XML 26 R11.htm IDEA: XBRL DOCUMENT v3.20.4
Revenue
 12 Months Ended
Dec. 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 years ended December 31, 2020, 2019 and 2018:
For the Years Ended December 31,
202020192018
Investment Banking:
Advisory Fees$1,755,273 $1,653,585 $1,743,473 
Underwriting Fees276,191 89,681 71,691 
Commissions and Related Fees205,767 189,506 200,015 
Total Investment Banking$2,237,231 $1,932,772 $2,015,179 
Investment Management:
Asset Management and Administration Fees:
Wealth Management
$53,069 $48,083 $44,875 
Institutional Asset Management
1,328 2,528 3,371 
Total Investment Management$54,397 $50,611 $48,246 
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 years ended December 31, 2020 and 2019 are as follows:
For the Year Ended December 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)71,991 7,421 (2,198)2,779 6,881 (468)
Balance at December 31, 2020$368,346 $70,975 $29,327 $5,283 $9,373 $147 
For the Year Ended December 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)(12,720)2,606 28,692 1,963 (1,524)(1,116)
Balance at December 31, 2019$296,355 $63,554 $31,525 $2,504 $2,492 $615 
(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 Current Liabilities on the Consolidated Statements of Financial Condition.
(5)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. 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 $23,409, $15,115 and $16,468 on the Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018, respectively, that was initially 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.
The allowance for credit losses for the years ended December 31, 2020 and 2019 is as follows:
For the Years Ended December 31,
20202019
Beginning Balance(1)
$9,191 $6,037 
Bad debt expense6,878 10,451 
Write-offs, foreign currency translation and other adjustments(10,697)(8,607)
Ending Balance$5,372 $7,881 
(1)Beginning Balance for the year ended December 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 year ended December 31, 2020 is primarily related to an increase in the current period provision of expected credit losses, which is impacted by the change in the amount of receivables outstanding greater than 120 days at December 31, 2020, and the write-off of aged receivables.
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 December 31, 2020, by year of origination:
Amortized Cost Basis by Origination Year
2020201920182017Total
Long-term Accounts Receivable and Long-Term Contract Assets$47,466 $19,538 $8,478 $776 $76,258