Company: MMI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001578732-25-000040
Chunk: 93

Company: Marcus & Millichap, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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June 30,2025December 31,2024Stock appreciation rights (“SARs”) liability (1)$2,774 $2,603 $7,056 $9,518 Commissions payable to investment sales and financing professionals33,206 63,952 11,419 15,608 Deferred compensation liability (1)1,224 173 7,843 8,131 Other224 469 — — $37,428 $67,197 $26,318 $33,257 (1)The SARs and deferred compensation liabilities become subject to payout at the time the participant is no longer considered a service provider. As a result of the retirement of certain participants, estimated amounts to be paid to participants within the next twelve months have been classified as current. SARs Liability Prior to the IPO, certain employees of the Company were granted SARs under a stock-based compensation program assumed by MMC. In connection with the IPO, the SARs agreements were revised, the MMC liability of $20 million for the SARs was frozen as of March 31, 2013 and was transferred to MMI through a capital distribution. The SARs liability will be settled with each participant in ten annual installments in January of each year upon retirement or termination from service, or in full upon consummation of a change in control of the Company. Under the revised agreements, MMI is required to accrue interest on the outstanding balance beginning on January 1, 2014, at a rate based on the 10-year treasury note, plus 2%. The rate resets annually. The rates at January 1, 2025 and 2024 were 6.57% and 5.95%, respectively. MMI recorded interest expense related to this liability of $157,000 and $170,000 for 

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Table of ContentsMARCUS & MILLICHAP, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited) 

the three months ended June 30, 2025 and 2024, respectively, and $313,000 and $340,000 for the six months ended June 30, 2025 and 2024, respectively.Estimated payouts within the next twelve months for participants that have separated from service have been classified as current. During the six months ended June 30, 2025 and 2024, the Company made total payments of $2.6 million and