | $ 0.07 | $ (0.40) | $ 1.11 | $ (0.09) | $ 1.06 | $ 0.63 | $ 1.68 | $ 1.88 | |
Weighted average basic shares outstanding (shares) | shares | 66,118 | 67,946 | 69,332 | 69,090 | 68,990 | 68,938 | 69,143 | 68,992 | 68,121 | 69,016 | 68,374 | |
Weighted average diluted shares outstanding (shares) | shares | 66,118 | 67,946 | 69,884 | 69,705 | 68,990 | 69,491 | 69,143 | 69,707 | 68,744 | 69,606 | 69,175 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Member] | |||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | |||
Balance at Beginning of Period | $ 8,484 | $ 8,685 | $ 7,969 |
Charged to Costs and Expenses | 2,607 | 1,893 | 1,444 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 992 | 2,094 | 728 |
Balance at End of Period | 10,099 | 8,484 | 8,685 |
Deferred Tax Assets [Member] | |||
Valuation reserve deducted in the balance sheet from the asset to which it applies: | |||
Balance at Beginning of Period | 2,224 | 3,227 | 10,235 |
Charged to Costs and Expenses | 461 | 29 | 1,735 |
Charged to Other Accounts | 0 | 0 | 66 |
Deductions | 248 | 1,032 | 8,809 |
Balance at End of Period | $ 2,437 | $ 2,224 | $ 3,227 |