Revenue

The following table presents revenue recognized by the Company for the three and nine months ended September 30, 2018:



	For the Three Months Ended September 30, 2018		For the Nine Months Ended September 30, 2018
	For the Three Months Ended September 30, 2018		For the Nine Months Ended September 30, 2018
Investment Banking:
Advisory Fees	$	305,949	$	1,047,259
Underwriting Fees	11,440		62,784
Commissions and Related Fees	45,337		139,447
Total Investment Banking	$	362,726	$	1,249,490

Investment Management:
Asset Management and Administration Fees:
Wealth Management	$	11,560	$	33,826
Institutional Asset Management	1,118		2,777
Total Investment Management	$	12,678	$	36,603

Following the adoption of ASU 2014-09, expenses related to underwriting transactions are presented gross in the results of operations of the Company, whereas under legacy U.S. GAAP these expenses were presented net. Underwriting Fees are gross of related non-compensation expenses of $116 and $3,913 in the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018, respectively. Professional Fees, Travel and Related Expenses, Communications and Information Services and Other Operating Expenses in the Unaudited Condensed Consolidated Statements of Operations are gross of non-compensation expenses of $34, $16, $16 and $50, respectively, for the three months ended September 30, 2018 and $1,957, $391, $391 and $1,174, respectively, for the nine months ended September 30, 2018.

Contract Balances

The change in the Company’s contract assets and liabilities during the period primarily reflects timing differences between the Company’s performance and the client’s payment. The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the nine months ended September 30, 2018 are as follows:



	Receivables (Current)⁽¹⁾		Receivables (Long-term)⁽²⁾		Contract Assets (Current)⁽³⁾		Contract Assets (Long-term)⁽⁴⁾		Deferred Revenue (Current Contract Liabilities)⁽⁵⁾		Deferred Revenue (Long-term Contract Liabilities)⁽⁶⁾
Balance at January 1, 2018	$	184,993	$	34,008	$	—	$	—	$	3,147	$	1,834
Increase (Decrease)	47,263		19,728		46,960		3,869		7,011		(103		)
Balance at September 30, 2018	$	232,256	$	53,736	$	46,960	$	3,869	$	10,158	$	1,731


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


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


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


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


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


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

The Company's contract assets represent arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date. The application of ASC 606 resulted in advisory revenue of $50,829 being recognized on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018, representing variable consideration under the standard for which it is probable that a significant reversal of revenue will not occur, substantially all of which would have been recognized in the fourth quarter of 2018 under the legacy accounting standard. Under ASC 606, revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $3,740 and $8,984 on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018, respectively, that was previously included in deferred revenue on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

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