RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2024

RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

The Company’s receivables represent fee receivables, amounts due from customers and other receivables. Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the CECL model.

Of the Company’s fee receivables at March 31, 2024 and December 31, 2023, $98,834 and $113,929, respectively, represented financing receivables for our Private Capital Advisory fees.

At March 31, 2024 and December 31, 2023, customers and other receivables included $81,911 and $86,412, respectively, of customer loans provided by LFB to high net worth individuals and families, which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of both March 31, 2024 and December 31, 2023.

The aggregate carrying amount of other fees and customers and other receivables was $569,738 and $561,978 at March 31, 2024 and December 31, 2023, respectively.

Activity in the allowance for credit losses for the three month periods ended March 31, 2024 and 2023 was as follows:


	Three Months Ended March 31,
	2024		2023
Beginning Balance	$	28,503	$	17,738
Bad debt expense, net of reversals	4,998		7,825
Charge-offs	(3,223)		(843)
Foreign currency translation and other adjustments	(192)		209
Ending Balance	$	30,086	$	24,929

Bad debt expense, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses-other” on the condensed consolidated statements of operations.

The allowance for credit losses is substantially all related to Financial Advisory fee receivables and other receivables.