XML 89 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Revenue and Accounts Receivable
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three months ended March 31, 2020 and 2019:
 
For the Three Months Ended March 31,
 
2020
 
2019
Investment Banking:
 
 
 
Advisory Fees
$
358,564

 
$
325,844

Underwriting Fees
21,118

 
26,920

Commissions and Related Fees
55,381

 
41,937

Total Investment Banking
$
435,063

 
$
394,701

 
 
 
 
Investment Management:
 
 
 
Asset Management and Administration Fees:
 
 
 
Wealth Management
$
12,328

 
$
11,438

Institutional Asset Management
419

 
945

Total Investment Management
$
12,747

 
$
12,383


Contract Balances
The change in the Company’s contract assets and liabilities during the periods 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 three months ended March 31, 2020 and 2019 are as follows:
 
For the Three Months Ended March 31, 2020
 
Receivables
(Current)(1)
 
Receivables
(Long-term)(2)
 
Contract Assets (Current)(3)
 
Contract Assets (Long-term)(2)
 
Deferred Revenue
(Current Contract Liabilities)(4)
 
Deferred Revenue
(Long-term Contract Liabilities)(5)
Balance at January 1, 2020
$
296,355

 
$
63,554

 
$
31,525

 
$
2,504

 
$
2,492

 
$
615

Increase (Decrease)
(48,910
)
 
(3,968
)
 
166

 
6,960

 
3,131

 
—

Balance at March 31, 2020
$
247,445

 
$
59,586

 
$
31,691

 
$
9,464

 
$
5,623

 
$
615

 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended March 31, 2019
 
Receivables
(Current)(1)
 
Receivables
(Long-term)(2)
 
Contract Assets (Current)(3)
 
Contract Assets (Long-term)(2)
 
Deferred Revenue
(Current Contract Liabilities)(4)
 
Deferred Revenue
(Long-term Contract Liabilities)(5)
Balance at January 1, 2019
$
309,075

 
$
60,948

 
$
2,833

 
$
541

 
$
4,016

 
$
1,731

Increase (Decrease)
47,926

 
(152
)
 
(2,833
)
 
2,073

 
2,327

 
—

Balance at March 31, 2019
$
357,001

 
$
60,796

 
$
—

 
$
2,614

 
$
6,343

 
$
1,731

(1)
Included in Accounts Receivable on the Unaudited Condensed Consolidated Statements of Financial Condition.
(2)
Included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.
(3)
Included in Other Current Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.
(4)
Included in Other Current Liabilities on the Unaudited Condensed Consolidated Statements of Financial Condition.
(5)
Included in Other Long-term Liabilities on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company recognized revenue of $2,029 and $2,466 on the Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019, respectively, that was initially included in deferred revenue on the Company’s Unaudited Condensed 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.
The allowance for credit losses for the three months ended March 31, 2020 and 2019 is as follows:
 
For the Three Months Ended March 31,
 
2020
 
2019
Beginning Balance(1)
$
9,191

 
$
6,037

Bad debt expense
474

 
1,353

Writeoffs, foreign currency translation and other adjustments
(2,770
)
 
161

Ending Balance
$
6,895

 
$
7,551


(1) Beginning Balance for the three months ended March 31, 2020 includes the cumulative-effect adjustment of $1,310, which reflects the increase in the Company's Allowance for Doubtful Accounts as a result of the use of the current expected credit loss model related to the adoption of ASU 2016-13 on January 1, 2020. See Notes 2 and 3 for further information.
The change in the balance during the three months ended March 31, 2020 is primarily related to the writeoff of aged receivables, as well as the impact of a decrease in the amount of receivables outstanding greater than 120 days at March 31, 2020.
For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics. The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of March 31, 2020 by year of origination:
 
Amortized Cost Basis by Origination Year
 
2020
 
2019
 
2018
 
2017
 
2016
 
Total
Long-term Accounts Receivable and Long-Term Contract Assets
$
15,688

 
$
31,872

 
$
17,830

 
$
2,243

 
$
1,417

 
$
69,050