Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2019	Feb. 12, 2020	Jun. 30, 2019
Entity Registrant Name	Moelis & Co
Entity Central Index Key	0001596967
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Public Float			$ 1,696
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	MC
Entity File Number	001-36418
Entity Tax Identification Number	46-4500216
Entity Address, Address Line One	399 Park Avenue
Entity Address, Address Line Two	5th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	883-3800
Title of 12(b) Security	Class A common stock
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Annual Report	true
Document Transition Report	false
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive proxy statement for its 2020 annual meeting of stockholders are incorporated by reference in Part III of this Form 10‑K.
Class A Common Stock
Entity Common Stock, Shares Outstanding		50,255,097
Class B Common Stock
Entity Common Stock, Shares Outstanding		10,397,915

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 167,812	$ 261,100
Restricted cash	760	671
Receivables:
Accounts receivable, net of allowance for doubtful accounts of $4,088 and $1,975 as of December 31, 2019 and December 31, 2018, respectively	45,074	54,412
Accrued and other receivables	10,722	14,199
Total receivables	55,796	68,611
Deferred compensation	11,748	8,788
Investments	213,231	143,924
Right-of-use Assets	190,763
Equipment and leasehold improvements, net	13,992	12,731
Deferred tax asset	400,496	402,859
Prepaid expenses and other assets	17,101	15,691
Total assets	1,071,699	914,375
Liabilities and Equity
Compensation payable	163,131	197,741
Accounts payable, accrued expenses and other liabilities	16,107	26,561
Amount due pursuant to tax receivable agreement	297,986	311,246
Deferred revenue	3,023	7,074
Lease Liabilities	197,625
Total liabilities	677,872	542,622
Commitments and Contingencies (See Note 13)
Treasury stock, at cost; 2,757,558 and 1,426,115 shares as of December 31, 2019 and December 31, 2018, respectively	(107,836)	(56,661)
Additional paid-in-capital	872,791	697,938
Retained earnings (accumulated deficit)	(324,192)	(237,782)
Accumulated other comprehensive income (loss)	1,432	291
Total Moelis & Company equity	442,827	404,361
Noncontrolling interests	(49,000)	(32,608)
Total equity	393,827	371,753
Total liabilities and equity	1,071,699	914,375
Class A Common Stock
Liabilities and Equity
Common stock, par value $0.01 per share	528	470
Total equity	528	470
Class B Common Stock
Liabilities and Equity
Common stock, par value $0.01 per share	104	105
Total equity	$ 104	$ 105

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts receivable, allowance for doubtful accounts	$ 4,088	$ 1,975
Treasury stock, shares	2,757,558	1,426,115
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	52,773,617	47,031,095
Common stock, shares outstanding	50,016,059	45,604,980
Treasury stock, shares	2,757,558	1,426,115
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	10,397,915	10,493,358
Common stock, shares outstanding	10,397,915	10,493,358

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues	$ 746,534	$ 885,840	$ 684,615
Expenses
Compensation and benefits	488,439	513,863	401,384
Occupancy	20,209	18,952	17,101
Professional fees	19,229	25,311	19,954
Communication, technology and information services	31,590	29,747	25,173
Travel and related expenses	41,496	42,264	30,634
Depreciation and amortization	4,965	4,625	3,544
Other expenses	26,063	24,297	22,543
Total expenses	631,991	659,059	520,333
Operating income (loss)	114,543	226,781	164,282
Other income and (expenses)	32,962	11,671	186,069
Income (loss) before income taxes	147,505	238,452	350,351
Provision for income taxes	11,813	30,448	223,827
Net income (loss)	135,692	208,004	126,524
Net income (loss) attributable to noncontrolling interests	30,597	67,324	97,124
Net income (loss) attributable to Moelis & Company	105,095	140,680	29,400
Class A Common Stock
Expenses
Net income (loss) attributable to Moelis & Company	$ 105,095	$ 140,680	$ 29,400
Weighted-average shares of Class A common stock outstanding
Basic (in shares)	50,373,874	43,216,358	30,597,058
Diluted (in shares)	55,513,149	50,690,528	37,675,511
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic (in dollars per share)	$ 2.09	$ 3.26	$ 0.96
Diluted (in dollars per share)	$ 1.89	$ 2.78	$ 0.78

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 135,692	$ 208,004	$ 126,524
Unrealized gain (loss) on investments			(465)
Foreign currency translation adjustment, net of tax	1,452	(453)	2,292
Other comprehensive income (loss)	1,452	(453)	1,827
Comprehensive income (loss)	137,144	207,551	128,351
Less: Comprehensive income attributable to noncontrolling interests	30,908	67,249	98,056
Comprehensive income (loss) attributable to Moelis & Company	$ 106,236	$ 140,302	$ 30,295

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income (loss)	$ 135,692	$ 208,004	$ 126,524
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Bad debt expense	2,399	1,044	2,895
Depreciation and amortization	4,965	4,625	3,544
Equity-based compensation	124,212	123,037	96,295
Deferred tax provision	3,665	6,538	191,697
Gain on equity method investment	(20,714)		(41,652)
Gain/(Loss) on remeasurement of amount due pursuant to tax receivable agreement			(134,665)
Other	(7,333)	(3,878)	(1,432)
Changes in assets and liabilities:
Accounts receivable	7,057	963	(35,607)
Accrued and other receivables	3,644	(6,036)	2,220
Prepaid expenses and other assets	(2,203)	(610)	(5,388)
Deferred compensation	(2,924)	22	(61)
Compensation payable	(35,381)	53,083	11,853
Accounts payable, accrued expenses and other liabilities	(2,569)	(766)	3,313
Deferred revenue	(4,051)	2,126	1,975
Dividends received	2,848	2,737	11,672
Net cash provided by (used in) operating activities	209,307	390,889	233,183
Cash flows from investing activities
Purchase of investments	(212,415)	(183,972)	(179,807)
Proceeds from sales of investments	120,102	199,810	115,640
Proceeds from partial sale of equity method investment	46,907
Note payments received from employees		366	781
Notes issued to employees			(400)
Purchase of equipment and leasehold improvements	(6,467)	(6,920)	(5,647)
Net cash provided by (used in) investing activities	(51,873)	9,284	(69,433)
Cash flows from financing activities
Dividends and distributions	(209,178)	(313,827)	(255,694)
Payments under tax receivable agreement	(13,798)	(10,994)	(10,386)
Proceeds from exercise of stock options	21,459	6,846	6,055
Treasury stock purchases	(51,175)	(33,473)	(12,258)
Class A partnership units and other equity purchased		(293)	(229)
Net cash provided by (used in) financing activities	(252,692)	(351,741)	(272,512)
Effect of exchange rate fluctuations on cash, cash equivalents, and restricted cash	2,059	(555)	3,071
Net increase (decrease) in cash, cash equivalents, and restricted cash	(93,199)	47,877	(105,691)
Cash, cash equivalents, and restricted cash, beginning of period	261,771	213,894	319,585
Cash, cash equivalents, and restricted cash, end of period	168,572	261,771	213,894
Cash paid during the period for:
Income taxes	13,405	23,491	31,837
Dividends paid, declared in the prior year			68,066
Other non-cash activity
Dividend equivalents issued	33,299	49,601	24,657
Class A Partnership Units or other equity converted into Class A Common Stock	1,267	30,901	55,901
Cumulative Effect Adjustment upon Adoption of ASU 2014-09		3,155
Cumulative Effect Adjustment upon Adoption of ASU 2016-09			658
Forfeiture of fully-vested Group LP units or other equity units	$ 2,397	$ 677	$ 36

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Balance at beginning of the period at Dec. 31, 2016	$ 251,441	$ 210	$ 311	$ (10,930)	$ 291,026	$ (68,229)	$ (543)	$ 39,596
Balance at beginning of the period (in shares) at Dec. 31, 2016		20,948,998	31,138,193	(387,890)
Cumulative Effect Adjustment upon Adoption of ASU (ASU 2016-09) at Dec. 31, 2016	658				4,855	(4,197)
Balance at beginning of the period, as adjusted at Dec. 31, 2016	252,099	$ 210	$ 311	$ (10,930)	295,881	(72,426)	(543)	39,596
Changes in Equity
Net income (loss)	126,524					29,400		97,124
Equity-based compensation	96,295	$ 17			94,141			2,137
Equity-based compensation (in shares)		1,708,826
Other comprehensive income (loss)	1,827						895	932
Other comprehensive income (loss) \| ASU 2016-01	317
Dividends declared and distributions	(187,628)				24,657	(96,892)		(115,393)
Treasury Stock Purchases	(12,258)			$ (12,258)
Treasury stock purchases (in shares)				(319,526)
Exercise of Stock options	6,055	$ 3			6,052
Exercise of stock options (in shares)		279,277
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges	55,672	$ 112	$ (112)		60,762			(5,090)
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares)		11,226,067	(11,225,963)
Equity-based payments to non-employees	5,615				5,615
Other	55				55
Other (in shares)		(126)
Balance at end of the period at Dec. 31, 2017	344,256	$ 342	$ 199	$ (23,188)	487,163	(139,918)	352	19,306
Balance at end of the period (in shares) at Dec. 31, 2017		34,163,042	19,912,230	(707,416)
Cumulative Effect Adjustment upon Adoption of ASU (ASU 2014-09) at Dec. 31, 2017	3,155					3,155
Cumulative Effect Adjustment upon Adoption of ASU (ASU 2016-01) at Dec. 31, 2017						(317)	317
Balance at beginning of the period, as adjusted at Dec. 31, 2017	347,411	$ 342	$ 199	$ (23,188)	487,163	(137,080)	669	19,306
Changes in Equity
Net income (loss)	208,004					140,680		67,324
Equity-based compensation	123,037	$ 31			121,883			1,123
Equity-based compensation (in shares)		3,123,395
Other comprehensive income (loss)	(453)						(378)	(75)
Dividends declared and distributions	(313,827)				49,601	(241,382)		(122,046)
Treasury Stock Purchases	$ (33,473)			$ (33,473)
Treasury stock purchases (in shares)	(718,699)			(718,699)
Exercise of Stock options	$ 6,846	$ 3			6,843
Exercise of stock options (in shares)		351,904
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges	30,608	$ 94	$ (94)		28,171			2,437
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares)		9,392,754	(9,392,754)
Equity-based payments to non-employees	4,277				4,277
Other	(677)							(677)
Other (in shares)			(26,118)
Balance at end of the period at Dec. 31, 2018	371,753	$ 470	$ 105	$ (56,661)	697,938	(237,782)	291	(32,608)
Balance at end of the period (in shares) at Dec. 31, 2018		47,031,095	10,493,358	(1,426,115)
Changes in Equity
Net income (loss)	135,692					105,095		30,597
Equity-based compensation	124,212	$ 44			123,958			210
Equity-based compensation (in shares)		4,399,851
Other comprehensive income (loss)	1,452						1,141	311
Dividends declared and distributions	(209,178)				33,299	(191,505)		(50,972)
Treasury Stock Purchases	$ (51,175)			$ (51,175)
Treasury stock purchases (in shares)	(1,331,443)			(1,331,443)
Exercise of Stock options	$ 21,472	$ 13			21,459
Exercise of stock options (in shares)		1,285,533
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges	430	$ 1	$ (1)		(1,580)			2,010
Issuance of Class A common stock and cancellation of Class B common stock in connection with offerings and other exchanges (in shares)		61,936	(61,936)
Equity-based payments to non-employees	729				729
Other	(1,560)				(3,012)			1,452
Other (in shares)		(4,798)	(33,507)
Balance at end of the period at Dec. 31, 2019	$ 393,827	$ 528	$ 104	$ (107,836)	$ 872,791	$ (324,192)	$ 1,432	$ (49,000)
Balance at end of the period (in shares) at Dec. 31, 2019		52,773,617	10,397,915	(2,757,558)

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Class A Common Stock
Dividends declared per share of Class A common stock	$ 3.25	$ 4.88	$ 2.48

Organization and Basis of Presentation

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

1.	ORGANIZATION AND BASIS OF PRESENTATION

Moelis & Company and its consolidated subsidiaries (the “Company,” “we,” “our,” or “us”) is a leading global investment bank incorporated in Delaware. Prior to the Company’s IPO, the business operated as a Delaware limited partnership that commenced operations during 2007. Following the IPO, the operations are owned by Moelis & Company Group LP (“Group LP”), a U.S. Delaware limited partnership, and Group LP is controlled by Moelis & Company. Moelis & Company’s shareholders are entitled to receive a portion of Group LP’s economics through their direct ownership interests in shares of Class A common stock of Moelis & Company. The noncontrolling interest owners of Group LP (not Moelis & Company) receive economics of the operations primarily through their ownership interests in Group LP partnership units.

The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, governments and financial sponsors, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings and other corporate finance matters.

Basis of Presentation—The consolidated financial statements of Moelis & Company include its partnership interests in Group LP, its equity interest in the sole general partner of Group LP, Moelis & Company Group GP LLC (“Group GP”), and its interests in its subsidiaries. Moelis & Company will operate and control all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP. The Company operates through the following subsidiaries:

•

Moelis & Company LLC (“Moelis U.S.”), a Delaware limited liability company, a registered broker‑dealer with the U.S. Securities and Exchange Commission (“SEC”) and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”).

•

Moelis & Company International Holdings LLC (“Moelis International”), a Delaware limited liability company, owns the following entities and investments, directly or indirectly:

•

Moelis & Company UK LLP (“Moelis UK”), a limited liability partnership registered under the laws of England and Wales. In addition to the United Kingdom, Moelis UK maintains operations through the following branches:

•

Moelis & Company UK LLP, French Branch (French branch)

•

Moelis & Company Europe Limited, Frankfurt am Main Branch (German branch)

•

Moelis & Company UK LLP, DIFC Branch (Dubai branch)

•

Moelis & Company Asia Limited (“Moelis Asia”), a limited company incorporated in Hong Kong licensed under the Hong Kong Securities and Futures Ordinance to provide financial advisory services. In addition to Hong Kong, Moelis Asia maintains operations in Beijing China through a wholly‑owned Chinese subsidiary, Moelis & Company Consulting (Beijing) Company Limited.

•

Moelis & Company Netherlands BV, a private limited company incorporated in Amsterdam, Netherlands.

•

Moelis & Company India Private Limited, a private limited company incorporated in Mumbai, India.

•

Moelis & Company Assessoria Financeira Ltda. (“Moelis Brazil”), a limited liability company incorporated in São Paulo, Brazil.

•

An equity method investment in Moelis Australia Limited (“Moelis Australia”), a public company listed on the Australian Securities Exchange.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting—The Company prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the combined operations, assets and liabilities of the Company.

Consolidation—The Company’s policy is to consolidate (i) entities, other than limited partnerships, in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation.

Use of Estimates—The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary.

In preparing the consolidated financial statements, management makes estimates and assumptions regarding:

•

the adequacy of the allowance for doubtful accounts;

•

the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal;

•

the assessment of probable lease terms and the measurement of the present value of such obligations;

•

the measurement and realization of deferred taxes;

•

the measurement of amount due pursuant to tax receivable agreement;

•

the measurement and vesting of equity‑based compensation; and

•

other matters that affect the reported amounts and disclosures of contingencies in the financial statements.

Cash, Cash Equivalents and Restricted Cash— Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase.

The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. Treasury instruments, government securities money markets and government debt securities.

The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2019 and 2018, is presented below.

	December 31,
	2019		2018
Cash	$	71,798	$	59,705
Cash equivalents		96,014		201,395
Restricted cash		760		671
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	168,572	$	261,771

Receivables—The accompanying consolidated statements of financial condition present accounts receivable balances net of allowance for doubtful accounts based on the Company’s assessment of the collectability of customer accounts.

Included in the accounts receivable balances at December 31, 2019 and 2018 were $19,879 and $26,738 of long term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years. These long term receivables generated interest income of $990, $653 and $408 for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company maintains an allowance for doubtful accounts that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable, and the current economic conditions that may affect a customer’s ability to pay such amounts owed to the Company.

After concluding that a reserved accounts receivable is no longer collectible, the Company will charge‑off the receivable. This is determined based on several factors including the age of the accounts receivable and the credit worthiness of the customer. This has the effect of reducing both the gross receivable and the allowance for doubtful accounts.

Deferred Compensation—Deferred compensation costs represent arrangements with certain employees whereby cash payments are subject to a required period of service subsequent to payment by the Company. These amounts are charged to expenses over the period that the employee is required to provide services in order to vest in the payment.

Financial Instruments at Fair Value—Fair value is generally based on quoted prices, however if quoted market prices are not available, fair value is determined based on other relevant factors, including dealer price quotations, price activity for equivalent instruments and valuation pricing models. The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of instrument, the characteristics specific to the instrument and the state of the marketplace (including the existence and transparency of transactions between market participants). Financial instruments with readily‑available actively quoted prices or for which fair value can be measured from actively‑quoted prices in an orderly market will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) based on inputs:

Level 1—Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price.

Level 2—Pricing inputs are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3—Pricing inputs are unobservable for the instruments and include situations where there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the instrument.

For level 3 investments in which pricing inputs are unobservable and limited market activity exists, management’s determination of fair value is based on the best information available, may incorporate management’s own assumptions and involves a significant degree of judgment.

Effective January 1, 2018, the Company adopted ASU 2016-01, using the modified retrospective approach. As a result, a cumulative adjustment was recorded which decreased retained earnings and increased accumulated other comprehensive income by $317 as of January 1, 2018. The adjustment is related to the accumulated unrealized losses in fair value of an equity investment as of December 31, 2017. No prior periods were adjusted as a result of this change in accounting policy. The adoption of ASU 2016-01 requires that changes in fair value of equity investments measured at fair value be recognized in net income prospectively. For each period where a consolidated statement of operations is presented, the Company will disclose the portion of realized and/or unrealized gains and losses related to equity investments held at the reporting date or sold during the period.

Effective September 30, 2018, the Company early adopted ASU 2018-13. As a result, the Company removed its disclosures of the amounts of and reasons for transfers between level 1 and level 2 fair value investments. Level 3 fair value investments that are acquired in the future will not require disclosures of the valuation process but will require disclosure of unrealized gains and losses and the range and weighted average of significant unobservable inputs used to determine the fair value of the level 3 investment.

Equity Method Investments—The Company accounts for its equity method investments under the equity method of accounting as the Company does not control these entities but has the ability to exercise significant influence. The amounts recorded in investments on the consolidated statements of financial condition reflect the Company’s share of contributions made to, distributions received from, and the equity earnings and losses of, the investments. The Company reflects its share of gains and losses of the investment in other income and expenses in the consolidated statements of operations using the most recently available earnings data at the end of the period.

Leases — The Company maintains operating leases for corporate offices and an aircraft. The Company determines if a contract contains a lease at inception. Operating leases are recorded as right-of-use (“ROU”) assets and lease liabilities on the consolidated statements of financial condition. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities are recognized at the lease commencement date and are measured at the present value of anticipated lease payments over the lease term. The operating lease ROU assets are equal to the lease liabilities, adjusted for certain lease incentives, accrued rents, and prepaid rents. Typically, our borrowing rate is used to determine the present value of lease payments because the implicit rate is not readily determinable. Our lease terms may include options to extend or terminate the lease. These options are factored into our present value calculations when it is reasonably certain that such options will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term.

Adoption of ASU 2016-02

In February 2016, the FASB issued Accounting Standards Update 2016-02—Leases (“ASU 2016-02”) to improve transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Additionally, in July 2018, the FASB issued ASU 2018-11 which permits entities to apply the requirements of ASU 2016-02 as of the adoption date, as opposed to the earliest comparative period disclosed.

The Company adopted both standards as of January 1, 2019, and is applying the requirements of ASU 2016-02 as of the adoption date instead of the earliest comparative period disclosed. In addition, we elected to use certain practical expedients to assist in our transition and are not reassessing the identification and classification of leases upon adoption. Upon adoption, the Company recorded lease liabilities and corresponding ROU assets of $63,252. The ROU assets were adjusted for prepaid rent and accrued rent, which reduced our opening balances of prepaid expenses and other assets and other liabilities by $1,666 and $7,139, respectively. The adoption of ASU 2016-02 did not have a material impact to our consolidated statements of operations.

Equipment and Leasehold Improvements—Office equipment and furniture and fixtures are stated at cost less accumulated depreciation, which is determined using the straight‑line method over the estimated useful lives of the assets, ranging from three to seven years, respectively. Leasehold improvements are stated at cost less accumulated amortization, which is determined using the straight‑line method over the lesser of the term of the lease or the estimated useful life of the asset.

Major renewals and improvements are capitalized and minor replacements, maintenance and repairs are charged to expenses as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation or amortization are removed from the consolidated statements of financial condition and any gain or loss is reflected in the consolidated statements of operations.

Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement –In conjunction with the IPO, the Company was treated for U.S. federal income tax purposes as having directly purchased Class A partnership units in Group LP from the existing unitholders. Additional Group LP Class A partnership units may be exchanged for shares of Class A common stock in the Company. The initial purchase and future exchanges are expected to result in an increase in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP. These increases in the tax basis of Group LP’s assets attributable to the Company’s interest in Group LP would not have been available but for the initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. As a result, the Company records a deferred tax asset for such increase in tax basis.

The Company has entered into a tax receivable agreement with its eligible Managing Directors that will provide for the payment by the Company to its eligible Managing Directors of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of (a) the increases in tax basis attributable to exchanges by its eligible Managing Directors and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this tax receivable agreement. The Company expects to benefit from the remaining 15% of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid‑in‑capital. For purposes of the tax receivable agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Group LP as a result of the exchanges and had it not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the tax receivable agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the initial purchase and subsequent exchanges described above as a deferred tax asset in the consolidated statements of financial condition. The amount due to its eligible Managing Directors related to the tax receivable agreement as a result of the initial purchase and subsequent exchanges described above is recorded as amount due pursuant to tax receivable agreement in the consolidated statements of financial condition. The amounts recorded for the deferred tax asset and the liability for our obligations under the tax receivable agreement are estimates. Any adjustments to our estimates subsequent to their initial establishment will be included in net income (loss). Future exchanges of Class A partnership units in Group LP for Class A common shares in the Company will be accounted for in a similar manner.

Revenue and Expense Recognition— We earn substantially all of our revenues from advisory engagements and, in many cases, we are not paid until the completion of an underlying transaction. The Company recognizes revenues from providing advisory services when or as our obligations are fulfilled and collection is reasonably assured. The vast majority of our advisory revenues, which include reimbursements for certain out-of-pocket expenses, are recognized over time; however, a small number of transactions may be recognized at a point in time. We provide our advisory service on an ongoing basis which, for example, may include evaluating and selecting one of multiple strategies. During such engagements, our clients are continuously benefitting from our counsel and the over time recognition matches the transfer of such benefits. However, the recognition of transaction fees is constrained until substantially all services have been provided, specified conditions have been met and it is probable that a significant reversal of revenue will not occur in a future period. Upfront fees and retainers specified in our engagement letters that meet the over time criteria will be recognized on a systematic basis over the estimated period where the related services are performed. Revenues may be recognized at a point in time if the engagement represents a singular objective that does not transfer any notable value until formally completed, such as when issuing a fairness opinion. In these instances, the point in time recognition appropriately matches the transfer and consumption of our services.

Incremental costs of obtaining a contract are expensed as incurred since such costs are generally not recoverable and the typical duration of our advisory contracts is less than one year. Costs to fulfill contracts consist of out-of-pocket expenses that are part of performing our advisory services and are typically expensed as incurred, except where the transfer and consumption of our services occurs at a point in time. For engagements recognized at a point in time, out-of-pocket expenses are capitalized and subsequently expensed in the consolidated statement of operations upon completion of the engagement. The Company records deferred revenues when it receives fees from clients that have not yet been earned (e.g. an upfront fee) or when the Company has an unconditional right to consideration before all performance obligations are complete (e.g. upon satisfying conditions to earn an announcement fee, but before the transaction is consummated).

Complications that may terminate or delay a transaction include failure to agree upon final terms with the counterparty, failure to obtain required regulatory consents, failure to obtain board or stockholder approvals, failure to secure financing, adverse market conditions or unexpected operating or financial problems related to either party to the transaction. In these circumstances, we often do not receive advisory fees that would have been received if the transaction had been completed, despite the fact that we may have devoted considerable time and resources to the transaction. Barriers to the completion of a restructuring transaction may include a lack of anticipated bidders for the assets of our client, the inability of our client to restructure its operations, or indebtedness due to a failure to reach agreement with its creditors. In these circumstances, our fees are generally limited to monthly retainer fees and reimbursement of certain out-of-pocket expenses.

We do not allocate our revenue by the type of advice we provide because of the complexity of the transactions on which we may earn revenue and our holistic approach to client service. For example, a restructuring engagement may evolve to require a sale of all or a portion of the client, M&A assignments can develop from relationships established on prior restructuring engagements, and capital markets expertise can be instrumental on both M&A and restructuring assignments.

Adoption of ASU 2014-09

Effective January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers”, and all related amendments (“Topic 606”) using the modified retrospective method for all contracts. The adoption of the new standard requires the Company to present reimbursable expenses gross in revenues and expenses and to use new revenue recognition patterns as discussed below in the policy. Prior to adoption, client expenses were recorded net of reimbursements. As a result, a cumulative adjustment was recorded which increased the opening balance of accrued and other receivables and retained earnings by $3,722 for outstanding reimbursable expenses at December 31, 2017, which would have been recognized as revenues under the new standard. The tax effect of this adjustment decreased retained earnings by $567, resulting in a net increase to the opening balance of retained earnings of $3,155. No prior periods were adjusted as a result of this change in accounting policy.

The adoption of Topic 606 may result in the recognition of revenue in certain circumstances earlier as compared with the time prior to the adoption of Topic 606 where revenues were generally recognized upon the closing date of a transaction. In contrast, Topic 606 requires revenues from variable transaction fees to be 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. Revenues subject to this timing difference in recognition will require significant judgment and could be material to any given reporting period.

Equity‑based Compensation—The Company recognizes the cost of services received in exchange for equity instrument awards. The cost is based on its grant‑date fair value using quoted market prices at the time of grant amortized over the service period required by the award’s vesting terms. The Company records as treasury stock shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the vesting of restricted stock units (“RSUs”). The Company records dividends in kind, net of forfeitures, on outstanding RSUs as a reduction of retained earnings with a corresponding increase in additional paid-in capital, resulting in no net change to equity. Dividends in kind on RSUs are subject to the same vesting conditions as the underlying RSUs on which they were accrued. Dividends in kind will be forfeited if the underlying award does not vest.

The Company has a retirement plan whereby a retiring employee generally will not forfeit certain qualifying incentive RSUs granted during employment if at retirement the employee meets certain requirements. For qualifying awards issued prior to December 1, 2016, the employee must (i) be at least 54 years old and (ii) have provided at least 8 consecutive years of service to the Company. For qualifying awards issued on or after December 1, 2016, (i) the employee must be at least 56 years old, (ii) the employee must have provided at least 5 consecutive years of service to the Company and (iii) the total of (i) and (ii) must be equal to at least 65 years. Any such RSUs will continue to vest on their applicable vesting schedule, subject to noncompetition and other terms. Over time a greater number of employees may become retirement eligible and the related requisite service period over which we will expense these awards will be shorter than the stated vesting period. Any unvested RSUs are eligible to receive dividends in kind; however, the right to dividends in kind will be forfeited if the underlying award does not vest.

Effective January 1, 2017, the Company adopted a change in accounting policy in accordance with Accounting Standards Update 2016-09, to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative decrease to retained earnings and an increase in additional paid-in capital (“APIC”) of $4,855 as of January 1, 2017. The tax effect of this adjustment increased deferred tax assets and retained earnings by $658. No prior periods were adjusted as a result of this change in accounting policy.

Effective January 1, 2019, the Company adopted ASU 2018-07, “Compensation—Stock Compensation” (“ASU 2018-07”) using the modified retrospective method. The adoption of this new standard generally requires the accounting for equity-based payments to nonemployees to be consistent with the accounting for employees. As a result, the Company will recognize the cost of services received from a nonemployee in exchange for an equity instrument based on the award’s grant-date fair value. Unsettled equity-based payments to nonemployees have been remeasured at fair value as of the adoption date. No adjustment to the opening balance of retained earnings was required.

Income Taxes—The Company accounts for income taxes in accordance with ASC 740, “Accounting for Income Taxes” (“ASC 740”), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax bases of its assets and liabilities by applying the enacted tax rates in effect for the year in which the differences are expected to reverse. Such net tax effects on temporary differences are reflected on the Company’s consolidated statements of financial condition as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when the Company believes that it is more‑likely‑than‑not that some portion or all of the deferred tax assets will not be realized.

ASC 740 prescribes a two‑step approach for the recognition and measurement of tax benefits associated with the positions taken or expected to be taken in a tax return that affect amounts reported in the financial statements. The Company has reviewed and will continue to review the conclusions reached regarding uncertain tax positions, which may be subject to review and adjustment at a later date based on ongoing analyses of tax laws, regulations and interpretations thereof. For the years ended December 31, 2019, 2018 and 2017, no unrecognized tax benefit was recorded. To the extent that the Company’s assessment of the conclusions reached regarding uncertain tax positions changes as a result of the evaluation of new information, such change in estimate will be recorded in the period in which such determination is made. The Company reports income tax‑related interest and penalties relating to uncertain tax positions, if applicable, as a component of income tax expense. For the years ended December 31, 2019, 2018 and 2017, no such amounts were recorded.

The Company recognizes excess tax benefits and deficiencies as income tax benefits or expenses in the consolidated statement of operations. These are reflected in accounts payable, accrued expenses and other liabilities within the consolidated statement of cash flows.

Foreign Currency Translation—Assets and liabilities held in non‑U.S. dollar denominated currencies are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenues and expenses are translated at average exchange rates during the reporting period. A charge or credit is recorded to other comprehensive income to reflect the translation of these amounts to the extent the non‑U.S. currency is designated the functional currency of the subsidiary. Non‑functional currency related transaction gains and losses are immediately recorded in the consolidated statements of operations.

Recent Accounting Pronouncements

12 Months Ended

Dec. 31, 2019

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

3.	RECENT ACCOUNTING PRONOUNCEMENTS

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 replaces the incurred loss impairment methodology for financial instruments with the current expected credit loss (CECL) model which requires estimates of future credit losses based on reasonable supporting information, such as historical experience and current conditions. The Company plans to stratify its accounts receivable based on term length and utilize the specific identification and aging methods to formulate separate reserves on these populations. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. We do not anticipate any material changes to our consolidated financial statements.

In August 2018, the FASB issued Accounting Standards Update No. 2018-15, “Goodwill and Other —Internal Use Software” (“ASU 2018-15”). ASU 2018-15 clarifies the appropriate accounting for implementation, setup, and other upfront costs for cloud computing service contracts. The amendment aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Upon initial evaluation, the Company expects to capitalize future implementation costs of certain cloud computing arrangements, but does not anticipate such amounts to be material to our consolidated financial statements.

In March 2019, the FASB issued Accounting Standards Update No. 2019-01, “Leases” (“ASU 2019-01”). ASU 2019-01 enhances the guidance in ASC 842 surrounding the fair value of underlying assets for lessors, presentation of sales-type and direct financing leases on the statement of cash flows, and transition guidance surrounding accounting changes and error corrections. ASU 2019-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is permitted. Upon initial evaluation, we do not anticipate any material changes to our consolidated financial statements.

In December 2019, the FASB issued Accounting Standards Update No. 2019-12, “Income Taxes” (“ASU 2019-12”). ASU 2019-12 reduces the complexity of accounting for income taxes. Specifically, this update removes several exceptions under ASC 740 including an exception to the general methodology of calculating income tax in an interim period where the year-to-date loss exceeds the expected loss for the year. ASU 2019-12 also adds several requirements to ASC 740 including requiring that an entity reflect the impact of changes in tax laws in the interim period of the enactment date. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is permitted. Upon initial evaluation, we do not anticipate any material changes to our consolidated financial statements.

Equity Method Investment

12 Months Ended

Dec. 31, 2019

Equity Method Investments And Joint Ventures [Abstract]

Equity Method Investment

4.	EQUITY METHOD INVESTMENT

Moelis Australia

On April 1, 2010, the Company entered into a 50-50 joint venture in Moelis Australia Holdings PTY Limited, investing a combination of cash and certain net assets in exchange for its interests. On April 10, 2017, Moelis Australia Holdings PTY Limited consummated their initial public offering and became listed on the Australian Securities Exchange as Moelis Australia Limited (ASX: MOE). As a result of the offering, the Company recognized a gain of approximately $15,170 during the year ended December 31, 2017, recorded in other income and expenses on the consolidated statement of operations. As a result of the offering, the Company’s ownership interest in Moelis Australia was diluted and continues to be accounted for under the equity method of accounting. Contemporaneous with the offering, Moelis Australia agreed to terminate an asset management related revenue sharing agreement resulting in a payment to a third party, of which the Company recognized a charge of approximately $2,400 in income (loss) from equity method investments during the year ended December 31, 2017.

On March 20, 2017, Moelis Australia declared a dividend, of which the Company received $11,672 on April 18, 2017. The Company accounted for the dividend as a return on investment and reduced the carrying value of the investment in Moelis Australia by $11,672 on April 18, 2017.

On September 13, 2017 and October 30, 2017, Moelis Australia completed offerings of 11,940,000 and 10,060,000 shares of common stock, respectively, to raise additional capital. The issuance of shares further reduced Moelis & Company’s ownership interest in Moelis Australia. These shares were issued at a fair value greater than the carrying value of the ownership interest disposed, resulting in gains of approximately $14,429 and $9,680, during the third and fourth quarter of 2017, respectively, recorded in other income on the consolidated statement of operations.

Moelis Australia issued additional shares during 2017 related to acquisitions, which further reduced Moelis & Company’s ownership interest in Moelis Australia. The shares were issued at a fair value greater than the carrying value of the ownership interest disposed, resulting in a gain of approximately $2,372 during the year ended December 31, 2017, recorded in other income and expenses on the consolidated statement of operations.

On February 20, 2019 and February 20, 2018, Moelis Australia declared dividends, of which the Company received $2,848 and $2,737 on March 6, 2019 and March 7, 2018, respectively. The Company accounted for the dividends as a return on investment and reduced the carrying value of the investment in Moelis Australia by $2,848 and $2,737, respectively.

On September 2, 2019 and November 4, 2019, the Company sold 12.5 million and 8.0 million shares of Moelis Australia common stock, respectively. These transactions resulted in gains of $12,631 and $8,083, respectively, recorded in other income and expenses on the consolidated statements of operations. As a result, the Company’s ownership interest in Moelis Australia was reduced.

The balances of the Company’s equity method investment as of December 31, 2019 and December 31, 2018 were $38,944 and $46,897, respectively, and are included within investments on the consolidated statements of financial condition. The Company’s share of earnings on this investment is recorded in other income and expenses on the consolidated statements of operations.

Certain adjustments have been made to account for the Company’s equity method investment in Moelis Australia under US GAAP as Moelis Australia Limited follows local accounting principles under Australian Accounting Standards.

Summary financial information related to Moelis Australia is as follows:

	Year Ended December 31,
	2019			2018			2017
Total revenues	$	106,894		$	91,222		$	83,602
Total expenses		(90,558	)		(69,688	)		(62,187	)
Net Income (loss)	$	16,336		$	21,534		$	21,415

	December 31,			December 31,
	2019			2018
Total assets	$	360,035		$	261,513
Total liabilities		(200,925	)		(91,799	)
Net equity	$	159,110		$	169,714

Equipment and Leasehold Improvements

12 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Equipment and Leasehold Improvements

5.	EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Equipment and leasehold improvements, net consists of the following:

	December 31,			December 31,
	2019			2018
Office equipment	$	13,593		$	11,517
Furniture and fixtures		5,054			4,533
Leasehold improvements		17,402			13,813
Total		36,049			29,863
Less accumulated depreciation and amortization		(22,057	)		(17,132	)
Equipment and leasehold improvements, net	$	13,992		$	12,731

Depreciation and amortization expenses for fixed assets totaled $4,965, $4,625 and $3,544 for the years ended December 31, 2019, 2018, and 2017, respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

6.	FAIR VALUE MEASUREMENTS

The Company established a fair value hierarchy which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Financial instruments measured and reported at fair value are classified and disclosed in one of the following categories (from highest to lowest) based on inputs:

Level 1—Quoted prices (unadjusted) are available in active markets for identical instruments that the Company has the ability to access as of the reporting date. The Company, to the extent that it holds such instruments, does not adjust the quoted price for these instruments, even in situations in which the Company holds a large position and a sale could reasonably affect the quoted price.

Level 2—Pricing inputs are observable for the instruments, either directly or indirectly, as of the reporting date, but are not the same as those used in level 1. Fair value is determined through the use of models or other valuation methodologies.

Level 3—Pricing inputs are unobservable for the instruments and include situations in which there is little, if any, market activity for the investments. The inputs into the determination of fair value require significant judgment or estimation by the Company’s management.

The estimated fair values of government securities money markets, U.S. Treasury instruments, and government debt securities as of December 31, 2019 and 2018 are based on quoted prices for recent trading activity in identical or similar instruments. The Company generally invests in U.S. Treasury instruments with maturities of less than twelve months. See Note 2 for further information on the Company’s fair value hierarchy.

The Company’s methodology for reclassifications impacting the fair value hierarchy is that transfers in/out of the respective category are reported at fair value as of the beginning of the period in which the reclassification occurred.

At the end of the reporting period, the Company reviews U.S. treasury instruments held to determine whether the securities are of the most recent issuance of that security with the same maturity (referred to as “on-the-run”, which is the most liquid version of the maturity band). If a U.S. treasury instrument held at the end of the reporting period was from the most recent issuance it is classified as level 1, otherwise it is referred to as “off-the-run” and is classified as level 2.

The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2019:

	Total		Level 1			Level 2			Level 3
Financial assets:
Included in cash and cash equivalents
U.S. treasury instruments	$	62,949	$	—		$		62,949	$	—
Government securities money market		33,065		—				33,065		—
Investments
U.S. treasury instruments		173,960		—				173,960		—
Common stock		327			327		—				—
Total financial assets	$	270,301	$		327	$		269,974	$		—

For the twelve months ended December 31, 2019, unrealized gains of $177 were recognized in other income and expenses on the consolidated statement of operations related to common stock held at the reporting date. The cost basis of the financial assets recorded at fair value included in investments on the consolidated statement of financial condition was $173,806 as of December 31, 2019.

The following table summarizes the levels of the fair value hierarchy into which the Company’s financial assets fall as of December 31, 2018:

	Total		Level 1			Level 2			Level 3
Financial assets:
Included in cash and cash equivalents
U.S. treasury instruments	$	110,529	$		100,500	$		10,029	$	—
Government securities money market		90,866		—				90,866		—
Investments
Government debt securities (1)		1,105			—			1,105		—
U.S. treasury instruments		79,395			7,977			71,418			—
Common stock		150			150		—
Total financial assets	$	282,045	$		108,627	$		173,418	$		—

(1)	Consists of municipal bonds and agency bonds.

For the twelve months ended December 31, 2018, unrealized losses of $113 were recognized in other income and expenses on the consolidated statement of operations related to common stock held at the reporting date. The cost basis of the financial assets recorded at fair value included in investments on the consolidated statement of financial condition was $80,717 as of December 31, 2018.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

7.	INCOME TAXES

The following table presents the U.S. and non‑U.S. components of income (loss) before income tax expense:

	For the Year Ended December 31,
	2019			2018		2017
U.S.	$	156,983		$	237,920	$	279,038
Non-U.S.		(9,478	)		532		71,313
Income (loss) before income taxes	$	147,505		$	238,452	$	350,351

The current and deferred components of the income tax provision for the years ended December 31, 2019, 2018, and 2017 are as follows:

	For the Year Ended December 31,
	2019			2018		2017
Current income taxes:
Federal	$	4,527		$	15,023	$	19,923
State and Local		3,212			7,218		4,556
Foreign		409			1,393		7,651
	$	8,148		$	23,634	$	32,130
Deferred income taxes:
Federal	$	3,084		$	5,221	$	192,102
State and Local		613			1,087		1,538
Foreign		(32	)		506		(1,943	)
Total	$	11,813		$	30,448	$	223,827

The total provision for income taxes differs from the amount which would be computed by applying the appropriate statutory rate to income before income taxes as follows:

	For the Year Ended December 31,
	2019			2018			2017
Reconciliation of federal statutory tax rates
U.S. statutory tax rate		21.0	%		21.0	%		35.0	%
Increase (decrease) due to state and local taxes		4.5	%		4.0	%	2.7		%
Rate benefit as a U.S. limited partnership/flow through		-4.4	%	-6.1		%	-10.1		%
Estimated re-measurement impact primarily related to the Tax Act		0.0	%		0.0	%		51.7	%
Other income from reduction of amount due pursuant to tax receivable agreement in connection with the Tax Act		0.0	%		0.0	%		-14.6	%
Excess tax benefit from equity compensation delivery	-11.9		%	-5.7		%		-1.7	%
Foreign taxes	-0.4		%	0.4		%	0.7		%
Other	-0.8		%	-0.8		%	0.2		%
Effective income tax rate		8.0	%		12.8	%		63.9	%

Deferred income taxes reflect the net effect of temporary differences between the tax basis of an asset or liability and its reported amount in the Company’s consolidated statements of financial condition. These temporary differences result in taxable or deductible amounts in future years.

The significant components of deferred tax assets and liabilities included on the Company’s consolidated statements of financial condition are as follows:

	For the Year Ended December 31,
	2019			2018
Net operating loss	$	12,275		$	8,397
Step-up in tax basis in Group LP assets		333,221			356,069
Deferred compensation		65,742			45,875
Lease liability		39,994			—
		451,232			410,341
Valuation allowance on NOL and other		(10,038	)		(7,014	)
Deferred tax asset	$	441,194		$	403,327

Right-of-use asset	$	(38,559	)	$	—
Other		(2,139	)		(468	)
Deferred tax liability	$	(40,698	)	$	(468	)

Net deferred tax asset	$	400,496		$	402,859

The Company recorded a decrease in the net deferred tax asset of $2,363 for the twelve months ended December 31, 2019, which was primarily attributable to a decrease in the step-up in tax basis in Group LP assets for the current year amortization and the vesting and delivery of equity based awards during 2019, partially offset by an increase in the deferred tax asset related to deferred compensation.

As of December 31, 2019, the Company had accumulated net foreign operating loss carryforwards related to its international operations of approximately $50,184 for which it has recorded a deferred tax asset of $12,275. Approximately $42,632 of the operating losses (or $10,318 of the deferred tax asset) has an indefinite life and $7,552 of the operating losses (or $1,957 of the deferred tax asset) will expire on dates between 2022 and 2028.

The Company’s operations are comprised of entities that are organized as limited liability companies and limited partnerships. For U.S. federal income tax purposes, taxes related to income earned by these entities represent obligations of their interest holders. The Company is subject to U.S. corporate federal, state and local income tax on its allocable share of results of operations from Group LP.

As of December 31, 2019, the Company’s tax years for 2018, 2017 and 2016 are generally subject to examination by the tax authorities. As of December 31, 2019, the Company does not expect any material changes in its tax provision related to any outstanding current examinations. Developments with respect to such examinations are monitored on an ongoing basis and adjustments to tax liabilities are made as appropriate.

The Company has no unrecognized tax benefits for the periods ended December 31, 2019, 2018 and 2017.

Net Income (Loss) Per Share Attributable to Class A Common Shareholders

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Class A Common Shareholders

8.	NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CLASS A COMMON SHAREHOLDERS

The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the years ended December 31, 2019, 2018 and 2017 are presented below.

	Year Ended December 31,
(dollars in thousands, except per share amounts)	2019		2018		2017
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$	105,095	$	140,680	$	29,400
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units	(a)		(a)		(a)
Net income (loss) attributable to holders of shares of Class A common stock—diluted	$	105,095	$	140,680	$	29,400
Denominator:
Weighted average shares of Class A common stock outstanding—basic		50,373,874		43,216,358		30,597,058
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units	(a)		(a)		(a)
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method	(b)	5,139,275	(b)	7,474,170	(b)	7,078,453
Weighted average shares of Class A common stock outstanding—diluted		55,513,149		50,690,528		37,675,511
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	2.09	$	3.26	$	0.96
Diluted	$	1.89	$	2.78	$	0.78

We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation.

(a)

Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one‑for‑one basis, subject to applicable lock‑up, vesting and transfer restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 68,516,397 shares for the year ended December 31, 2019, 67,339,974 shares for the year ended December 31, 2018 and 63,647,961 shares for the year ended December 31, 2017. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the year ended December 31, 2019, 2018 and 2017, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

(b)

During the years ended December 31, 2019, 2018 and 2017, certain shares of Moelis & Company’s Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company. The additional weighted average amount of RSUs that would have been included in this calculation if the effect were dilutive would have been 64,676 units for the year ended December 31, 2019, 243 units for the year ended December 31, 2018 and 6,137 units for the year ended December 31, 2017.

Equity-Based Compensation

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity-Based Compensation

9.	EQUITY‑BASED COMPENSATION

Partnership Units

Prior to the Company’s restructuring and IPO, the business operated as a partnership and its ownership structure was comprised of common partners (principally outside investors) holding units. The common partners contributed capital to the partnership and were not subject to vesting. Units granted to Managing Directors upon joining the Company and as part of annual incentive compensation generally vested based on service over five to eight years. Certain non‑Managing Director employees were granted units as part of their incentive arrangements and these units generally vested based on service ratably over four years. In connection with the Company’s restructuring and IPO, substantially all of the Managing Director partner equity subject to vesting was accelerated. Units granted to non‑Managing Director employees were not accelerated in connection with the Company’s restructuring and IPO and continue to vest based on the original terms of the grant.

In connection with the reorganization and IPO, Group LP issued Class A partnership units to Moelis & Company and to certain existing unit holders. Following the reorganization, a Group LP Class A partnership unit (not held by Moelis & Company or its subsidiaries) is exchangeable into one share of Moelis & Company Class A common stock and represents the Company’s noncontrolling interests. As of December 31, 2019, partners held 12,958,022 Group LP partnership units, 36,634 of which were unvested and will continue to vest over their service life.

In relation to the vesting of units, the Company recognized compensation expenses of $211, $1,123 and $2,137 for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, there was $39 of unrecognized compensation expense related to unvested Class A partnership units which is expected to be recognized over a weighted‑average period of 0.3 years, using the graded vesting method.

2014 Omnibus Incentive Plan

In connection with the IPO, the Company adopted the Moelis & Company 2014 Omnibus Incentive Plan (the “Plan”) to provide additional incentives to selected officers, employees, Managing Directors, non‑employee directors, independent contractors, partners, senior advisors and consultants. The Plan provides for the issuance of incentive stock options (“ISOs”), nonqualified stock options, stock appreciation rights (“SARs”), restricted stock, RSUs, stock bonuses, other stock‑based awards and cash awards.

Share Repurchase Plan

In the first quarter of 2015, the Board of Directors authorized the repurchase of up to $25 million of shares of Class A common stock of the Company and/or Class A partnership units of Group LP with no expiration date. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will be opportunistic and measured in nature and will depend on a variety of factors, including price and market conditions. In February 2019, the Board of Directors authorized the repurchase of up to $100 million of shares of Class A common stock and/or Class A partnership units of Group LP with no expiration date. This new authorization replaced the former repurchase program and the remaining authorization under the program was eliminated. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will be opportunistic and measured in nature and will depend on a variety of factors, including price and market conditions. The remaining balance of shares authorized for repurchase under the program was $86.4 million as of December 31, 2019.

Restricted Stock and Restricted Stock Units (RSUs)

Pursuant to the Plan and in connection with the Company’s annual compensation process and ongoing hiring process, the Company issues RSUs which generally vest over a service life of four to five years. For the years ended December 31, 2019, 2018 and 2017, the Company recognized expenses of $123,395, $120,012 and $91,598, respectively, in relation to these RSUs.

The following table summarizes activity related to restricted stock and RSUs for the years ended December 31, 2019, 2018 and 2017.

	Restricted Stock & RSUs
	2019					2018					2017
				Weighted					Weighted					Weighted
				Average					Average					Average
	Number of			Grant Date		Number of			Grant Date		Number of			Grant Date
	Shares			Fair Value		Shares			Fair Value		Shares			Fair Value
Unvested Balance at January 1,		8,761,224		$	37.59		9,357,999		$	30.15		8,504,190		$	26.70
Granted		4,384,073			44.59		3,376,027			54.23		3,348,651			37.40
Forfeited		(273,698	)		45.22		(127,606	)		38.90		(87,615	)		30.59
Vested		(4,457,469	)		34.63		(3,845,196	)		31.15		(2,407,227	)		27.10
Unvested Balance at December 31,		8,414,130		$	42.19		8,761,224		$	37.59		9,357,999		$	30.15

As of December 31, 2019, the total compensation expense related to unvested restricted stock and RSUs not yet recognized was $124,064. The weighted‑average period over which this compensation expense is expected to be recognized at December 31, 2019 is 1.4 years.

Stock Options

Pursuant to the Plan, the Company issued 3,501,881 stock options in 2014 which vest over a five‑year period. The Company estimated the fair value of stock option awards at grant using the Black‑Scholes valuation model with the following assumptions:

	Assumptions
Expected life (in years)		6
Weighted-average risk free interest rate		1.91	%
Expected volatility		35	%
Dividend yield		2.72	%
Weighted-average fair value at grant date	$	6.70

The Company paid special dividends of $8.30, in aggregate, through December 31, 2019. As required under Section 5 of the Company’s 2014 Omnibus Incentive Plan, the Compensation Committee of the Company’s Board of Directors equitably reduced the exercise price of the Company’s outstanding options to purchase common stock by $8.30 from $25.00 per share to $16.70 per share.

The following table summarizes activity related to stock options for the years ended December 31, 2019, 2018 and 2017.

	Stock Options Outstanding
	2019					2018					2017
				Weighted					Weighted					Weighted
				Average					Average					Average
	Number			Exercise Price		Number			Exercise Price		Number			Exercise Price
	Outstanding			Per Share		Outstanding			Per Share		Outstanding			Per Share
Outstanding at January 1,		2,017,067		$	16.70		2,436,232		$	16.70		2,822,728		$	16.70
Exercises		(1,285,533	)		16.70		(351,904	)		16.70		(279,277	)		16.70
Forfeitures or expirations		(3,000	)		16.70		(67,261	)		16.70		(107,219	)		16.70
Outstanding at December 31,		728,534		$	16.70		2,017,067		$	16.70		2,436,232		$	16.70

For the years ended December 31, 2019, 2018 and 2017, the Company recognized expenses of $606, $1,902, and $2,560 respectively, in relation to these stock options. As of April 2019, all stock options were fully vested and all stock options will expire during April 2020.

Stockholders Equity

12 Months Ended

Dec. 31, 2019

Stockholders Equity Note [Abstract]

Stockholders Equity

10.	STOCKHOLDERS EQUITY

Class A Common Stock

In April 2014, the Company issued 15,263,653 shares of Class A common stock in connection with the IPO and reorganization.

Since its IPO, the Company has conducted several offerings of Class A common stock in order to facilitate organized liquidity and increase the public float of its Class A common stock. The details of these offerings are displayed below. The Company did not retain any proceeds from the sale of its Class A common stock.

	Total Shares		Total Increase in
Date of Offering	Offered		Shares Outstanding
November, 2014		6,325,000		4,511,058
January, 2017		5,750,000		5,356,876
July, 2017		6,000,000		5,680,903
March, 2018		5,000,000		4,689,295
August, 2018		5,000,000		4,685,217
Total		28,075,000		24,923,349

As of December 31, 2019, there were 52,773,617 shares of Class A common stock issued, 2,757,558 shares of treasury stock, and 50,016,059 shares outstanding. As of December 31, 2018, there were 47,031,095 shares of Class A common stock issued, 1,426,115 shares of treasury stock, and 45,604,980 shares outstanding. The changes in Class A common stock are due primarily to the IPO and offering transactions described above, in addition to the exercise of stock options and vesting of restricted stock units in connection with the Company’s annual compensation process and ongoing hiring process.

Class B Common Stock

In conjunction with Moelis & Company’s IPO of its Class A common stock, the Company issued 36,158,698 shares of Class B common stock. Moelis & Company Partner Holdings LP (“Partner Holdings”) holds all shares of Class B common stock, enabling it initially to exercise majority voting control over the Company. The economic rights of Class B common stock are based on the ratio of the Class B subscription price to the initial public offering price of shares of Class A common stock (.00055 to 1). Shares of Class B common stock are generally not transferrable and, if transferred other than in the limited circumstances set forth in Moelis & Company’s Amended and Restated Certificate of Incorporation, such shares shall automatically convert into a number of shares of Class A common stock, or dollar equivalent. Each share of Class B common stock may also be converted to a number of Class A shares at the option of the holder. Holders of shares of Class B common stock are entitled to receive dividends of the same type as any dividends payable on outstanding shares of Class A common stock at a ratio of .00055 to 1.

	Class B Stock
	Purchased /			Purchase Cost
Date of Offering	Surrendered			(in thousands)
November, 2014		4,507,453	$		28
January, 2017		5,356,876			101
July, 2017		5,680,903			128
March, 2018		4,689,295			135
August, 2018		4,685,217			158
Total		24,919,744	$		550

As of December 31, 2019, and December 31, 2018, 10,397,915 and 10,493,358 shares of Class B common stock were issued and outstanding, respectively, due primarily to the IPO, offering transactions, and Class B conversions described above.

Treasury Stock

During the years ended December 31, 2019 and 2018, the Company repurchased 1,331,443 and 718,699 shares, respectively. Pursuant to the Company’s share repurchase program and shares repurchased from its employees for the purpose of settling tax liabilities incurred upon the delivery of equity-based compensation awards. The result of the repurchases was an increase of $51,175 and $33,473, respectively, in the treasury stock balance on the Company’s consolidated statements of changes in equity as of December 31, 2019 and 2018.

Noncontrolling Interests

A Group LP Class A partnership unit (not held by Moelis & Company or its subsidiaries) is exchangeable into one share of Moelis & Company Class A common stock and represents the Company’s noncontrolling interests (non‑redeemable). As of December 31, 2019 and 2018, partners held 12,958,022 and 13,053,465 Group LP partnership units, respectively, representing a 21% and 22% noncontrolling interest in Moelis & Company, respectively.

Controlling Interests

Moelis & Company operates and controls all of the business and affairs of Group LP and its operating entity subsidiaries indirectly through its equity interest in Group GP, and thus the 50,016,059 shares of Class A common stock outstanding at December 31, 2019 (45,604,980 as of December 31, 2018), represents the controlling interest.

Related-Party Transactions

12 Months Ended

Dec. 31, 2019

Related-Party Transactions

11. RELATED‑PARTY TRANSACTIONS

Aircraft Lease—On August 30, 2014, a related party, Moelis & Company Manager LLC ("Manager"), acquired an aircraft with funds received solely from its managing member (Mr. Moelis). The aircraft was used and operated by the Company pursuant to a dry lease with Manager. The terms of the dry lease were comparable to the market rates of leasing from an independent third party. Pursuant to this dry lease arrangement, the lessee is obligated to bear its share of the costs of operating the aircraft. In addition, Mr. Moelis was the other lessee of the aircraft and shared the operating and related costs of the plane in proportion to his respective use pursuant to a cost sharing and operating agreement. On July 12, 2019, the Company terminated its aircraft dry lease with Manager, the lessor, and Mr. Moelis, the other lessee (the “Old Lease”) and the related cost sharing agreement with Mr. Moelis, which were set to expire by their terms on December 31, 2019, and entered into a new dry lease with Manager, the lessor, and Mr. Moelis, the other lessee (the “New Lease”) and cost sharing agreement with Mr. Moelis, which terminates on December 31, 2022. The terms of the New Lease and new cost sharing agreement are substantially similar to the Old Lease and related cost sharing agreement.

For the years ended December 31, 2019, 2018, and 2017, the Company incurred $1,674, $1,872 and $1,872 in aircraft lease costs to be paid to Manager, respectively.

Promissory Notes—As of December 31, 2019, there were $189 of unsecured promissory notes from employees held by the Company (December 31, 2018: $189). Any outstanding balances are reflected in accrued and other receivables on the consolidated statements of financial condition. The notes held as of December 31, 2019 and 2018 bear a fixed interest rate of 4.00%. During the years ended December 31, 2019, 2018 and 2017, the Company received $0, $366 and $781, respectively, of principal repayments and recognized interest income of $8, $13 and $27, respectively, on such notes, which is included in other income and expenses on the consolidated statements of operations.

Services Agreement—In connection with the Company’s IPO, the Company entered into a services agreement with a related party, Moelis Asset Management LP, whereby the Company provides certain administrative services, technology, and office space to Moelis Asset Management LP for a fee. This fee totaled $248, $537 and $1,118 for the years ended December 31, 2019, 2018 and 2017, respectively. The amount of the fee is based upon the estimated usage and related expense of all shared services between the Company and Moelis Asset Management LP during the relevant period, and will be assessed periodically by management as per the terms of the agreement. As of December 31, 2019 and 2018, the Company had no balances due from Moelis Asset Management LP.

Moelis Australia—As of December 31, 2019 and 2018, the Company had net balances due to Moelis Australia of $0 and $1,673, respectively, which are reflected in accrued and other receivables on the consolidated statements of financial condition. These balances consist of amounts due to or from Moelis Australia for advisory services performed as well as billable expenses incurred by the Company on behalf of Moelis Australia during the period. The relationship between the Company and Moelis Australia is governed by a services agreement.

Revenues—From time to time, the Company enters into advisory transactions with Moelis Asset Management LP and its affiliates. The Company earned revenues associated with such transactions of $210, $1,882 and $1,240 for the years ended December 31, 2019, 2018 and 2017, respectively.

Regulatory Requirements

12 Months Ended

Dec. 31, 2019

Regulatory Capital Requirements [Abstract]

Regulatory Requirements

12.	REGULATORY REQUIREMENTS

Under the SEC Uniform Net Capital Rule (SEC Rule 15c3‑1) Alternative Standard under Section (a)(1)(ii), the minimum net capital requirement is $250. At December 31, 2019, Moelis U.S. had net capital of $160,401, which was $160,151 in excess of its required net capital. At December 31, 2018, Moelis U.S. had net capital of $63,099 which was $62,849 in excess of its required net capital.

Moelis U.S. does not carry customer accounts and does not otherwise hold funds or securities for, or owe money or securities to, customers and accordingly is exempt under Section (k)(2)(ii) of SEC Rule 15c3‑3.

At December 31, 2019, the aggregate regulatory net capital of Moelis UK was $11,978 which exceeded the minimum requirement by $11,922. At December 31, 2018, the aggregate regulatory net capital of Moelis UK was $23,041, which exceeded the minimum requirement by $22,984.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

13.	COMMITMENTS AND CONTINGENCIES

Bank Line of Credit— In June 2019, the Company renewed its revolving credit facility which extended the maturity date to June 30, 2020. In May 2018, the facility was revised and the commitment amount increased to $65,000.

Borrowings on the facility bear interest at the greater of a fixed rate of 3.50% per annum or at the borrower’s option of (i) LIBOR plus 1% or (ii) Prime minus 1.50%. As of December 31, 2019 and 2018, the Company had no borrowings under the credit facility.

As of December 31, 2019, the Company’s available credit under this facility was $60,036 as a result of the issuance of an aggregate amount of $4,964 of various standby letters of credit, which were required in connection with certain office lease and other agreements. The Company incurs a 1% per annum fee on the outstanding balance of issued letters of credit.

Leases— The Company maintains operating leases for corporate offices and an aircraft with various expiration dates, some of which extend through 2036. Some leases include options to terminate or to extend the lease terms. The Company records lease liabilities measured at the present value of anticipated lease payments over the lease term, including options to extend or terminate the lease when it is reasonably certain such options will be exercised. The implicit discount rates used to determine the present value of the Company’s leases are not readily determinable, thus the Company uses its secured borrowing rate, which was determined with reference to our available credit line. See below for additional information about the Company’s leases.

	Year Ended December 31,
($ in thousands)	2019
Supplemental Income Statement Information:
Operating lease cost	$	16,980

Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	19,373

Other Information
Weighted-average remaining lease term - operating leases		14.03	years
Weighted-average discount rate - operating leases		3.53	%

Right-of-use assets obtained in exchange for lease obligations (e.g. new leases commenced during the period):	$	160,657

During the fourth quarter of 2019, a lease commenced to expand the Company’s workspace at its headquarters at 399 Park Avenue in New York. The commencement of this lease led to the capitalization of approximately $151 million in right-of-use assets and operating lease liabilities.

During the years ended December 31, 2018 and 2017, the Company incurred expenses relating to its operating leases of $15,965 and $15,102, respectively.

As of December 31, 2019, the future sublease income and maturities of our operating lease liabilities are as follows:

Fiscal year ended		Sublease Income			Operating Lease Payments
2020	$		(878	)	$	16,085
2021			(878	)		18,662
2022			(878	)		23,424
2023			(878	)		20,428
2024			(878	)		18,791
Thereafter			(439	)		191,474
Total payments	$		(4,829	)	$	288,864

Less: Tenant improvement allowances						(22,852	)
Less: Present value adjustment						(68,387	)
Net lease liability					$	197,625

In accordance with ASC 840, the future minimum rental payments under the operating leases in place at December 31, 2018 are as follows:

Fiscal year ended	Operating Leases		Sublease Income			Net Minimum Payments
2019	$	19,742	$	(530	)	$	19,212
2020		13,836		(849	)		12,987
2021		8,682		(849	)		7,833
2022		8,471		(849	)		7,622
2023		7,090		(849	)		6,241
Thereafter		12,349		(1,273	)		11,076
Total	$	70,170	$	(5,199	)	$	64,971

Contractual Arrangements—In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and which provide indemnification for specified losses, including certain indemnification of certain officers, directors and employees.

Legal—In the ordinary course of business, from time to time the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters. In addition, government agencies and self-regulatory organizations conduct periodic examinations and initiate administrative proceedings regarding the Company’s business, including, among other matters, compliance, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees. In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

14.	EMPLOYEE BENEFIT PLANS

The Company covers substantially all U.S. salaried employees with a defined contribution 401(k) plan. Each salaried employee of the Company who has attained the age of 21 is eligible to participate in the 401(k) plan on their first day of employment. Any employer contributions to the 401(k) plan are entirely at the discretion of the Company. The Company accrued expenses relating to employer matching contributions to the 401(k) plan for the years ended December 31, 2019, 2018 and 2017, in the amounts of $2,860, $2,379 and $2,264, respectively.

Revenues and Business Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Revenues and Business Information

15.	REVENUES AND BUSINESS INFORMATION

The Company’s activities as an investment banking advisory firm constitute a single business segment offering clients, including corporations, governments, sovereign wealth funds and financial sponsors, a range of advisory services with expertise across all major industries in mergers and acquisitions, recapitalizations and restructurings, capital markets and other corporate finance matters.

Since the financial markets are global in nature, the Company generally manages its business based on the operating results of the enterprise taken as whole, not by geographic region. The following table disaggregates the revenues and assets based on the location of the office that generates the revenues or holds the assets, and therefore may not be reflective of the geography in which our clients are located. No client accounted for more than 10% of revenues for the years ended December 31, 2019, 2018 and 2017.

	Year Ended December 31,
	2019		2018		2017
Revenues:
United States	$	635,787	$	731,265	$	535,985
Europe		78,842		95,844		111,088
Rest of World		31,905		58,731		37,542
Total	$	746,534	$	885,840	$	684,615

	December 31,		December 31,
	2019		2018
Assets:
United States	$	934,654	$	756,053
Europe		67,247		55,064
Rest of World		69,798		103,258
Total	$	1,071,699	$	914,375

As of December 31, 2019, and December 31, 2018, the Company had deferred revenues of $3,023 and $7,074, respectively. These amounts primarily consist of upfront fees and retainers for our services. During the year ended December 31, 2019, $6,405 of revenues were recognized from the opening balance of deferred revenues.

Due to the factors that may delay or terminate a transaction (see Note 2), the Company does not estimate constrained transaction fees for revenue recognition. In accordance with ASC 606-10-50-14A, quantitative disclosures of constrained variable consideration are not provided for remaining performance obligations. In addition, remaining performance obligations related to retainers, upfront fees and announcement fees are typically associated with contracts that have durations of one year or less.

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

16.	SUBSEQUENT EVENTS

On February 4, 2020, the Board of Directors of Moelis & Company declared a special dividend of $0.75 per share in addition to a quarterly dividend of $0.51 per share. The $1.26 per share will be paid on March 27, 2020 to Class A common stockholders of record on February 18, 2020.

Schedule II-Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

Valuation And Qualifying Accounts [Abstract]

Schedule II-Valuation and Qualifying Accounts

Schedule II—Valuation and Qualifying Accounts

For the Year Ended December 31, 2019

(dollars in thousands)

	Allowance for Doubtful
	Accounts(1)
	2019			2018			2017
Balance at beginning of period	$	1,975		$	1,433		$	475
Additions:
Bad debt expense		2,399			1,044			2,895
Deductions:
Charge-offs of uncollectible balances		(286	)		(502	)		(1,937	)
Balance at end of period	$	4,088		$	1,975		$	1,433

(1)	Includes the allowance for doubtful accounts for both accounts receivable and other receivables.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting—The Company prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the combined operations, assets and liabilities of the Company.

Consolidation

Consolidation—The Company’s policy is to consolidate (i) entities, other than limited partnerships, in which it has a controlling financial interest, (ii) variable interest entities where the Company has a variable interest and is deemed to be the primary beneficiary and (iii) limited partnerships where the Company has ownership of the majority of voting interests. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity’s operating and financial decisions, the Company applies the equity method of accounting in which it records in earnings its share of income or losses of the entity. All intercompany balances and transactions with the Company’s subsidiaries have been eliminated in consolidation.

Use of Estimates

Use of Estimates—The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary.

In preparing the consolidated financial statements, management makes estimates and assumptions regarding:

•

the adequacy of the allowance for doubtful accounts;

•

the assessment of whether revenues from variable consideration should be constrained due to the probability of a significant revenue reversal;

•

the assessment of probable lease terms and the measurement of the present value of such obligations;

•

the measurement and realization of deferred taxes;

•

the measurement of amount due pursuant to tax receivable agreement;

•

the measurement and vesting of equity‑based compensation; and

•

other matters that affect the reported amounts and disclosures of contingencies in the financial statements.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash— Cash and cash equivalents include all short-term highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase.

The Company’s cash is maintained in U.S. and non-U.S. bank accounts, of which most bank account balances had little or no insurance coverage (most balances are held in U.S. and U.K. accounts which exceeded the U.S. Federal Deposit Insurance Corporation and U.K. Financial Services Compensation Scheme coverage limits). The Company’s cash equivalents are invested primarily in U.S. Treasury instruments, government securities money markets and government debt securities.

The Company’s restricted cash is comprised of collateral deposits primarily held by certain non-U.S. subsidiaries. These deposits are required for certain direct debit accounts and are also used to satisfy future medical claims. A reconciliation of the Company’s cash, cash equivalents and restricted cash as of December 31, 2019 and 2018, is presented below.

	December 31,
	2019		2018
Cash	$	71,798	$	59,705
Cash equivalents		96,014		201,395
Restricted cash		760		671
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	168,572	$	261,771

Receivables

Receivables—The accompanying consolidated statements of financial condition present accounts receivable balances net of allowance for doubtful accounts based on the Company’s assessment of the collectability of customer accounts.

Included in the accounts receivable balances at December 31, 2019 and 2018 were $19,879 and $26,738 of long term receivables related to private funds advisory capital raising engagements, which are generally paid in installments over a period of three to four years. These long term receivables generated interest income of $990, $653 and $408 for the years ended December 31, 2019, 2018 and 2017, respectively.

The Company maintains an allowance for doubtful accounts that, in management’s opinion, provides for an adequate reserve to cover losses that may be incurred. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable, and the current economic conditions that may affect a customer’s ability to pay such amounts owed to the Company.

After concluding that a reserved accounts receivable is no longer collectible, the Company will charge‑off the receivable. This is determined based on several factors including the age of the accounts receivable and the credit worthiness of the customer. This has the effect of reducing both the gross receivable and the allowance for doubtful accounts.

Deferred Compensation

Deferred Compensation—Deferred compensation costs represent arrangements with certain employees whereby cash payments are subject to a required period of service subsequent to payment by the Company. These amounts are charged to expenses over the period that the employee is required to provide services in order to vest in the payment.

Financial Instruments at Fair Value