Revenue

The following table presents revenue recognized by the Company for the year ended December 31, 2018:



	For the Year Ended
	December 31, 2018
Investment Banking:
Advisory Fees	$	1,743,473
Underwriting Fees	71,691
Commissions and Related Fees	200,015
Total Investment Banking	$	2,015,179

Investment Management:
Asset Management and Administration Fees:
Wealth Management	$	44,875
Institutional Asset Management	3,371
Total Investment Management	$	48,246

Following the adoption of ASU 2014-09, expenses related to underwriting transactions are presented gross in the results of operations of the Company, whereas under legacy U.S. GAAP these expenses were presented net. Underwriting Fees are gross of related non-compensation expenses of $4,680 in the Consolidated Statements of Operations for the year ended December 31, 2018. Professional Fees, Travel and Related Expenses, Communications and Information Services and Other Operating Expenses in the Consolidated Statements of Operations are gross of non-compensation expenses of $2,340, $460, $476 and $1,404, respectively, for the year ended December 31, 2018.

Contract Balances

The change in the Company’s contract assets and liabilities during the period primarily reflects timing differences between the Company’s performance and the client’s payment. The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the year ended December 31, 2018 are as follows:



	Receivables (Current)⁽¹⁾		Receivables (Long-term)⁽²⁾		Contract Assets (Current)⁽³⁾		Contract Assets (Long-term)⁽⁴⁾		Deferred Revenue (Current Contract Liabilities)⁽⁵⁾		Deferred Revenue (Long-term Contract Liabilities)⁽⁶⁾
Balance at January 1, 2018	$	184,993	$	34,008	$	—	$	—	$	3,147	$	1,834
Increase (Decrease)	124,082		26,940		2,833		541		869		(103		)
Balance at December 31, 2018	$	309,075	$	60,948	$	2,833	$	541	$	4,016	$	1,731


(1)	Included in Accounts Receivable on the Consolidated Statements of Financial Condition.


(2)	Included in Other Assets on the Consolidated Statements of Financial Condition.


(3)	Included in Other Current Assets on the Consolidated Statements of Financial Condition.


(4)	Included in Other Assets on the Consolidated Statements of Financial Condition.


(5)	Included in Other Current Liabilities on the Consolidated Statements of Financial Condition.


(6)	Included in Other Long-term Liabilities on the Consolidated Statements of Financial Condition.

The Company's contract assets represent arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date. The application of ASC 606 resulted in advisory revenue of $3,374 being recognized on the Consolidated Statements of Operations for the year ended December 31, 2018, representing variable consideration under the standard for which it is probable that a significant reversal of revenue will not occur, substantially all of which would have been recognized in the first quarter of 2019 under the legacy accounting standard. Under ASC 606, revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $16,468 on the Consolidated Statements of Operations for the year ended December 31, 2018 that was previously included in deferred revenue on the Company’s Consolidated Statements of Financial Condition.

Generally, performance obligations under client arrangements will be settled within one year; therefore, the Company has elected to apply the practical expedient in ASC 606-10-50-14.