Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 07, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NMRK | |
Entity Registrant Name | NEWMARK GROUP, INC. | |
Entity Central Index Key | 0001690680 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38329 | |
Entity Tax Identification Number | 814467492 | |
Entity Address, Address Line One | 125 Park Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | New York | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 372-2000 | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 156,375,464 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,285,533 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 107,671 | $ 122,475 |
Restricted cash and cash equivalents | 57,661 | 64,931 |
Marketable securities | 33,659 | 48,942 |
Loans held for sale, at fair value | 818,909 | 990,864 |
Receivables, net | 466,849 | 451,605 |
Receivables from related parties | 1,237 | 20,498 |
Other current assets (see Note 19) | 79,394 | 57,739 |
Total current assets | 1,565,380 | 1,757,054 |
Goodwill | 543,125 | 515,321 |
Mortgage servicing rights, net | 400,783 | 411,809 |
Loans, forgivable loans and other receivables from employees and partners, net | 320,400 | 285,532 |
Fixed assets, net | 83,543 | 78,805 |
Other intangible assets, net | 35,248 | 35,769 |
Other assets (see Note 19) | 558,379 | 369,867 |
Total assets | 3,506,858 | 3,454,157 |
Current liabilities: | ||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | 793,194 | 972,387 |
Accrued compensation | 339,581 | 366,506 |
Current portion of accounts payable, accrued expenses and other liabilities (see Note 29) | 330,084 | 312,239 |
Securities loaned | 33,659 | |
Current portion of payables to related parties | 25,508 | 13,507 |
Total current liabilities | 1,522,026 | 1,664,639 |
Long-term debt | 582,840 | 537,926 |
Other long-term liabilities (see Note 29) | 359,274 | 168,623 |
Total liabilities | 2,464,140 | 2,371,188 |
Commitments and contingencies (see Note 31) | ||
Redeemable partnership interests | 26,715 | 26,170 |
Equity: | ||
Additional paid-in capital | 292,441 | 285,071 |
Retained earnings | 277,115 | 277,952 |
Total stockholders’ equity | 559,925 | 567,569 |
Noncontrolling interests | 456,078 | 489,230 |
Total equity | 1,016,003 | 1,056,799 |
Total liabilities, redeemable partnership interests, and equity | 3,506,858 | 3,454,157 |
Class A Common Stock [Member] | ||
Equity: | ||
Common stock value | 1,583 | 1,570 |
Treasury stock value | (14,382) | (486) |
Total equity | 1,583 | 1,570 |
Class B Common Stock [Member] | ||
Equity: | ||
Common stock value | 212 | 212 |
Total equity | 212 | 212 |
Contingent Class A Common Stock | ||
Equity: | ||
Common stock value | 2,956 | 3,250 |
Total equity | $ 2,956 | $ 3,250 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Class A Common Stock [Member] | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | |||||
Common stock, shares issued | 158,342,559 | 156,966,336 | 131,886,409 | ||||
Common stock, shares outstanding | 156,679,527 | 157,422,916 | 156,916,336 | 138,921,533 | 138,921,533 | 138,593,787 | |
Treasury stock, shares issued | 1,663,032 | 50,000 | |||||
Class B Common Stock [Member] | |||||||
Common stock, par value | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||||
Common stock, shares issued | 21,285,533 | 21,285,533 | 21,285,537 | ||||
Common stock, shares outstanding | 21,285,533 | 21,285,533 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues: | |||||
Revenues | $ 346,131 | $ 279,833 | $ 621,399 | $ 540,568 | |
Type of Revenue [Extensible List] | nmrk:CommissionsMember | nmrk:CommissionsMember | nmrk:CommissionsMember | nmrk:CommissionsMember | |
Gains from mortgage banking activities/originations, net | $ 45,091 | $ 41,877 | $ 76,437 | $ 80,791 | |
Management services, servicing fees and other | 160,256 | 144,909 | 301,298 | 275,720 | |
Revenues | 551,478 | 466,619 | 999,134 | 897,079 | |
Expenses: | |||||
Compensation and employee benefits | 316,737 | 266,639 | 580,090 | 527,727 | |
Equity-based compensation and allocations of net income to limited partnership units and FPUs | 39,353 | 67,367 | 53,224 | 84,783 | |
Total compensation and employee benefits | 356,090 | 334,006 | 633,314 | 612,510 | |
Operating, administrative and other | 101,749 | 80,048 | 189,642 | 155,475 | |
Fees to related parties | 7,222 | 6,301 | 13,947 | 13,195 | |
Depreciation and amortization | 33,425 | 20,201 | 61,729 | 42,714 | |
Total operating expenses | 498,486 | 440,556 | 898,632 | 823,894 | |
Other income (loss), net: | |||||
Other income (loss), net | (3,726) | (365) | (13,444) | 5,342 | |
Total other income (loss), net | (3,726) | (365) | (13,444) | 5,342 | |
Income from operations | 49,266 | 25,698 | 87,058 | 78,527 | |
Interest expense, net | (8,081) | (10,582) | (15,780) | (23,991) | |
Income before income taxes and noncontrolling interests | 41,185 | 15,116 | 71,278 | 54,536 | |
Provision for income taxes | 9,121 | 10,822 | 15,808 | 17,755 | |
Consolidated net income | 32,064 | 4,294 | 55,470 | 36,781 | |
Less: Net income attributable to noncontrolling interests | 9,396 | 3,555 | 15,898 | 16,045 | |
Net income available to common stockholders | 22,668 | 739 | 39,572 | 20,736 | |
Basic earnings per share | |||||
Net income available to common stockholders | [1] | $ 19,444 | $ 546 | $ 33,124 | $ 20,542 |
Basic earnings per share | $ 0.11 | $ 0 | $ 0.19 | $ 0.13 | |
Basic weighted-average shares of common stock outstanding | 178,754 | 155,157 | 178,683 | 155,447 | |
Fully diluted earnings per share | |||||
Net income for fully diluted shares | $ 23,308 | $ 546 | $ 33,124 | $ 32,562 | |
Fully diluted earnings per share | $ 0.11 | $ 0 | $ 0.18 | $ 0.13 | |
Fully diluted weighted-average shares of common stock outstanding | 208,150 | 155,938 | 179,434 | 252,804 | |
[1] | Includes a reduction for dividends on preferred stock or units in the amount of $3.2 million and $6.4 million for the three and six months ended June 30, 2019, respectively, and $0.2 million for the three and six months ended June 30, 2018. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Reduction for dividends on preferred stock or units | $ 3.2 | $ 0.2 | $ 6.4 | $ 0.2 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Consolidated net income | $ 32,064 | $ 4,294 | $ 55,470 | $ 36,781 |
Comprehensive income, net of tax | 32,064 | 4,294 | 55,470 | 36,781 |
Less: Comprehensive income attributable to noncontrolling interests, net of tax | 9,396 | 3,555 | 15,898 | 16,045 |
Comprehensive income available to common stockholders | $ 22,668 | $ 739 | $ 39,572 | $ 20,736 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Contingent Class A Common Stock | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Noncontrolling Interests in Subsidiaries [Member] | Common Stock |
Beginning Balance at Dec. 31, 2017 | $ 222,318 | $ 1,386 | $ 158 | $ 59,374 | $ 199,492 | $ (38,092) | |||
Consolidated net income | 36,781 | 20,736 | 16,045 | ||||||
Cumulative effect of revenue standard adoption | 18,805 | 16,463 | 2,342 | ||||||
Reduction of earning distributions | 2,144 | 2,144 | |||||||
Dividends to common stockholders | (13,929) | (13,929) | |||||||
Equity-based compensation and related issuance of (Class Acommon stock 327,746 shares) | (4,897) | 3 | (4,900) | ||||||
Additional contribution from BGC as a result of Separation | 7,217 | 5,820 | 1,397 | ||||||
Earnings distributions to limited partnership interests and other noncontrolling interests | (13,713) | (13,713) | |||||||
BGC's purchase of 16,606,726 exchangeable limited partnershipunits in Newmark Holdings | 241,960 | 241,960 | |||||||
Grant of exchangeability, redemption and issuance of limited partnership interests | 84,277 | 84,277 | |||||||
Issuance of exchangeable preferred partnership units in Newmark OpCo | 174,779 | 174,779 | |||||||
Issuance of limited partnership units including contingent units | 1,653 | 1,653 | |||||||
Ending Balance at Jun. 30, 2018 | 757,395 | 1,389 | 158 | 60,294 | 224,906 | 470,648 | |||
Dividends declared per share of common stock | $ 0.18 | ||||||||
Dividends paid per share of common stock | 0.09 | ||||||||
Beginning Balance at Mar. 31, 2018 | 531,577 | 1,389 | 158 | 54,474 | 238,096 | 237,460 | |||
Consolidated net income | 4,294 | 739 | 3,555 | ||||||
Dividends to common stockholders | (13,929) | (13,929) | |||||||
Additional contribution from BGC as a result of Separation | 7,217 | 5,820 | 1,397 | ||||||
Earnings distributions to limited partnership interests and other noncontrolling interests | (12,604) | (12,604) | |||||||
Grant of exchangeability, redemption and issuance of limited partnership interests | 64,408 | 64,408 | |||||||
Issuance of exchangeable preferred partnership units in Newmark OpCo | 174,779 | 174,779 | |||||||
Issuance of limited partnership units including contingent units | 1,653 | 1,653 | |||||||
Ending Balance at Jun. 30, 2018 | 757,395 | 1,389 | 158 | 60,294 | 224,906 | 470,648 | |||
Dividends declared per share of common stock | 0.09 | ||||||||
Dividends paid per share of common stock | 0.09 | ||||||||
Beginning Balance at Dec. 31, 2018 | 1,056,799 | 1,570 | 212 | $ 3,250 | 285,071 | $ (486) | 277,952 | 489,230 | |
Consolidated net income | 55,470 | 39,572 | 15,898 | ||||||
Dividends to common stockholders | (33,961) | (33,961) | |||||||
Preferred dividend on exchangeable preferred partnership units | (6,448) | 6,448 | |||||||
Earnings distributions to limited partnership interests and other noncontrolling interests | (41,521) | (41,521) | |||||||
Grant of exchangeability, redemption and issuance of limited partnership interests | (13,862) | 13 | 4,760 | (18,635) | |||||
Issuance of limited partnership units including contingent units | 7,021 | 2,363 | 4,658 | ||||||
Repurchase of 1,613,032 shares of Class A common stock | (13,896) | (13,896) | |||||||
Issuance of Class A common stock, shares | (294) | 294 | |||||||
Other | (47) | (47) | |||||||
Ending Balance at Jun. 30, 2019 | 1,016,003 | 1,583 | 212 | 2,956 | 292,441 | (14,382) | 277,115 | 456,078 | |
Dividends declared per share of common stock | 0.20 | ||||||||
Dividends paid per share of common stock | 0.19 | ||||||||
Beginning Balance at Mar. 31, 2019 | 1,020,798 | 1,574 | 212 | 3,141 | 284,054 | (486) | 275,589 | 456,714 | |
Consolidated net income | 32,064 | 22,668 | 9,396 | ||||||
Dividends to common stockholders | (17,918) | (17,918) | |||||||
Preferred dividend on exchangeable preferred partnership units | (3,224) | 3,224 | |||||||
Earnings distributions to limited partnership interests and other noncontrolling interests | (14,241) | (14,241) | |||||||
Grant of exchangeability, redemption and issuance of limited partnership interests | 1,668 | 9 | 5,332 | (3,673) | |||||
Issuance of limited partnership units including contingent units | 7,021 | 2,363 | 4,658 | ||||||
Repurchase of 1,613,032 shares of Class A common stock | (13,896) | (13,896) | |||||||
Issuance of Class A common stock, shares | (185) | 185 | |||||||
Other | 507 | 507 | |||||||
Ending Balance at Jun. 30, 2019 | $ 1,016,003 | $ 1,583 | $ 212 | $ 2,956 | $ 292,441 | $ (14,382) | $ 277,115 | $ 456,078 | |
Dividends declared per share of common stock | 0.10 | ||||||||
Dividends paid per share of common stock | $ 0.10 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class A Common Stock [Member] | |||
Equity-based compensation and related issuance, shares | 327,746 | ||
Grant of exchangeability, redemption and issuance of limited partnership interests and issuance of common stock, shares | 949,283 | 1,447,412 | |
Repurchase of shares | 1,613,032 | 1,613,032 | |
Issuance of common stock, shares | 28,484 | 36,935 | |
Noncontrolling Interests in Subsidiaries [Member] | |||
BGC's purchase of exchangeable limited partnership units in Newmark Holdings, shares | 16,606,726 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Consolidated net income | $ 32,064 | $ 4,294 | $ 55,470 | $ 36,781 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Gain on originated mortgage servicing rights | (38,687) | (31,731) | |||
Depreciation and amortization | 33,425 | 20,201 | 61,729 | 42,714 | |
Equity-based compensation and allocations of net income to limited partnership units and FPUs | 53,224 | 84,783 | |||
Employee loan amortization | 18,504 | 11,605 | |||
Deferred tax provision | 956 | 4,395 | |||
Change in fair value of contingent consideration | 431 | 353 | |||
Unrealized gains on loans held for sale | (25,698) | (7,288) | |||
Income from an equity method investment | (4,750) | (5,019) | |||
Provision for uncollectible accounts | 1,645 | 2,217 | |||
Realized gains on marketable securities | (1,900) | (900) | (1,812) | (1,494) | |
Unrealized gains on marketable securities | (5,110) | (1,444) | |||
Unrealized gain on measurement alternative investments | (3,927) | ||||
Changes in valuation of derivative asset | 28,967 | 2,808 | |||
Loan originations—loans held for sale | (3,498,483) | (2,659,827) | |||
Loan sales—loans held for sale | 3,696,135 | 2,481,781 | |||
Other | 2,045 | 509 | |||
Consolidated net income (loss), adjusted for non-cash and non-operating items | 340,639 | (38,857) | |||
Changes in operating assets and liabilities: | |||||
Receivables, net | (14,877) | (44,487) | |||
Loans, forgivable loans and other receivables from employees and partners | (53,809) | (49,910) | |||
Other assets | (43,491) | (24,674) | |||
Accrued compensation | (41,623) | (2,920) | |||
Accounts payable, accrued expenses and other liabilities | 31,771 | 39,859 | |||
Net cash provided by (used in) operating activities | 218,610 | (120,989) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Payments for acquisitions, net of cash acquired | (16,203) | (5,255) | |||
Proceeds from the sale of marketable securities | 22,204 | 51,433 | |||
Purchases of non-marketable investments | (20,100) | (22,500) | |||
Purchases of fixed assets | (10,740) | (9,128) | |||
Purchases of mortgage servicing rights | (722) | (1,608) | |||
Net cash (used in) provided by investing activities | (25,561) | 12,942 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from warehouse facilities | 3,498,483 | 2,659,827 | |||
Principal payments on warehouse facilities | (3,677,675) | (2,479,696) | |||
Proceeds from BGC's purchase of exchangeable limited partnership units in Newmark Holdings | 241,960 | ||||
Proceeds from issuance of exchangeable preferred partnership units | 152,886 | ||||
Payments to related parties | (3,760) | (18,000) | |||
Borrowings from related parties | 251,227 | ||||
Settlement of pre-Spin-Off related party receivables | 33,892 | ||||
Fees relating to the IPO | (8,870) | ||||
Repayment of debt | (65,000) | (423,560) | |||
Borrowings of debt | 110,000 | ||||
Securities loaned | 33,660 | (48,496) | |||
Earnings distributions to limited partnership interests and noncontrolling interests | (93,868) | (100) | |||
Dividends to stockholders | (33,961) | (13,929) | |||
Treasury stock repurchases | (13,896) | ||||
Payments on acquisition earn-outs | (2,917) | (3,255) | |||
Payments of deferred financing costs | (81) | (56) | |||
Net cash (used in) provided by financing activities | (215,123) | 309,938 | |||
Net (decrease) increase in cash and cash equivalents and restricted cash | (22,074) | 201,891 | |||
Cash and cash equivalents and restricted cash at beginning of period | 187,406 | 173,374 | $ 173,374 | ||
Cash and cash equivalents and restricted cash at end of period | $ 165,332 | $ 375,265 | 165,332 | 375,265 | $ 187,406 |
Cash paid during the period for: | |||||
Interest | 18,611 | 33,366 | |||
Taxes | $ 73,950 | $ 34 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | (1) Newmark Group, Inc., formerly known as Newmark Knight Frank (together with its subsidiaries, “Newmark” or the “Company”), a Delaware corporation, was formed as NRE Delaware, Inc. on November 18, 2016. Newmark changed its name to Newmark Group, Inc. on October 18, 2017. Newmark Holdings, L.P. (“Newmark Holdings”) is a consolidated subsidiary of Newmark for which Newmark is the general partner. Newmark and Newmark Holdings jointly own Newmark Partners, L.P. (“Newmark OpCo”), the operating partnership. Newmark is a leading commercial real estate services firm. Newmark offers a diverse array of integrated services and products designed to meet the full needs of both real estate investors/owners and occupiers. Newmark’s investor/owner services and products include capital markets, which consists of investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory, commercial real estate due diligence consulting and advisory services and Government Sponsored Enterprise (“GSE”) lending and loan servicing, mortgage broking and equity-raising. Newmark’s occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate consulting services, project management, lease administration and facilities management. Newmark enhances these services and products through innovative real estate technology solutions and data analytics that enable clients to increase their efficiency and profits by optimizing their real estate portfolio. Newmark has relationships with many of the world’s largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. Newmark was formed through BGC Partners, Inc.’s (“BGC Partners” or “BGC”) purchase of Newmark & Company Real Estate, Inc. and certain of its affiliates in 2011. A majority of the voting power of BGC Partners is held by Cantor Fitzgerald, L.P. (“CFLP” or “Cantor”), including Cantor Fitzgerald & Co (“CF&Co”). Subsequent to the Spin-Off, as defined below, the majority of the voting power of Newmark is held by Cantor. On November 30, 2018 (the “Distribution Date”), BGC completed its previously announced pro-rata distribution (the “Spin-Off”) to its stockholders of all of the shares of common stock of Newmark owned by BGC as of immediately prior to the effective time of the Spin-Off, with shares of Newmark Class A common stock distributed to the holders of shares of BGC Class A common stock (including directors and executive officers of BGC Partners) of record as of the close of business on November 23, 2018 (the “Record Date”), and shares of Newmark Class B common stock distributed to the holders of shares of BGC Partners Class B common stock (consisting of Cantor and CF Group Management, Inc. (“CFGM”)) of record as of the close of business on the Record Date. The Spin-Off was effective as of 12:01 a.m., New York City time, on the Distribution Date. See Note 1 – Organization and Basis of Presentation to the Company’s consolidated financial statements included in Part II, Item 8 of Newmark’s Annual Report on Form 10-K as of December 31, 2018, for further information regarding the transactions related to the intial public offering (“IPO”) and Spin-Off of Newmark. A summary of the key transactions is provided below. Acquisition of Berkeley Point and Investment in Real Estate LP On September 8, 2017, BGC acquired, from Cantor Commercial Real Estate Company, LP (“CCRE”), 100% of the equity of Berkeley Point Financial LLC (the “Berkeley Point Acquisition”). Berkeley Point Financial LLC (“Berkeley Point” or “BPF”) is a leading commercial real estate finance company focused on the origination and sale of multifamily and other commercial real estate loans through government-sponsored and government-funded loan programs, as well as the servicing of commercial real estate loans. On December 13, 2017, in connection with the separation from BGC, the assets and liabilities of Berkeley Point were transferred to Newmark (See Note 27 – Related Party Transactions). Concurrently with the Berkeley Point Acquisition, on September 8, 2017 Newmark invested $100.0 million in a newly formed commercial real estate-related financial and investment business, CF Real Estate Finance Holdings, L.P. (“Real Estate LP”), which is controlled and managed by Cantor. Real Estate LP may conduct activities in any real estate-related business or asset backed securities-related business or any extensions thereof and ancillary activities thereto. In addition, Real Estate LP may provide short-term loans to related parties from time to time when funds in excess of amounts needed for investment are available. As of June 30, 2019, Newmark’s investment in Real Estate LP was accounted for under the equity method. Separation and Distribution Agreement and IPO On December 13, 2017, prior to the closing of Newmark’s IPO, BGC, BGC Holdings, BGC Partners, L.P. (“BGC U.S. OpCo”), Newmark, Newmark Holdings, Newmark OpCo and, solely for the provisions listed therein, Cantor and BGC Global Holdings, L.P. (“BGC Global OpCo”) entered into a Separation and Distribution Agreement (the “Separation and Distribution Agreement”). The Separation and Distribution Agreement set forth the agreements among BGC, Cantor, Newmark and their respective subsidiaries regarding, among other things: • the principal corporate transactions pursuant to which BGC, BGC Holdings and BGC U.S. OpCo and their respective subsidiaries (other than the Newmark Group (defined below), the “BGC Group”) transferred to Newmark, Newmark Holdings and Newmark OpCo and their respective subsidiaries (the “Newmark Group”) the assets and liabilities of the BGC Group relating to BGC’s Real Estate Services business, including BGC’s interests in both BPF and Real Estate LP (the “Separation”); • the proportional distribution of interests in Newmark Holdings to holders of interests in BGC Holdings; • the IPO; • the assumption and repayment of indebtedness by the BGC Group and the Newmark Group, as further described below; and • the pro-rata distribution of the shares of Newmark Class A common stock and the shares of Newmark Class B common stock held by BGC, pursuant to which shares of Newmark Class A common stock held by BGC would be distributed to the holders of shares of BGC Class A common stock and shares of Newmark Class B common stock held by BGC would be distributed to the holders of shares of BGC Class B common stock, which distribution is intended to qualify as generally tax-free for U.S. federal income tax purposes. Initial Public Offering On December 15, 2017, Newmark announced the pricing of the IPO of 20 million shares of Newmark’s Class A common stock at a price to the public of $14.00 per share, which was completed on December 19, 2017. Newmark Class A shares began trading on December 15, 2017 on the NASDAQ Global Select Market under the symbol “NMRK” (See Note 27 – Related Party Transactions for additional information). In addition, Newmark granted the underwriters a 30-day option to purchase up to an additional 3 million shares of Newmark Class A common stock at the IPO price, less underwriting discounts and commissions. On December 26, 2017, the underwriters of the IPO exercised in full their overallotment option to purchase an additional 3 million shares of Newmark Class A common stock from Newmark at the IPO price, less underwriting discounts and commission. Debt In connection with the Separation, on December 13, 2017, Newmark OpCo assumed all of BGC U.S. OpCo’s rights and obligations under the 2042 Promissory Note in relation to the 8.125% Senior Notes and the 2019 Promissory Note in relation to the 5.375% Senior Notes. Newmark repaid the $112.5 million outstanding principal amount under the 2042 Promissory Note on September 5, 2018, and repaid the $300.0 million outstanding principal amount under the 2019 Promissory Note on November 23, 2018. In addition, as part of the Separation, Newmark assumed the obligations of BGC as borrower under the Term Loan and Converted Term Loan. Newmark repaid the outstanding balance of the Term Loan as of March 31, 2018, and repaid the outstanding balance of the Converted Term Loan as of November 6, 2018. In addition, on March 19, 2018, BGC loaned Newmark $150.0 million under the “Intercompany Credit Agreement” on the same day. All borrowings outstanding under the Intercompany Credit Agreement were repaid as of November 7, 2018 (See Note 22 — Long-term Debt for defined terms and more information on Newmark’s long-term debt). BGC’s Investment in Newmark Holdings On March 7, 2018, BGC Partners and its operating subsidiaries purchased 16.6 million newly issued exchangeable limited partnership units (the “Newmark Units”) of Newmark Holdings L.P. for approximately $242.0 million (the “Investment in Newmark in Newmark Holdings”) (See Note 27 – Related Party Transactions for additional information). Nasdaq Monetization Transactions On June 28, 2013, BGC sold certain assets of its on-the-run, electronic benchmark U.S. Treasury platform (“eSpeed”) to Nasdaq. The total consideration received in the transaction included $750.0 million in cash paid upon closing and an earn-out of up to 14,883,705 shares of Nasdaq common stock to be paid ratably over 15 years, provided that Nasdaq, as a whole, produces at least $25.0 million in consolidated gross revenues each year. Exchangeable Preferred Partnership Units and Forward Contracts On June 18, 2018 and September 26, 2018, Newmark’s principal operating subsidiary, Newmark OpCo, issued approximately $175.0 million and $150.0 million of exchangeable partnership units (“EPUs”), respectively, in private transactions to the Royal Bank of Canada (“RBC”) (the “Newmark OpCo Preferred Investment”). Newmark received $152.9 million and $113.2 million of cash in the second and third quarter, respectively, of 2018 with respect to these transactions. The EPUs were issued in four tranches and are separately convertible by either RBC or Newmark into a fixed number of Newmark’s Class A common stock, subject to a revenue hurdle for Newmark in each of the fourth quarters of 2019 through 2022 for each of the respective four tranches. As the EPUs represent equity ownership of a consolidated subsidiary of Newmark, they have been included in Noncontrolling interests on the unaudited condensed consolidated statements of changes in equity. The EPUs are entitled to a preferred payable-in-kind dividend, which is recorded as accretion to the carrying amount of the EPUs through Retained Earnings on the unaudited condensed consolidated statements of changes in equity and are reductions to Net income (loss) available to common stockholders for the purpose of calculating earnings per share. Contemporaneously with the issuance of the EPUs, the newly formed special purpose vehicle entities (the “SPVs”) that are consolidated subsidiaries of Newmark, entered into four variable postpaid forward contracts with RBC (together, the "Nasdaq Forwards"). The SPVs are indirect subsidiaries of Newmark whose sole asset is the Nasdaq share Earn-Outs for 2019 through 2022.The Nasdaq Forwards provide the option to both Newmark and RBC for RBC to receive up to 992,247 shares of Nasdaq common stock, received by Newmark pursuant to the Nasdaq earn-out (See Note 7 — Marketable Securities), in each of the fourth quarters of 2019 through 2022 in exchange for either cash or redemption of the EPUs, solely at Newmark’s option. The Spin-Off On November 30, 2018, BGC completed the Spin-Off to its stockholders of all of the shares of Newmark’s common stock owned by BGC as of immediately prior to the effective time of the Spin-Off, with shares of Newmark’s Class A common stock distributed to the holders of shares of BGC’s Class A common stock (including directors and executive officers of BGC Partners) of record as of the close of business on (the Record Date, and shares of Newmark’s Class B common stock distributed to the holders of shares of BGC’s Class B common stock (consisting of Cantor and CFGM) of record as of the close of business on the Record Date. Based on the number of shares of BGC common stock outstanding as of the close of business on the Record Date, BGC’s stockholders as of the Record Date received in the Distribution 0.463895 of a share of Newmark Class A common stock for each share of BGC Class A common stock held as of the Record Date, and 0.463895 of a share of Newmark Class B common stock for each share of BGC Class B common stock held as of the Record Date. BGC Partners stockholders received cash in lieu of any fraction of a share of Newmark common stock that they otherwise would have received in the Distribution. Prior to and in connection with the Spin-Off, 14.8 million Newmark Holdings Units held by BGC were exchanged into 9.4 million shares of Newmark Class A common stock and 5.4 million shares of Newmark Class B common stock, and 7.0 million Newmark OpCo Units held by BGC were exchanged into 6.9 million shares of Newmark Class A common stock. These Newmark Class A and Class B shares of common stock were included in the Spin-Off to BGC’s stockholders. In the aggregate, BGC distributed 131,886,409 shares of Newmark’s Class A common stock and 21,285,537 shares of Newmark’s Class B common stock to BGC’s stockholders in the Distribution. These shares of Newmark’s common stock collectively represented approximately 94% of the total voting power of outstanding common stock and approximately 87% of the total economics of Newmark outstanding common stock in each case as of the Distribution Date. On November 30, 2018, BGC Partners also caused its subsidiary, BGC Holdings, L.P. (“BGC Holdings”), to distribute pro-rata (the “BGC Holdings distribution”) all of the 1,458,931 exchangeable limited partnership units of Newmark Holdings held by BGC Holdings immediately prior to the effective time of the BGC Holdings distribution to its limited partners entitled to receive distributions on their BGC Holdings units (including Cantor and executive officers of BGC) who were holders of record of such units as of the Record Date. The Newmark Holdings units distributed to BGC Holdings partners in the BGC Holdings distribution are exchangeable for shares of Newmark Class A common stock, and in the case of the 449,917 Newmark Holdings units received by Cantor also into shares of Newmark Class B common stock, at the applicable exchange ratio (subject to adjustment). As of June 30, 2019, the exchange ratio was 0.9495 shares of Newmark common stock per Newmark Holdings unit. Following the Spin-Off and the BGC Holdings distribution, BGC Partners ceased to be Newmark’s controlling stockholder, and BGC and its subsidiaries no longer held any shares of Newmark common stock or other equity interests in it or its subsidiaries. Cantor continues to control Newmark and its subsidiaries following the Distribution and the BGC Holdings distribution. (a) Newmark’s unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission and in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The Newmark unaudited condensed consolidated financial statements were prepared on a stand-alone basis derived from the financial statements and accounting records of BGC, prior to the Spin-Off. “Equity-based compensation and allocations of net income to limited partnership units and FPUs” reflect the following items: • Charges with respect to grants of exchangeability, which reflect the right of holders of limited partnership units with no capital accounts, such as LPUs and PSUs, to exchange these units into shares of common stock, or into partnership units with capital accounts, such as HDUs, as well as cash paid with respect to taxes withheld or expected to be owed by the unit holder upon such exchange. The withholding taxes related to the exchange of certain non-exchangeable units without a capital account into either common shares or units with a capital account may be funded by the redemption of preferred units such as PPSUs. • Charges with respect to preferred unit redemption. Any preferred units would not be included in Newmark ’s fully diluted share count because they cannot be made exchangeable into shares of common stock and are entitled only to a fixed distribution. Preferred units are granted in connection with the grant of certain limited partnership units that may be granted exchangeability at ratios designed to cover any withholding taxes expected to be paid by the unit holder upon exchange. This is an alternative to the common practice among public companies of issuing the gross amount of shares to employees, subject to cashless withholding of shares, to pay applicable withholding taxes. • Equity-based compensation charges with respect to the grant of an offsetting amount of common stock or partnership units with capital accounts in connection with the redemption of non-exchangeable units, including PSUs and LPUs. • Charges related to amortization of RSUs and limited partnership units. • Charges related to grants of equity awards, including common stock and partnership units with capital accounts. • Allocations of net income to limited partnership units and founding/working partner units (“FPUs”). Such allocations represent the pro-rata portion of post-tax GAAP earnings available to such unit holders. Newmark also changed “Gains from mortgage banking activities, net” to “Gains from mortgage banking activities/orginations, net” during the year ended December 31, 2018. The line item “Warehouse notes payable” was changed to “Warehouse facilities collateralized by U.S. Government Sponsored Enterprises” during the year ended December 31, 2018. Reclassifications have been made to previously reported amounts to conform to the current presentation. Intercompany balances and transactions within Newmark have been eliminated. Transactions between Cantor or BGC and Newmark pursuant to service agreements between Cantor and BGC (See Note 27 — Related Party Transactions), representing valid receivables and liabilities of Newmark, which are periodically cash settled, have been included in the unaudited condensed consolidated financial statements as either receivables from or payables to related parties. Newmark receives administrative services to support its operations, and in return, Cantor and/or BGC allocate certain of their expenses to Newmark. Such expenses represent costs related, but not limited to, treasury, legal, accounting, information technology, payroll administration, human resources, incentive compensation plans and other services. These costs, together with an allocation of Cantor and/or BGC overhead costs, are included as expenses in the unaudited condensed consolidated statements of operations. Where it is possible to specifically attribute such expenses to activities of Newmark, these amounts have been expensed directly to Newmark. Allocation of all other such expenses is based on a services agreement between Cantor and/or BGC which reflects the utilization of service provided or benefits received by Newmark during the periods presented on a consistent basis, such as headcount, square footage, revenue, etc. Management believes the assumptions underlying the stand-alone financial statements, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by Newmark during the periods presented. However, these shared expenses may not represent the amounts that would have been incurred had Newmark operated independently from Cantor and/or BGC. Actual costs that would have been incurred if Newmark had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions in various areas, including information technology and infrastructure (See Note 27 — Related Party Transactions for an additional discussion of expense allocations). Transfers of cash, both to and from Cantor and/or BGC, are included in “Current portion of payables to related parties” on the unaudited condensed consolidated balance sheets and as part of the change in payments to and borrowings from related parties in the financing section within the accompanying unaudited condensed consolidated statements of cash flows. The income tax provision in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statem e nts of comprehensive income has been calculated as if Newmark was operating on a stand-alone basis and filed separate tax returns in the jurisdictions in which it operates. Prior to the Spin-Off, Newmark’s operations had been included in the BGC U.S. federal and state tax returns or separate non-U.S. jurisdictions tax returns. As Newmark operations in many jurisdictions were unincorporated commercial units of BGC and its subsidiaries, stand-alone tax returns have not been filed for the operations in these jurisdictions. Newmark’s unaudited condensed consolidated financial statements contain all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the unaudited condensed consolidated balance sheets, the unaudited condensed consolidated statements of operations, the unaudited condensed consolidated statements of comprehensive income, the unaudited condensed consolidated statements of cash flows and the unaudited condensed consolidated statements of changes in equity of Newmark for the periods presented. (b) In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Further, Newmark previously presented expenses incurred on behalf of customers for certain management services subject to reimbursement on a net basis within expenses. Under the new revenue recognition model, Newmark concluded that it controls the services provided by a third-party on behalf of customers and, therefore, acts as a principal under those contracts. As a result, for these service contracts Newmark will present expenses incurred on behalf of customers along with corresponding reimbursement revenue on a gross basis in Newmark’s unaudited condensed consolidated statements of operations, with no impact on net income available to common stockholders. Newmark elected to adopt the new guidance using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. Accordingly, the new revenue standard is applied prospectively in Newmark’s financial statements from January 1, 2018 onward. The new revenue recognition guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, and as a result did not have an impact on the elements of Newmark’s unaudited condensed consolidated statements of operations most closely associated with financial instruments, including Gains from mortgage banking activities/origination, net, and Servicing fees. There was no significant impact as a result of applying the new revenue standard to Newmark’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2018, except as it relates to the revenue recognition of certain brokerage revenues from leasing commissions that were based, in part, on future contingent events and the presentation of expenses incurred on behalf of customers for certain management services subject to reimbursement (See Note 3 — Summary of Significant Accounting Policies and Note 13 — Revenues from Contracts with Customers). In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new measurement alternative. The guidance also requires entities to record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. In February 2018, the FASB issued ASU No. 2018-03 , Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , to clarify transition and subsequent accounting for equity investments without a readily determinable fair value, among other aspects of the guidance issued in ASU 2016-01. The amendments in ASU 2018-03 were effective for fiscal years beginning January 1, 2018 and interim periods beginning July 1, 2018. The amendments and technical corrections provided in ASU 2018-03 could be adopted concurrently with ASU 2016- 01, which was effective for Newmark on January 1, 2018. Newmark adopted both ASUs on January 1, 2018 using the modified retrospective approach for equity securities with a readily determinable fair value and the prospective method for equity investments without a readily determinable fair value. The adoption of this guidance did not have a material impact on Newmark’s unaudited condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230)—Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805)—Clarifying the definition of Business In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842) Targeted Improvements Leases Leases (Topic 842), Narrow-Scope Improvements for Lessors Leases fair not In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The guidance helps organizations address certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 by providing an option to reclassify these stranded tax effects to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The new standard became effective beginning January 1, 2019, with early adoption permitted. Newmark a dopt ed the new standard on its required effective date and elect ed to reclassify the stranded income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. However, the adoption of the new guidance did not have a material effect on Newmark’s unaudited condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (c) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , to clarify that operating lease receivables accounted for under ASC 842, Leases , are not in the scope of the new credit losses guidance, and, instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases . In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments. See below for the description of the amendments stipulated in ASU No. 2019-04. In addition, in May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief . The amendments in this ASU allow entities, upon adoption of ASU No. 2016-13, to irrevocably elect the fair value option for financial instruments that were previously carried at amortized cost and are eligible for the fair value option under ASC 825-10, Financial Instruments: Overall . The amendments in ASUs No. 2018-19, 2019-04 and 2019-05 are required to be adopted concurrently with the guidance in ASU No. 2016-13. Newmark plans to adopt the standards on their required effective date. Management is evaluating and planning for adoption and implementation of the new credit losses guidance, including forming an implementation team and continuing its assessment of the impact of the new guidance on Newmark’s consolidated financial statements. Given the objective of the new standard, it is generally expected allowances for credit losses for the financial instruments within its scope would increase, however, the amount of any change will be dependent on the composition and quality of the Company’s portfolios at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (“VIE”) Consolidation In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other issues. With respect to amendments to ASU No. 2017-12, the guidance addresses partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements, along with other issues. The clarifying guidance pertaining to ASU No. 2016-01 requires an entity to remeasure an equity security without a readily determinable fair value accounted for under the measurement alternative at fair value in accordance with guidance in ASC 820, Fair Value Measurement ; specifies that equity securities without a readily determinable fair value denominated in nonfunctional currency must be remeasured at historical exchange rates; and provides fair value measurement disclosure guidance. The codification improvements related to credit losses are required to be adopted concurrently with ASU No. 2016-13 as of January 1, 2020. The hedge accounting standard amendments are effective for Newmark as of January 1, 2020, with early adoption permitted, and may be applied either retrospectively or prospectively, with certain exceptions. The amendments related to the recognition and measurement guidance are effective for the Company as of January 1, 2020, with early adoption permitted, and should be applied prospectively for equity securities without readily determinable fair value with the remaining amendments to be applied on |
Limited Partnership Interests
Limited Partnership Interests | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Limited Partnership Interests | (2) Newmark is a holding company with no direct operations and conducts substantially all of its operations through its operating subsidiaries. Virtually all of Newmark’s consolidated net assets and net income are those of consolidated variable interest entities. Newmark Holdings is a consolidated subsidiary of Newmark for which Newmark is the general partner. Newmark and Newmark Holdings jointly own Newmark OpCo, the operating partnership. Listed below are the limited partnership interests in Newmark Holdings. In addition, Newmark OpCo issued approximately $325 million of exchangeable preferred limited partnership units in private transactions to RBC (See Note 1 — Organization and Basis of Presentation Immediately prior to the completion of the IPO, Newmark entered into the Separation and Distribution Agreement with Cantor, BGC, BGC Holdings and BGC OpCo. As a result of the Separation and Distribution Agreement, the limited partnership interests in Newmark Holdings were distributed to the holders of limited partnership interests in BGC Holdings, whereby each holder of BGC Holdings limited partnership interests at that time held a BGC Holdings limited partnership interest and a corresponding Newmark Holdings limited partnership interest, which was equal to a BGC Holdings limited partnership interest multiplied by one divided by 2.2 (the “contribution ratio”), divided by the exchange ratio (which is the ratio by which a Newmark Holdings limited partnership interest can be exchanged for a number of Newmark Class A common stock (the “exchange ratio”)). Initially, the exchange ratio equaled one, so that each Newmark Holdings limited partnership interest was exchangeable for one Newmark Class A common stock, however, such exchange ratio is subject to adjustment. For reinvestment, acquisition or other purposes, Newmark may determine on a quarterly basis to distribute to its stockholders a smaller percentage of its income than Newmark Holdings distributes to its equity holders (excluding tax distributions from Newmark Holdings) of cash that it received from Newmark OpCo. In such circumstances, the Separation and Distribution Agreement provides that the exchange ratio will be reduced to reflect the amount of additional cash retained by Newmark as a result of the distribution of such smaller percentage, after the payment of taxes. As of June 30, 2019, the exchange ratio equaled 0.9495. Redeemable Partnership Interest Founding/working partners have a limited partnership interest in BGC Holdings and Newmark Holdings. Newmark accounts for FPUs outside of permanent capital as “Redeemable partnership interests,” in Newmark’s unaudited condensed consolidated balance sheets. This classification is applicable to FPUs because these units are redeemable upon termination of a partner, including a termination of employment, which can be at the option of the partner and not within the control of the issuer. FPUs are held by limited partners who are primarily employees of BGC and generally receive quarterly allocations of net income. Upon termination of employment or otherwise ceasing to provide substantive services, the founding/working partner units are generally redeemed, and the unit holders are no longer entitled to participate in the quarterly allocations of net income. Since these allocations of net income are cash distributed on a quarterly basis and are contingent upon services being provided by the unit holder, they are reflected as a component of compensation expense under “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statements of operations to the extent they related to Newmark employees. Limited Partnership Units Certain employees hold limited partnership interests in Newmark Holdings and BGC Holdings (e.g., REUs, RPUs, PSUs, PSIs, and LPUs, collectively the “limited partnership units”). Prior to the Separation and Distribution Agreement, certain employees of both BGC and Newmark received limited partnership units in BGC Holdings. As a result of the Separation and Distribution Agreement, these employees were distributed limited partnership units in Newmark Holdings equal to a BGC Holdings limited partnership unit multiplied by the contribution ratio. Subsequent to the Separation and Distribution Agreement, BGC employees only r eceive limited partnership units in BGC Holdings and Newmark employees only receive limited partnership units in Newmark Holdings. Generally, such limited partnership units receive quarterly allocations of net income, which are cash distributed and generally are contingent upon services being provided by the unit holders. As prescribed in U.S. GAAP guidance, the quarterly allocations of net income on such limited partnership units are reflected as a component of compensation expense under “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statements of operations. Following the Spin-Off, the quarterly allocations of net income on BGC Holdings and Newmark Holdings limited partnership units held by Newmark employees are reflected as a component of compensation expense under “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statements of operations, and the quarterly allocations of net income on Newmark Holdings limited partnership units held by BGC employees are reflected as a component of “Net income (loss) attributable to noncontrolling interests” in Newmark’s unaudited condensed consolidated statements of operations. From time to time, Newmark issues limited partnership units as part of the consideration for acquisitions. Certain of these limited partnership units entitle the holders to receive post-termination payments equal to the notional amount of the units in four equal yearly installments after the holder’s termination. These limited partnership units are accounted for as post-termination liability awards, and in accordance with U.S. GAAP guidance, Newmark records compensation expense for the awards based on the change in value at each reporting date in Newmark’s unaudited condensed consolidated statements of operations as part of “Compensation and employee benefits.” Certain Newmark employees hold preferred partnership units (“Preferred Units”). Each quarter, the net profits of Newmark Holdings are allocated to such units at a rate of either 0.6875% Certain Newmark employees hold non-distribution earning units (e.g. NPSUs and NREUs, collectively “N Units”) that do not participate in quarterly partnership distributions and are not allocated any items of profit or loss. N Units become non-exchangeable LPUs, ratably over a four-year vesting term, if certain revenue thresholds are met at the end of each vesting term. No value is ascribed to the N Units on the date of grant. On each vesting date, if the revenue threshold is met, the N Unit is converted into a non-exchangeable LPU. The N Units are not exchangeable into Class A Common Stock of Newmark and not entitled to distributions and therefore, are not included in the fully diluted share count. Cantor Units Cantor holds limited partnership interests in Newmark Holdings. Cantor units are reflected as a component of “Noncontrolling interests” in Newmark’s unaudited condensed consolidated balance sheets. Cantor receives allocations of net income (loss), which are cash distributed on a quarterly basis and are reflected as a component of “Net income (loss) attributable to noncontrolling interests” in Newmark’s unaudited condensed consolidated statements of operations. BGC Units Prior to the Spin-Off, BGC and its operating subsidiaries held limited partnership interests in Newmark Holdings. Such BGC units were reflected as a component of “Noncontrolling interests” in Newmark’s unaudited condensed consolidated balance sheets. BGC received allocations of net income (loss), which were cash distributed on a quarterly basis and were reflected as a component of Net income (loss) attributable to noncontrolling interests in Newmark’s unaudited condensed consolidated statements of operations. In conjunction with the Spin-Off, such units were either exchanged for shares of Newmark Class A and Class B shares that were distributed to BGC Stockholders in the Spin-Off, or distributed to the partners of BGC Holdings in the BGC Holdings distribution (See Note 1 — Organization and Basis of Presentation). Exchangeable Preferred Limited Partnership Units RBC holds approximately $325.0 million of EPUs in Newmark OpCo, as a result of the Newmark OpCo Preferred Investment. The EPUs were issued in four tranches and are separately convertible by either RBC or Newmark into a fixed number of Newmark’s Class A common stock, subject to a revenue hurdle for Newmark in each of the fourth quarters of 2019 through 2022 for each of the four tranches, respectively. As the EPUs represent equity ownership of a consolidated subsidiary of Newmark, they have been included in “Noncontrolling interests” on the unaudited condensed consolidated statement of changes in equity. The EPUs are entitled to a preferred payable-in-kind dividend, which is recorded as accretion to the carrying amount of the EPUs through retained earnings on the unaudited condensed consolidated statement of changes in equity and are included in “Net income available to common stockholders” for the purpose of calculating earnings per share. General Certain of the limited partnership interests, described above, have been granted exchangeability into BGC and/or Newmark Class A common stock, and additional limited partnership interests may become exchangeable for BGC and/or Newmark Class A common stock. In addition, certain limited partnership interests have been granted the right to exchange into another partnership unit with a capital account (HDUs). HDUs have a stated capital account which is initially based on the closing trading price of Class A common stock at the time the HDU is issued. HDUs participate in quarterly partnership distributions and are not exchangeable into shares of Class A common stock. Certain HDUs however, can be converted into Newmark Class A common stock if such exchange rights are granted. Limited partnership interests held by Cantor in Newmark Holdings as of June 30, 2019 are generally exchangeable for 23.0 million shares of Newmark Class B common stock. Following the IPO and prior to the Spin-Off, in order for a partner or Cantor to exchange a limited partnership interest in BGC Holdings or Newmark Holdings into a Class A or Class B common stock of BGC, such partner or Cantor was required to exchange both one BGC Holdings limited partnership interests and a number of Newmark Holdings limited partnership interests equal to a BGC Holdings limited partnership interest multiplied by the quotient obtained by dividing Newmark Class A and Class B common stock, Newmark OpCo interests, and Newmark Holdings limited partnership interests held by BGC as of such time by the number of BGC Class A and Class B common stock outstanding as of such time (the “distribution ratio”), divided by the exchange ratio. Initially the distribution ratio was equivalent to the contribution ratio (one divided by 2.2 or .4545), and at the time of the Spin-Off, the distribution ratio equaled 0.463895. As a result of the change in the distribution ratio, certain BGC Holdings limited partnership interests no longer have a corresponding Newmark Holdings limited partnership interest. The exchangeability of these BGC Holdings limited partnership interests along with any new BGC Holdings limited partnership interests issued after the Separation and Distribution Agreement (together referred to as “standalone”) into BGC Class A or Class B common stock was contingent upon the Spin-Off. Following the Spin-Off, a partner or Cantor is no longer required to have paired BGC Holdings and Newmark Holdings limited partnership interests to exchange into Newmark Class A or Class B common stock. Subsequent to the Spin-Off, limited partnership interests in BGC Holdings held by a partner or Cantor may become exchangeable for BGC Class A or Class B common stock on a one-for-one basis, and limited partnership interests in Newmark Holdings held by a partner or Cantor may become exchangeable for a number of Newmark Class A or Class B common stock equal to the number of limited partnership interests multiplied by the then exchange ratio. Each quarter, net income (loss) is allocated between the limited partnership interests and the common stockholders. In quarterly periods in which Newmark has a net loss, the loss allocation for FPUs, limited partnership units (including Cantor units) is allocated to Cantor and reflected as a component of “Net income (loss) attributable to noncontrolling interests” in Newmark’s unaudited condensed consolidated statements of operations. In subsequent quarters in which Newmark has net income, the initial allocation of income to the limited partnership interests is to “Net income (loss) attributable to noncontrolling interests,” to recover any losses taken in earlier quarters, with the remaining income allocated to the limited partnership interests. This income (loss) allocation process has no impact on the net income (loss) allocated to common stockholders. In addition, in quarterly periods in which Newmark has a net loss, the loss allocation for FPUs, limited partnership units and Cantor units in Newmark Holdings is allocated to Cantor. In subsequent quarters in which Newmark has net income, the initial allocation of income to limited partnership interests in Newmark Holdings is allocated to Cantor to recover any losses taken in earlier quarters, with the remaining income allocated to the limited partnership interests. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (3) For a detailed discussion about Newmark’s significant accounting policies, See Note 3 — Summary of Significant Accounting Policies, in Newmark’s consolidated financial statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Other than the following, during the three and six months ended June 30, 2019, there were no significant changes made to Newmark’s significant accounting policies. Leases: Newmark, acting as a lessee, has operating leases primarily relating to office space. The leases have remaining lease terms of up to 1 year to 13 years, some of which include options to extend the leases in 5 to 10 year increments for up to 10 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply judgment to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if Newmark is reasonably certain not to exercise the termination option. Newmark measures its lease payments by including fixed rental payments and, where relevant, variable rental payments tied to an index, such as the Consumer Price Index (“CPI”). Payments for leases in place before the date of adoption of ASC 842 , Leases Pursuant to the accounting policy election, leases with an initial term of twelve months or less are not recognized on the balance sheet. The short-term lease expense over the period reasonably reflects Newmark’s short-term lease commitments. ASC 842 , Leases Newmark determines whether an arrangement is a lease or includes a lease at the contract inception by evaluating whether the contract conveys the right to the control the use of an identified asset for a period of time in exchange for consideration. If Newmark has the right to obtain substantially all of the economic benefits from, and can direct the use of, the identified asset for a period of time, Newmark accounts for the identified asset as a lease. Newmark has elected the practical expedient to not separate lease and non-lease components for all leases other than real estate leases. The primary non-lease component that is combined with a lease component represents operating expenses such as utilities, maintenance or management fees. As the rate implicit in the lease is not usually available, Newmark used an incremental borrowing rate based on the information available at the adoption date of the new leases standard in determining the present value of lease payments for existing leases. Newmark will use information available at the lease commencement date to determine the discount rate for any new leases. Segment: Newmark has a single operating segment. Newmark is a real estate services firm offering services to commercial real estate tenants, owner occupiers, investors and developers, leasing and corporate advisory, investment sales and real estate finance, consulting, origination and servicing of commercial mortgage loans, valuation, project and development management and property and facility management. The chief operating decision maker regardless of geographic location evaluates the operating results of Newmark as total real estate services and allocates resources accordingly. For the three and six months ended June 30, 2019 and 2018, Newmark recognized revenues as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Leasing and other commissions $ 217,381 $ 178,142 $ 389,852 $ 337,513 Capital markets commissions 128,750 101,691 231,547 203,055 Gains from mortgage banking activities/origination, net 45,091 41,877 76,437 80,791 Management services, servicing fees and other 160,256 144,909 301,298 275,720 Revenues $ 551,478 $ 466,619 $ 999,134 $ 897,079 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | (4) During April 2019, Newmark completed the acquisition of MLG Commercial LLC, a Milwaukee-based commercial real estate company offering both brokerage and property management services in Wisconsin. During June 2019, Newmark completed the acquisition of ACRES, a commercial brokerage and management firm headquartered in Utah. ACRES operates offices in Salt Lake City, Utah; Boise, Idaho; and Reno, Nevada. For the six months ended June 30, 2019, the following table summarizes the components of the purchase consideration transferred, and the preliminary allocation of the assets acquired, and liabilities assumed. Newmark expects to finalize its analysis of the assets acquired and liabilities assumed within the first year of the acquisition, and therefore adjustments to assets and liabilities may occur. As of the Acquisition Date Assets Cash and cash equivalents $ 922 Goodwill 27,798 Receivables, net 4,348 Fixed Assets, net 15 Other intangible assets, net 2,075 Other assets 236 Total assets 35,394 Current liabilities Current portion of accounts payable, accrued expenses and other liabilities 1,365 Accrued compensation 2,125 Total liabilities 3,490 Net assets acquired $ 31,904 The total consideration for acquisitions during the six months ended June 30, 2019 was approximately $31.9 million in total fair value, comprised of cash and Newmark Holdings limited partnership units. The total consideration included contingent consideration of 233,779 Newmark’s Holding partnership units (with an acquisition date fair value of approximately $1.9 million), and $7.8 million in cash that may be issued contingent on certain targets being met through 2021. The excess of the consideration over the fair value of the net assets acquired has been recorded as goodwill of approximately $27.8 million, of which $18.8 million is deductible by Newmark for tax purposes. These acquisitions are accounted for using the purchase method of accounting. The results of operations of these acquisitions have been included in Newmark’s unaudited condensed consolidated financial statements subsequent to their respective dates of acquisition, which in aggregate contributed $1.7 million to Newmark’s revenue for the three and six months ended June 30, 2019. During April of 2018, Newmark completed the acquisition of two former Integra Realty Resources (“IRR”) offices (Boston and Pittsburgh). IRR specializes in commercial real estate valuation and advisory services, and the acquisition provides Newmark with greater geographic coverage. In July 2018, Newmark completed the acquisition of two additional IRR offices (Denver and Pasadena) as well as Dallas based Jackson & Cooksey, Inc., a nationally known corporate tenant representation real estate business. In September 2018, Newmark completed the acquisition of RKF Retail Holdings, LLC (“RKF”). RKF is a leading independent real estate firm in North America specializing in retail leasing, investment sales and consulting services. In December 2018, Newmark completed the acquisition of New York-based MiT National Land Services, LLC, a national title agency. For the year ended December 31, 2018, the following table summarizes the components of the purchase consideration transferred, and the preliminary allocation of the assets acquired, and liabilities assumed. Newmark expects to finalize its analysis of the assets acquired and liabilities assumed within the first year of the acquisition, and therefore adjustments to assets and liabilities may occur. As of the Acquisition Date Assets Cash and cash equivalents $ 1,110 Goodwill 42,188 Receivables, net 50,731 Fixed Assets, net 1,276 Other intangible assets, net 4,677 Other assets 2,894 Total assets 102,876 Current liabilities Current portion of accounts payable, accrued expenses and other liabilities 15,937 Accrued compensation 26,765 Total liabilities 42,702 Net assets acquired $ 60,174 The total consideration for acquisitions during the year ended December 31, 2018 was approximately $62.9 million in total fair value, comprised of cash and Newmark Holdings limited partnership units. The total consideration included contingent consideration of approximately 465,316 Newmark’s Holding partnership units (with an acquisition date fair value of approximately $6.2 million), restricted stock of approximately 216,900 (with an acquisition date fair value of approximately $3.1 million) and $8.6 million in cash that may be issued contingent on certain targets being met through 2021. The excess of the consideration over the fair value of the net assets acquired has been recorded as goodwill of approximately $42.2 million, of which $28.6 million is deductible by Newmark for tax purposes. These acquisitions are accounted for using the purchase method of accounting. The results of operations of these acquisitions have been included in Newmark’s unaudited condensed consolidated financial statements subsequent to their respective dates of acquisition, which in aggregate contributed $28.5 million to Newmark’s revenue for the year ended December 31, 2018. |
Earnings Per Share and Weighted
Earnings Per Share and Weighted-Average Shares Outstanding | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Weighted-Average Shares Outstanding | (5) U.S. GAAP guidance—Earnings Per Share provides guidance on the computation and presentation of earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding and contingent shares for which all necessary conditions have been satisfied except for the passage of time. Net income is allocated to Newmark’s outstanding common stock, FPUs, limited partnership units, and Cantor units (See Note 2 - Limited Partnership Interests). In addition, in relation to the Newmark OpCo Preferred Investment, the EPUs issued in June 2018 and September 2018 are entitled to a preferred payable-in-kind dividend which is recorded as accretion to the carrying amount of the EPUs and is a reduction to net income available to common stockholders for the calculation of Newmark’s basic earnings per share and fully diluted earnings per share. The following is the calculation of Newmark’s basic EPS (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic earnings per share: Net income available to common stockholders (1) $ 19,444 $ 546 $ 33,124 $ 20,542 Basic weighted-average shares of common stock outstanding 178,754 155,157 178,683 155,447 Basic earnings per share $ 0.11 $ 0.00 $ 0.19 $ 0.13 (1) Includes a reduction for dividends on preferred stock or units in the amount of $3.2 million and $6.4 million for the three and six months ended June 30, 2019, respectively, and $0.2 million for the three and six months ended June 30, 2018. Fully diluted EPS is calculated utilizing net income available to common stockholders plus net income allocations to the limited partnership interests in Newmark Holdings as the numerator. The denominator comprises Newmark’s weighted-average number of outstanding shares of Newmark common stock to the extent the related units are dilutive and, if dilutive, the weighted-average number of limited partnership interests and other contracts to issue shares of common stock, stock options and RSUs. The limited partnership interests generally are potentially exchangeable into shares of Newmark Class A common stock and are entitled to remaining earnings after the deduction for the Preferred Distribution; as a result, they are included in the fully diluted EPS computation to the extent that the effect would be dilutive. The following is the calculation of Newmark’s fully diluted EPS (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Fully diluted earnings per share: Net income available to common stockholders $ 19,444 $ 546 $ 33,124 $ 20,542 Allocations of net income to limited partnership interests in Newmark Holdings, net of tax 3,864 — — 12,020 Net income for fully diluted shares $ 23,308 $ 546 $ 33,124 $ 32,562 Weighted-average shares: Common stock outstanding 178,754 155,157 178,683 155,447 Partnership units (1) 28,769 — — 96,505 Other 627 781 751 852 Fully diluted weighted-average shares of common stock outstanding 208,150 155,938 179,434 252,804 Fully diluted earnings per share $ 0.11 $ 0.00 $ 0.18 $ 0.13 (1) Partnership units collectively include founding/working partner units, limited partnership units, and Cantor units (See Note 2 - Limited Partnership Interests for more information). For the three months and six months ended June 30, 2019, there were 62.8 million and 90.8 million potentially dilutive securities that were excluded from the computation of fully diluted EPS as they would have had an anti-dilutive effect. For the three months ended June 30, 2018, there were 102.8 million potentially dilutive securities that were excluded from the computation of fully diluted EPS as they would have had an anti-dilutive effect. |
Stock Transactions and Unit Red
Stock Transactions and Unit Redemptions | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stock Transactions and Unit Redemptions | (6) Stock Transactions and Unit Redemptions As of June 30, 2019, Newmark has two classes of authorized common stock: Class A common stock and Class B common stock. Class A Common Stock Each share of Class A common stock is entitled to one vote. Newmark has 1.0 billion authorized shares of Class A common stock at $0.01 par value per share. Changes in shares of Newmark’s Class A common stock outstanding for the three and six months ended June 30, 2019 and 2018, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Shares outstanding at beginning of period 157,422,916 138,921,533 156,916,336 138,593,787 LPU redemption/exchange (1) 747,846 — 1,122,776 — Other issuances of Class A common stock 70,391 — 78,842 327,746 Issuance of Class A common stock for Newmark RSUs 51,406 — 174,605 — Newmark treasury stock (1,613,032 ) — (1,613,032 ) — Shares outstanding at end of period 156,679,527 138,921,533 156,679,527 138,921,533 (1) Because they were included in the Newmark’s fully diluted share count, if dilutive, any exchange of limited partnership interests into Class A common shares would not impact the fully diluted number of shares and units outstanding. Class B Common Stock Each share of Class B common stock is entitled to 10 votes and is convertible at any time into one share of Class A common stock. Newmark has 500.0 million authorized shares of Class B common stock at $0.01 par value per share. As of June 30, 2019 , and December 31, 2018 , there were 21.3 million shares of Newmark’s Class B common stock outstanding. Share Repurchases On August 1, 2018, the Newmark Board of Directors and Audit Committee authorized repurchases of shares of Newmark’s Class A common stock and redemptions or repurchases of limited partnership interests or other equity interests in Newmark’s subsidiaries up to $200.0 million, increased from the $100.0 million that had been authorized on March 12, 2018. This authorization includes repurchases of stock or units from executive officers, other employees and partners, including of BGC and Cantor, as well as other affiliated persons or entities. From time to time, we may actively continue to repurchase shares and/or redeem units. In December 2018, Newmark repurchased 50,000 shares of Newmark’s Class A common stock for $0.5 million. In June 2019, Newmark repurchased 1.6 million shares of Newmark's Class A common stock for $13.9 million. As of June 30, 2019, Newmark had approximately $185.6 million remaining from its share repurchase and unit redemption authorization. Period Total Number of Shares Repurchased Average Price Paid per Unit or Share Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Units and Shares That May Yet Be Redeemed/ Purchased Under the Plan Balance at beginning of period 50,000 $ 9.73 50,000 $ 199,514 January 1, 2019 - March 31, 2019 — — — — April 1, 2019 - June 30, 2019 1,613,032 8.61 1,613,032 186,104 Total Repurchases 1,663,032 $ 8.65 1,663,032 $ 185,618 Redeemable Partnership Interests The changes in the carrying amount of redeemable partnership interest as of June 30, 2019, and as of December 31, 2018, were as follows (in thousands): June 30, 2019 December 31, 2018 Balance at beginning of period $ 26,170 $ 21,096 Income allocation 1,663 6,779 Distributions of income (720 ) (2,843 ) FPU redemptions (418 ) (1,101 ) Issuance — 2,239 Other 20 — Balance at end of period $ 26,715 $ 26,170 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments All Other Investments [Abstract] | |
Marketable Securities | ( 7 ) On June 28, 2013, BGC sold certain assets of its on-the-run business, eSpeed, to Nasdaq. The total consideration received by BGC in the transaction included an earn-out of up to 14,883,705 shares of Nasdaq common stock to be paid ratably over 15 years, provided that Nasdaq, as a whole, produces at least $25.0 million in consolidated gross revenues each year (the “Nasdaq Earn-Out”). The Nasdaq Earn-Out was excluded from the initial gain on the divestiture and is recognized in income as it is realized and earned when these contingent events have occurred, consistent with the accounting guidance for gain contingencies. The remaining rights under the Nasdaq Earn-Out were transferred to Newmark on September 28, 2017. Any Nasdaq shares that were received by BGC prior to September 28, 2017 were not transferred to Newmark. In connection with the Nasdaq Earn-Out, Newmark received 992,247 shares during the year ended December 31, 2018. Newmark will recognize the remaining Nasdaq Earn-Out of up to 8,930,223 shares of Nasdaq common stock ratably over the next approximately 9 years, provided that Nasdaq, as a whole, produces at least $25.0 million in gross revenues each year. For further information, refer to the section titled “Exchangeable Preferred Partnership Units and Forward Contract” in Note 1 — Organization and Basis of Presentation, S ee Note 1 1 — Derivatives and S ee Note 2 6 — Fair Value of Financial Assets and Liabilities. Newmark sold 250,000 of the Nasdaq shares during the six months ended June 30, 2019. As of June 30, 2019, Newmark had 350,000 shares remaining in connection with the Nasdaq Earn-Out. During the six months ended June 30, 2019 and 2018, the gross proceeds of the shares sold was $22.2 million and $51.4 million, respectively. Newmark recognized a gain/(loss) on the sale of these securities of $1.9 million and $(0.9) million for the three months ended June 30, 2019 and 2018, respectively, and $1.8 million and $1.5 million for the six months ended June 30, 2019 and 2018, respectively. Newmark also recorded unrealized gains on the mark-to-market of these securities of $1.2 million and $0.6 million for the three months ended June 30, 2019 and 2018, respectively, and $5.1 million and $1.5 million for the six months ended June 30, 2019 and 2018, respectively. Realized and unrealized gains on the mark-to-market of these securities are included in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. As of June 30, 2019 and December 31, 2018, Newmark had $33.7 million and $48.9 million, respectively, included in “Marketable securities” on its unaudited condensed consolidated balance sheets (See Note 20 — Securities Loaned). |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments | ( 8 ) Newmark has a 27% ownership in Real Estate LP, a joint venture with Cantor in which Newmark has the ability to exert significant influence over the operating and financial policies. Accordingly, Newmark accounts for this investment under the equity method of accounting. Newmark recognized equity income of $4.8 million and $1.8 million for the three months ended June 30, 2019 and 2018 respectively and $4.8 million and $5.0 million for the six months ended June 30, 2019 and 2018, respectively. These amounts were included in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. As of June 30, 2019 and December 31, 2018, Newmark had $106.0 million and $101.3 million in this equity method investment, respectively, included in “Other assets” in Newmark’s unaudited condensed consolidated balance sheets. Investments Carried Under Measurements Alternatives Newmark had previously acquired investments for which it does not have the ability to exert significant influence over operating and financial policies. The investments are generally accounted for using the cost method of accounting in accordance with U.S. GAAP guidance, Investments—Other Certain of these investments issued and sold additional shares in the quarter ended June 30, 2019. The issuance of these shares resulted in a triggering event that required Newmark to assess the values of the investments. As a result, for the three and six months ended June 30, 2019, Newmark recorded an unrealized gain of $3.9 million included in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. The carrying value of these investments was $57.5 million and $53.5 million and is included in “Other assets” in Newmark’s unaudited condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively. |
Capital and Liquidity Requireme
Capital and Liquidity Requirements | 6 Months Ended |
Jun. 30, 2019 | |
Brokers And Dealers [Abstract] | |
Capital and Liquidity Requirements | ( 9 ) Newmark is subject to various capital requirements in connection with seller/servicer agreements that Newmark has entered into with the various GSEs. Failure to maintain minimum capital requirements could result in Newmark’s inability to originate and service loans for the respective GSEs and could have a direct material adverse effect on Newmark’s unaudited condensed consolidated financial statements. Management believes that, as of June 30, 2019 and December 31, 2018, Newmark has met all capital requirements. As of June 30, 2019, the most restrictive capital requirement was Fannie Mae’s net worth requirement. Newmark exceeded the minimum requirement by $329.2 million. Certain of Newmark’s agreements with Fannie Mae allow Newmark to originate and service loans under Fannie Mae’s Delegated Underwriting and Servicing (“DUS”) Program. These agreements require Newmark to maintain sufficient collateral to meet Fannie Mae’s restricted and operational liquidity requirements based on a pre-established formula. Certain of Newmark’s agreements with Freddie Mac allow Newmark to service loans under Freddie Mac’s Targeted Affordable Housing (“ TAH ”) Program . These agreements require Newmark to pledge sufficient collateral to meet Freddie Mac’s liquidity requirement of 8% of the outstanding principal of TAH loans serviced by Newmark. Management believes that, as of June 30 , 2019 and December 31, 2018 , Newmark has met all liquidity requirements . In addition, as a servicer for Fannie Mae, Ginnie Mae and Federal Housing Administration, Newmark is required to advance to investors any uncollected principal and interest due from borrowers. As of June 30, 2019 and December 31, 2018, outstanding borrower advances were approximately $0.1 million and $0.2 million, respectively, and are included in “Other assets” in Newmark’s unaudited condensed consolidated balance sheets. |
Loans Held for Sale, at Fair Va
Loans Held for Sale, at Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Loans Receivable Held For Sale Net [Abstract] | |
Loans Held for Sale, at Fair Value | ( 10 ) Loans held for sale, at fair value represent originated loans that are typically financed by short-term warehouse facilities (See Note 21 — Warehouse facilities collateralized by U.S. Government Sponsored Enterprises) and sold within 45 days from the date the mortgage loan is funded. Newmark initially and subsequently measures all loans held for sale at fair value on the accompanying unaudited condensed consolidated balance sheets. The fair value measurement falls within the definition of a Level 2 measurement (significant other observable inputs) within the fair value hierarchy. Electing to use fair value allows a better offset of the change in the fair value of the loan and the change in fair value of the derivative instruments used as economic hedges. Loans held for sale had a cost basis and fair value as follows (in thousands): Cost Basis Fair Value June 30, 2019 $ 793,212 $ 818,909 December 31, 2018 972,434 990,864 As of June 30, 2019 and December 31, 2018, all of the loans held for sale were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage-backed securities that will be secured by the underlying loans. As of June 30, 2019 and December 31, 2018, there were no loans held for sale that were 90 days or more past due or in nonaccrual status. During the period prior to its sale, interest income on a loan held for sale is calculated in accordance with the terms of the individual loan. Interest income on loans held for sale was $6.5 million and $5.0 million for the three months ended June 30, 2019 and 2018, respectively, and $15.1 million and $9.7 million for the six months ended June 30, 2019 and 2018, respectively. Interest income on loans held for sale is included in “Management services, servicing fees and other” in Newmark’s unaudited condensed consolidated statements of operations. Gains/(losses) for the fair value adjustments on loans held for sale were $12.4 million and $(7.8) million for the three months ended June 30, 2019 and 2018, respectively, and $25.7 million and $7.3 million for the six months ended June 30, 2019 and 2018, respectively. These gains/losses were included in “Gains from mortgage banking activities/originations, net” in Newmark’s unaudited condensed consolidated statements of operations. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | (1 1 ) Newmark accounts for its derivatives at fair value, and recognized all derivatives as either assets or liabilities in its unaudited condensed consolidated balance sheets. In its normal course of business, Newmark enters into commitments to extend credit for mortgage loans at a specific rate (rate lock commitments) and commitments to deliver these loans to third-party investors at a fixed price (forward sale contracts). These transactions are accounted for as derivatives. The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands): As of June 30, 2019 As of December 31, 2018 Derivative contract Assets Liabilities Notional Amounts Assets Liabilities Notional Amounts Forwards $ 51,497 (1) $ 27,261 $ 1,794,842 (2) $ 85,796 (1) $ 9,208 $ 1,574,114 (2) Rate lock commitments 21,951 2,428 640,671 6,732 7,470 240,720 Total $ 73,448 $ 29,689 $ 2,435,513 $ 92,528 $ 16,678 $ 1,814,834 (1) Included in Forwards is $48.7 million and $77.6 million of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively (See Note 1 — (2) Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and does not represent anticipated losses. Included in the notional amounts of forwards is $361.0 million for the Nasdaq Forwards as of June 30, 2019 and December 31, 2018. The change in fair value of rate lock commitments and forward sale contracts related to mortgage loans are reported as part of “Gains from mortgage banking activities, net” in Newmark’s unaudited condensed consolidated statements of operations. The change in fair value of rate lock commitments are disclosed net of $(0.2) million and $1.9 million of expenses for the three and six months ended June 30, 2019, respectively, and $0.8 million and $3.3 million of expenses for the three and six months ended June 30, 2018, respectively, which are reported as part of “Compensation and employee benefits” in Newmark’s unaudited condensed consolidated statements of operations. The table below summarizes gains and losses on derivative contracts which are included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 (in thousands): Location of gain (loss) recognized Three Months Ended June 30, Six Months Ended June 30, in income for derivatives 2019 2018 2019 2018 Derivatives not designed as hedging instruments: Nasdaq Forwards Other income (loss) $ (15,638 ) $ 2,808 $ (28,967 ) $ 2,808 Rate lock commitments Gains from mortgage banking activities/originations, net 14,292 1,515 21,379 3,784 Rate lock commitments Compensation and employee benefits 211 (782 ) (1,856 ) (3,282 ) Forward sale contracts Gains from mortgage banking activities/originations, net (20,784 ) 8,536 (24,416 ) 15,802 $ (21,919 ) $ 12,077 $ (33,860 ) $ 19,112 Derivative assets and derivative liabilities are included in “Other current assets,” “Other assets” and the current portion of “Accounts payable, accrued expenses and other liabilities,” in Newmark’s unaudited condensed consolidated balance sheets. |
Credit Enhancement Receivable,
Credit Enhancement Receivable, Contingent Liability and Credit Enhancement Deposit | 6 Months Ended |
Jun. 30, 2019 | |
Credit Enhancement Receivable Contingent Liability And Credit Enhancement Deposit [Abstract] | |
Credit Enhancement Receivable, Contingent Liability And Credit Enhancement Deposit | (1 2 ) Newmark is a party to a Credit Enhancement Agreement (“CEA”), dated March 9, 2012, with German American Capital Corporation and Deutsche Bank Americas Holding Corporation (together, the “DB Entities”). On October 20, 2016, the DB Entities assigned the CEA to Deutsche Bank AG Cayman Island Branch, a Cayman Island Branch of Deutsche Bank AG (“DB Cayman”). Under the terms of these agreements, DB Cayman provides Newmark with varying levels of ongoing credit protection, subject to certain limits, for Fannie Mae and Freddie Mac loans subject to loss sharing (See Note 23 — Financial Guarantee Liability) in Newmark’s servicing portfolio as of March 9, 2012. DB Cayman will also reimburse Newmark for any losses incurred due to violation of underwriting and serving agreements that occurred prior to March 9, 2012. For the three and six months ended June 30, 2019 and 2018, there were no reimbursements under the CEA. Credit enhancement receivable As of June 30, 2019, Newmark had $20.3 billion of credit risk loans in its servicing portfolio with a maximum pre-credit enhancement loss exposure of $5.7 billion. Newmark had a form of credit protection from DB Cayman on $29.6 million of credit risk loans with a maximum loss exposure coverage of $9.9 million. The amount of the maximum loss exposure without any form of credit protection from DB Cayman was $5.7 billion. As of December 31, 2018, Newmark had $20.6 billion of credit risk loans in its servicing portfolio with a maximum pre-credit enhancement loss exposure of $5.8 billion. Newmark had a form of credit protection from DB Cayman on $230.7 million of credit risk loans with a maximum loss exposure coverage of $76.2 million. The amount of the maximum loss exposure without any form of credit protection from DB Cayman was $5.7 billion. As of June 30, 2019 and December 31, 2018, there was no Credit enhancement deposit The CEA required the DB Entities to deposit $25 million into Newmark’s Fannie Mae restricted liquidity account (See Note 9 — Capital and Liquidity Requirements), which Newmark is required to return to DB Cayman, less any outstanding claims, on March 9, 2021. The $25 million is included in “Other long-term liabilities” in Newmark’s unaudited condensed consolidated balance sheets. Contingent liability Under the CEA, Newmark is required to pay DB Cayman, on March 9, 2021, an amount equal to 50% of the positive difference, if any, between (a) $25 million, and (b) Newmark’s unreimbursed loss-sharing payments from March 9, 2012 through March 9, 2021 on Newmark’s servicing portfolio as of March 9, 2012. Contingent liabilities as of June 30, 2019 and December 31, 2018 were $11.5 million and $11.1 million, respectively, and are included in “Other long-term liabilities” in Newmark’s unaudited condensed consolidated balance sheets. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues from Contracts with Customers | (13) Revenues from Contracts with Customers The following table presents Newmark’s total revenues separately for its revenues from contracts with customers and other sources of revenues (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues from contracts with customers: Leasing and other commissions $ 217,381 $ 178,142 $ 389,851 $ 337,513 Capital markets commissions 128,750 101,691 231,547 203,055 Management services 117,472 107,228 215,561 204,160 Revenues 463,603 387,061 836,959 744,728 Other sources of revenue: Gains from mortgage banking activities/originations, net (1) 45,091 41,877 76,437 80,791 Servicing fees and other (1) 42,784 37,681 85,738 71,560 Revenues $ 551,478 $ 466,619 $ 999,134 $ 897,079 (1) Although these items have customers under contract, they were recorded as other sources of revenue as they were excluded from the scope of ASU No. 2014-09. Disaggregation of Revenue Newmark’s chief operating decision maker regardless of geographic location evaluates the operating results of Newmark as total real estate (See Note 3 — Summary of Significant Accounting Policies for further discussion). Contract Balances The timing of Newmark’s revenue recognition may differ from the timing of payment by its customers. Newmark records a receivable when revenue is recognized prior to payment and Newmark has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, Newmark records deferred revenue until the performance obligations are satisfied. Newmark’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue at June 30, 2019 and December 31, 2018 was $2.5 million and $4.2 million, respectively. During the six months ended June 30, 2019, Newmark recognized revenue of $1.2 million that was recorded as deferred revenue at the beginning of the period. |
Gains from Mortgage Banking Act
Gains from Mortgage Banking Activities/Originations, Net | 6 Months Ended |
Jun. 30, 2019 | |
Mortgage Banking [Abstract] | |
Gains From Mortgage Banking Activities Originations Net | (1 4 ) Gains from mortgage banking activities/originations, net consists of the following activity (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Loan originations related fees and sales premiums, net $ 20,235 $ 17,181 $ 35,203 $ 34,998 Fair value of expected net future cash flows from servicing recognized at commitment, net 24,856 24,696 41,234 45,793 Gains from mortgage banking activities/originations, net $ 45,091 $ 41,877 $ 76,437 $ 80,791 |
Mortgage Servicing Rights, Net
Mortgage Servicing Rights, Net | 6 Months Ended |
Jun. 30, 2019 | |
Transfers And Servicing [Abstract] | |
Mortgage Servicing Rights, Net | (1 5 ) The changes in the carrying amount of MSRs for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Mortgage Servicing Rights 2019 2018 2019 2018 Beginning Balance $ 413,004 $ 386,953 $ 416,131 $ 399,349 Additions 21,433 25,342 38,687 31,731 Purchases from an affiliate 424 1,099 722 1,608 Amortization (21,436 ) (20,011 ) (42,115 ) (39,305 ) Ending Balance $ 413,425 $ 393,383 $ 413,425 $ 393,383 Valuation Allowance Beginning Balance $ (6,044 ) $ (5,427 ) $ (4,322 ) $ (6,723 ) Decrease (6,598 ) 4,084 (8,320 ) 5,380 Ending Balance $ (12,642 ) $ (1,343 ) $ (12,642 ) $ (1,343 ) Net balance $ 400,783 $ 392,040 $ 400,783 $ 392,040 Servicing fees are included in “Management services, servicing fees and other” in Newmark’s unaudited condensed consolidated statements of operations and are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Servicing fees $ 25,977 $ 26,092 $ 51,608 $ 51,224 Escrow interest and placement fees 5,624 3,867 10,987 6,834 Ancillary fees 4,131 2,374 7,315 3,201 Total servicing fees and escrow interest $ 35,732 $ 32,333 $ 69,910 $ 61,259 Newmark’s primary servicing portfolio at June 30, 2019 and December 31, 2018 was approximately $58.1 billion and $57.1 billion, respectively. Also, Newmark is the named special servicer for a number of commercial mortgage-backed securitizations. Upon certain specified events (such as, but not limited to, loan defaults and loans assumptions), the administration of the loan is transferred to Newmark. Newmark’s special servicing portfolio at June 30, 2019 and December 31, 2018 was $2.7 billion and $2.9 billion, respectively. The estimated fair value of the MSRs at June 30, 2019 and December 31, 2018 was $431.5 million and $451.9 million, respectively. Fair values are estimated using a valuation model that calculates the present value of the future net servicing cash flows. The cash flows assumptions used are based on assumptions Newmark believes market participants would use to value the portfolio. Significant assumptions include estimates of the cost of servicing per loan, discount rate, earnings rate on escrow deposits and prepayment speeds. The discount rates used in measuring fair value for the six months ended June 30, 2019 and the year ended December 31, 2018 were between 3.0% and 13.5% and varied based on investor type. An increase in discount rate of 100 bps or 200 bps would result in a decrease in fair value by $11.7 million and $22.8 million, respectively, at June 30, 2019 and by $12.4 million and $24.4 million, respectively, at December 31, 2018. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | (1 6 ) The changes in the carrying amount of goodwill for the six months ended June 30, 2019 and the year ended December 31, 2018 were as follows (in thousands): Balance at January 1, 2018 $ 477,532 Acquisitions 40,157 Measurement period adjustments (2,368 ) Balance at December 31, 2018 515,321 Acquisitions 27,984 Measurement period adjustments (180 ) Balance at June 30, 2019 $ 543,125 During the six months ended June 30, 2019, Newmark recognized measurement period adjustments of approximately $0.2 million. Newmark had additions to goodwill in the amount of $28.0 million as a result of acquisitions for the six months ended June 30, 2019. During the year ended December 31, 2018, Newmark recognized additional goodwill and measurement period adjustments of approximately $40.2 million and $(2.4) million, respectively (See Note 4 — Acquisitions for more information). Goodwill is not amortized and is reviewed annually for impairment or more frequently if impairment indicators arise, in accordance with U.S. GAAP guidance on Goodwill and Other Intangible Assets. Newmark completed its annual goodwill impairment testing during the fourth quarter of 2018, which did not result in any goodwill impairment. Other intangible assets consisted of the following at June 30, 2019 and December 31, 2018 (in thousands, except weighted average life): June 30, 2019 Gross Amount Accumulated Amortization Net Carrying Amount Weighted- Average Remaining Life (Years) Indefinite life: Trademark and trade names $ 11,350 $ — $ 11,350 N/A License agreements (GSE) 5,390 — 5,390 N/A Definite life: Trademark and trade names 10,153 (7,141 ) 3,012 0.5 Non-contractual customers 11,532 (4,898 ) 6,634 1.4 License agreements 4,981 (2,792 ) 2,189 0.2 Non-compete agreements 6,267 (1,949 ) 4,318 1.2 Contractual customers 2,483 (973 ) 1,510 0.1 Below market leases 941 (96 ) 845 0.5 $ 53,097 $ (17,849 ) $ 35,248 0.9 December 31, 2018 Gross Amount Accumulated Amortization Net Carrying Amount Weighted- Average Remaining Life (Years) Indefinite life: Trademark and trade names $ 11,350 $ — $ 11,350 N/A License agreements (GSE) 5,390 — 5,390 N/A Definite life: Trademark and trade names 9,316 (6,706 ) 2,610 0.5 Non-contractual customers 11,323 (3,890 ) 7,433 1.8 License agreements 4,981 (2,292 ) 2,689 0.4 Non-compete agreements 6,267 (1,469 ) 4,798 1.4 Contractual customers 1,452 (849 ) 603 0.1 Below market leases 941 (45 ) 896 0.5 $ 51,020 $ (15,251 ) $ 35,769 1.2 Intangible amortization expense for the three months ended June 30, 2019 and 2018 was $1.3 million, and $2.6 million and $2.8 million for the six months ended June 30, 2019 and 2018, respectively. Intangible amortization is included as a part of “Depreciation and amortization” in Newmark’s unaudited condensed consolidated statements of operations. The estimated future amortization of definite life intangible assetsas of June 30, 2019 was as follows (in thousands): 2019 $ 2,751 2020 5,338 2021 4,328 2022 2,283 2023 1,838 Thereafter 1,970 Total $ 18,508 |
Fixed Assets, Net
Fixed Assets, Net | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Fixed Assets, Net | (1 7 ) Fixed assets, net consisted of the following (in thousands): June 30, 2019 December 31, 2018 Leasehold improvements and other fixed assets $ 101,885 $ 99,207 Software, including software development costs 28,044 21,417 Computer and communications equipment 20,289 16,605 150,218 137,229 Accumulated depreciation and amortization (66,675 ) (58,424 ) $ 83,543 $ 78,805 Depreciation expense for the three months ended June 30, 2019 and 2018 was $4.4 million and $3.2 million, respectively, and $9.3 million and $6.4 million for the six months ended June 30, 2019 and 2018, respectively. Depreciation expense is included as a part of “Depreciation and amortization” in Newmark’s unaudited condensed consolidated statements of operations. Capitalized software development costs for the three months ended June 30, 2019 and 2018 was $1.6 million and $0.5 million, respectively, and $2.2 million and $1.0 million for the six months ended June 30, 2019 and 2018, respectively. Amortization of software development costs totaled $0.6 million and $0.2 million for the three months ended June 30, 2019 and 2018, respectively and $1.1 million and $0.4 million for the six months ended June 30, 2019 and 2018, respectively. Amortization of software development costs is included as part of “Depreciation and amortization” in Newmark’s unaudited condensed consolidated statements of operations. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | (18) Leases Newmark has operating leases for real estate and equipment. These leases have remaining lease terms of up to 1 year to 13 years, some of which include options to extend the leases in 5 to 10 year increments for up to 10 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply the judgement to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if Newmark is reasonably certain not to exercise the termination option. Operating lease costs were $11.7 million and $22.6 million for the three and six months ended June 30, 2019, respectively, and are included in “Operating, administrative and other” in the unaudited condensed consolidated statement of operations. Operating cash flows for the six months ended June 30, 2019 included payments of $21.8 million for operating lease liabilities. As of June 30, 2019, Newmark did not have any leases that have not yet commenced but that create significant rights and obligations. For the three and six months ended June 30, 2019, Newmark had short-term lease expense of $0.7 million and $1.3 million, respectively, and sublease income of $0.2 million and $0.4 million, respectively. As of June 30, 2019, the weighted average discount rate was 7.49% and the remaining weighted average lease term was 9.1 years. As of June 30, 2019, Newmark had operating lease ROU assets of $192.5 million recorded in “Other assets”, and operating lease ROU liabilities of $22.8 million recorded in “Current portion of accounts payable, accrued expenses and other liabilities” and $220.9 million recorded in “Other long-term liabilities” on its unaudited condensed consolidated balance sheets. Rent expense, including the operating lease costs above, for the three months ended June 30, 2019 and 2018 was $12.0 million and $10.5 million, respectively, and $23.7 million and $20.7 million for the six months ended June 30, 2019 and 2018, respectively. Rent expense is reported in “Operating, administrative and other” in Newmark’s unaudited condensed consolidated statements of operations. Newmark is obligated for minimum rental payments under various non-cancelable operating leases, principally for office space, expiring at various dates through 2032. Certain of these leases contain escalation clauses that require payment of additional rent to the extent of increases in certain operating or other costs. As of June 30, 2019, minimum lease payments under these arrangements were as follows (in thousands): 2019 $ 20,283 2020 41,815 2021 38,989 2022 36,327 2023 34,973 Thereafter 168,518 Total lease payments 340,905 Less: Interest 97,222 Present value of lease liability $ 243,683 Under ASC 840 , Leases 2019 $ 42,870 2020 41,497 2021 38,287 2022 35,738 2023 34,290 Thereafter 158,907 Total $ 351,589 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Other Assets | (1 9 ) Other current assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 Derivative assets $ 30,565 $ 30,796 Prepaid taxes 14,234 9,992 Prepaid expenses 12,674 15,570 Rent and other deposits 1,554 1,192 Other 20,367 189 $ 79,394 $ 57,739 Non-current other assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 ROU Asset $ 192,498 $ — Deferred tax assets 154,880 149,938 Equity method investment 106,010 101,275 Non-marketable investments 57,497 53,470 Derivative assets 42,883 61,732 Other 4,611 3,452 $ 558,379 $ 369,867 |
Securities Loaned
Securities Loaned | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Securities Loaned | ( 20 ) As of June 30, 2019, Newmark had securities loaned transactions with Cantor of $33.7 million. The fair value of the securities loaned was $33.7 million. As of June 30, 2019, the cash collateral received from Cantor bore interest rates ranging from 2.97% to 3.15%. As of December 31, 2018, Newmark did not have any securities loaned transactions with Cantor. Securities loaned transactions are included in “Securities loaned” in Newmark’s unaudited condensed consolidated balance sheets (See Note 7 — Marketable Securities). |
Warehouse Facilities Collateral
Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises | 6 Months Ended |
Jun. 30, 2019 | |
Brokers And Dealers [Abstract] | |
Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises | ( 2 1 ) Newmark uses its warehouse facilities and repurchase agreements to fund mortgage loans originated under its various lending programs. Outstanding borrowings against these lines are collateralized by an assignment of the underlying mortgages and third-party purchase commitments and are recourse only to Berkeley Point Capital, LLC. As of June 30, 2019, Newmark had the following lines available and borrowings outstanding (in thousands): Committed Lines Uncommitted Lines Balance at June 30, 2019 Stated Spread to One Month LIBOR Rate Type Warehouse facility due June 17, 2020 $ 450,000 $ — $ 120,945 115 bps Variable Warehouse facility due June 17, 2020 - 200,000 - 110 bps Variable Warehouse facility due September 25, 2019 200,000 — 189,749 115 bps Variable Warehouse facility due October 10, 2019 (1) 700,000 — 433,854 115 bps Variable Fannie Mae repurchase agreement, open maturity — 325,000 48,646 105 bps Variable $ 1,350,000 $ 525,000 $ 793,194 (1) The warehouse facility was temporarily increased by $400.0 million to $700.0 million for the period of May 16, 2019 to July 15, 2019. As of December 31, 2018, Newmark had the following lines available and borrowings outstanding (in thousands): Committed Lines Uncommitted Lines Balance at December 31, 2018 Stated Spread to One Month LIBOR Rate Type Warehouse facility due June 19, 2019 $ 450,000 $ — $ 413,063 120 bps Variable Warehouse facility due September 25, 2019 200,000 — 113,452 120 bps Variable Warehouse facility due October 10, 2019 (2) 1,000,000 — 416,373 120 bps Variable Fannie Mae repurchase agreement, open maturity — 325,000 29,499 115 bps Variable $ 1,650,000 $ 325,000 $ 972,387 (2) The warehouse facility was temporarily increased by $700.0 million to $1.0 billion for the period of November 30, 2018 to January 29, 2019. On January 29, 2019, the temporary increase was decreased by $400 million to $300 million for the period January 29, 2019 to April 1, 2019. Newmark is required to meet several financial covenants. Newmark was in compliance with all covenants as of June 30, 2019 and December 31, 2018 and for the three and six months ended March 31, 2019 and 2018 and the year ended December 31, 2018. The borrowing rates on the warehouse facilities are based on short-term London Interbank Offered Rate (LIBOR) plus applicable margins. Due to the short-term maturity of these instruments, the carrying amounts approximate fair value. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | ( 2 2 ) Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 6.125% Senior Notes $ 539,206 $ 537,926 Credit Facility 43,634 — Total long-term debt $ 582,840 $ 537,926 6.125% Senior Notes On November 6, 2018, Newmark closed its offering of $550.0 million aggregate principal amount of 6.125% Senior Notes due 2023 (the “6.125% Senior Notes”). The 6.125% Senior Notes were priced at 98.937% to yield 6.375%. The 6.125% Senior Notes, which were priced on November 1, 2018, were offered and sold by Newmark in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The 6.125% Senior Notes were subsequently exchanged for notes with substantially similar terms that were registered under the Securities Act. The 6.125% Senior Notes bear an interest rate of 6.125% per annum, payable on each May 15 and November 15, beginning on Credit Facility On November 28, 2018, Newmark entered into a credit agreement by and among Newmark, the several financial institutions from time to time party thereto, as Lenders, and Bank of America N.A., as administrative agent (the “Credit Agreement”). The Credit Agreement provides for a $250.0 million three-year unsecured senior revolving credit facility (“the Credit Facility”). Borrowings under the Credit Facility will bear an annual interest equal to, at Newmark’s option, either (a) LIBOR for specified periods, or upon the consent of all Lenders, such other period that is 12 months or less, plus an applicable margin, or (b) a base rate equal to the greatest of (i) the federal funds rate plus 0.5%, (ii) the prime rate as established by the administrative agent, and (iii) one-month LIBOR plus 1.0%. The applicable margin is 200 basis points with respect to LIBOR borrowings in (a) above and can range from 0.25% to 1.25%, depending upon Newmark’s credit rating. The Credit Facility also provides for an unused facility fee. The carrying amount of the advance as of June 30, 2019 was $43.6 million, net of debt issue costs of $1.4 million. Newmark uses the straight-line method to amortize these debt issue costs over the life of the loan. Newmark amortized $0.1 million and $0.3 million of debt issue costs for the three and six months ended June 30, 2019, respectively. Newmark recorded interest expense of $0.8 million and $1.0 million for the three and six months ended June 30, 2019, respectively. These amounts are included in “Interest expense, net” in Newmark’s unaudited condensed consolidated statement of operations. Term Loan On September 8, 2017, BGC entered into a committed unsecured senior term loan credit agreement with Bank of America, N.A., as administrative agent, and a syndicate of lenders. The term loan credit agreement provides for loans of up to $575.0 million (the “Term Loan”). The maturity date of the agreement was September 8, 2019. Borrowings under the Term Loan bore interest at either LIBOR or a defined base rate plus an additional margin which ranged from 50 basis points to 325 basis points depending on BGC’s debt rating as determined by S&P and Fitch and whether such loan was a LIBOR loan or a base rate loan. On November 22, 2017, BGC and Newmark entered into an amendment to the unsecured senior term loan credit agreement. Pursuant to the term loan amendment and effective as of December 13, 2017, Newmark assumed the obligations of BGC as borrower under the Term Loan. The net proceeds from the IPO were used to partially repay $304.3 million of the Term Loan. During the year ended December 31, 2018, Newmark repaid the outstanding balance of $270.7 million on the Term Loan, at which point the facility was terminated. Newmark recorded interest expense related to the Term Loan of $2.6 million for the three and six months ended June 30, 2018, respectively. Prior to the Spin-Off, the Term Loan was repaid in full. Converted Term Loan On September 8, 2017, BGC entered into a committed unsecured senior revolving credit agreement with Bank of America, N.A., as administrative agent, and a syndicate of lenders (the “Converted Term Loan”). The revolving credit agreement provides for revolving loans of up to $400.0 million. The maturity date of the facility was September 8, 2019 . Borrowings under the Converted Term Loan bore interest at either LIBOR or a defined base rate plus an additional margin, which range d from 50 basis points to 325 basis points depending on BGC’s debt rating as determined by S&P and Fitch and whether such loan wa s a LIBOR loan or a base rate loan. The Term Loan was paid in full on March 9, 2018. Since the Term Loan was repaid in full, the pricing of the Converted Term Loan returned to the levels previously described. On November 22, 2017, BGC and Newmark entered into an amendment to the unsecured senior revolving credit agreement. Pursuant to the amendment, the then-outstanding borrowings of BGC under the revolving credit facility were converted into a term loan. There was no change in the maturity date or interest rate. As of December 13, 2017, Newmark assumed the obligations of BGC as borrower under the Converted Term L oan. On June 19, 2018, Newmark repaid $ 152.9 million, and on September 26, 2018, Newmark repaid $ 113.2 million of the Converted Term Loan using proceeds from the Newmark OpCo Preferred Investment. On November 6, 2018, Newmark repaid the remaining $ 134.0 million outstanding principal amount of the Converted Term Loan using the proceeds from the sale of its 6.125% Senior Notes . Therefore, there were no borrowings outstanding as of December 31, 2018. Newmark recorded interest expense related to the Converted Term Loan of $ million and $ 9.0 million for the three and six months ended June 30 , 2018 , respectively . P rior to the Spin-Off, the outstanding amount under the Converted Term Loan was repaid in full. 2019 Promissory Note and 2042 Promissory Note On December 13, 2017, in connection with the Separation, Newmark assumed from BGC an aggregate of $300.0 million principal amount due December 9, 2019 (the “2019 Promissory Note”) and $112.5 million principal amount due June 26, 2042 (the “2042 Promissory Note”). On September 4, 2018, Newmark OpCo borrowed $112.5 million from BGC pursuant to the Intercompany Credit Agreement which loan bore interest at an annual rate equal to 6.5%. Newmark OpCo used the proceeds of the Intercompany Credit Agreement loan to repay the $112.5 million of the 2042 Promissory Note. The 2019 Promissory Note bore interest at 5.375% and the 2042 Promissory Note bore interest at 8.125%. Newmark repaid the $300 million outstanding principal amount under the 2019 Promissory Note on November 23, 2018. Upon repayment of the 2019 Promissory Note, Newmark no longer has debt obligations owed to BGC. Newmark recorded interest expense related to the 2019 Promissory Note of $4.3 million and $8.6 million for the three and six months ended June 30, 2018, respectively. Additionally, Newmark recorded interest expense related to the 2042 Promissory Note of $2.3 million and $4.6 million for the three and six months ended June 30, 2018, respectively. In connection with the repayment of the 2019 Promissory Note, Newmark incurred a prepayment penalty of $7.0 million. In 2018, the 2019 and 2042 Promissory Notes were recorded at amortized cost. The fair value of the 2042 Promissory Note was determined using observable market prices as the 8.125% BGC Senior Notes were considered Level 1 within the fair value hierarchy as they were deemed to be actively traded and the 2019 Promissory Note are considered Level 2 within the fair value hierarchy. |
Financial Guarantee Liability
Financial Guarantee Liability | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Financial Guarantee Liability | (2 3 ) Newmark shares risk of loss for loans originated under the Fannie Mae DUS and Freddie TAH programs and could incur losses in the event of defaults under or foreclosure of these loans. Under the guarantee, Newmark’s maximum contingent liability to the extent of actual losses incurred is approximately 33% of the outstanding principal balance on Fannie Mae DUS or Freddie TAH loans. Risk sharing percentages are established on a loan-by-loan basis when originated, with most loans at 33% and “modified” loans at lower percentages. Under certain circumstances, risk sharing percentages can be revised subsequent to origination or Newmark could be required to repurchase the loan. In the event of a loss resulting from a catastrophic event that is not required to be covered by borrowers’ insurance policies, Newmark can recover the loss under its mortgage impairment insurance policy. Any potential recovery is subject to the policy’s deductibles and limits. At June 30, 2019, the credit risk loans being serviced by Newmark on behalf of Fannie Mae and Freddie Mac had outstanding principal balances of approximately $20.3 billion with a maximum potential loss of approximately $5.7 billion, of which $9.9 million is covered by the Credit Enhancement Agreement (See Note 12 — Credit Enhancement Receivable, Contingent Liability and Credit Enhancement Deposit). At December 31, 2018, the credit risk loans being serviced by Newmark on behalf of Fannie Mae and Freddie Mac had outstanding principal balances of approximately $20.6 billion with a maximum potential loss of approximately $5.8 billion, of which $76.2 million is covered by the Credit Enhancement Agreement (See Note 12 — Credit Enhancement Receivable, Contingent Liability and Credit Enhancement Deposit). At June 30, 2019 and December 31, 2018, changes on the estimated liability under the guarantee liability were as follows: Financial guarantee liability (in thousands) Balance at January 1, 2018 $ (54 ) Reversal of provision 22 Balance at December 31, 2018 $ (32 ) Increase to provision (41 ) Balance at June 30, 2019 $ (73 ) In order to monitor and mitigate potential losses, Newmark uses an internally developed loan rating scorecard for determining which loans meet Newmark’s criteria to be placed on a watch list. Newmark also calculates default probabilities based on internal ratings and expected losses on a loan-by-loan basis. This methodology uses a number of factors including, but not limited to, debt service coverage ratios, collateral valuation, the condition of the underlying assets, borrower strength and market conditions (See Note 12—Credit Enhancement Receivable, Contingent Liability and Credit Enhancement Deposit for further explanation of credit protection provided by DB Cayman). The provisions for risk sharing are included in “Operating, administrative and other” in Newmark’s unaudited condensed consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Increase (decrease) to financial guarantee liability $ — $ (14 ) $ 41 $ (7 ) Decrease (increase) to credit enhancement asset (1) — — — 10 Total expense $ — $ (14 ) $ 41 $ 3 (1) The credit enhancement recievable is included in “Other assets” in the accompanying consolidated balance sheets. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit Risk | (2 4 ) The lending activities of Newmark create credit risk in the event that counterparties do not fulfill their contractual payment obligations. In particular, Newmark is exposed to credit risk related to the Fannie Mae DUS and Freddie Mac TAH loans (See Note 23 — Financial Guarantee Liability). As of June 30, 2019, 24% and 16% of $5.7 billion of the maximum loss (See Note 23 — Financial Guarantee Liability) was for properties located in California and Texas, respectively. As of December 31, 2018, 25% and 16% of $5.8 billion of the maximum loss (See Note 23 — Financial Guarantee Liability) was for properties located in California and Texas, respectively. |
Escrow and Custodial Funds
Escrow and Custodial Funds | 6 Months Ended |
Jun. 30, 2019 | |
Deposit Assets Disclosure [Abstract] | |
Escrow and Custodial Funds | (2 5 ) In conjunction with the servicing of multifamily and commercial loans, Newmark holds escrow and other custodial funds. Escrow funds are held at unaffiliated financial institutions generally in the form of cash and cash equivalents. These funds amounted to approximately $1.0 billion and $1.3 billion, as of June 30, 2019 and December 31, 2018, respectively. These funds are held for the benefit of Newmark’s borrowers and are segregated in custodial bank accounts. These amounts are excluded from the assets and liabilities of Newmark. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | (2 6 ) U.S. GAAP guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: • Level 1 measurements—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 measurements—Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly. • Level 3 measurements—Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As required by U.S. GAAP guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance at June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 33,659 $ — $ — $ 33,659 Nasdaq Forwards — — 48,652 48,652 Loans held for sale, at fair value — 818,909 — 818,909 Rate lock commitments — — 21,951 21,951 Forwards — — 2,845 2,845 Total assets $ 33,659 $ 818,909 $ 73,448 $ 926,016 Liabilities: Accounts payable, accrued expenses and other liabilities—contingent consideration $ — $ — $ 38,712 $ 38,712 Rate lock commitments — — 2,428 2,428 Forwards — — 27,261 27,261 Total Liabilities $ — $ — $ 68,401 $ 68,401 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 48,942 $ — $ — $ 48,942 Nasdaq Forwards — — 77,619 77,619 Loans held for sale, at fair value — 990,864 — 990,864 Rate lock commitments — — 6,732 6,732 Forwards — — 8,177 8,177 Total assets $ 48,942 $ 990,864 $ 92,528 $ 1,132,334 Liabilities: Accounts payable, accrued expenses and other liabilities—contingent consideration $ — $ — $ 32,552 $ 32,552 Rate lock commitments — — 7,470 7,470 Forwards — — 9,208 9,208 Total Liabilities $ — $ — $ 49,230 $ 49,230 There were no transfers among Level 1, 2 and 3 for the six months ended June 30, 2019 and the year ended December 31, 2018. Level 3 Financial Assets and Liabilities: Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the three months ended June 30, 2019 were as follows (in thousands): Opening Balance April 1, 2019 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized gains (losses) outstanding as of June 30, 2019 Assets: Rate Lock Commitments $ 10,210 $ 21,951 $ — $ (10,210 ) $ 21,951 $ 21,951 Forwards 5,964 2,845 — (5,964 ) 2,845 2,845 Nasdaq Forwards 64,290 (15,638 ) — — 48,652 (15,638 ) Total Assets $ 80,464 $ 9,158 $ — $ (16,174 ) $ 73,448 $ 9,158 Opening Balance April 1, 2019 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized (gains) losses outstanding as of June 30, 2019 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 31,357 $ (65 ) $ 7,758 $ (338 ) $ 38,712 $ (65 ) Rate Lock Commitments 5,190 2,428 — (5,190 ) 2,428 2,428 Forwards 9,596 27,261 — (9,596 ) 27,261 27,261 Total Liabilities $ 46,143 $ 29,624 $ 7,758 $ (15,124 ) $ 68,401 $ 29,624 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the three months ended June 30, 2018 were as follows (in thousands): Opening Balance as of April 1, 2018 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized gains (losses) outstanding as of June 30, 2018 Assets: Rate Lock Commitments $ 8,750 $ 14,448 $ — $ (8,750 ) $ 14,448 $ 14,448 Forwards 9,687 16,442 — (9,687 ) 16,442 16,442 Nasdaq Forwards — (2,808 ) 21,893 — 19,085 (2,808 ) Total Assets $ 18,437 $ 28,082 $ 21,893 $ (18,437 ) $ 49,975 $ 28,082 Opening Balance as of April 1, 2018 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized (gains) losses outstanding as of June 30, 2018 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 23,088 $ 295 $ 688 $ (2,497 ) $ 21,574 $ 295 Rate Lock Commitments 8,980 13,945 — (8,980 ) 13,945 13,945 Forwards 2,421 641 — (2,421 ) 641 641 Total Liabilities $ 34,489 $ 14,881 $ 688 $ (13,898 ) $ 36,160 $ 14,881 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the six months ended June 30, 2019 were as follows (in thousands): Opening Balance as of January 1, 2019 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized gains (losses) outstanding as of June 30, 2019 Assets: Rate Lock Commitments $ 6,732 $ 21,951 $ — $ (6,732 ) $ 21,951 $ 21,951 Forwards 8,177 2,845 — (8,177 ) 2,845 2,845 Nasdaq Forwards 77,619 (28,967 ) — — 48,652 (28,967 ) Total Assets $ 92,528 $ (4,171 ) $ — $ (14,909 ) $ 73,448 $ (4,171 ) Opening Balance as of January 1, 2019 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized (gains) losses outstanding as of June 30, 2019 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 32,552 $ 1,319 $ 7,758 $ (2,917 ) $ 38,712 $ 1,319 Rate Lock Commitments 7,470 2,428 — (7,470 ) 2,428 2,428 Forwards 9,208 27,261 — (9,208 ) 27,261 27,261 Total Liabilities $ 49,230 $ 31,008 $ 7,758 $ (19,595 ) $ 68,401 $ 31,008 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the six months ended June 30, 2018 were as follows (in thousands): Opening Balance as of January 1, 2018 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized gains (losses) outstanding as of June 30, 2018 Assets: Rate Lock Commitments $ 2,923 $ 14,448 $ — $ (2,923 ) $ 14,448 $ 14,448 Forwards 3,753 16,442 — (3,753 ) 16,442 16,442 Nasdaq Forwards — (2,808 ) 21,893 — 19,085 (2,808 ) Total Assets $ 6,676 $ 28,082 $ 21,893 $ (6,676 ) $ 49,975 $ 28,082 Opening Balance as of January 1, 2018 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized (gains) losses outstanding as of June 30, 2018 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 23,710 $ 432 $ 688 $ (3,256 ) $ 21,574 $ 432 Rate Lock Commitments 2,390 13,945 — (2,390 ) 13,945 13,945 Forwards 657 641 — (657 ) 641 641 Total Liabilities $ 26,757 $ 15,018 $ 688 $ (6,303 ) $ 36,160 $ 15,018 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Quantitative Information About Level 3 Fair Value Measurements The following tables present quantitative information about the significant unobservable inputs utilized by Newmark in the fair value measurement of Level 3 assets and liabilities measured at fair value on a recurring basis: June 30, 2019 Level 3 assets and liabilities Assets Liabilities Significant Unobservable Inputs Range Weighted Average Accounts payable, accrued expenses and other liabilities: Contingent consideration $ — $ 38,712 Discount rate 0.3% - 10.4% 8.1% Probability of meeting earnout and contingencies 99% - 100% 99.5% Financial forecast information Derivative assets and liabilities: Nasdaq Forwards $ 48,652 $ — Volatility 27.75% - 35.25% 32.2% Forward sale contracts $ 2,845 $ 27,261 Counterparty credit risk N/A N/A Rate lock commitments $ 21,951 $ 2,428 Counterparty credit risk N/A N/A December 31, 2018 Level 3 assets and liabilities Assets Liabilities Significant Unobservable Inputs Range Weighted Average Accounts payable, accrued expenses and other liabilities: Contingent consideration $ — $ 32,552 Discount rate 0.3%-10.4% 8.2% Probability of meeting earnout and contingencies 99%-100% (1) 99.6% Financial forecast information Derivative assets and liabilities: Nasdaq Forwards $ 77,619 $ — Volatility 23.7%-34.8% (2) 30.2% Forward sale contracts $ 8,177 $ 9,208 Counterparty credit risk N/A N/A Rate lock commitments $ 6,732 $ 7,470 Counterparty credit risk N/A N/A (1) Newmark’s estimate of contingent consideration as of June 30, 2019 and December 31, 2018 was based on the acquired business’ projected future financial performance, including revenues. (2) The volatility of Newmark’s Nasdaq Forwards is primarily based on the underlying Nasdaq stock price. Valuation Processes - Level 3 Measurements Both the rate lock commitments to borrowers and the forward sale contracts to investors are derivatives and, accordingly, are marked to fair value through Newmark’s unaudited condensed consolidated statements of operations. The fair value of Newmark’s rate lock commitments to borrowers and loans held for sale and the related input levels includes, as applicable: • The assumed gain/loss of the expected loan sale to the investor, net of employee benefits; • The expected net future cash flows associate with servicing the loan; • The effects of interest rate movements between the date of the rate lock and the balance sheet date; and • The nonperformance risk of both the counterparty and Newmark. The fair value of Newmark’s forward sales contracts to investors considers effects of interest rate movements between the trade date and the balance sheet date. The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. The fair value of Newmark’s rate lock commitments and forward sale contracts is adjusted to reflect the risk that the agreement will not be fulfilled. Newmark’s exposure to nonperformance in rate lock and forward sale contracts is represented by the contractual amount of those instruments. Given the credit quality of Newmark’s counterparties, the short duration of rate lock commitments and forward sales contracts, and Newmark’s historical experience with the agreements, management does not believe the risk of nonperformance by Newmark’s counterparties to be significant. The Nasdaq Forwards are derivatives and, accordingly, are marked to fair value through Newmark’s unaudited condensed consolidated statements of operations. The fair value of the Nasdaq Forwards is determined utilizing the following inputs, as applicable: • The underlying number of shares and the related strike price; • The maturity date; and • The implied volatility of Nasdaq’s stock price. The fair value of Newmark’s Nasdaq Forwards considers the effects of Nasdaq’s stock price volatility between the balance sheet date and the maturity date. The fair value is determined through the use of a Black-Scholes put option valuation model. Information About Uncertainty of Level 3 Fair Value Measurements The significant unobservable inputs used in the fair value of Newmark’s contingent consideration are the discount rate and forecasted financial information. Significant increases (decreases) in the discount rate would have resulted in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the forecasted financial information would have resulted in a significantly higher (lower) fair value measurement. As of June 30, 2019 and December 31, 2018, the present value of expected payments related to Newmark’s contingent consideration was $34.2 million and $32.6 million, respectively (See Note 31 — Commitments and Contingencies). The undiscounted value of the payments, assuming that all contingencies are met, would be $40.2 million and $39.6 million, respectively. Valuations for contingent consideration, Nasdaq Forwards, forward sales contracts, and rate lock commitments are conducted by Newmark. Each reporting period, Newmark updates unobservable inputs. Newmark has a formal process to review changes in fair value for satisfactory explanation. Fair Value Measurements on a Non-Recurring Basis Pursuant to the new recognition and measurement guidance for equity investments, effective January 1, 2018, equity investments carried under the measurement alternative are remeasured at fair value on a non-recurring basis to reflect observable transactions which occurred during the period. Newmark applied the measurement alternative to equity securities with the fair value of approximately $57.5 million, which were included in “Other assets” in Newmark’s unaudited condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018. These investments are classified within Level 2 in the fair value hierarchy, because their estimated fair value is based on valuation methods using the observable transaction price at the transaction date. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (2 7 ) (a) Newmark receives administrative services, including but not limited to, treasury, legal, accounting, information technology, payroll administration, human resources, incentive compensation plans and other support, provided by Cantor and BGC. Allocated expenses were $7.2 million and $6.3 million for the three months ended June 30, 2019 and 2018, respectively, and $13.9 million and $13.2 million for the six months ended June 30, 2019 and 2018, respectively. These expenses are included as part of “Fees to related parties” in Newmark’s unaudited condensed consolidated statements of operations. (b) Newmark has entered into various agreements with certain employees and partners whereby these individuals receive loans which may be either wholly or in part repaid from the distribution of earnings that the individuals receive on some or all of their limited partnership interests or may be forgiven over a period of time. The forgivable portion of these loans is recognized as compensation expense over the life of the loans. From time to time, Newmark may also enter into agreements with employees and partners to grant bonus and salary advances or other types of loans. These advances and loans are repayable in the timeframes outlined in the underlying agreements. As of June 30, 2019 and December 31, 2018, the aggregate balance of employee loans was $320.4 million and $285.5 million, respectively, and is included as “Loans, forgivable loans and other receivables from employees and partners, net” in Newmark’s unaudited condensed consolidated balance sheets. Compensation expense for the above mentioned employee loans were $11.1 million and $5.2 million for the three months ended June 30, 2019 and 2018, respectively, and $18.5 million and $11.2 million for the six months ended June 30, 2019 and 2018, respectively. The compensation expense related to these employee loans is included as part of “Compensation and employee benefits” in Newmark’s unaudited condensed consolidated statements of operations. Transfer of Employees to Newmark and Other Related Party Transactions In connection with the expansion of the mortgage brokerage and lending activities, Newmark has entered into an agreement with Cantor pursuant to which five former employees of its affiliate, CCRE, have transferred to Newmark, effective as of May 1, 2018. In connection with this transfer of employees, Cantor paid $6.9 million to Newmark in October 2018 and Newmark Holdings issued $6.7 million of limited partnership units and $0.2 million of cash in the form of a cash distribution agreement to the employees. In addition, Newmark Holdings issued $2.2 million of Newmark Holdings partnership units with a capital account and $0.5 million of limited partnership units in exchange for the cash payment from Cantor to Newmark of $2.2 million. Newmark recorded $6.9 million and $2.2 million as “Stockholders’ equity” and “Redeemable partnership interests”, respectively, in Newmark’s unaudited condensed consolidated balance sheets. In consideration for the Cantor payment, Newmark has agreed to return up to a maximum of $3.3 million to Cantor based on the employees’ production during their first two years of employment with Newmark. Newmark has agreed to allow certain of these employees to continue to provide consulting services to Cantor in exchange for a forgivable loan which was directly paid by Cantor to these employees. In February 2019, the Audit Committee of the Company authorized Newmark and its subsidiaries to originate and service GSE loans to Cantor and its affiliates (other than BGC) and service loans originated by Cantor and its affiliates (other than BGC) on prices, rates and terms no less favorable to Newmark and its subsidiaries than those charged by third parties. The authorization is subject to certain terms and conditions, including but not limited to: (i) a maximum amount up to $100.0 million per loan, (ii) a $250.0 million limit on loans that have not yet been acquired or sold to a GSE at any given time, and (iii) a separate a $250.0 million limit on originated Fannie Mae loans outstanding to Cantor at any given time. (c) Newmark has a referral agreement in place with CCRE, in which Newmark’s brokers are incentivized to refer business to CCRE through a revenue-share agreement. In connection with this revenue-share agreement, Newmark recognized $0.5 million and $0.7 million of revenues for the three and six months ended June 30, 2019, respectively. In connection with this revenue-share agreement, Newmark did not recognize any revenues for the three and six months ended June 30, 2018. Newmark also has a revenue-share agreement with CCRE, in which Newmark pays CCRE for referrals for leasing or other services. Newmark did not make any payments under this agreement to CCRE for the three and six months ended June 30, 2019 and 2018. In addition, Newmark has a loan referral agreement in place with CCRE, in which either party can refer a loan to the other. Revenue from these referrals were $0.2 million and $0.1 million for the three months ended June 30, 2019 and 2018, respectively. Revenue from these referrals were $0.9 million and $3.7 million for the six months ended June 30, 2019 and 2018, respectively. These revenues were recognized in “Gains from mortgage banking activities/originations, net” in Newmark’s unaudited condensed consolidated statements of operations. These referrals fees are net of the broker fees and commissions to CCRE of $0.1 million for the three months ended June 30, 2019 and 2018, respectively, and $0.2 million and $0.7 million for the six months ended June 30, 2019 and 2018, respectively. On September 8, 2017, BGC completed the Berkeley Point Acquisition, for an acquisition price of $875.0 million with $3.2 million of the acquisition price paid in units of BGC Holdings, pursuant to a Transaction Agreement, dated as of July 17, 2017, with Cantor and certain of Cantor’s affiliates, including CCRE and Cantor Commercial Real Estate Sponsor, L.P., the general partner of CCRE. In accordance with this Transaction Agreement, BPF made a distribution of $89.1 million to CCRE, for the amount that BPF’s net assets exceeded $508.6 million. During the six months ended June 30, 2019, Newmark purchased the primary servicing rights for $447.0 million of loans originated by CCRE for $0.7 million. During the six months ended June 30, 2018, Newmark purchased the primary servicing rights for $594.0 million of loans originated by CCRE for $1.0 million. Newmark also services loans for CCRE on a “fee for service” basis, generally prior to a loan’s sale or securitization, and for which no MSR is recognized. Newmark recognized $ 1.0 millio n for the three months ended June 30 , 2019 and 2018 , respectively, and $ 1.9 million for the six months ended June 30, 2019 and 2018, of servicing revenues (excluding interest and placement fees) from loans purchased from CCRE on a “fee for service” basis, which was included as part of “ M anagement services, servicing fee and other” in Newmark’s unaudited condensed consolidated statements of operations. Transactions with Executive Officers and Directors In connection with Newmarks’s 2018 executive compensation process, Newmark’s executive officers received certain monetization of prior awards as compensation at Newmark, as set forth below: On December 31, 2018, the Compensation Committee approved the monetization of 898,080 BGC Holdings PPSUs held by Mr. Lutnick (which had an average determination price of $7.65 per unit), and 592,721 Newmark Holdings PPSUs (which had an average determination price of $13.715 per unit), which transactions had an aggregate value of $15,000,000. On February 6, 2019, the Compensation Committee approved a modification which consisted of the following: (i) the right to exchange 1,131,774 non-exchangeable BGC Holdings PSUs held by Mr. Lutnick into 1,131,774 non-exchangeable BGC Holdings partnership units with a capital account (HDUs) (which, based on the closing price of the BGC Class A common stock of $6.20 per share on such date, had a value of $7,017,000); and (ii) the right to exchange for cash 1,018,390 BGC Holdings non-exchangeable PPSUs held by Mr. Lutnick, (which had an average determination price of $7.8388 per unit), for a payment of $7,983,000 for taxes when (i) is exchanged. On December 31, 2018, the Compensation Committee approved the monetization of 1,909,188 BGC Holdings PSUs held by Mr. Gosin and 264,985 BGC Holdings PPSUs (which had an average determination price of $4.2625 per unit), which transactions had an aggregate value of $11,000,000. On February 6, 2019, the Compensation Committee approved a modification which consisted of the following: (i) the right to exchange 1,592,016 non-exchangeable HDUs (which, based on the closing price of the BGC Class A common stock of $6.20 per share on such date, had a value of $9,870,501); and (ii) the right to exchange for cash 264,985 BGC Holdings non-exchangeable PPSUs held by Mr. Gosin, (which had an average determination price of $4.2625 per unit), for a payment of $1,129,499 for taxes when (i) is exchanged . On February 22, 2019, the Compensation Committee initially approved for Mr. Gosin grants in Newmark Holdings NPSUs and NPPSUs. On April 25, 2019, the Compensation Committee modified Mr. Gosin’s awards by cancelling the grant of the previously mentioned Newmark Holdings NPSUs and NPPSUs and by granting non-exchangeable Newmark Holdings PSUs and PPSUs. The Committee approved this modification in order to reflect an annual compensation structure rather than a long-term NPSU/NPPSU structure. On December 31, 2018, the Compensation Committee approved the cancellation of 13,552 non-exchangeable PSUs in BGC Holdings held by Mr. Rispoli and the cancelation of 11,089 BGC Holdings PPSUs (which had an average determination price of $5.814 per unit). In connection with the transactions, BGC issued $134,535 in shares of Class A common stock, less applicable taxes and withholdings, resulting in 13,552 net shares of BGC Class A common stock at a price of $5.17 per share and the payment of $64,471 for taxes. On February 22, 2019, the Compensation Committee removed the sale restrictions on 4,229 shares of BGC Class A common stock and 1,961 shares of Newmark Class A common stock held by Mr. Rispoli. CF Real Estate Finance Holdings, LP. Contemporaneously with the Berkeley Point Acquisition, on September 8, 2017, Newmark invested $100.0 million in a newly formed commercial real estate-related financial and investment business, Real Estate LP, which is controlled and managed by Cantor. Real Estate LP may conduct activities in any real estate related business or asset backed securities related business or any extensions thereof and ancillary activities thereto. IPO and Spin-Off On December 13, 2017, prior to the closing of the IPO, BGC, BGC Holdings, BGC U.S. OpCo, Newmark, Newmark Holdings, Newmark OpCo, Cantor, and BGC Global OpCo entered into the Separation and Distribution Agreement. The Separation and Distribution Agreement sets forth the agreements among BGC, Cantor, Newmark and their respective subsidiaries with respect to the Separation and related matters (See Note 1 — Organization and Basis of Presentation for additional information). As a result of the Separation, the limited partnership interests in Newmark Holdings were distributed to the holders of limited partnership interests in BGC Holdings, including Cantor, whereby each holder of BGC Holdings limited partnership interests at that time held a BGC Holdings limited partnership interest and a corresponding Newmark Holdings limited partnership interest, which was equal to a BGC Holdings limited partnership interest multiplied by the contribution ratio, divided by the current exchange ratio. The exchange ratio is subject to adjustment, in accordance with the terms of the separation agreement (See Note 2 — Limited Partnership Interests for additional information). In addition CF&Co, a wholly owned subsidiary of Cantor, was an underwriter of the IPO. Pursuant to the underwriting agreement, Newmark paid CF&Co 5.5% of the gross proceeds from the sale of shares of Newmark Class A common stock sold by CF&Co. in connection with the IPO. On November 30, 2018, BGC completed the Spin-Off. BGC Partners’ stockholders, including Cantor, as of the Record Date, received in the Spin-Off 0.463895 of a share of Newmark Class A or Class B common stock for each share of BGC Class A or Class B common stock held as of the Record Date. In the aggregate, BGC distributed 131.9 million shares of Newmark Class A common stock and 21.3 million shares of Newmark Class B common stock to BGC’s stockholders in the Spin-Off. As Cantor and CFGM held 100% of the shares of BGC Class B common stock as of the Record Date, Cantor and CFGM were distributed 100% of the shares of Newmark Class B common stock in the Spin-Off (see BGC’s 2018 Investment in Newmark below. Following the Spin-Off and the BGC Holdings distribution, BGC Partners ceased to be a controlling stockholder of Newmark, and BGC and its subsidiaries no longer held any shares of Newmark common stock or equity interests in Newmark or its subsidiaries. Cantor continues to control Newmark and its subsidiaries following the Spin-Off and the BGC Holdings distribution (See Note 1 — Organization and Basis of Presentation for additional information). Subsequent to the Spin-Off, there are remaining partners who hold limited partnership interests in Newmark Holdings that are BGC employees, and there are remaining partners who hold limited partnership interests in BGC Holdings that are Newmark employees. These limited partnership interests represent interests that were held prior to the IPO and were distributed as part of the Separation and Distribution Agreement. Following the IPO, employees of Newmark and BGC only receive limited partnership interests in Newmark Holdings and BGC Holdings, respectively. As a result of the Spin-Off, as the existing limited partnership interests in Newmark Holdings held by BGC employees and the existing limited partnership interests in BGC Holdings held by Newmark employees are exchanged/redeemed, the related capital is contributed to and from Cantor, respectively. BGC’s 2018 Investment in Newmark Holdings On March 7, 2018, BGC Partners and its operating subsidiaries purchased 16.6 million units of Newmark Holdings for approximately $242.0 million. The price per Newmark Holdings unit was based on the $14.57 closing price of Newmark’s Class A common stock on March 6, 2018, as reported on the NASDAQ Global Select Market. These newly issued Newmark Holdings units were exchangeable, at BGC’s discretion, into either shares of Class A common stock or shares of Class B common stock of Newmark. BGC made the Investment in Newmark pursuant to an Investment Agreement, dated as of March 6, 2018, by and among BGC, BGC Holdings, BGC U.S. OpCo, BGC Global OpCo, Newmark, Newmark Holdings and Newmark OpCo. BGC’s 2018 Investment in Newmark and related transactions were approved by the Audit Committees and Boards of Directors of BGC and Newmark. BGC and its subsidiaries funded the Investment in Newmark using the proceeds of its CEO sales program. Newmark used the proceeds to repay the balance of the outstanding principal amount under its unsecured senior term loan credit agreement with Bank of America, N.A., as administrative agent, and a syndicate of lenders that was guaranteed by BGC. In addition, in accordance with the Separation and Distribution Agreement, BGC owned 7.0 million limited partnership interests in the Newmark OpCo (“Newmark OpCo Units”) immediately prior to the Spin-Off, as a result of other issuances of BGC Class A common stock primarily related to the redemption of limited partnership units in BGC Holdings and Newmark Holdings. Prior to and in connection with the Spin-Off, 14.8 million Newmark Holdings units held by BGC were exchanged into 9.4 million shares of Newmark Class A common stock and 5.4 million shares of Newmark Class B common stock, and 7.0 million Newmark OpCo units held by BGC were exchanged into 6.9 million shares of Newmark Class A common stock. These Newmark Class A and Class B shares of common stock were included in the Spin-Off to BGC’s stockholders. On November 30, 2018, BGC Holdings distributed pro-rata all of the 1.5 million exchangeable limited partnership units of Newmark Holdings held by BGC Holdings immediately prior to the effective time of the Spin-Off to its limited partners entitled to receive distributions on their BGC Holdings units who were holders of record of such units as of November 23, 2018 (including Cantor and executive officers of BGC). The Newmark Holdings units distributed to BGC Holdings partners in the BGC Holdings Distribution are exchangeable for shares of Newmark Class A common stock, and in the case of the 0.4 million Newmark Holdings Units received by Cantor also into shares of Newmark Class B common stock, at the exchange ratio of 0.9793 shares of Newmark common stock per Newmark Holdings unit (subject to adjustment). As of June 30, 2019, the exchange ratio equaled 0.9495 (See Note 1 — Organization and Basis of Presentation for additional information). Other Transactions with CF&Co On June 18, 2018 and September 26, 2018, Newmark entered into transactions related to the monetization of the Nasdaq shares that Newmark expects to receive in 2019 through 2022. (See Note 1 – Organization and Basis of Presentation.) Newmark paid $4.0 million in fees for services provided by CF&Co related to these monetization transactions. These fees were recorded as a deduction from the carrying amount of the EPUs. On November 6, 2018, Newmark issued an aggregate of $550.0 million principal amounts of 6.125% Senior Notes due 2023. In connection with this issuance of 6.125% Senior Notes, Newmark paid $0.8 million in underwriting fees to CF&Co. (d) On March 19, 2018, Newmark entered into the Intercompany Credit Agreement with BGC, which amended and restated the original intercompany credit agreement between the parties in relation to the Separation, dated as of December 13, 2017. The Intercompany Credit Agreement provided for each party to issue revolving loans to the other party in the lender’s discretion. The interest rate on the Intercompany Credit Agreement was the higher of BGC’s or Newmark’s short-term borrowings rate in effect at such time, plus 100 basis points, or such other interest rate as may be mutually agreed between BGC and Newmark. As of November 7, 2018, all borrowings outstanding under the Intercompany Credit Agreement had been repaid. On November 30, 2018, Newmark entered into an unsecured credit agreement (the “Cantor Credit Agreement”) with CFLP. The Cantor Credit Agreement provides for each party to issue loans to the other party at the lender’s discretion. Pursuant to the Cantor Credit Agreement, the parties and their respective subsidiaries (with respect to CFLP, other than BGC and its subsidiaries) may borrow up to an aggregate principal amount of $250 million from each other from time to time at an interest rate which is the higher of CFLP’s or Newmark’s short-term borrowing rate then in effect, plus 1%. As of June 30, 2019, Newmark had receivables from related parties of $1.2 million. As of June 30, 2019, the current portion of payables to related parties was $25.5 million. As of December 31, 2018, the related party receivables and the current portion of payables to related parties were $20.5 million and $13.5 million, respectively. (See Note 1 — Organization and Basis of Presentation, Note 2 — Limited Partnership Interests, and Note 22 — Long-Term Debt, for additional information on transactions with related parties.) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (2 8 ) Newmark’s unaudited condensed consolidated financial statements include U.S. federal, state and local income taxes on Newmark’s allocable share of its U.S. results of operations, as well as taxes payable to jurisdictions outside the U.S. In addition, certain of Newmark’s entities are taxed as U.S. partnerships and are subject to the Unincorporated Business Tax (“UBT”) in New York City. Therefore, the tax liability or benefit related to the partnership income or loss, except for UBT, rests with the partners (See Note 2— Limited Partnership Interests, for discussion of partnership interests) rather than the partnership entity. Income taxes are accounted for using the asset and liability method, as prescribed in U.S. GAAP guidance for Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited condensed consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded against deferred tax assets if it is deemed more likely than not that those assets will not be realized. The Tax Cut and Jobs Act (the “Tax Act”), enacted on December 22, 2017, includes the global intangible low-taxed income (“GILTI”) provision. This provision requires inclusion in the Company’s U.S. income tax return of the earnings of certain foreign subsidiaries. The Company has elected to treat taxes associated with the GILTI provision as a current period expense when incurred and thus has not recorded deferred taxes, if any, for basis differences under this regime. Pursuant to U.S. GAAP guidance, Accounting for Uncertainty in Income Taxes examination by tax authorities. As of June 30, 2019 , Newmark had $ 0.2 million of unrecognized tax benefits which, if recognized, would affect the effective tax rate. As of December 31, 201 8 , Newmark’s unrecognized tax benefits, excluding related interest and penalties, were $ 0.2 million, all of which, if recognized, would affect the effective tax rate. Newmark recognizes interest and penalties related to income tax matters in “Provision for income taxes” in Newmark’s unaudited condensed consolidated statements of operations. As of June 30, 2019 and December 31, 201 8 , Newmark had approximately $ 45 thousand of accrued interest and penalties related to uncertain tax positions. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Accounts Payable Accrued Expenses And Other Liabilities Current And Noncurrent [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | (2 9 ) The current portion of accounts payable, accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2019 December 31, 2018 Accounts payable and accrued expenses $ 131,825 $ 113,713 Outside broker payable 63,233 59,918 Payroll taxes payable 48,675 39,620 Derivative liability 29,689 16,678 ROU liabilities 22,816 — Corporate and other taxes payable 22,328 77,858 Contingent consideration 11,518 4,452 $ 330,084 $ 312,239 Other long-term liabilities consisted of the following (in thousands): June 30, 2019 December 31, 2018 ROU liabilities $ 220,867 $ — Payroll taxes payable 50,605 31,055 Accrued compensation 35,534 35,103 Contingent consideration 27,195 28,099 Credit enhancement deposit 25,000 25,000 Financial guarantee liability 73 32 Deferred rent — 49,334 $ 359,274 $ 168,623 |
Compensation
Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation | ( 30 ) Newmark’s Compensation Committee may grant various equity-based awards to employees of Newmark, including restricted stock units, limited partnership units and exchange rights for shares of Newmark’s Class A common stock upon exchange of Newmark limited partnership units (See Note 2 — Limited Partnership Interests). On December 13, 2017, as part of the Separation, the Newmark Group, Inc. Long Term Incentive Plan (the “Newmark Equity Plan”) was approved by Newmark’s sole stockholder, BGC, for Newmark to issue up to 400.0 million shares of Class A common stock of Newmark, of which 50.0 million are registered, that may be delivered or cash-settled pursuant to awards granted during the life of the Newmark Equity Plan. As of June 30, 2019, awards with respect to 15.7 million shares have been granted and 384.3 million shares are available for future awards. Prior to the Separation, BGC’s Compensation Committee granted various equity-based awards to employees of Newmark, including restricted stock units, limited partnership units and exchange rights for shares of BGC’s Class A common stock upon exchange of BGC’s limited partnership units (See Note 2 — Limited Partnership Interests). a) As a result of the Separation, limited partnership interests in Newmark Holdings were distributed to the holders of limited partnership interests in BGC Holdings. Each holder of BGC Holdings limited partnership interests at that time held a BGC Holdings limited partnership interest and a corresponding Newmark Holdings limited partnership interest, which was equal to a BGC Holdings limited partnership interest multiplied by an amount calculated in accordance with the BGC Holdings limited partnership agreement, the contribution ratio, divided by an amount, as of June 30, 2019 , was (the exchange ratio) , by which a Newmark Holdings limited partnership interest could be exchanged for a number of shares of Newmark Class A common stock . A summary of the activity associated with limited partnership units held by Newmark employees in BGC Holdings is as follows: Number of Units Balance at January 1, 2018 64,708,915 Granted 2,872,825 Redeemed/exchanged units (5,650,292 ) Forfeited units (60,479 ) Balance at December 31, 2018 61,870,969 Granted 270,515 Redeemed/exchanged units (1,938,794 ) Forfeited units (2,083,897 ) Balance at June 30, 2019 58,118,793 A summary of the activity of the number of share-equivalent limited partnership units and post-IPO grants of Newmark limited partnership units held by Newmark employees in Newmark Holdings is as follows: Number of Units Balance at January 1, 2018 29,413,143 Granted 19,141,943 Redeemed/exchanged units (3,793,351 ) Forfeited units (28,248 ) Balance at December 31, 2018 44,733,487 Granted 10,746,929 Redeemed/exchanged units (880,960 ) Forfeited units/Other 4,846,170 Balance at June 30, 2019 59,445,626 As of June 30, 2019 and 2018, Newmark employees held 58.1 million and 61.9 million BGC Holdings limited partnership units, respectively. In addition, there were 59.4 million and 44.7 million limited partnership units in Newmark Holdings outstanding as of June 30, 2019 and 2018, respectively. The 29.4 million limited partnership units outstanding as of December 31, 2017, represent the share equivalent of BGC Holdings held by Newmark employees. During the three months ended June 30, 2019, BGC granted exchangeability on 233 thousand and 24 thousand During the three months ended June 30, 2018, BGC granted exchangeability on 5.0 million and 2.2 million limited partnership units in BGC Holdings and Newmark Holdings held by Newmark employees, respectively. During the six months ended June 30, 2018, BGC granted exchangeability on 6.7 million and 3.3 million limited partnership units in BGC Holdings and Newmark Holdings, respectively. For the three and six months ended June 30, 2019, Newmark incurred compensation expense of $2.6 million and $3.2 million, respectively, related to the exchangeability granted in each period. For the three and six months ended June 30, 2018, Newmark incurred compensation expense of $60.3 million and $82.1 million, respectively, related to the exchangeability granted in each period. In addition, during the three months ended June 30, 2019, Newmark redeemed zero units in BGC Holdings and 1 thousand units in Newmark Holdings and in turn directly issued Newmark employees an equivalent amount of BGC or Newmark shares, respectively. Newmark incurred an expense of $7 thousand relating to this activity, which is included within “Equity-based compensation and alloca ti ons of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statement of operations. As of June 30, 2019, and December 31, 2018, the number of share-equivalent BGC limited partnership units exchangeable into shares of BGC’s Class A common stock at the discretion of the unit holder was 25.8 million and 26.0 million, respectively. The number of share-equivalent Newmark limited partnership units exchangeable into shares of Newmark’s Class A common stock at the discretion of the unit holder was 10.3 million and 9.3 million for the three months ended June 30, 2019, and year ended December 31, 2018, respectively. As of June 30, 2019, the notional value of the BGC limited partnership units with a post-termination pay-out amount held by Newmark employees, awarded in lieu of cash compensation for salaries, commissions and/or discretionary or guaranteed bonuses, was approximately $83.8 million. The number of outstanding limited partnership units with a post-termination pay-out represented 7.5 million limited partnership units in BGC Holdings and 4.7 million limited partnership units in Newmark Holdings, of which approximately 2.3 million units in BGC Holdings and 2.1 million units in Newmark Holdings were unvested. As of June 30, 2019, the aggregate estimated fair value of these limited partnership units was approximately $26.6 million. As of December 31, 2018, the notional value of the limited partnership units with a post-termination pay-out amount held by Newmark employees, awarded in lieu of cash compensation for salaries, commissions and/or discretionary or guaranteed bonuses, was approximately $92.7 million. As of December 31, 2018, the number of outstanding limited partnership units with a post-termination pay-out represented 8.4 million and 3.8 million of limited partnership units in BGC Holdings and Newmark Holdings, respectively, of which approximately 3.3 million and 1.5 million units in BGC Holdings and Newmark Holdings were unvested, respectively. As of December 31, 2018, the aggregate estimated fair value of these limited partnership units was approximately $22.6 million. In addition, beginning January 1, 2018, Newmark began granting standalone limited partnership units in Newmark Holdings to Newmark employees. As of June 30, 2019, the notional value of the limited partnership units with a post-termination pay-out amount held by Newmark employees, awarded in lieu of cash compensation for salaries, commissions and/or discretionary or guaranteed bonuses, was approximately $120.9 million. The number of outstanding limited partnership units with a post-termination pay-out represent 10.0 million limited partnership units in Newmark Holdings, of which approximately 7.1 million units in Newmark Holdings were unvested. As of June 30, 2019, the aggregate estimated fair value of these limited partnership units was approximately $14.7 million. During 2019, Newmark began granting conversion rights on outstanding limited partnership units in BGC Holdings and Newmark Holdings to Newmark employees with a post-termination payout as well as the option to convert the limited partnership units to a capital balance within BGC Holdings or Newmark Holdings. As of June 30, 2019, the notional value of these limited partnership units held by Newmark employees, awarded in lieu of cash compensation for salaries, commissions and/or discretionary or guaranteed bonuses, was approximately $20.7 million which is included in “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statement of operations. The number of outstanding limited partnership units represent 1.2 million units in BGC Holdings and 1.7 million units in Newmark Holdings. As of June 30, 2019, the aggregate estimated fair value of these limited partnership units was approximately $19.0 million which is included in “Accrued compensation” in Newmark’s unaudited condensed consolidated balance sheets. During the three and six months ended June 30, 2019, Newmark employees received 7.6 million Compensation expense related to limited partnership units with a post-termination pay-out amount is recognized over the stated service period. These units generally vest between three and five years from the date of grant. Newmark recognized compensation expense/(benefit), before associated income taxes, related to these limited partnership units that were not redeemed of $24.0 million and $1.8 million for the three months ended June 30, 2019 and 2018, respectively. Newmark recognized compensation expense/(benefit), before associated income taxes, related to these limited partnership units that were not redeemed of $30.3 million and $(6.9) million for the six months ended June 30, 2019 and 2018, respectively. These are included in “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statements of operations. Certain limited partnership units generally receive quarterly allocations of net income, which are cash distributed on a quarterly basis and generally contingent upon services being provided by the unit holders. The allocation of income to limited partnership units was $11.6 million and $4.6 million for the three months ended June 30, 2019 and 2018, respectively, and $17.9 million and $8.8 million for the six months ended June 30, 2019 and 2018, respectively. This expense is included within “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in Newmark’s unaudited condensed consolidated statements of operations. (b) A summary of the activity associated with RSUs in BGC held by Newmark employees is as follows: Restricted Stock Units Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (Years) Balance at January 1, 2018 346,538 $ 9.56 1.85 Granted 3,439 7.64 Settled units (delivered shares) (147,006 ) 9.17 Forfeited units (34,296 ) 10.01 Balance at December 31, 2018 168,675 9.77 0.98 Granted — Settled units (delivered shares) (84,984 ) 9.29 Forfeited units (9,862 ) 9.94 Balance at June 30, 2019 73,829 $ 10.30 0.70 A summary of the activity associated with RSUs in Newmark held by Newmark employees is as follows: Restricted Stock Units Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (Years) Balance at January 1, 2018 — $ — — Granted 264,532 13.54 Settled units (delivered shares) (8,109 ) 13.36 Forfeited units (36,536 ) 13.71 Balance at December 31, 2018 219,887 13.52 2.28 Granted 2,191,303 7.53 Settled units (delivered shares) (55,669 ) 13.89 Forfeited units (28,859 ) 11.30 Balance at June 30, 2019 2,326,662 $ 7.56 4.69 Beginning January 1, 2018, Newmark began granting stand-alone Newmark RSUs to Newmark employees. The fair value is determined on the date of grant based on the market value of Newmark Class A common stock in the same fashion as described above, and the awards vest ratably over the two- to four-year vesting period into shares of Newmark Class A common stock. The fair value of Newmark RSUs awarded to Newmark employees is determined on the date of grant based on the market value of Newmark Class A common stock (adjusted if appropriate based upon the award’s eligibility to receive dividends), and is recognized, net of the effect of estimated forfeitures, ratably over the vesting period. Newmark uses historical data, including historical forfeitures and turnover rates, to estimate expected forfeiture rates for RSUs. Each RSU is settled into one share of Newmark Class A common stock upon completion of the vesting period. During the six months ended June 30, 2019 and 2018, BGC granted zero and 0.2 million of RSUs to Newmark employees with aggregate estimated grant date fair value of zero and $2.9 million, respectively. These RSUs were awarded in lieu of cash compensation for salaries, commissions and/or discretionary or guaranteed bonuses. RSUs granted to these individuals generally vest over a two- to four-year period. During the six months ended June 30, 2019 and 2018, Newmark granted 2.2 million and 0.2 million of Newmark RSUs with aggregate estimated grant date fair value of $16.5 million and $2.9 million, respectively. These RSUs were awarded in lieu of cash compensation for salaries, commissions and/or discretionary or guaranteed bonuses. RSUs granted to these individuals generally vest over a two- to eight-year period. As of June 30, 2019 and 2018, the aggregate estimated grant date fair value of outstanding BGC RSUs was $0.8 million and $2.1 million, respectively. As of June 30, 2019 and 2018, the aggregate estimated grant date fair value of outstanding Newmark RSUs was $18.4 million and $2.9 million, respectively. Compensation expense related to BGC RSUs, before associated income taxes, was approximately $0.2 million in each of the three months ended June 30, 2019 and 2018, respectively. Compensation expense related to Newmark RSUs, before associated income taxes, was approximately $1.0 million and $1.8 million for the three and six months ended June 30, 2019, respectively. As of June 30, 2019, there was approximately $17.6 million total unrecognized compensation expense related to unvested Newmark RSUs and approximately $1.0 million total unrecognized compensation expense related to unvested BGC RSUs. Newmark may pay certain bonuses in the form of deferred cash compensation awards, which generally vest over a future service period. The total compensation expense recognized in relation to the deferred cash compensation awards for the three months ended June 30, 2019 and 2018 were $0.2 million and $0.4 million, respectively. As of June 30, 2019, and December 31, 2018, the total liability for the deferred cash compensation awards was $1.1 million and $1.5 million, respectively, and is included in “Other long-term liabilities” in Newmark’s unaudited condensed consolidated balance sheets. (See Note 27 — Related Party Transactions for compensation related matters for the transfer of CCRE employees to Newmark). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | ( 3 1 ) (a) As of June 30, 2019 and December 31, 2018, Newmark was committed to fund approximately $694.0 million and $294.0 million, respectively, which is the total remaining draws on construction loans originated by Newmark under the HUD 221(d)4, 220 and 232 programs, rate locked loans that have not been funded, forward commitments as well as the funding for Fannie Mae structured transactions. Newmark also has corresponding commitments to sell these loans to various investors as they are funded. ( b ) Contingent Payments Related to Acquisitions Newmark completed acquisitions from 2014 through 2019 for which contingent cash consideration of $22.7 million and limited partnership units of 1.4 million may be issued on certain targets being met through 2022. The contingent equity instruments are issued by and are included in the current portion of “Accounts payable, accrued expenses and other liabilities” on Newmark’s unaudited condensed consolidated balance sheets. The contingent cash liability is recorded at fair value as deferred consideration on Newmark’s unaudited condensed consolidated balance sheets. ( c ) In the ordinary course of business, various legal actions are brought and are pending against Newmark and its subsidiaries in the U.S. and internationally. In some of these actions, substantial amounts are claimed. Newmark is also involved, from time to time, in reviews, examinations, investigations and proceedings by governmental and self-regulatory agencies (both formal and informal) regarding Newmark’s business, which may result in regulatory, civil and criminal judgments, settlements, fines, penalties, injunctions or other relief. The following generally does not include matters that Newmark has pending against other parties which, if successful, would result in awards in favor of Newmark or its subsidiaries: Employment, Competitor-Related and Other Litigation From time to time, Newmark and its subsidiaries are involved in litigation, claims and arbitrations in the U.S. and internationally, relating to various employment matters, including with respect to termination of employment, hiring of employees currently or previously employed by competitors, terms and conditions of employment and other matters. In light of the competitive nature of the real estate services industry, litigation, claims and arbitration between competitors regarding employee hiring are not uncommon. Legal reserves are established in accordance with U.S. GAAP guidance on Accounting for Contingencies Risks and Uncertainties Newmark generates revenues by providing financial intermediary and brokerage activities and commercial real estate services to institutional customers. Revenues for these services are transaction-based. As a result, revenues could vary based on the transaction volume of global financial and real estate markets. Additionally, financing is sensitive to interest rate fluctuations, which could have an impact on Newmark’s overall profitability. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | ( 3 2 ) Second Quarter 2019 Dividend On July 31, 2019, Newmark’s Board of Directors declared a quarterly qualified cash dividend of $0.10 per share payable on September 5, 2019 to Class A and Class B common stockholders of record as of August 20, 2019. Other Related Party Transactions In July 2019, Cantor Commercial Real Estate Lending, L.P. (“CCRE Lending”), a wholly owned subsidiary of Real Estate LP, made a $146.6 million commercial real estate loan (the “Loan”) to a single-purpose company (the “Borrower”) in which Barry Gosin, Newmark’s Chief Executive Officer, owns a 19% interest. The Loan is secured by the Borrower’s interest in property in Pennsylvania that is subject to a ground lease. The terms of the Loan were determined through a bidding process. The Loan matures on August 6, 2029 , and is payable monthly at a fixed interest rate of 4.38 % per annum. Newmark provided certain commercial loan brokerage services to the Borrower in the ordinary course of its business, and the Borrower paid Newmark a fee, as the broker of the Loan, of $ 0.7 million. The Newmark Audit Committee approved the commercial loan brokerage services and the related fee amount received . |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Newmark’s unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission and in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”). The Newmark unaudited condensed consolidated financial statements were prepared on a stand-alone basis derived from the financial statements and accounting records of BGC, prior to the Spin-Off. “Equity-based compensation and allocations of net income to limited partnership units and FPUs” reflect the following items: • Charges with respect to grants of exchangeability, which reflect the right of holders of limited partnership units with no capital accounts, such as LPUs and PSUs, to exchange these units into shares of common stock, or into partnership units with capital accounts, such as HDUs, as well as cash paid with respect to taxes withheld or expected to be owed by the unit holder upon such exchange. The withholding taxes related to the exchange of certain non-exchangeable units without a capital account into either common shares or units with a capital account may be funded by the redemption of preferred units such as PPSUs. • Charges with respect to preferred unit redemption. Any preferred units would not be included in Newmark ’s fully diluted share count because they cannot be made exchangeable into shares of common stock and are entitled only to a fixed distribution. Preferred units are granted in connection with the grant of certain limited partnership units that may be granted exchangeability at ratios designed to cover any withholding taxes expected to be paid by the unit holder upon exchange. This is an alternative to the common practice among public companies of issuing the gross amount of shares to employees, subject to cashless withholding of shares, to pay applicable withholding taxes. • Equity-based compensation charges with respect to the grant of an offsetting amount of common stock or partnership units with capital accounts in connection with the redemption of non-exchangeable units, including PSUs and LPUs. • Charges related to amortization of RSUs and limited partnership units. • Charges related to grants of equity awards, including common stock and partnership units with capital accounts. • Allocations of net income to limited partnership units and founding/working partner units (“FPUs”). Such allocations represent the pro-rata portion of post-tax GAAP earnings available to such unit holders. Newmark also changed “Gains from mortgage banking activities, net” to “Gains from mortgage banking activities/orginations, net” during the year ended December 31, 2018. The line item “Warehouse notes payable” was changed to “Warehouse facilities collateralized by U.S. Government Sponsored Enterprises” during the year ended December 31, 2018. Reclassifications have been made to previously reported amounts to conform to the current presentation. Intercompany balances and transactions within Newmark have been eliminated. Transactions between Cantor or BGC and Newmark pursuant to service agreements between Cantor and BGC (See Note 27 — Related Party Transactions), representing valid receivables and liabilities of Newmark, which are periodically cash settled, have been included in the unaudited condensed consolidated financial statements as either receivables from or payables to related parties. Newmark receives administrative services to support its operations, and in return, Cantor and/or BGC allocate certain of their expenses to Newmark. Such expenses represent costs related, but not limited to, treasury, legal, accounting, information technology, payroll administration, human resources, incentive compensation plans and other services. These costs, together with an allocation of Cantor and/or BGC overhead costs, are included as expenses in the unaudited condensed consolidated statements of operations. Where it is possible to specifically attribute such expenses to activities of Newmark, these amounts have been expensed directly to Newmark. Allocation of all other such expenses is based on a services agreement between Cantor and/or BGC which reflects the utilization of service provided or benefits received by Newmark during the periods presented on a consistent basis, such as headcount, square footage, revenue, etc. Management believes the assumptions underlying the stand-alone financial statements, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by Newmark during the periods presented. However, these shared expenses may not represent the amounts that would have been incurred had Newmark operated independently from Cantor and/or BGC. Actual costs that would have been incurred if Newmark had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions in various areas, including information technology and infrastructure (See Note 27 — Related Party Transactions for an additional discussion of expense allocations). Transfers of cash, both to and from Cantor and/or BGC, are included in “Current portion of payables to related parties” on the unaudited condensed consolidated balance sheets and as part of the change in payments to and borrowings from related parties in the financing section within the accompanying unaudited condensed consolidated statements of cash flows. The income tax provision in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statem e nts of comprehensive income has been calculated as if Newmark was operating on a stand-alone basis and filed separate tax returns in the jurisdictions in which it operates. Prior to the Spin-Off, Newmark’s operations had been included in the BGC U.S. federal and state tax returns or separate non-U.S. jurisdictions tax returns. As Newmark operations in many jurisdictions were unincorporated commercial units of BGC and its subsidiaries, stand-alone tax returns have not been filed for the operations in these jurisdictions. Newmark’s unaudited condensed consolidated financial statements contain all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the unaudited condensed consolidated balance sheets, the unaudited condensed consolidated statements of operations, the unaudited condensed consolidated statements of comprehensive income, the unaudited condensed consolidated statements of cash flows and the unaudited condensed consolidated statements of changes in equity of Newmark for the periods presented. |
Recently Adopted Accounting Pronouncements | (b) In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Further, Newmark previously presented expenses incurred on behalf of customers for certain management services subject to reimbursement on a net basis within expenses. Under the new revenue recognition model, Newmark concluded that it controls the services provided by a third-party on behalf of customers and, therefore, acts as a principal under those contracts. As a result, for these service contracts Newmark will present expenses incurred on behalf of customers along with corresponding reimbursement revenue on a gross basis in Newmark’s unaudited condensed consolidated statements of operations, with no impact on net income available to common stockholders. Newmark elected to adopt the new guidance using a modified retrospective approach applied to contracts that were not completed as of January 1, 2018. Accordingly, the new revenue standard is applied prospectively in Newmark’s financial statements from January 1, 2018 onward. The new revenue recognition guidance does not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other U.S. GAAP, and as a result did not have an impact on the elements of Newmark’s unaudited condensed consolidated statements of operations most closely associated with financial instruments, including Gains from mortgage banking activities/origination, net, and Servicing fees. There was no significant impact as a result of applying the new revenue standard to Newmark’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2018, except as it relates to the revenue recognition of certain brokerage revenues from leasing commissions that were based, in part, on future contingent events and the presentation of expenses incurred on behalf of customers for certain management services subject to reimbursement (See Note 3 — Summary of Significant Accounting Policies and Note 13 — Revenues from Contracts with Customers). In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new measurement alternative. The guidance also requires entities to record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. In February 2018, the FASB issued ASU No. 2018-03 , Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , to clarify transition and subsequent accounting for equity investments without a readily determinable fair value, among other aspects of the guidance issued in ASU 2016-01. The amendments in ASU 2018-03 were effective for fiscal years beginning January 1, 2018 and interim periods beginning July 1, 2018. The amendments and technical corrections provided in ASU 2018-03 could be adopted concurrently with ASU 2016- 01, which was effective for Newmark on January 1, 2018. Newmark adopted both ASUs on January 1, 2018 using the modified retrospective approach for equity securities with a readily determinable fair value and the prospective method for equity investments without a readily determinable fair value. The adoption of this guidance did not have a material impact on Newmark’s unaudited condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230)—Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805)—Clarifying the definition of Business In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718)—Scope of Modification Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842) Targeted Improvements Leases Leases (Topic 842), Narrow-Scope Improvements for Lessors Leases fair not In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . The guidance helps organizations address certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 by providing an option to reclassify these stranded tax effects to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The new standard became effective beginning January 1, 2019, with early adoption permitted. Newmark a dopt ed the new standard on its required effective date and elect ed to reclassify the stranded income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. However, the adoption of the new guidance did not have a material effect on Newmark’s unaudited condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
New Accounting Pronouncements | (c) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses , to clarify that operating lease receivables accounted for under ASC 842, Leases , are not in the scope of the new credit losses guidance, and, instead, impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases . In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments. See below for the description of the amendments stipulated in ASU No. 2019-04. In addition, in May 2019, the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief . The amendments in this ASU allow entities, upon adoption of ASU No. 2016-13, to irrevocably elect the fair value option for financial instruments that were previously carried at amortized cost and are eligible for the fair value option under ASC 825-10, Financial Instruments: Overall . The amendments in ASUs No. 2018-19, 2019-04 and 2019-05 are required to be adopted concurrently with the guidance in ASU No. 2016-13. Newmark plans to adopt the standards on their required effective date. Management is evaluating and planning for adoption and implementation of the new credit losses guidance, including forming an implementation team and continuing its assessment of the impact of the new guidance on Newmark’s consolidated financial statements. Given the objective of the new standard, it is generally expected allowances for credit losses for the financial instruments within its scope would increase, however, the amount of any change will be dependent on the composition and quality of the Company’s portfolios at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities (“VIE”) Consolidation In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities accrued interest receivable balances, recoveries, variable interest rates and prepayments, among other issues. With respect to amendments to ASU No. 2017-12, the guidance addresses partial-term fair value hedges, fair value hedge basis adjustments, and certain transition requirements, along with other issues. The clarifying guidance pertaining to ASU No. 2016-01 requires an entity to remeasure an equity security without a readily determinable fair value accounted for under the measurement alternative at fair value in accordance with guidance in ASC 820, Fair Value Measurement ; specifies that equity securities without a readily determinable fair value denominated in nonfunctional currency must be remeasured at historical exchange rates; and provides fair value measurement disclosure guidance. The codification improvements related to credit losses are required to be adopted concurrently with ASU No. 2016-13 as of January 1, 2020. The hedge accounting standard amendments are effective for Newmark as of January 1, 2020, with early adoption permitted, and may be applied either retrospectively or prospectively, with certain exceptions. The amendments related to the recognition and measurement guidance are effective for the Company as of January 1, 2020, with early adoption permitted, and should be applied prospectively for equity securities without readily determinable fair value with the remaining amendments to be applied on a modified-retrospective transition basis by means of a cumulative-effect adjustment to the opening retained earnings balance as of the date an entity adopted all of the amendments in ASU No. 2016-01. Management is currently evaluating the impact of the new guidance on the Newmark’s unaudited condensed consolidated financial statements. |
Leases | Leases: Newmark, acting as a lessee, has operating leases primarily relating to office space. The leases have remaining lease terms of up to 1 year to 13 years, some of which include options to extend the leases in 5 to 10 year increments for up to 10 years. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply judgment to determine the appropriate lease term. Certain leases also include periods covered by an option to terminate the lease if Newmark is reasonably certain not to exercise the termination option. Newmark measures its lease payments by including fixed rental payments and, where relevant, variable rental payments tied to an index, such as the Consumer Price Index (“CPI”). Payments for leases in place before the date of adoption of ASC 842 , Leases Pursuant to the accounting policy election, leases with an initial term of twelve months or less are not recognized on the balance sheet. The short-term lease expense over the period reasonably reflects Newmark’s short-term lease commitments. ASC 842 , Leases Newmark determines whether an arrangement is a lease or includes a lease at the contract inception by evaluating whether the contract conveys the right to the control the use of an identified asset for a period of time in exchange for consideration. If Newmark has the right to obtain substantially all of the economic benefits from, and can direct the use of, the identified asset for a period of time, Newmark accounts for the identified asset as a lease. Newmark has elected the practical expedient to not separate lease and non-lease components for all leases other than real estate leases. The primary non-lease component that is combined with a lease component represents operating expenses such as utilities, maintenance or management fees. As the rate implicit in the lease is not usually available, Newmark used an incremental borrowing rate based on the information available at the adoption date of the new leases standard in determining the present value of lease payments for existing leases. Newmark will use information available at the lease commencement date to determine the discount rate for any new leases. |
Segment | Segment: Newmark has a single operating segment. Newmark is a real estate services firm offering services to commercial real estate tenants, owner occupiers, investors and developers, leasing and corporate advisory, investment sales and real estate finance, consulting, origination and servicing of commercial mortgage loans, valuation, project and development management and property and facility management. The chief operating decision maker regardless of geographic location evaluates the operating results of Newmark as total real estate services and allocates resources accordingly. For the three and six months ended June 30, 2019 and 2018, Newmark recognized revenues as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Leasing and other commissions $ 217,381 $ 178,142 $ 389,852 $ 337,513 Capital markets commissions 128,750 101,691 231,547 203,055 Gains from mortgage banking activities/origination, net 45,091 41,877 76,437 80,791 Management services, servicing fees and other 160,256 144,909 301,298 275,720 Revenues $ 551,478 $ 466,619 $ 999,134 $ 897,079 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Recognized Revenues | For the three and six months ended June 30, 2019 and 2018, Newmark recognized revenues as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Leasing and other commissions $ 217,381 $ 178,142 $ 389,852 $ 337,513 Capital markets commissions 128,750 101,691 231,547 203,055 Gains from mortgage banking activities/origination, net 45,091 41,877 76,437 80,791 Management services, servicing fees and other 160,256 144,909 301,298 275,720 Revenues $ 551,478 $ 466,619 $ 999,134 $ 897,079 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Components of Purchase Consideration Transferred and Preliminary Allocation of Assets Acquired and Liabilities Assumed | For the six months ended June 30, 2019, the following table summarizes the components of the purchase consideration transferred, and the preliminary allocation of the assets acquired, and liabilities assumed. Newmark expects to finalize its analysis of the assets acquired and liabilities assumed within the first year of the acquisition, and therefore adjustments to assets and liabilities may occur. As of the Acquisition Date Assets Cash and cash equivalents $ 922 Goodwill 27,798 Receivables, net 4,348 Fixed Assets, net 15 Other intangible assets, net 2,075 Other assets 236 Total assets 35,394 Current liabilities Current portion of accounts payable, accrued expenses and other liabilities 1,365 Accrued compensation 2,125 Total liabilities 3,490 Net assets acquired $ 31,904 For the year ended December 31, 2018, the following table summarizes the components of the purchase consideration transferred, and the preliminary allocation of the assets acquired, and liabilities assumed. Newmark expects to finalize its analysis of the assets acquired and liabilities assumed within the first year of the acquisition, and therefore adjustments to assets and liabilities may occur. As of the Acquisition Date Assets Cash and cash equivalents $ 1,110 Goodwill 42,188 Receivables, net 50,731 Fixed Assets, net 1,276 Other intangible assets, net 4,677 Other assets 2,894 Total assets 102,876 Current liabilities Current portion of accounts payable, accrued expenses and other liabilities 15,937 Accrued compensation 26,765 Total liabilities 42,702 Net assets acquired $ 60,174 |
Earnings Per Share and Weight_2
Earnings Per Share and Weighted-Average Shares Outstanding (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Basic Earnings Per Share | The following is the calculation of Newmark’s basic EPS (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Basic earnings per share: Net income available to common stockholders (1) $ 19,444 $ 546 $ 33,124 $ 20,542 Basic weighted-average shares of common stock outstanding 178,754 155,157 178,683 155,447 Basic earnings per share $ 0.11 $ 0.00 $ 0.19 $ 0.13 (1) Includes a reduction for dividends on preferred stock or units in the amount of $3.2 million and $6.4 million for the three and six months ended June 30, 2019, respectively, and $0.2 million for the three and six months ended June 30, 2018. |
Calculation of Fully Diluted Earnings Per Share | The following is the calculation of Newmark’s fully diluted EPS (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Fully diluted earnings per share: Net income available to common stockholders $ 19,444 $ 546 $ 33,124 $ 20,542 Allocations of net income to limited partnership interests in Newmark Holdings, net of tax 3,864 — — 12,020 Net income for fully diluted shares $ 23,308 $ 546 $ 33,124 $ 32,562 Weighted-average shares: Common stock outstanding 178,754 155,157 178,683 155,447 Partnership units (1) 28,769 — — 96,505 Other 627 781 751 852 Fully diluted weighted-average shares of common stock outstanding 208,150 155,938 179,434 252,804 Fully diluted earnings per share $ 0.11 $ 0.00 $ 0.18 $ 0.13 (1) Partnership units collectively include founding/working partner units, limited partnership units, and Cantor units (See Note 2 - Limited Partnership Interests for more information). |
Stock Transactions and Unit R_2
Stock Transactions and Unit Redemptions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Common Stock Outstanding | Changes in shares of Newmark’s Class A common stock outstanding for the three and six months ended June 30, 2019 and 2018, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Shares outstanding at beginning of period 157,422,916 138,921,533 156,916,336 138,593,787 LPU redemption/exchange (1) 747,846 — 1,122,776 — Other issuances of Class A common stock 70,391 — 78,842 327,746 Issuance of Class A common stock for Newmark RSUs 51,406 — 174,605 — Newmark treasury stock (1,613,032 ) — (1,613,032 ) — Shares outstanding at end of period 156,679,527 138,921,533 156,679,527 138,921,533 (1) Because they were included in the Newmark’s fully diluted share count, if dilutive, any exchange of limited partnership interests into Class A common shares would not impact the fully diluted number of shares and units outstanding. |
Schedule of Share Repurchase Activity | Period Total Number of Shares Repurchased Average Price Paid per Unit or Share Total Number of Shares Purchased as Part of Publicly Announced Program Approximate Dollar Value of Units and Shares That May Yet Be Redeemed/ Purchased Under the Plan Balance at beginning of period 50,000 $ 9.73 50,000 $ 199,514 January 1, 2019 - March 31, 2019 — — — — April 1, 2019 - June 30, 2019 1,613,032 8.61 1,613,032 186,104 Total Repurchases 1,663,032 $ 8.65 1,663,032 $ 185,618 |
Schedule of Changes in Carrying Amount of Redeemable Partnership Interest | The changes in the carrying amount of redeemable partnership interest as of June 30, 2019, and as of December 31, 2018, were as follows (in thousands): June 30, 2019 December 31, 2018 Balance at beginning of period $ 26,170 $ 21,096 Income allocation 1,663 6,779 Distributions of income (720 ) (2,843 ) FPU redemptions (418 ) (1,101 ) Issuance — 2,239 Other 20 — Balance at end of period $ 26,715 $ 26,170 |
Loans Held for Sale, at Fair _2
Loans Held for Sale, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Loans Receivable Held For Sale Net [Abstract] | |
Summary of Loans Held for Sale at Cost Basis and Fair Value | Loans held for sale had a cost basis and fair value as follows (in thousands): Cost Basis Fair Value June 30, 2019 $ 793,212 $ 818,909 December 31, 2018 972,434 990,864 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Contracts | The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands): As of June 30, 2019 As of December 31, 2018 Derivative contract Assets Liabilities Notional Amounts Assets Liabilities Notional Amounts Forwards $ 51,497 (1) $ 27,261 $ 1,794,842 (2) $ 85,796 (1) $ 9,208 $ 1,574,114 (2) Rate lock commitments 21,951 2,428 640,671 6,732 7,470 240,720 Total $ 73,448 $ 29,689 $ 2,435,513 $ 92,528 $ 16,678 $ 1,814,834 (1) Included in Forwards is $48.7 million and $77.6 million of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively (See Note 1 — (2) Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and does not represent anticipated losses. Included in the notional amounts of forwards is $361.0 million for the Nasdaq Forwards as of June 30, 2019 and December 31, 2018. |
Summary of Gain (Loss) on Change in Fair Value of Derivatives Included in Condensed Consolidated Statements of Operations | The table below summarizes gains and losses on derivative contracts which are included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 (in thousands): Location of gain (loss) recognized Three Months Ended June 30, Six Months Ended June 30, in income for derivatives 2019 2018 2019 2018 Derivatives not designed as hedging instruments: Nasdaq Forwards Other income (loss) $ (15,638 ) $ 2,808 $ (28,967 ) $ 2,808 Rate lock commitments Gains from mortgage banking activities/originations, net 14,292 1,515 21,379 3,784 Rate lock commitments Compensation and employee benefits 211 (782 ) (1,856 ) (3,282 ) Forward sale contracts Gains from mortgage banking activities/originations, net (20,784 ) 8,536 (24,416 ) 15,802 $ (21,919 ) $ 12,077 $ (33,860 ) $ 19,112 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenues from Contracts with Customers and Other Sources of Revenues | The following table presents Newmark’s total revenues separately for its revenues from contracts with customers and other sources of revenues (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues from contracts with customers: Leasing and other commissions $ 217,381 $ 178,142 $ 389,851 $ 337,513 Capital markets commissions 128,750 101,691 231,547 203,055 Management services 117,472 107,228 215,561 204,160 Revenues 463,603 387,061 836,959 744,728 Other sources of revenue: Gains from mortgage banking activities/originations, net (1) 45,091 41,877 76,437 80,791 Servicing fees and other (1) 42,784 37,681 85,738 71,560 Revenues $ 551,478 $ 466,619 $ 999,134 $ 897,079 (1) Although these items have customers under contract, they were recorded as other sources of revenue as they were excluded from the scope of ASU No. 2014-09. |
Gains from Mortgage Banking A_2
Gains from Mortgage Banking Activities/Originations, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Mortgage Banking [Abstract] | |
Summary Of Gains From Mortgage Banking Activities, Net | Gains from mortgage banking activities/originations, net consists of the following activity (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Loan originations related fees and sales premiums, net $ 20,235 $ 17,181 $ 35,203 $ 34,998 Fair value of expected net future cash flows from servicing recognized at commitment, net 24,856 24,696 41,234 45,793 Gains from mortgage banking activities/originations, net $ 45,091 $ 41,877 $ 76,437 $ 80,791 |
Mortgage Servicing Rights, Net
Mortgage Servicing Rights, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Transfers And Servicing [Abstract] | |
Summary of Changes in the Carrying Amount of Mortgage Servicing Rights | The changes in the carrying amount of MSRs for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Mortgage Servicing Rights 2019 2018 2019 2018 Beginning Balance $ 413,004 $ 386,953 $ 416,131 $ 399,349 Additions 21,433 25,342 38,687 31,731 Purchases from an affiliate 424 1,099 722 1,608 Amortization (21,436 ) (20,011 ) (42,115 ) (39,305 ) Ending Balance $ 413,425 $ 393,383 $ 413,425 $ 393,383 Valuation Allowance Beginning Balance $ (6,044 ) $ (5,427 ) $ (4,322 ) $ (6,723 ) Decrease (6,598 ) 4,084 (8,320 ) 5,380 Ending Balance $ (12,642 ) $ (1,343 ) $ (12,642 ) $ (1,343 ) Net balance $ 400,783 $ 392,040 $ 400,783 $ 392,040 |
Schedule of Servicing Fees and Escrow Interest | Servicing fees are included in “Management services, servicing fees and other” in Newmark’s unaudited condensed consolidated statements of operations and are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Servicing fees $ 25,977 $ 26,092 $ 51,608 $ 51,224 Escrow interest and placement fees 5,624 3,867 10,987 6,834 Ancillary fees 4,131 2,374 7,315 3,201 Total servicing fees and escrow interest $ 35,732 $ 32,333 $ 69,910 $ 61,259 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2019 and the year ended December 31, 2018 were as follows (in thousands): Balance at January 1, 2018 $ 477,532 Acquisitions 40,157 Measurement period adjustments (2,368 ) Balance at December 31, 2018 515,321 Acquisitions 27,984 Measurement period adjustments (180 ) Balance at June 30, 2019 $ 543,125 |
Components of Other Intangible Assets | Other intangible assets consisted of the following at June 30, 2019 and December 31, 2018 (in thousands, except weighted average life): June 30, 2019 Gross Amount Accumulated Amortization Net Carrying Amount Weighted- Average Remaining Life (Years) Indefinite life: Trademark and trade names $ 11,350 $ — $ 11,350 N/A License agreements (GSE) 5,390 — 5,390 N/A Definite life: Trademark and trade names 10,153 (7,141 ) 3,012 0.5 Non-contractual customers 11,532 (4,898 ) 6,634 1.4 License agreements 4,981 (2,792 ) 2,189 0.2 Non-compete agreements 6,267 (1,949 ) 4,318 1.2 Contractual customers 2,483 (973 ) 1,510 0.1 Below market leases 941 (96 ) 845 0.5 $ 53,097 $ (17,849 ) $ 35,248 0.9 December 31, 2018 Gross Amount Accumulated Amortization Net Carrying Amount Weighted- Average Remaining Life (Years) Indefinite life: Trademark and trade names $ 11,350 $ — $ 11,350 N/A License agreements (GSE) 5,390 — 5,390 N/A Definite life: Trademark and trade names 9,316 (6,706 ) 2,610 0.5 Non-contractual customers 11,323 (3,890 ) 7,433 1.8 License agreements 4,981 (2,292 ) 2,689 0.4 Non-compete agreements 6,267 (1,469 ) 4,798 1.4 Contractual customers 1,452 (849 ) 603 0.1 Below market leases 941 (45 ) 896 0.5 $ 51,020 $ (15,251 ) $ 35,769 1.2 |
Estimated Future Amortization Expense of Definite Life Intangible Assets | The estimated future amortization of definite life intangible assetsas of June 30, 2019 was as follows (in thousands): 2019 $ 2,751 2020 5,338 2021 4,328 2022 2,283 2023 1,838 Thereafter 1,970 Total $ 18,508 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Components of Fixed Assets, Net | Fixed assets, net consisted of the following (in thousands): June 30, 2019 December 31, 2018 Leasehold improvements and other fixed assets $ 101,885 $ 99,207 Software, including software development costs 28,044 21,417 Computer and communications equipment 20,289 16,605 150,218 137,229 Accumulated depreciation and amortization (66,675 ) (58,424 ) $ 83,543 $ 78,805 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases under Topic 842 | As of June 30, 2019, minimum lease payments under these arrangements were as follows (in thousands): 2019 $ 20,283 2020 41,815 2021 38,989 2022 36,327 2023 34,973 Thereafter 168,518 Total lease payments 340,905 Less: Interest 97,222 Present value of lease liability $ 243,683 |
Schedule of Future Minimum Rental Payments for Operating Leases | Under ASC 840 , Leases 2019 $ 42,870 2020 41,497 2021 38,287 2022 35,738 2023 34,290 Thereafter 158,907 Total $ 351,589 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets [Abstract] | |
Summary of Other Current Assets | Other current assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 Derivative assets $ 30,565 $ 30,796 Prepaid taxes 14,234 9,992 Prepaid expenses 12,674 15,570 Rent and other deposits 1,554 1,192 Other 20,367 189 $ 79,394 $ 57,739 |
Summary of Non-current Other Assets | Non-current other assets consisted of the following (in thousands): June 30, 2019 December 31, 2018 ROU Asset $ 192,498 $ — Deferred tax assets 154,880 149,938 Equity method investment 106,010 101,275 Non-marketable investments 57,497 53,470 Derivative assets 42,883 61,732 Other 4,611 3,452 $ 558,379 $ 369,867 |
Warehouse Facilities Collater_2
Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Brokers And Dealers [Abstract] | |
Schedule of Company Lines Available and Borrowings Outstanding | As of June 30, 2019, Newmark had the following lines available and borrowings outstanding (in thousands): Committed Lines Uncommitted Lines Balance at June 30, 2019 Stated Spread to One Month LIBOR Rate Type Warehouse facility due June 17, 2020 $ 450,000 $ — $ 120,945 115 bps Variable Warehouse facility due June 17, 2020 - 200,000 - 110 bps Variable Warehouse facility due September 25, 2019 200,000 — 189,749 115 bps Variable Warehouse facility due October 10, 2019 (1) 700,000 — 433,854 115 bps Variable Fannie Mae repurchase agreement, open maturity — 325,000 48,646 105 bps Variable $ 1,350,000 $ 525,000 $ 793,194 (1) The warehouse facility was temporarily increased by $400.0 million to $700.0 million for the period of May 16, 2019 to July 15, 2019. As of December 31, 2018, Newmark had the following lines available and borrowings outstanding (in thousands): Committed Lines Uncommitted Lines Balance at December 31, 2018 Stated Spread to One Month LIBOR Rate Type Warehouse facility due June 19, 2019 $ 450,000 $ — $ 413,063 120 bps Variable Warehouse facility due September 25, 2019 200,000 — 113,452 120 bps Variable Warehouse facility due October 10, 2019 (2) 1,000,000 — 416,373 120 bps Variable Fannie Mae repurchase agreement, open maturity — 325,000 29,499 115 bps Variable $ 1,650,000 $ 325,000 $ 972,387 (2) The warehouse facility was temporarily increased by $700.0 million to $1.0 billion for the period of November 30, 2018 to January 29, 2019. On January 29, 2019, the temporary increase was decreased by $400 million to $300 million for the period January 29, 2019 to April 1, 2019. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following (in thousands): June 30, 2019 December 31, 2018 6.125% Senior Notes $ 539,206 $ 537,926 Credit Facility 43,634 — Total long-term debt $ 582,840 $ 537,926 |
Financial Guarantee Liability (
Financial Guarantee Liability (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Guarantees [Abstract] | |
Summary of Changes on Estimated Liability Under Guarantee Liability | At June 30, 2019 and December 31, 2018, changes on the estimated liability under the guarantee liability were as follows: Financial guarantee liability (in thousands) Balance at January 1, 2018 $ (54 ) Reversal of provision 22 Balance at December 31, 2018 $ (32 ) Increase to provision (41 ) Balance at June 30, 2019 $ (73 ) |
Schedule of Provision for Risk Sharing | The provisions for risk sharing are included in “Operating, administrative and other” in Newmark’s unaudited condensed consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Increase (decrease) to financial guarantee liability $ — $ (14 ) $ 41 $ (7 ) Decrease (increase) to credit enhancement asset (1) — — — 10 Total expense $ — $ (14 ) $ 41 $ 3 (1) The credit enhancement recievable is included in “Other assets” in the accompanying consolidated balance sheets. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Financial Assets and Liabilities under U.S. GAAP Guidance | The following table sets forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance at June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 33,659 $ — $ — $ 33,659 Nasdaq Forwards — — 48,652 48,652 Loans held for sale, at fair value — 818,909 — 818,909 Rate lock commitments — — 21,951 21,951 Forwards — — 2,845 2,845 Total assets $ 33,659 $ 818,909 $ 73,448 $ 926,016 Liabilities: Accounts payable, accrued expenses and other liabilities—contingent consideration $ — $ — $ 38,712 $ 38,712 Rate lock commitments — — 2,428 2,428 Forwards — — 27,261 27,261 Total Liabilities $ — $ — $ 68,401 $ 68,401 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Marketable securities $ 48,942 $ — $ — $ 48,942 Nasdaq Forwards — — 77,619 77,619 Loans held for sale, at fair value — 990,864 — 990,864 Rate lock commitments — — 6,732 6,732 Forwards — — 8,177 8,177 Total assets $ 48,942 $ 990,864 $ 92,528 $ 1,132,334 Liabilities: Accounts payable, accrued expenses and other liabilities—contingent consideration $ — $ — $ 32,552 $ 32,552 Rate lock commitments — — 7,470 7,470 Forwards — — 9,208 9,208 Total Liabilities $ — $ — $ 49,230 $ 49,230 |
Changes in Level 3 Nasdaq Forwards, Rate Lock Commitments, Forwards and Contingent Consideration Measured at Fair Value on Recurring Basis | Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the three months ended June 30, 2019 were as follows (in thousands): Opening Balance April 1, 2019 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized gains (losses) outstanding as of June 30, 2019 Assets: Rate Lock Commitments $ 10,210 $ 21,951 $ — $ (10,210 ) $ 21,951 $ 21,951 Forwards 5,964 2,845 — (5,964 ) 2,845 2,845 Nasdaq Forwards 64,290 (15,638 ) — — 48,652 (15,638 ) Total Assets $ 80,464 $ 9,158 $ — $ (16,174 ) $ 73,448 $ 9,158 Opening Balance April 1, 2019 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized (gains) losses outstanding as of June 30, 2019 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 31,357 $ (65 ) $ 7,758 $ (338 ) $ 38,712 $ (65 ) Rate Lock Commitments 5,190 2,428 — (5,190 ) 2,428 2,428 Forwards 9,596 27,261 — (9,596 ) 27,261 27,261 Total Liabilities $ 46,143 $ 29,624 $ 7,758 $ (15,124 ) $ 68,401 $ 29,624 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the three months ended June 30, 2018 were as follows (in thousands): Opening Balance as of April 1, 2018 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized gains (losses) outstanding as of June 30, 2018 Assets: Rate Lock Commitments $ 8,750 $ 14,448 $ — $ (8,750 ) $ 14,448 $ 14,448 Forwards 9,687 16,442 — (9,687 ) 16,442 16,442 Nasdaq Forwards — (2,808 ) 21,893 — 19,085 (2,808 ) Total Assets $ 18,437 $ 28,082 $ 21,893 $ (18,437 ) $ 49,975 $ 28,082 Opening Balance as of April 1, 2018 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized (gains) losses outstanding as of June 30, 2018 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 23,088 $ 295 $ 688 $ (2,497 ) $ 21,574 $ 295 Rate Lock Commitments 8,980 13,945 — (8,980 ) 13,945 13,945 Forwards 2,421 641 — (2,421 ) 641 641 Total Liabilities $ 34,489 $ 14,881 $ 688 $ (13,898 ) $ 36,160 $ 14,881 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the six months ended June 30, 2019 were as follows (in thousands): Opening Balance as of January 1, 2019 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized gains (losses) outstanding as of June 30, 2019 Assets: Rate Lock Commitments $ 6,732 $ 21,951 $ — $ (6,732 ) $ 21,951 $ 21,951 Forwards 8,177 2,845 — (8,177 ) 2,845 2,845 Nasdaq Forwards 77,619 (28,967 ) — — 48,652 (28,967 ) Total Assets $ 92,528 $ (4,171 ) $ — $ (14,909 ) $ 73,448 $ (4,171 ) Opening Balance as of January 1, 2019 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2019 Unrealized (gains) losses outstanding as of June 30, 2019 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 32,552 $ 1,319 $ 7,758 $ (2,917 ) $ 38,712 $ 1,319 Rate Lock Commitments 7,470 2,428 — (7,470 ) 2,428 2,428 Forwards 9,208 27,261 — (9,208 ) 27,261 27,261 Total Liabilities $ 49,230 $ 31,008 $ 7,758 $ (19,595 ) $ 68,401 $ 31,008 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the six months ended June 30, 2018 were as follows (in thousands): Opening Balance as of January 1, 2018 Total realized and unrealized gains (losses) included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized gains (losses) outstanding as of June 30, 2018 Assets: Rate Lock Commitments $ 2,923 $ 14,448 $ — $ (2,923 ) $ 14,448 $ 14,448 Forwards 3,753 16,442 — (3,753 ) 16,442 16,442 Nasdaq Forwards — (2,808 ) 21,893 — 19,085 (2,808 ) Total Assets $ 6,676 $ 28,082 $ 21,893 $ (6,676 ) $ 49,975 $ 28,082 Opening Balance as of January 1, 2018 Total realized and unrealized (gains) losses included in Net income (1) Issuances Settlements Closing Balance as of June 30, 2018 Unrealized (gains) losses outstanding as of June 30, 2018 Liabilities: Accounts payable, accrued expenses and other liabilities – contingent consideration(1) $ 23,710 $ 432 $ 688 $ (3,256 ) $ 21,574 $ 432 Rate Lock Commitments 2,390 13,945 — (2,390 ) 13,945 13,945 Forwards 657 641 — (657 ) 641 641 Total Liabilities $ 26,757 $ 15,018 $ 688 $ (6,303 ) $ 36,160 $ 15,018 (1) Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations. |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements The following tables present quantitative information about the significant unobservable inputs utilized by Newmark in the fair value measurement of Level 3 assets and liabilities measured at fair value on a recurring basis: June 30, 2019 Level 3 assets and liabilities Assets Liabilities Significant Unobservable Inputs Range Weighted Average Accounts payable, accrued expenses and other liabilities: Contingent consideration $ — $ 38,712 Discount rate 0.3% - 10.4% 8.1% Probability of meeting earnout and contingencies 99% - 100% 99.5% Financial forecast information Derivative assets and liabilities: Nasdaq Forwards $ 48,652 $ — Volatility 27.75% - 35.25% 32.2% Forward sale contracts $ 2,845 $ 27,261 Counterparty credit risk N/A N/A Rate lock commitments $ 21,951 $ 2,428 Counterparty credit risk N/A N/A December 31, 2018 Level 3 assets and liabilities Assets Liabilities Significant Unobservable Inputs Range Weighted Average Accounts payable, accrued expenses and other liabilities: Contingent consideration $ — $ 32,552 Discount rate 0.3%-10.4% 8.2% Probability of meeting earnout and contingencies 99%-100% (1) 99.6% Financial forecast information Derivative assets and liabilities: Nasdaq Forwards $ 77,619 $ — Volatility 23.7%-34.8% (2) 30.2% Forward sale contracts $ 8,177 $ 9,208 Counterparty credit risk N/A N/A Rate lock commitments $ 6,732 $ 7,470 Counterparty credit risk N/A N/A (1) Newmark’s estimate of contingent consideration as of June 30, 2019 and December 31, 2018 was based on the acquired business’ projected future financial performance, including revenues. (2) The volatility of Newmark’s Nasdaq Forwards is primarily based on the underlying Nasdaq stock price. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts Payable Accrued Expenses And Other Liabilities Current And Noncurrent [Abstract] | |
Components of Current Portion of Accounts Payable, Accrued Expenses and Other Liabilities | The current portion of accounts payable, accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2019 December 31, 2018 Accounts payable and accrued expenses $ 131,825 $ 113,713 Outside broker payable 63,233 59,918 Payroll taxes payable 48,675 39,620 Derivative liability 29,689 16,678 ROU liabilities 22,816 — Corporate and other taxes payable 22,328 77,858 Contingent consideration 11,518 4,452 $ 330,084 $ 312,239 |
Components of Other long-term Liabilities | Other long-term liabilities consisted of the following (in thousands): June 30, 2019 December 31, 2018 ROU liabilities $ 220,867 $ — Payroll taxes payable 50,605 31,055 Accrued compensation 35,534 35,103 Contingent consideration 27,195 28,099 Credit enhancement deposit 25,000 25,000 Financial guarantee liability 73 32 Deferred rent — 49,334 $ 359,274 $ 168,623 |
Compensation (Tables)
Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary of Activity of Number of Share Equivalent Limited Partnership Units and Post IPO Grants | A summary of the activity of the number of share-equivalent limited partnership units and post-IPO grants of Newmark limited partnership units held by Newmark employees in Newmark Holdings is as follows: Number of Units Balance at January 1, 2018 29,413,143 Granted 19,141,943 Redeemed/exchanged units (3,793,351 ) Forfeited units (28,248 ) Balance at December 31, 2018 44,733,487 Granted 10,746,929 Redeemed/exchanged units (880,960 ) Forfeited units/Other 4,846,170 Balance at June 30, 2019 59,445,626 |
Activity Associated with Restricted Stock Units | A summary of the activity associated with RSUs in BGC held by Newmark employees is as follows: Restricted Stock Units Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (Years) Balance at January 1, 2018 346,538 $ 9.56 1.85 Granted 3,439 7.64 Settled units (delivered shares) (147,006 ) 9.17 Forfeited units (34,296 ) 10.01 Balance at December 31, 2018 168,675 9.77 0.98 Granted — Settled units (delivered shares) (84,984 ) 9.29 Forfeited units (9,862 ) 9.94 Balance at June 30, 2019 73,829 $ 10.30 0.70 A summary of the activity associated with RSUs in Newmark held by Newmark employees is as follows: Restricted Stock Units Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (Years) Balance at January 1, 2018 — $ — — Granted 264,532 13.54 Settled units (delivered shares) (8,109 ) 13.36 Forfeited units (36,536 ) 13.71 Balance at December 31, 2018 219,887 13.52 2.28 Granted 2,191,303 7.53 Settled units (delivered shares) (55,669 ) 13.89 Forfeited units (28,859 ) 11.30 Balance at June 30, 2019 2,326,662 $ 7.56 4.69 |
BGC Holdings, L.P. [Member] | |
Activity Associated with Limited Partnership Units | A summary of the activity associated with limited partnership units held by Newmark employees in BGC Holdings is as follows: Number of Units Balance at January 1, 2018 64,708,915 Granted 2,872,825 Redeemed/exchanged units (5,650,292 ) Forfeited units (60,479 ) Balance at December 31, 2018 61,870,969 Granted 270,515 Redeemed/exchanged units (1,938,794 ) Forfeited units (2,083,897 ) Balance at June 30, 2019 58,118,793 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2018 | Nov. 23, 2018 | Sep. 05, 2018 | Sep. 04, 2018 | Mar. 19, 2018 | Mar. 07, 2018 | Dec. 26, 2017 | Dec. 15, 2017 | Sep. 08, 2017 | Jun. 28, 2013 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 26, 2018 | Jun. 18, 2018 | Jan. 01, 2018 | Dec. 13, 2017 |
Description Of Business [Line Items] | |||||||||||||||||||||
Equity method investments | $ 106,010 | $ 106,010 | $ 101,275 | ||||||||||||||||||
Purchase of units | 16,600,000 | ||||||||||||||||||||
Purchase value of units | $ 242,000 | ||||||||||||||||||||
Proceeds from issuance of exchangeable preferred partnership units | $ 152,886 | ||||||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 94.95% | 94.95% | |||||||||||||||||||
Number of common shares under spin off transaction | 14,800,000 | ||||||||||||||||||||
Ownership interest percentage | 94.00% | ||||||||||||||||||||
Economic interest ownership percentage | 87.00% | ||||||||||||||||||||
Common stock units issued | 1,458,931 | ||||||||||||||||||||
Assets | $ 3,506,858 | $ 3,506,858 | 3,454,157 | ||||||||||||||||||
Liabilities | 2,464,140 | 2,464,140 | 2,371,188 | ||||||||||||||||||
Retained earnings | 277,115 | 277,115 | 277,952 | ||||||||||||||||||
Noncontrolling interests | 456,078 | 456,078 | $ 489,230 | ||||||||||||||||||
ROU asset | 192,498 | 192,498 | |||||||||||||||||||
ROU liability | 243,683 | 243,683 | |||||||||||||||||||
ASU No. 2014-09 [Member] | Impact of ASC 606 [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Assets | $ 64,400 | ||||||||||||||||||||
Liabilities | 45,600 | ||||||||||||||||||||
Retained earnings | 16,500 | ||||||||||||||||||||
Noncontrolling interests | $ 2,300 | ||||||||||||||||||||
ASU 2016-02 | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
ROU asset | $ 178,800 | ||||||||||||||||||||
ROU liability | $ 226,700 | ||||||||||||||||||||
Newmark OpCo [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Number of common shares under spin off transaction | 7,000,000 | ||||||||||||||||||||
RBC [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Proceeds from issuance of exchangeable preferred partnership units | $ 113,200 | $ 152,900 | |||||||||||||||||||
RBC [Member] | Newmark OpCo [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Exchangeable preferred limited partnership units issued | $ 325,000 | $ 325,000 | $ 150,000 | $ 175,000 | |||||||||||||||||
NASDAQ [Member] | Maximum [Member] | Forward Contracts [Member] | RBC [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Shares received from transaction | 992,247 | ||||||||||||||||||||
Intercompany Credit Agreement [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Stated interest rate | 6.50% | ||||||||||||||||||||
BGC Partners Inc [Member] | NASDAQ [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Consideration received on sale of assets | $ 750,000 | ||||||||||||||||||||
Period for expected payment under Common stock transaction | 15 years | ||||||||||||||||||||
BGC Partners Inc [Member] | NASDAQ [Member] | Maximum [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Expected payment of shares under common stock transaction | 14,883,705 | ||||||||||||||||||||
BGC Partners Inc [Member] | NASDAQ [Member] | Minimum [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Gross revenue on expected payment per year under common stock transaction. | $ 25,000 | ||||||||||||||||||||
BGC Partners Inc [Member] | Intercompany Credit Agreement [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Proceeds from debt | $ 150,000 | ||||||||||||||||||||
2042 Promissory Note [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Stated interest rate | 8.125% | ||||||||||||||||||||
Repayments of debt | $ 112,500 | $ 112,500 | |||||||||||||||||||
2019 Promissory Note [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Stated interest rate | 5.375% | ||||||||||||||||||||
Repayments of debt | $ 300,000 | ||||||||||||||||||||
Class A Common Stock [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Stock issued during period, shares, new issues | 28,484 | 36,935 | |||||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||||||||||||||
Number of common shares under spin off transaction | 9,400,000 | ||||||||||||||||||||
Common stock, shares issued | 131,886,409 | 158,342,559 | 158,342,559 | 156,966,336 | |||||||||||||||||
Common stock units issued | 449,917 | ||||||||||||||||||||
Class A Common Stock [Member] | Newmark OpCo [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Number of common shares under spin off transaction | 6,900,000 | ||||||||||||||||||||
Class B Common Stock [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||||||||||||||
Number of common shares under spin off transaction | 5,400,000 | ||||||||||||||||||||
Common stock, shares issued | 21,285,537 | 21,285,533 | 21,285,533 | 21,285,533 | |||||||||||||||||
IPO [Member] | Class A Common Stock [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Stock issued during period, shares, new issues | 20,000,000 | ||||||||||||||||||||
Closing price per share | $ 14 | ||||||||||||||||||||
Options to purchase additional shares of common stock period | 30 days | ||||||||||||||||||||
Option to purchase additional shares | 3,000,000 | ||||||||||||||||||||
CF Real Estate Finance Holdings, L.P. [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Equity method investments | $ 100,000 | ||||||||||||||||||||
BPF [Member] | |||||||||||||||||||||
Description Of Business [Line Items] | |||||||||||||||||||||
Business acquisition date | Sep. 8, 2017 | ||||||||||||||||||||
Ownership percentage acquired | 100.00% |
Limited Partnership Interests -
Limited Partnership Interests - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Nov. 30, 2018 | Sep. 26, 2018 | Jun. 18, 2018 | |
Noncontrolling Interest [Abstract] | |||||||||
Payout period for post-termination awards | four equal yearly installments | ||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 94.95% | 94.95% | |||||||
Percentage to preferred units | 0.6875% | 0.6875% | |||||||
BGC Holdings, L.P. [Member] | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Limited partnership interest initial contribution ratio | 45.45% | ||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||
CF Group Management, Inc. [Member] | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Number of shares, right to exchange from Class A to Class A or Class B common stock | 23 | ||||||||
Cantor Rights to Purchase Exchangeable Units [Member] | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Number of shares, right to exchange from Class A to Class A or Class B common stock | 23 | ||||||||
Scenario, Forecast [Member] | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Percentage to preferred units | 0.6875% | 0.6875% | 2.75% | ||||||
Class A Common Stock [Member] | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Limited partnership units exchange ratio | 0.9495 | ||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||
Newmark OpCo [Member] | RBC [Member] | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Exchangeable preferred limited partnership units issued | $ 325 | $ 325 | $ 150 | $ 175 | |||||
Exchangeable preferred limited partnership units | $ 325 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
Summary Of Significant Accounting Policies [Line Items] | |
Operating lease option to extend description | options to extend the leases in 5 to 10 year increments for up to 10 years. |
Operating lease, existence of option to extend | true |
Operating lease existence of option to terminate | true |
Number of operating segment | 1 |
Minimum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Operating lease remaining term | 1 year |
Operating lease option to extend | 5 years |
Maximum [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Operating lease remaining term | 13 years |
Operating lease option to extend | 10 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Recognized Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 346,131 | $ 279,833 | $ 621,399 | $ 540,568 |
Gains from mortgage banking activities/originations, net | 45,091 | 41,877 | 76,437 | 80,791 |
Management services, servicing fees and other | 160,256 | 144,909 | 301,298 | 275,720 |
Revenues | 551,478 | 466,619 | 999,134 | 897,079 |
Leasing and Other Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 217,381 | 178,142 | 389,852 | 337,513 |
Capital Markets Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 128,750 | $ 101,691 | $ 231,547 | $ 203,055 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019USD ($) | Apr. 30, 2019 | Dec. 31, 2018USD ($) | Sep. 30, 2018 | Jul. 31, 2018Office | Apr. 30, 2018Office | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Business acquisition, contingent cash consideration | $ 27,195 | $ 28,099 | $ 27,195 | $ 27,195 | $ 28,099 | |||||
Additional goodwill recognized | $ 543,125 | $ 515,321 | 543,125 | 543,125 | 515,321 | $ 477,532 | ||||
Business acquisition, aggregate revenue contribution | 1,700 | 1,700 | 28,500 | |||||||
MLG Commercial LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition date | Apr. 30, 2019 | |||||||||
ACRES [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition date | Jun. 30, 2019 | |||||||||
Two Thousand Nineteen Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration transferred | 31,900 | |||||||||
Business acquisition, contingent cash consideration | $ 7,800 | 7,800 | 7,800 | |||||||
Additional goodwill recognized | 27,798 | 27,798 | 27,798 | |||||||
Business acquisition, amount deductible for tax | 18,800 | 18,800 | $ 18,800 | |||||||
Two Thousand Nineteen Acquisitions [Member] | Newmark Holdings, L.P. [Member] | Limited Partnership Units [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition price paid (Partnership Units) | shares | 233,779 | |||||||||
Business acquisition, contingent non cash consideration, fair value | $ 1,900 | $ 1,900 | $ 1,900 | |||||||
Boston and Pittsburg Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition date | Apr. 30, 2018 | |||||||||
Number of offices acquired | Office | 2 | |||||||||
Denver and Pasadena Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition date | Jul. 31, 2018 | |||||||||
Number of offices acquired | Office | 2 | |||||||||
RKF Retail Holdings LLC Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition date | Sep. 30, 2018 | |||||||||
MiT National Land Services LLC Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition date | Dec. 31, 2018 | |||||||||
Two Thousand Eighteen Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration transferred | 62,900 | |||||||||
Business acquisition, contingent cash consideration | $ 8,600 | 8,600 | ||||||||
Additional goodwill recognized | 42,188 | 42,188 | ||||||||
Business acquisition, amount deductible for tax | 28,600 | $ 28,600 | ||||||||
Two Thousand Eighteen Acquisitions [Member] | Restricted Stock [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition price paid (Partnership Units) | shares | 216,900 | |||||||||
Business acquisition, contingent non cash consideration, fair value | 3,100 | $ 3,100 | ||||||||
Two Thousand Eighteen Acquisitions [Member] | Newmark Holdings, L.P. [Member] | Limited Partnership Units [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition price paid (Partnership Units) | shares | 465,316 | |||||||||
Business acquisition, contingent non cash consideration, fair value | $ 6,200 | $ 6,200 |
Acquisitions - Summary of Compo
Acquisitions - Summary of Components of Purchase Consideration Transferred and Preliminary Allocation of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Goodwill | $ 543,125 | $ 515,321 | $ 477,532 |
Two Thousand Nineteen Acquisitions [Member] | |||
Assets | |||
Cash and cash equivalents | 922 | ||
Goodwill | 27,798 | ||
Receivables, net | 4,348 | ||
Fixed Assets, net | 15 | ||
Other intangible assets, net | 2,075 | ||
Other assets | 236 | ||
Total assets | 35,394 | ||
Current liabilities | |||
Current portion of accounts payable, accrued expenses and other liabilities | 1,365 | ||
Accrued compensation | 2,125 | ||
Total liabilities | 3,490 | ||
Net assets acquired | $ 31,904 | ||
Two Thousand Eighteen Acquisitions [Member] | |||
Assets | |||
Cash and cash equivalents | 1,110 | ||
Goodwill | 42,188 | ||
Receivables, net | 50,731 | ||
Fixed Assets, net | 1,276 | ||
Other intangible assets, net | 4,677 | ||
Other assets | 2,894 | ||
Total assets | 102,876 | ||
Current liabilities | |||
Current portion of accounts payable, accrued expenses and other liabilities | 15,937 | ||
Accrued compensation | 26,765 | ||
Total liabilities | 42,702 | ||
Net assets acquired | $ 60,174 |
Earnings Per Share and Weight_3
Earnings Per Share and Weighted-Average Shares Outstanding - Calculation of Basic Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Basic earnings per share: | |||||
Net income available to common stockholders | [1] | $ 19,444 | $ 546 | $ 33,124 | $ 20,542 |
Basic weighted-average shares of common stock outstanding | 178,754 | 155,157 | 178,683 | 155,447 | |
Basic earnings per share | $ 0.11 | $ 0 | $ 0.19 | $ 0.13 | |
[1] | Includes a reduction for dividends on preferred stock or units in the amount of $3.2 million and $6.4 million for the three and six months ended June 30, 2019, respectively, and $0.2 million for the three and six months ended June 30, 2018. |
Earnings Per Share and Weight_4
Earnings Per Share and Weighted-Average Shares Outstanding - Calculation of Basic Earnings Per Share (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Reduction for dividends on preferred stock or units | $ 3.2 | $ 0.2 | $ 6.4 | $ 0.2 |
Earnings Per Share and Weight_5
Earnings Per Share and Weighted-Average Shares Outstanding - Calculation of Fully Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Fully diluted earnings per share: | |||||
Net income available to common stockholders | [1] | $ 19,444 | $ 546 | $ 33,124 | $ 20,542 |
Allocations of net income to limited partnership interests in Newmark Holdings, net of tax | 3,864 | 12,020 | |||
Net income for fully diluted shares | $ 23,308 | $ 546 | $ 33,124 | $ 32,562 | |
Weighted-average shares: | |||||
Basic weighted-average shares of common stock outstanding | 178,754 | 155,157 | 178,683 | 155,447 | |
Partnership units | [2] | 28,769 | 96,505 | ||
Other | 627 | 781 | 751 | 852 | |
Fully diluted weighted-average shares of common stock outstanding | 208,150 | 155,938 | 179,434 | 252,804 | |
Fully diluted earnings per share | $ 0.11 | $ 0 | $ 0.18 | $ 0.13 | |
[1] | Includes a reduction for dividends on preferred stock or units in the amount of $3.2 million and $6.4 million for the three and six months ended June 30, 2019, respectively, and $0.2 million for the three and six months ended June 30, 2018. | ||||
[2] | Partnership units collectively include founding/working partner units, limited partnership units, and Cantor units (See Note 2 - Limited Partnership Interests for more information). |
Earnings Per Share and Weight_6
Earnings Per Share and Weighted-Average Shares Outstanding - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive securities excluded from computation of fully diluted earnings per share amount | 62.8 | 102.8 | 90.8 |
Stock Transactions and Unit R_3
Stock Transactions and Unit Redemptions - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Aug. 01, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 12, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | |||||||||||
Number of authorized classes of common stock | 2 | 2 | 2 | ||||||||
Class A Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock voting rights description | Each share of Class A common stock is entitled to one vote | ||||||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Common stock, shares outstanding | 156,679,527 | 156,916,336 | 156,679,527 | 156,679,527 | 156,916,336 | 157,422,916 | 138,921,533 | 138,921,533 | 138,593,787 | ||
Stock repurchased during period | 1,600,000 | 50,000 | 1,613,032 | 1,613,032 | |||||||
Stock repurchased during period, Value | $ 13,900,000 | $ 500,000 | |||||||||
Share repurchase and redemption unit remaining authorized amount | $ 186,104 | $ 185,618 | $ 199,514 | ||||||||
Class A Common Stock [Member] | Limited Partnership Interests or Other Equity Interests in Subsidiaries [Member] | Affiliated Persons or Entities [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Stock repurchases and redeemed or repurchases authorized amount | $ 100,000,000 | ||||||||||
Class A Common Stock [Member] | Maximum [Member] | Limited Partnership Interests or Other Equity Interests in Subsidiaries [Member] | Affiliated Persons or Entities [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Stock repurchases and redeemed or repurchases authorized amount | $ 200,000,000 | ||||||||||
Class B Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock voting rights description | Each share of Class B common stock is entitled to 10 votes | ||||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Conversion of common stock | 1 | ||||||||||
Common stock conversion features | Each share of Class B common stock is entitled to 10 votes and is convertible at any time into one share of Class A common stock. | ||||||||||
Common stock, shares outstanding | 21,285,533 | 21,285,533 | 21,285,533 | 21,285,533 | 21,285,533 |
Stock Transactions and Unit R_4
Stock Transactions and Unit Redemptions - Schedule of Changes in Shares of Common Stock Outstanding (Detail) - Class A Common Stock [Member] - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class Of Stock [Line Items] | |||
Shares outstanding at beginning of period | 157,422,916 | 156,916,336 | 138,593,787 |
LPU redemption/exchange | 747,846 | 1,122,776 | |
Other issuances of Class A common stock | 70,391 | 78,842 | 327,746 |
Issuance of Class A common stock for Newmark RSUs | 28,484 | 36,935 | |
Newmark treasury stock | (1,613,032) | (1,613,032) | |
Shares outstanding at end of period | 156,679,527 | 156,679,527 | 138,921,533 |
Restricted Stock Units (RSUs) [Member] | |||
Class Of Stock [Line Items] | |||
Issuance of Class A common stock for Newmark RSUs | 51,406 | 174,605 |
Stock Transactions and Unit R_5
Stock Transactions and Unit Redemptions - Schedule of Share Repurchase Activity (Detail) - Class A Common Stock [Member] - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | |||
Balance at beginning of period, Total Number of Shares Repurchased | 50,000 | ||
Repurchase of common stock, shares | 1,613,032 | 1,613,032 | |
Balance at Ending of period, Total Number of Shares Repurchased | 1,663,032 | 1,663,032 | 50,000 |
Repurchase, Average Price Paid per Unit | $ 8.61 | $ 8.65 | $ 9.73 |
Total Number of Shares Purchased as Part of Publicly Announced Program | 1,613,032 | 1,663,032 | 50,000 |
Approximate Dollar Value of Units and Shares That May Yet Be Redeemed/Purchased Under the Plan | $ 186,104 | $ 185,618 | $ 199,514 |
Stock Transactions and Unit R_6
Stock Transactions and Unit Redemptions - Schedule of Changes in Carrying Amount of Redeemable Partnership Interest (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Balance at beginning of period | $ 26,170 | $ 21,096 |
Income allocation | 1,663 | 6,779 |
Distributions of income | (720) | (2,843) |
FPU redemptions | (418) | (1,101) |
Issuance | 0 | 2,239 |
Other | 20 | 0 |
Balance at end of period | $ 26,715 | $ 26,170 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) | Jun. 28, 2013 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Equity [Line Items] | ||||||
Gross proceeds from sale of marketable securities | $ 22,204,000 | $ 51,433,000 | ||||
Gain (loss) on marketable securities | $ 1,900,000 | $ 900,000 | 1,812,000 | 1,494,000 | ||
Marketable securities, unrealized gain (loss) on mark to market securities | 5,110,000 | 1,444,000 | ||||
Marketable securities | 33,659,000 | 33,659,000 | $ 48,942,000 | |||
Other Income (Loss), Net [Member] | ||||||
Equity [Line Items] | ||||||
Marketable securities, unrealized gain (loss) on mark to market securities | $ 1,200,000 | $ 600,000 | $ 5,100,000 | $ 1,500,000 | ||
Nasdaq [Member] | ||||||
Equity [Line Items] | ||||||
Number of shares sold in transaction | 250,000 | |||||
Remaining number of earn-out shares received under common stock transaction | 350,000 | 350,000 | ||||
Certain Assets of Nasdaq [Member] | ||||||
Equity [Line Items] | ||||||
Period for earn-out receivable under common stock transaction | 9 years | |||||
Amount recognized in connection with the earn-out including other income (loss) | 992,247 | |||||
Certain Assets of Nasdaq [Member] | BGC Partners Inc [Member] | ||||||
Equity [Line Items] | ||||||
Period for earn-out receivable under common stock transaction | 15 years | |||||
Maximum [Member] | Certain Assets of Nasdaq [Member] | ||||||
Equity [Line Items] | ||||||
Remaining earn-out receivable under common stock transaction | 8,930,223 | |||||
Maximum [Member] | Certain Assets of Nasdaq [Member] | NEWMARK Group Inc Parent [Member] | ||||||
Equity [Line Items] | ||||||
Earn-out shares receivable under common stock transaction | 14,883,705 | |||||
Minimum [Member] | Certain Assets of Nasdaq [Member] | ||||||
Equity [Line Items] | ||||||
Gross revenue on earn-out receivable per year under common stock transaction | $ 25,000,000 | |||||
Minimum [Member] | Certain Assets of Nasdaq [Member] | NEWMARK Group Inc Parent [Member] | ||||||
Equity [Line Items] | ||||||
Gross revenue on earn-out receivable per year under common stock transaction | $ 25,000,000 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 08, 2017 | |
Investment [Line Items] | ||||||
Equity Income | $ 4,750 | $ 5,019 | ||||
Equity method investments | $ 106,010 | 106,010 | $ 101,275 | |||
Other Assets [Member] | ||||||
Investment [Line Items] | ||||||
Equity method investments | 106,000 | 106,000 | 101,300 | |||
Alternative investment | $ 57,500 | $ 57,500 | $ 53,500 | |||
CF Real Estate Finance Holdings, L.P. [Member] | ||||||
Investment [Line Items] | ||||||
Equity method investments | $ 100,000 | |||||
Equity method investment ownership percentage | 27.00% | 27.00% | ||||
Other Income/(Loss), Net [Member] | ||||||
Investment [Line Items] | ||||||
Equity Income | $ 4,800 | $ 1,800 | $ 4,800 | $ 5,000 | ||
Gains or losses relating to investments | $ 3,900 | $ 3,900 |
Capital and Liquidity Require_2
Capital and Liquidity Requirements - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Percentage of Freddie Mac's liquidity requirement of outstanding principal of TAH loans serviced | 8.00% | 8.00% |
Other Assets [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Outstanding borrower advances | $ 0.1 | $ 0.2 |
Seller/Servicer Agreements [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Amount of capital in excess of aggregate regulatory requirements | $ 329.2 |
Loans Held for Sale, at Fair _3
Loans Held for Sale, at Fair Value - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Maximum number of days loans held for sale are typically sold | 45 days | ||||
Loans held for sale in nonaccrual status | $ 0 | $ 0 | $ 0 | ||
Management Services, Servicing Fees and Other [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Interest income on Loans held for sale | 6,500,000 | $ 5,000,000 | 15,100,000 | $ 9,700,000 | |
Gains (Loss) from Mortgage Banking Activities, Net [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Gains (loss) recognized for fair value adjustments on loans held for sale | 12,400,000 | $ (7,800,000) | 25,700,000 | $ 7,300,000 | |
Greater Than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for sale past due | $ 0 | $ 0 | $ 0 |
Loans Held for Sale, at Fair _4
Loans Held for Sale, at Fair Value - Summary of Loans Held for Sale at Cost Basis and Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 818,909 | $ 990,864 |
Cost Basis [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Cost Basis | 793,212 | 972,434 |
Fair Value [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 818,909 | $ 990,864 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative contract, Assets | $ 73,448 | $ 92,528 | |
Derivative contract, Liabilities | 29,689 | 16,678 | |
Derivative contract, Notional Amounts | 2,435,513 | 1,814,834 | |
Forwards [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative contract, Assets | [1] | 51,497 | 85,796 |
Derivative contract, Liabilities | 27,261 | 9,208 | |
Derivative contract, Notional Amounts | [2] | 1,794,842 | 1,574,114 |
Rate Lock Commitments [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative contract, Assets | 21,951 | 6,732 | |
Derivative contract, Liabilities | 2,428 | 7,470 | |
Derivative contract, Notional Amounts | $ 640,671 | $ 240,720 | |
[1] | Included in Forwards is $48.7 million and $77.6 million of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively (See Note 1 — | ||
[2] | Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and does not represent anticipated losses. Included in the notional amounts of forwards is $361.0 million for the Nasdaq Forwards as of June 30, 2019 and December 31, 2018. |
Derivatives - Fair Value of D_2
Derivatives - Fair Value of Derivative Contracts (Parenthetical) (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Derivative contract, Assets | $ 73,448 | $ 92,528 | ||
Valuation of derivative asset | 28,967 | $ 2,808 | ||
Derivative contract, Notional Amounts | 2,435,513 | 1,814,834 | ||
Forward Contracts [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Derivative contract, Assets | [1] | 51,497 | 85,796 | |
Derivative contract, Notional Amounts | [2] | 1,794,842 | 1,574,114 | |
Forward Contracts [Member] | NASDAQ [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Derivative contract, Assets | 48,700 | 77,600 | ||
Valuation of derivative asset | 29,000 | (19,000) | ||
Derivative contract, Notional Amounts | $ 361,000 | $ 361,000 | ||
[1] | Included in Forwards is $48.7 million and $77.6 million of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively (See Note 1 — | |||
[2] | Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and does not represent anticipated losses. Included in the notional amounts of forwards is $361.0 million for the Nasdaq Forwards as of June 30, 2019 and December 31, 2018. |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Compensation and Employee Benefits [Member] | Rate Lock Commitments [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Change in fair value of rate lock commitments, net | $ (0.2) | $ 0.8 | $ 1.9 | $ 3.3 |
Derivatives - Summary of Gains
Derivatives - Summary of Gains Losses on Derivative Contracts Included in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Rate Lock Commitments [Member] | Compensation and Employee Benefits [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in income for derivatives | $ (200) | $ 800 | $ 1,900 | $ 3,300 |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in income for derivatives | (21,919) | 12,077 | (33,860) | 19,112 |
Not Designated as Hedging Instrument [Member] | Rate Lock Commitments [Member] | Gains From Mortgage Banking Activities/Originations, Net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in income for derivatives | 14,292 | 1,515 | 21,379 | 3,784 |
Not Designated as Hedging Instrument [Member] | Rate Lock Commitments [Member] | Compensation and Employee Benefits [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in income for derivatives | 211 | (782) | (1,856) | (3,282) |
Not Designated as Hedging Instrument [Member] | Nasdaq Forward [Member] | Other Income (Loss), Net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in income for derivatives | (15,638) | 2,808 | (28,967) | 2,808 |
Not Designated as Hedging Instrument [Member] | Forward Sale Contracts [Member] | Deliver Loans to Third-party Investors [Member] | Gains From Mortgage Banking Activities/Originations, Net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in income for derivatives | $ (20,784) | $ 8,536 | $ (24,416) | $ 15,802 |
Credit Enhancement Receivable_2
Credit Enhancement Receivable, Contingent Liability and Credit Enhancement Deposit - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Credit Enhancement Receivable Contingent Liability And Credit Enhancement Deposit [Line Items] | |||||
Credit enhancement agreement date | Mar. 9, 2012 | ||||
Credit enhancement receivable | $ 0 | $ 0 | $ 0 | ||
Deposit in Fannie Mae restricted liquidity account | 25,000,000 | 25,000,000 | |||
Deposit in Fannie Mae restricted liquidity account | 25,000,000 | $ 25,000,000 | 25,000,000 | ||
Security deposit return date | Mar. 9, 2021 | ||||
Other Long-Term Liabilities [Member] | |||||
Credit Enhancement Receivable Contingent Liability And Credit Enhancement Deposit [Line Items] | |||||
Deposit in Fannie Mae restricted liquidity account | 25,000,000 | $ 25,000,000 | |||
Credit Risk [Member] | |||||
Credit Enhancement Receivable Contingent Liability And Credit Enhancement Deposit [Line Items] | |||||
Credit risk loans | 20,300,000,000 | 20,300,000,000 | 20,600,000,000 | ||
Maximum pre-credit enhancement loss exposure | 5,700,000,000 | 5,700,000,000 | 5,800,000,000 | ||
DB Cayman [Member] | Credit Risk [Member] | |||||
Credit Enhancement Receivable Contingent Liability And Credit Enhancement Deposit [Line Items] | |||||
Reimbursements under serving agreement | 0 | $ 0 | 0 | $ 0 | |
Credit risk loans | $ 29,600,000 | 29,600,000 | 230,700,000 | ||
Maximum pre-credit enhancement loss exposure | 9,900,000 | 76,200,000 | |||
Maximum loss exposure without any form of credit protection | $ 5,700,000,000 | 5,700,000,000 | |||
Percentage of contingent payment | 50.00% | 50.00% | |||
Contingent payment due date | Mar. 9, 2021 | ||||
Contingent payments description | Newmark is required to pay DB Cayman, on March 9, 2021, an amount equal to 50% of the positive difference, if any, between (a) $25 million, and (b) Newmark’s unreimbursed loss-sharing payments from March 9, 2012 through March 9, 2021 on Newmark’s servicing portfolio as of March 9, 2012. | ||||
Contingent liability | $ 11,500,000 | $ 11,500,000 | $ 11,100,000 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Schedule of Revenues from Contracts with Customers and Other Sources of Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 346,131 | $ 279,833 | $ 621,399 | $ 540,568 |
Gains from mortgage banking activities/originations, net | 45,091 | 41,877 | 76,437 | 80,791 |
Servicing fees and other | 42,784 | 37,681 | 85,738 | 71,560 |
Revenues | 551,478 | 466,619 | 999,134 | 897,079 |
ASU No. 2014-09 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 463,603 | 387,061 | 836,959 | 744,728 |
Leasing and Other Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 217,381 | 178,142 | 389,852 | 337,513 |
Leasing and Other Commissions [Member] | ASU No. 2014-09 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 217,381 | 178,142 | 389,851 | 337,513 |
Capital Markets Commissions [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 128,750 | 101,691 | 231,547 | 203,055 |
Capital Markets Commissions [Member] | ASU No. 2014-09 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 128,750 | 101,691 | 231,547 | 203,055 |
Management Services [Member] | ASU No. 2014-09 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 117,472 | $ 107,228 | $ 215,561 | $ 204,160 |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue | $ 2.5 | $ 4.2 |
Deferred revenue, revenue recognized | $ 1.2 |
Gains From Mortgage Banking A_3
Gains From Mortgage Banking Activities/Originations, Net - Summary of Gains From Mortgage Banking Activities/Originations, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Mortgage Banking [Abstract] | ||||
Loan originations related fees and sales premiums, net | $ 20,235 | $ 17,181 | $ 35,203 | $ 34,998 |
Fair value of expected net future cash flows from servicing recognized at commitment, net | 24,856 | 24,696 | 41,234 | 45,793 |
Gains from mortgage banking activities/originations, net | $ 45,091 | $ 41,877 | $ 76,437 | $ 80,791 |
Mortgage Servicing Rights, Ne_2
Mortgage Servicing Rights, Net - Summary of Changes in the Carrying Amount of Mortgage Servicing Rights (Detail) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Mortgage Servicing Rights | ||||
Beginning Balance | $ 413,004 | $ 386,953 | $ 416,131 | $ 399,349 |
Additions | 21,433 | 25,342 | 38,687 | 31,731 |
Purchases from an affiliate | 424 | 1,099 | 722 | 1,608 |
Amortization | (21,436) | (20,011) | (42,115) | (39,305) |
Ending Balance | 413,425 | 393,383 | 413,425 | 393,383 |
Valuation Allowance | ||||
Beginning Balance | (6,044) | (5,427) | (4,322) | (6,723) |
Decrease | (6,598) | 4,084 | (8,320) | 5,380 |
Ending Balance | (12,642) | (1,343) | (12,642) | (1,343) |
Net balance | $ 400,783 | $ 392,040 | $ 400,783 | $ 392,040 |
Mortgage Servicing Rights, Ne_3
Mortgage Servicing Rights, Net - Schedule of Servicing Fees and Escrow Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Transfers And Servicing [Abstract] | ||||
Servicing fees | $ 25,977 | $ 26,092 | $ 51,608 | $ 51,224 |
Escrow interest and placement fees | 5,624 | 3,867 | 10,987 | 6,834 |
Ancillary fees | 4,131 | 2,374 | 7,315 | 3,201 |
Total servicing fees and escrow interest | $ 35,732 | $ 32,333 | $ 69,910 | $ 61,259 |
Mortgage Servicing Rights, Ne_4
Mortgage Servicing Rights, Net - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Mortgage Servicing Rights [Line Items] | ||
Primary servicing portfolio | $ 58,100 | $ 57,100 |
Special servicing portfolio | $ 2,700 | $ 2,900 |
Minimum [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Discount rate | 3.00% | 3.00% |
Maximum [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Discount rate | 13.50% | 13.50% |
Discount Rate One [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Increase in discount rate | 1.00% | 1.00% |
Decrease in fair value of servicing rights | $ (11.7) | $ (12.4) |
Discount Rate Two [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Increase in discount rate | 2.00% | 2.00% |
Decrease in fair value of servicing rights | $ (22.8) | $ (24.4) |
Mortgage Servicing Rights [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Estimated fair value of MSRs | $ 431.5 | $ 451.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at January 1, 2018 | $ 515,321 | $ 477,532 |
Acquisitions | 27,984 | 40,157 |
Measurement period adjustments | (180) | (2,368) |
Balance at December 31, 2018 | $ 543,125 | $ 515,321 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||
Additional goodwill recognized | $ 27,984,000 | $ 40,157,000 | ||||
Measurement period adjustments | (180,000) | $ (2,368,000) | ||||
Impairment of goodwill | $ 0 | |||||
Intangible amortization expense | $ 1,300,000 | $ 1,300,000 | $ 2,600,000 | $ 2,800,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Definite life, Accumulated Amortization | $ (17,849) | $ (15,251) |
Definite life, Weighted- Average Remaining Life (Years) | 10 months 24 days | 1 year 2 months 12 days |
Below market leases, Gross Amount | $ 941 | $ 941 |
Below market leases, Accumulated Amortization | (96) | (45) |
Below market leases. Net Carrying Amount | 845 | 896 |
Gross Amount | 53,097 | 51,020 |
Net Carrying Amount | 35,248 | 35,769 |
Trademark and Trade Names [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Definite life, Gross Amount | 10,153 | 9,316 |
Definite life, Accumulated Amortization | (7,141) | (6,706) |
Definite life, Net Carrying Amount | $ 3,012 | $ 2,610 |
Definite life, Weighted- Average Remaining Life (Years) | 6 months | 6 months |
Non-contractual Customers [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Definite life, Gross Amount | $ 11,532 | $ 11,323 |
Definite life, Accumulated Amortization | (4,898) | (3,890) |
Definite life, Net Carrying Amount | $ 6,634 | $ 7,433 |
Definite life, Weighted- Average Remaining Life (Years) | 1 year 4 months 24 days | 1 year 9 months 18 days |
License Agreements (GSE) [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Definite life, Gross Amount | $ 4,981 | $ 4,981 |
Definite life, Accumulated Amortization | (2,792) | (2,292) |
Definite life, Net Carrying Amount | $ 2,189 | $ 2,689 |
Definite life, Weighted- Average Remaining Life (Years) | 2 months 12 days | 4 months 24 days |
Non-compete Agreements [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Definite life, Gross Amount | $ 6,267 | $ 6,267 |
Definite life, Accumulated Amortization | (1,949) | (1,469) |
Definite life, Net Carrying Amount | $ 4,318 | $ 4,798 |
Definite life, Weighted- Average Remaining Life (Years) | 1 year 2 months 12 days | 1 year 4 months 24 days |
Contractual Customers [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Definite life, Gross Amount | $ 2,483 | $ 1,452 |
Definite life, Accumulated Amortization | (973) | (849) |
Definite life, Net Carrying Amount | $ 1,510 | $ 603 |
Definite life, Weighted- Average Remaining Life (Years) | 1 month 6 days | 1 month 6 days |
Trademark and Trade Names [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Indefinite life, intangible assets | $ 11,350 | $ 11,350 |
License Agreements (GSE) [Member] | ||
Schedule of Acquired Finite And Indefinite Lived Intangible Asset By Major Class [Line Items] | ||
Indefinite life, intangible assets | $ 5,390 | $ 5,390 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Schedule of Estimated Future Amortization of Definite Life Intangible Assets (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2019 | $ 2,751 |
2020 | 5,338 |
2021 | 4,328 |
2022 | 2,283 |
2023 | 1,838 |
Thereafter | 1,970 |
Total | $ 18,508 |
Fixed Assets, Net - Components
Fixed Assets, Net - Components of Fixed Assets, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 150,218 | $ 137,229 |
Accumulated depreciation and amortization | (66,675) | (58,424) |
Fixed assets, net | 83,543 | 78,805 |
Leasehold Improvements and Other Fixed Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 101,885 | 99,207 |
Software, Including Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | 28,044 | 21,417 |
Computer and Communications Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, gross | $ 20,289 | $ 16,605 |
Fixed Assets, Net - Additional
Fixed Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 4.4 | $ 3.2 | $ 9.3 | $ 6.4 |
Software development costs capitalized | 1.6 | 0.5 | 2.2 | 1 |
Operating, Administrative and Other [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization of software development costs | $ 0.6 | $ 0.2 | $ 1.1 | $ 0.4 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee Lease Description [Line Items] | ||||
Operating lease option to extend description | options to extend the leases in 5 to 10 year increments for up to 10 years. | |||
Operating lease cost | $ 11,700 | $ 22,600 | ||
Operating Lease, Income, Comprehensive Income [Extensible List] | us-gaap:GeneralAndAdministrativeExpense | us-gaap:GeneralAndAdministrativeExpense | ||
Payments for operating lease liabilities | $ 21,800 | |||
Short-term lease expense | $ 700 | 1,300 | ||
Sublease income | $ 200 | $ 400 | ||
Operating lease, weighted average discount rate | 7.49% | 7.49% | ||
Operating lease, remaining weighted average lease term | 9 years 1 month 6 days | 9 years 1 month 6 days | ||
Operating lease ROU assets | $ 192,498 | $ 192,498 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||
Operating lease ROU liabilities, current | $ 22,816 | $ 22,816 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent | ||
Operating lease ROU liabilities, non current | $ 220,867 | $ 220,867 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | ||
Rent expense, including operating lease costs | $ 12,000 | $ 10,500 | $ 23,700 | $ 20,700 |
Minimum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease remaining term | 1 year | 1 year | ||
Options to extend the lease | 5 years | 5 years | ||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease remaining term | 13 years | 13 years | ||
Options to extend the lease | 10 years | 10 years |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments for Operating Leases under Topic 842 (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 20,283 |
2020 | 41,815 |
2021 | 38,989 |
2022 | 36,327 |
2023 | 34,973 |
Thereafter | 168,518 |
Total lease payments | 340,905 |
Less: Interest | 97,222 |
Present value of lease liability | $ 243,683 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 42,870 |
2020 | 41,497 |
2021 | 38,287 |
2022 | 35,738 |
2023 | 34,290 |
Thereafter | 158,907 |
Total | $ 351,589 |
Other Assets - Summary of Other
Other Assets - Summary of Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Derivative assets | $ 30,565 | $ 30,796 |
Prepaid taxes | 14,234 | 9,992 |
Prepaid expenses | 12,674 | 15,570 |
Rent and other deposits | 1,554 | 1,192 |
Other | 20,367 | 189 |
Total other current assets | $ 79,394 | $ 57,739 |
Other Assets - Summary of Non-c
Other Assets - Summary of Non-current Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
ROU Asset | $ 192,498 | |
Deferred tax assets | 154,880 | $ 149,938 |
Equity method investments | 106,010 | 101,275 |
Non-marketable investments | 57,497 | 53,470 |
Derivative assets | 42,883 | 61,732 |
Other | 4,611 | 3,452 |
Total other non-current assets | $ 558,379 | $ 369,867 |
Securities Loaned - Additional
Securities Loaned - Additional Information (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Securities loaned | $ 33,659,000 | |
CF & Co [Member] | ||
Debt Instrument [Line Items] | ||
Securities loaned | 33,700,000 | $ 0 |
CF & Co [Member] | Securities Financing Transaction, Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Securities loaned | $ 33,700,000 | |
CF & Co [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.97% | |
CF & Co [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.15% |
Warehouse Facilities Collater_3
Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises - Schedule of Company Lines Available and Borrowings Outstanding (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jan. 29, 2019 | |||
Securities Financing Transaction [Line Items] | |||||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 793,194 | $ 972,387 | |||
Committed Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | 1,350,000 | 1,650,000 | |||
Uncommitted Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | 525,000 | 325,000 | |||
Warehouse Facility Due June 17, 2020 [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 120,945 | ||||
Warehouse Facility Due June 17, 2020 [Member] | One Month LIBOR [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Stated Spread to One Month LIBOR | 1.15% | ||||
Warehouse Facility Due June 17, 2020 [Member] | Committed Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 450,000 | ||||
Warehouse Facility Due June 17, 2020 [Member] | One Month LIBOR [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Stated Spread to One Month LIBOR | 1.10% | ||||
Warehouse Facility Due June 17, 2020 [Member] | Uncommitted Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 200,000 | ||||
Warehouse Facility Due September 25, 2019 [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 189,749 | $ 113,452 | |||
Warehouse Facility Due September 25, 2019 [Member] | One Month LIBOR [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Stated Spread to One Month LIBOR | 1.15% | 1.20% | |||
Warehouse Facility Due September 25, 2019 [Member] | Committed Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 200,000 | $ 200,000 | |||
Warehouse Facility Due October 10, 2019 [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 1,000,000 | ||||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 433,854 | [1] | $ 416,373 | [2] | |
Warehouse Facility Due October 10, 2019 [Member] | One Month LIBOR [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Stated Spread to One Month LIBOR | 1.15% | [1] | 1.20% | [2] | |
Warehouse Facility Due October 10, 2019 [Member] | Committed Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 700,000 | [1] | $ 1,000,000 | [2] | |
Fannie Mae Repurchase Agreement, Open Maturity [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 48,646 | $ 29,499 | |||
Fannie Mae Repurchase Agreement, Open Maturity [Member] | One Month LIBOR [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Stated Spread to One Month LIBOR | 1.05% | 1.15% | |||
Fannie Mae Repurchase Agreement, Open Maturity [Member] | Uncommitted Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 325,000 | $ 325,000 | |||
Warehouse Facility Due June 19, 2019 [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Warehouse facilities collateralized by U.S. Government Sponsored Enterprises | $ 413,063 | ||||
Warehouse Facility Due June 19, 2019 [Member] | One Month LIBOR [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Stated Spread to One Month LIBOR | 1.20% | ||||
Warehouse Facility Due June 19, 2019 [Member] | Committed Lines [Member] | |||||
Securities Financing Transaction [Line Items] | |||||
Lines available | $ 450,000 | ||||
[1] | The warehouse facility was temporarily increased by $400.0 million to $700.0 million for the period of May 16, 2019 to July 15, 2019. | ||||
[2] | The warehouse facility was temporarily increased by $700.0 million to $1.0 billion for the period of November 30, 2018 to January 29, 2019. On January 29, 2019, the temporary increase was decreased by $400 million to $300 million for the period January 29, 2019 to April 1, 2019. |
Warehouse Facilities Collater_4
Warehouse Facilities Collateralized by U.S. Government Sponsored Enterprises - Schedule of Company Lines Available and Borrowings Outstanding (Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 28, 2019 | Sep. 13, 2019 | Jul. 15, 2019 | Mar. 31, 2019 | Jan. 29, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Warehouse Facility Due June 17, 2020 [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Maturity date | Jun. 17, 2020 | ||||||
Warehouse Facility Due June 17, 2020 [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Maturity date | Jun. 17, 2020 | ||||||
Warehouse Facility Due September 25, 2019 [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Maturity date | Sep. 25, 2019 | Sep. 25, 2019 | |||||
Warehouse Facility Due October 10, 2019 [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Maturity date | Oct. 10, 2019 | Oct. 10, 2019 | |||||
Warehouse facility available | $ 1,000 | ||||||
Warehouse facility increase (decrease) | $ 700 | ||||||
Facility available based on temporary amount | $ 300 | ||||||
Temporary facility increase (decrease) amount | $ (400) | ||||||
Warehouse Facility Due October 10, 2019 [Member] | Scenario, Forecast [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Warehouse facility available | $ 500 | $ 1,800 | |||||
Warehouse facility increase (decrease) | $ 200 | $ 1,300 | |||||
Warehouse Facility Due October 10, 2019 [Member] | Subsequent Event [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Warehouse facility available | $ 700 | ||||||
Warehouse facility increase (decrease) | $ 400 | ||||||
Warehouse Facility Due June 19, 2019 [Member] | |||||||
Securities Financing Transaction [Line Items] | |||||||
Maturity date | Jun. 19, 2019 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 582,840 | $ 537,926 |
6.125% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 539,206 | $ 537,926 |
Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 43,634 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | Jun. 30, 2019 | Dec. 31, 2018 | Nov. 06, 2018 |
6.125% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.125% | 6.125% | 6.125% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 28, 2018 | Nov. 23, 2018 | Nov. 06, 2018 | Sep. 26, 2018 | Sep. 05, 2018 | Sep. 04, 2018 | Jun. 19, 2018 | Dec. 13, 2017 | Sep. 08, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | $ 582,840,000 | $ 582,840,000 | $ 537,926,000 | |||||||||||
Repayments of credit agreement | 3,677,675,000 | $ 2,479,696,000 | ||||||||||||
Borrowings from credit agreement | 3,498,483,000 | 2,659,827,000 | ||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | 43,600,000 | 43,600,000 | ||||||||||||
Debt issuance cost | 1,400,000 | 1,400,000 | ||||||||||||
Amortization of debt issuance costs | 100,000 | $ 300,000 | ||||||||||||
Maximum revolving credit | $ 250,000,000 | |||||||||||||
Credit agreement maturity period | 3 years | |||||||||||||
Line of credit facility, interest rate description | Borrowings under the Credit Facility will bear an annual interest equal to, at Newmark’s option, either (a) LIBOR for specified periods, or upon the consent of all Lenders, such other period that is 12 months or less, plus an applicable margin, or (b) a base rate equal to the greatest of (i) the federal funds rate plus 0.5%, (ii) the prime rate as established by the administrative agent, and (iii) one-month LIBOR plus 1.0%. | |||||||||||||
Revolving Credit Facility [Member] | Federal Fund Rate [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 0.50% | |||||||||||||
Revolving Credit Facility [Member] | One Month LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 1.00% | |||||||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 2.00% | |||||||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 0.25% | |||||||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 1.25% | |||||||||||||
Intercompany Credit Agreement [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 6.50% | |||||||||||||
Borrowings from credit agreement | $ 112,500,000 | |||||||||||||
Interest Expense, Net [Member] | Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest expense | $ 800,000 | $ 1,000,000 | ||||||||||||
Term Loan [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest expense | $ 2,600,000 | 2,600,000 | ||||||||||||
Maximum revolving credit | $ 575,000,000 | |||||||||||||
Credit agreement maturity date | Sep. 8, 2019 | |||||||||||||
Line of credit facility, description | Borrowings under the Term Loan bore interest at either LIBOR or a defined base rate plus an additional margin which ranged from 50 basis points to 325 basis points depending on BGC’s debt rating as determined by S&P and Fitch and whether such loan was a LIBOR loan or a base rate loan. | |||||||||||||
Repayments of credit agreement | $ 304,300,000 | 270,700,000 | ||||||||||||
Term Loan [Member] | LIBOR or Defined Base Rate [Member] | Minimum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 0.50% | |||||||||||||
Term Loan [Member] | LIBOR or Defined Base Rate [Member] | Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 3.25% | |||||||||||||
Converted Term Loan [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt | $ 0 | |||||||||||||
Interest expense | 4,400,000 | 9,000,000 | ||||||||||||
Maximum revolving credit | $ 400,000,000 | |||||||||||||
Credit agreement maturity date | Sep. 8, 2019 | |||||||||||||
Line of credit facility, description | Borrowings under the Converted Term Loan bore interest at either LIBOR or a defined base rate plus an additional margin, which ranged from 50 basis points to 325 basis points depending on BGC’s debt rating as determined by S&P and Fitch and whether such loan was a LIBOR loan or a base rate loan. The Term Loan was paid in full on March 9, 2018. Since the Term Loan was repaid in full, the pricing of the Converted Term Loan returned to the levels previously described. | |||||||||||||
Converted Term Loan [Member] | RBC [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of convertible debt | $ 113,200,000 | $ 152,900,000 | ||||||||||||
Converted Term Loan [Member] | LIBOR or Defined Base Rate [Member] | Minimum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 0.50% | |||||||||||||
Converted Term Loan [Member] | LIBOR or Defined Base Rate [Member] | Maximum [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Applicable margin | 3.25% | |||||||||||||
6.125% Senior Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument face amount | $ 550,000,000 | |||||||||||||
Stated interest rate | 6.125% | 6.125% | 6.125% | 6.125% | ||||||||||
Issued price percentage | 98.937% | |||||||||||||
Yield percentage | 6.375% | |||||||||||||
Debt instrument, payment terms | payable on each May 15 and November 15, beginning on May 15, 2019 | |||||||||||||
Debt instrument, date of first required payment | May 15, 2019 | |||||||||||||
Long-term debt | $ 539,206,000 | $ 539,206,000 | $ 537,926,000 | |||||||||||
Maturity date | Nov. 15, 2023 | |||||||||||||
Debt instrument, issuance date | Nov. 1, 2018 | |||||||||||||
Debt issuance cost | 5,600,000 | $ 5,600,000 | ||||||||||||
Debt discount | 5,200,000 | 5,200,000 | ||||||||||||
Amortization of debt issuance costs | 300,000 | 600,000 | ||||||||||||
6.125% Senior Notes [Member] | Interest Expense, Net [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest expense | 8,700,000 | 17,400,000 | ||||||||||||
6.125% Senior Notes [Member] | Converted Term Loan [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of convertible debt | $ 134,000,000 | |||||||||||||
6.125% Senior Notes [Member] | Straight Line Method [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Amortization of debt issuance costs | $ 300,000 | $ 600,000 | ||||||||||||
2019 Promissory Note [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 5.375% | |||||||||||||
Maturity date | Dec. 9, 2019 | |||||||||||||
Interest expense | 4,300,000 | 8,600,000 | ||||||||||||
Promissory Note | $ 300,000,000 | |||||||||||||
Repayments of debt | $ 300,000,000 | |||||||||||||
Prepayment penalty | $ 7,000,000 | |||||||||||||
2042 Promissory Note [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 8.125% | |||||||||||||
Maturity date | Jun. 26, 2042 | |||||||||||||
Interest expense | $ 2,300,000 | $ 4,600,000 | ||||||||||||
Promissory Note | $ 112,500,000 | |||||||||||||
Repayments of debt | $ 112,500,000 | $ 112,500,000 |
Financial Guarantee Liability -
Financial Guarantee Liability - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Credit Risk [Member] | ||
Guarantee Obligations [Line Items] | ||
Maximum pre-credit enhancement loss exposure | $ 5,700,000,000 | $ 5,800,000,000 |
Credit Risk [Member] | Fannie Mae and Freddie Mac [Member] | ||
Guarantee Obligations [Line Items] | ||
Outstanding principal balances of credit risk loans being serviced | 20,300,000,000 | 20,600,000,000 |
Maximum pre-credit enhancement loss exposure | 5,700,000,000 | 5,800,000,000 |
Credit Risk [Member] | Fannie Mae and Freddie Mac [Member] | Credit Enhancement Agreement [Member] | ||
Guarantee Obligations [Line Items] | ||
Maximum pre-credit enhancement loss exposure | $ 9,900,000 | $ 76,200,000 |
Fannie Mae DUS or Freddie TAH Loans [Member] | Maximum [Member] | ||
Guarantee Obligations [Line Items] | ||
Percentage of contingent liability of actual losses incurred on outstanding loans | 33.00% |
Financial Guarantee Liability_2
Financial Guarantee Liability - Summary of Changes on Estimated Liability Under Guarantee Liability (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Guarantees [Abstract] | ||
Beginning Balance | $ (32) | $ (54) |
Reversal of provision | 22 | |
Increase to provision | (41) | |
Ending Balance | $ (73) | $ (32) |
Financial Guarantee Liability_3
Financial Guarantee Liability - Summary of Provisions for Risk Sharing (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Guarantees [Abstract] | ||||
Increase (decrease) to financial guarantee liability | $ (14) | $ 41 | $ (7) | |
Decrease (increase) to credit enhancement asset | [1] | 10 | ||
Total expense | $ (14) | $ 41 | $ 3 | |
[1] | The credit enhancement recievable is included in “Other assets” in the accompanying consolidated balance sheets. |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Additional Information (Detail) - Fannie Mae DUS and Freddie Mac TAH Loans [Member] - Liabilities [Member] - Credit Concentration Risk [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
California [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 24.00% | 25.00% |
Texas [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | 16.00% |
California and Texas [Member] | ||
Concentration Risk [Line Items] | ||
Maximum pre-credit enhancement loss exposure | $ 5,700,000,000 | $ 5,800,000,000 |
Escrow and Custodial Funds - Ad
Escrow and Custodial Funds - Additional Information (Detail) - USD ($) $ in Billions | Jun. 30, 2019 | Dec. 31, 2018 |
Deposit Assets Disclosure [Abstract] | ||
Escrow funds amount | $ 1 | $ 1.3 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Fair Value Hierarchy of Financial Assets and Liabilities under U.S. GAAP Guidance (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets: | |||
Marketable securities | $ 33,659 | $ 48,942 | |
Loans held for sale, at fair value | 818,909 | 990,864 | |
Derivative contract, Assets | 73,448 | 92,528 | |
Total assets | 926,016 | 1,132,334 | |
Liabilities: | |||
Accounts payable, accrued expenses and other liabilities—contingent consideration | 38,712 | 32,552 | |
Derivative contract, Liabilities | 29,689 | 16,678 | |
Total Liabilities | 68,401 | 49,230 | |
Forward Contracts [Member] | |||
Assets: | |||
Derivative contract, Assets | [1] | 51,497 | 85,796 |
Liabilities: | |||
Derivative contract, Liabilities | 27,261 | 9,208 | |
Rate Lock Commitments [Member] | |||
Assets: | |||
Derivative contract, Assets | 21,951 | 6,732 | |
Liabilities: | |||
Derivative contract, Liabilities | 2,428 | 7,470 | |
Forward Sale Contracts [Member] | |||
Assets: | |||
Derivative contract, Assets | 2,845 | 8,177 | |
Liabilities: | |||
Derivative contract, Liabilities | 27,261 | 9,208 | |
NASDAQ [Member] | Forward Contracts [Member] | |||
Assets: | |||
Nasdaq Forwards | 48,652 | 77,619 | |
Level 1 [Member] | |||
Assets: | |||
Marketable securities | 33,659 | 48,942 | |
Total assets | 33,659 | 48,942 | |
Level 2 [Member] | |||
Assets: | |||
Loans held for sale, at fair value | 818,909 | 990,864 | |
Total assets | 818,909 | 990,864 | |
Level 3 [Member] | |||
Assets: | |||
Total assets | 73,448 | 92,528 | |
Liabilities: | |||
Accounts payable, accrued expenses and other liabilities—contingent consideration | 38,712 | 32,552 | |
Total Liabilities | 68,401 | 49,230 | |
Level 3 [Member] | Rate Lock Commitments [Member] | |||
Assets: | |||
Derivative contract, Assets | 21,951 | 6,732 | |
Liabilities: | |||
Derivative contract, Liabilities | 2,428 | 7,470 | |
Level 3 [Member] | Forward Sale Contracts [Member] | |||
Assets: | |||
Derivative contract, Assets | 2,845 | 8,177 | |
Liabilities: | |||
Derivative contract, Liabilities | 27,261 | 9,208 | |
Level 3 [Member] | NASDAQ [Member] | Forward Contracts [Member] | |||
Assets: | |||
Nasdaq Forwards | $ 48,652 | $ 77,619 | |
[1] | Included in Forwards is $48.7 million and $77.6 million of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively (See Note 1 — |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Fair value assets transfers from level 1 to level 2 | $ 0 | $ 0 | ||||
Fair value assets transfers from level 2 to level 1 | 0 | 0 | ||||
Fair value liabilities transfers from level 1 to level 2 | 0 | 0 | ||||
Fair value liabilities transfers from level 2 to level 1 | 0 | 0 | ||||
Fair value assets transfers Into level 3 | 0 | 0 | ||||
Fair value assets transfers out of level 3 | 0 | 0 | ||||
Fair value liabilities transfers Into level 3 | 0 | 0 | ||||
Fair value liabilities transfers out of level 3 | 0 | 0 | ||||
Present value of expected payments related to contingent consideration | 68,401,000 | 49,230,000 | $ 46,143,000 | $ 36,160,000 | $ 34,489,000 | $ 26,757,000 |
Other Assets [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Alternative investment | 57,500,000 | 53,500,000 | ||||
Other Assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Alternative investment | 57,500,000 | 57,500,000 | ||||
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Present value of expected payments related to contingent consideration | 38,712,000 | 32,552,000 | $ 31,357,000 | $ 21,574,000 | $ 23,088,000 | $ 23,710,000 |
Contingent Consideration [Member] | Level 3 [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Present value of expected payments related to contingent consideration | 34,200,000 | 32,600,000 | ||||
Undiscounted value of payments, assuming that all contingencies are met | $ 40,200,000 | $ 39,600,000 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Changes in Level 3 Nasdaq Forwards, Rate Lock Commitments, Forwards and Contingent Consideration Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Assets, Opening Balance | $ 80,464 | $ 18,437 | $ 92,528 | $ 6,676 |
Assets, Total realized and unrealized gains (losses) included in Net income | 9,158 | 28,082 | (4,171) | 28,082 |
Assets, Issuances | 21,893 | 21,893 | ||
Assets, Settlements | (16,174) | (18,437) | (14,909) | (6,676) |
Assets, Closing Balance | 73,448 | 49,975 | 73,448 | 49,975 |
Assets, Unrealized gains (losses) outstanding | 9,158 | 28,082 | (4,171) | 28,082 |
Liabilities, Opening Balance | 46,143 | 34,489 | 49,230 | 26,757 |
Liabilities, Total realized and unrealized gains (losses) included in Net income | 29,624 | 14,881 | 31,008 | 15,018 |
Liabilities, Issuances | 7,758 | 688 | 7,758 | 688 |
Liabilities, Settlements | (15,124) | (13,898) | (19,595) | (6,303) |
Liabilities, Closing Balance | 68,401 | 36,160 | 68,401 | 36,160 |
Liabilities, Unrealized gains (losses) outstanding | 29,624 | 14,881 | 31,008 | 15,018 |
Rate Lock Commitments [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Assets, Opening Balance | 10,210 | 8,750 | 6,732 | 2,923 |
Assets, Total realized and unrealized gains (losses) included in Net income | 21,951 | 14,448 | 21,951 | 14,448 |
Assets, Settlements | (10,210) | (8,750) | (6,732) | (2,923) |
Assets, Closing Balance | 21,951 | 14,448 | 21,951 | 14,448 |
Assets, Unrealized gains (losses) outstanding | 21,951 | 14,448 | 21,951 | 14,448 |
Liabilities, Opening Balance | 5,190 | 8,980 | 7,470 | 2,390 |
Liabilities, Total realized and unrealized gains (losses) included in Net income | 2,428 | 13,945 | 2,428 | 13,945 |
Liabilities, Settlements | (5,190) | (8,980) | (7,470) | (2,390) |
Liabilities, Closing Balance | 2,428 | 13,945 | 2,428 | 13,945 |
Liabilities, Unrealized gains (losses) outstanding | 2,428 | 13,945 | 2,428 | 13,945 |
Forward Sale Contracts [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Assets, Opening Balance | 5,964 | 9,687 | 8,177 | 3,753 |
Assets, Total realized and unrealized gains (losses) included in Net income | 2,845 | 16,442 | 2,845 | 16,442 |
Assets, Settlements | (5,964) | (9,687) | (8,177) | (3,753) |
Assets, Closing Balance | 2,845 | 16,442 | 2,845 | 16,442 |
Assets, Unrealized gains (losses) outstanding | 2,845 | 16,442 | 2,845 | 16,442 |
Liabilities, Opening Balance | 9,596 | 2,421 | 9,208 | 657 |
Liabilities, Total realized and unrealized gains (losses) included in Net income | 27,261 | 641 | 27,261 | 641 |
Liabilities, Settlements | (9,596) | (2,421) | (9,208) | (657) |
Liabilities, Closing Balance | 27,261 | 641 | 27,261 | 641 |
Liabilities, Unrealized gains (losses) outstanding | 27,261 | 641 | 27,261 | 641 |
Forward Contracts [Member] | NASDAQ [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Assets, Opening Balance | 64,290 | 77,619 | ||
Assets, Total realized and unrealized gains (losses) included in Net income | (15,638) | (2,808) | (28,967) | (2,808) |
Assets, Issuances | 21,893 | 21,893 | ||
Assets, Closing Balance | 48,652 | 19,085 | 48,652 | 19,085 |
Assets, Unrealized gains (losses) outstanding | (15,638) | (2,808) | (28,967) | (2,808) |
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | ||||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||||
Liabilities, Opening Balance | 31,357 | 23,088 | 32,552 | 23,710 |
Liabilities, Total realized and unrealized gains (losses) included in Net income | (65) | 295 | 1,319 | 432 |
Liabilities, Issuances | 7,758 | 688 | 7,758 | 688 |
Liabilities, Settlements | (338) | (2,497) | (2,917) | (3,256) |
Liabilities, Closing Balance | 38,712 | 21,574 | 38,712 | 21,574 |
Liabilities, Unrealized gains (losses) outstanding | $ (65) | $ 295 | $ 1,319 | $ 432 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Quantitative Information about Level 3 Fair Value Measurements (Detail) $ in Thousands | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets | $ 73,448 | $ 80,464 | $ 92,528 | $ 49,975 | $ 18,437 | $ 6,676 |
Liabilities | 68,401 | 46,143 | 49,230 | 36,160 | 34,489 | 26,757 |
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Liabilities | $ 38,712 | 31,357 | $ 32,552 | 21,574 | 23,088 | 23,710 |
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.003 | 0.003 | ||||
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | Minimum [Member] | Measurement Input, Probability of Meeting Earnout and Contingencies [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.99 | 0.99 | ||||
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.104 | 0.104 | ||||
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | Maximum [Member] | Measurement Input, Probability of Meeting Earnout and Contingencies [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 1 | 1 | ||||
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.081 | 0.082 | ||||
Contingent Consideration [Member] | Accounts Payable, Accrued and Other Liabilities [Member] | Weighted Average [Member] | Measurement Input, Probability of Meeting Earnout and Contingencies [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.995 | 0.996 | ||||
Forward Contracts [Member] | NASDAQ [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets | $ 48,652 | 64,290 | $ 77,619 | 19,085 | ||
Forward Contracts [Member] | NASDAQ [Member] | Minimum [Member] | Volatility [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.2775 | 0.237 | ||||
Forward Contracts [Member] | NASDAQ [Member] | Maximum [Member] | Volatility [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.3525 | 0.348 | ||||
Forward Contracts [Member] | NASDAQ [Member] | Weighted Average [Member] | Volatility [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Unobservable Inputs | 0.322 | 0.302 | ||||
Forward Sale Contracts [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets | $ 2,845 | 5,964 | $ 8,177 | 16,442 | 9,687 | 3,753 |
Liabilities | 27,261 | 9,596 | 9,208 | 641 | 2,421 | 657 |
Rate Lock Commitments [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Assets | 21,951 | 10,210 | 6,732 | 14,448 | 8,750 | 2,923 |
Liabilities | $ 2,428 | $ 5,190 | $ 7,470 | $ 13,945 | $ 8,980 | $ 2,390 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Feb. 06, 2019USD ($)$ / sharesshares | Nov. 30, 2018USD ($)shares | May 01, 2018USD ($)Employee | Mar. 19, 2018 | Mar. 07, 2018USD ($)$ / sharesshares | Dec. 13, 2017 | Sep. 08, 2017USD ($) | Feb. 28, 2019USD ($) | Oct. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Feb. 22, 2019shares | Nov. 06, 2018USD ($) | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | |||||||||||||||||
Fees to related parties | $ 7,222,000 | $ 6,301,000 | $ 13,947,000 | $ 13,195,000 | |||||||||||||
Loans, forgivable loans and other receivables from employees and partners | 320,400,000 | 320,400,000 | $ 285,532,000 | ||||||||||||||
Compensation and employee benefits | 356,090,000 | 334,006,000 | 633,314,000 | 612,510,000 | |||||||||||||
Limited partnership units issued | 152,886,000 | ||||||||||||||||
Stockholders equity | 559,925,000 | 559,925,000 | 567,569,000 | ||||||||||||||
Redeemable partnership interests | 26,715,000 | 26,715,000 | 26,170,000 | $ 21,096,000 | |||||||||||||
Mortgage servicing right recognized | 20,235,000 | 17,181,000 | 35,203,000 | 34,998,000 | |||||||||||||
Management services, servicing fees and other | 160,256,000 | 144,909,000 | 301,298,000 | 275,720,000 | |||||||||||||
Determination price | $ / shares | $ 4.2625 | ||||||||||||||||
Non-exchangeable units redemption, value | $ 11,000,000 | ||||||||||||||||
Exchange share price | $ / shares | $ 6.20 | $ 5.17 | |||||||||||||||
Value of LPU issued in exchange | $ 9,870,501 | ||||||||||||||||
Payment of withholding tax rate for common stock issue | $ 1,129,499 | ||||||||||||||||
Payment related to withholding tax rate for common shares issued | $ 64,471 | ||||||||||||||||
Number od shares removed from sale restriction | shares | 4,229 | ||||||||||||||||
Equity method investments | $ 106,010,000 | $ 106,010,000 | 101,275,000 | ||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 94.95% | 94.95% | |||||||||||||||
Purchase of units | shares | 16,600,000 | ||||||||||||||||
Purchase value of units | $ 242,000,000 | ||||||||||||||||
Receivables from related parties | $ 1,200,000 | $ 1,200,000 | 20,500,000 | ||||||||||||||
Current portion of payables to related parties | $ 25,508,000 | $ 25,508,000 | $ 13,507,000 | ||||||||||||||
6.125% Senior Notes [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 550,000,000 | ||||||||||||||||
Stated interest rate | 6.125% | 6.125% | 6.125% | 6.125% | |||||||||||||
Class A Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||||||||||
Aggregate distribution of shares in spin-off | shares | 131,900,000 | ||||||||||||||||
Limited partnership units exchange ratio | 0.9495 | ||||||||||||||||
Class B Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||||||||||
Aggregate distribution of shares in spin-off | shares | 21,300,000 | ||||||||||||||||
Cantor And CFGM [Member] | Class B Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of Distributions of shares in spin-off | 100.00% | ||||||||||||||||
CF Real Estate Finance Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Equity method investments | $ 100,000,000 | ||||||||||||||||
BGC Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of non-exchangeable units redeemed | shares | 1,131,774 | 264,985 | |||||||||||||||
Number of non-exchangeable psu approved redemption | shares | 1,131,774 | ||||||||||||||||
Exchange share price | $ / shares | $ 6.20 | ||||||||||||||||
Value of LPU issued in exchange | $ 7,017,000 | ||||||||||||||||
Number of share issued for non exchangeable PPSU | shares | 1,018,390 | 134,535 | |||||||||||||||
Number of net share issued for non exchangeable units redemption | shares | 13,552 | ||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||||||||||
Non-Exchangeable PPSU [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Determination price | $ / shares | $ 7.8388 | ||||||||||||||||
Payment of withholding tax rate for common stock issue | $ 7,983,000 | ||||||||||||||||
BGC Partners Inc [Member] | Class A or Class B Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Exchange Ratio Number of Common Shares Received Under Spin Off Transaction | 46.3895% | ||||||||||||||||
BGC Partners Inc [Member] | Cantor And CFGM [Member] | Class B Common Stock [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of common shares held by limited partners | 100.00% | ||||||||||||||||
Preferred Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of non-exchangeable units redeemed | shares | 1,592,016 | 592,721 | |||||||||||||||
Determination price | $ / shares | $ 13.715 | ||||||||||||||||
Non-exchangeable units redemption, value | $ 15,000,000 | ||||||||||||||||
Mr. Lutnick [Member] | Preferred Units [Member] | BGC Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of non-exchangeable units redeemed | shares | 898,080,000 | ||||||||||||||||
Determination price | $ / shares | $ 7.65 | ||||||||||||||||
Mr. Gosin [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Determination price | $ / shares | $ 4.2625 | ||||||||||||||||
Mr. Gosin [Member] | BGC Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of share issued for non exchangeable PPSU | shares | 264,985 | ||||||||||||||||
Mr. Gosin [Member] | Preferred Units [Member] | BGC Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of non-exchangeable units redeemed | shares | 1,909,188 | ||||||||||||||||
Mr. Rispoli [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Determination price | $ / shares | $ 5.814 | ||||||||||||||||
Number of non-exchangeable PSU approved cancellation | shares | 13,552,000 | ||||||||||||||||
Number od shares removed from sale restriction | shares | 1,961 | ||||||||||||||||
Mr. Rispoli [Member] | BGC Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of non-exchangeable PSU approved cancellation | shares | 11,089,000 | ||||||||||||||||
BPF [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Total consideration transferred | 875,000,000 | ||||||||||||||||
Business acquisition price paid in units | $ 3,200,000 | ||||||||||||||||
Business acquisition date | Sep. 8, 2017 | ||||||||||||||||
Business acquisition, transaction agreement date | Jul. 17, 2017 | ||||||||||||||||
Intercompany Credit Agreement [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest rate | 1.00% | ||||||||||||||||
Interest rate terms | The interest rate on the Intercompany Credit Agreement was the higher of BGC’s or Newmark’s short-term borrowings rate in effect at such time, plus 100 basis points, or such other interest rate as may be mutually agreed between BGC and Newmark. | ||||||||||||||||
Intercompany Credit Agreement [Member] | Interest Expense, Net [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest expense | 2,700,000 | 3,600,000 | |||||||||||||||
Cantor and BGC [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Fees to related parties | $ 7,200,000 | 6,300,000 | $ 13,900,000 | 13,200,000 | |||||||||||||
Recognized related party revenues | 500,000 | 0 | 700,000 | 0 | |||||||||||||
Employee Loans [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Loans, forgivable loans and other receivables from employees and partners | 320,400,000 | 320,400,000 | $ 285,500,000 | ||||||||||||||
Compensation and employee benefits | 11,100,000 | 5,200,000 | 18,500,000 | 11,200,000 | |||||||||||||
CCRE [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Fees to related parties | 0 | 0 | 0 | 0 | |||||||||||||
Number of employees transferred | Employee | 5 | ||||||||||||||||
Proceeds from limited partnership units | $ 6,900,000 | ||||||||||||||||
Issuance of additional limited partnership units with capital account | 2,200,000 | ||||||||||||||||
Issuance of additional limited partners units in exchange for cash payment | $ 500,000 | ||||||||||||||||
Issuance of additional limited partners units in exchange | shares | 2,200,000 | ||||||||||||||||
Maximum revenue share to related party in first two years | $ 3,300,000 | ||||||||||||||||
Stockholders equity | 6,900,000 | $ 6,900,000 | |||||||||||||||
Redeemable partnership interests | 2,200,000 | 2,200,000 | |||||||||||||||
CCRE [Member] | BPF [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Transaction agreement, distribution | $ 89,100,000 | ||||||||||||||||
Net assets exceeded | $ 508,600,000 | ||||||||||||||||
CCRE [Member] | Loan Referral Agreement [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Revenue from loan referral agreement | 200,000 | 100,000 | 900,000 | 3,700,000 | |||||||||||||
Broker fees and commissions | 100,000 | 100,000 | 200,000 | 700,000 | |||||||||||||
CCRE [Member] | Primary Servicing Rights [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Servicing rights of loans originated | 447,000,000 | 594,000,000 | 447,000,000 | 594,000,000 | |||||||||||||
Purchase of loans originated | 700,000 | 1,000,000 | |||||||||||||||
Mortgage servicing right recognized | 0 | ||||||||||||||||
Management services, servicing fees and other | $ 1,000,000 | $ 1,000,000 | 1,900,000 | $ 1,900,000 | |||||||||||||
CCRE [Member] | Newmark Holdings, L.P. [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Limited partnership units issued | 6,700,000 | ||||||||||||||||
Limited partnership unit cash distributions | $ 200,000 | ||||||||||||||||
Cantor and its Affiliates (Other Than BGC) [Member] | GSE Loans [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction maximum amount per loan | $ 100,000,000 | ||||||||||||||||
Related party transaction limit on loan not yet acquired or sold | 250,000,000 | ||||||||||||||||
Cantor and its Affiliates (Other Than BGC) [Member] | GSE Loans [Member] | Fannie Mae [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party transaction limit on loan outstanding | $ 250,000,000 | ||||||||||||||||
CF & Co [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of gross proceeds paid to underwriter | 5.50% | ||||||||||||||||
Related party transaction, service fees paid | $ 4,000,000 | ||||||||||||||||
CF & Co [Member] | Cantor Credit Agreement [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Maximum revolving credit | $ 250,000,000 | ||||||||||||||||
Line of credit facility, interest rate description | an interest rate which is the higher of CFLP’s or Newmark’s short-term borrowing rate then in effect, plus 1%. | ||||||||||||||||
CF & Co [Member] | 6.125% Senior Notes [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Debt instrument face amount | $ 550,000,000 | ||||||||||||||||
Stated interest rate | 6.125% | ||||||||||||||||
Debt instrument, underwriting fees paid to CF&Co | $ 800,000 | ||||||||||||||||
BGC Partners, L.P. and its Operating Subsidiaries [Member] | Newmark Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Purchase of units | shares | 16,600,000 | ||||||||||||||||
Purchase value of units | $ 242,000,000 | ||||||||||||||||
Closing price per share | $ / shares | $ 14.57 | ||||||||||||||||
Limited partners capital account units held by BGC | shares | 14,800,000 | ||||||||||||||||
Number of limited partnership units exchangeable | shares | 1,500,000 | ||||||||||||||||
Limited partnership units exchange ratio | 0.9793 | 0.9495 | |||||||||||||||
BGC Partners, L.P. and its Operating Subsidiaries [Member] | Class A Common Stock [Member] | Newmark Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of shares, right to exchange from Class A to Class A or Class B common stock | shares | 9,400,000 | ||||||||||||||||
BGC Partners, L.P. and its Operating Subsidiaries [Member] | Class B Common Stock [Member] | Newmark Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of shares, right to exchange from Class A to Class A or Class B common stock | shares | 5,400,000 | ||||||||||||||||
BGC Partners, L.P. and its Operating Subsidiaries [Member] | Cantor [Member] | Newmark Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Aggregate distribution of shares in spin-off | shares | 400,000 | ||||||||||||||||
BGC Partners, L.P. and its Operating Subsidiaries [Member] | Newmark OpCo [Member] | Newmark Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Limited partnership interests units | shares | 7,000,000 | ||||||||||||||||
Limited partners capital account units held by BGC | shares | 7,000,000 | ||||||||||||||||
BGC Partners, L.P. and its Operating Subsidiaries [Member] | Newmark OpCo [Member] | Class A Common Stock [Member] | Newmark Units [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of shares, right to exchange from Class A to Class A or Class B common stock | shares | 6,900,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits that would affect the effective tax rate | $ 200 | $ 200 |
Accrued interest and penalties related to uncertain tax positions | $ 45 | $ 45 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities - Components of Current Portion of Accounts Payable, Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Payable Accrued Expenses And Other Liabilities Current [Abstract] | ||
Accounts payable and accrued expenses | $ 131,825 | $ 113,713 |
Outside broker payable | 63,233 | 59,918 |
Payroll taxes payable | 48,675 | 39,620 |
Derivative liability | 29,689 | 16,678 |
ROU liabilities | 22,816 | |
Corporate and other taxes payable | 22,328 | 77,858 |
Contingent consideration | 11,518 | 4,452 |
Current portion of accounts payable, accrued expenses and other liabilities | $ 330,084 | $ 312,239 |
Accounts Payable, Accrued Exp_4
Accounts Payable, Accrued Expenses and Other Liabilities - Components of Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Noncurrent [Abstract] | |||
ROU liabilities | $ 220,867 | ||
Payroll taxes payable | 50,605 | $ 31,055 | |
Accrued compensation | 35,534 | 35,103 | |
Business acquisition, contingent cash consideration | 27,195 | 28,099 | |
Credit enhancement deposit | 25,000 | 25,000 | |
Financial guarantee liability | 73 | 32 | $ 54 |
Deferred rent | 49,334 | ||
Other liabilities | $ 359,274 | $ 168,623 |
Compensation - Additional Infor
Compensation - Additional Information (Detail) $ in Thousands | Jan. 01, 2018 | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017shares | Dec. 13, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted during period | 15,700,000 | |||||||
Shares authorized to be delivered allowed for grant of future awards | 384,300,000 | 384,300,000 | ||||||
Income allocated to limited partnership units | $ | $ 11,600 | $ 4,600 | $ 17,900 | $ 8,800 | ||||
Unrecognized compensation expense related to unvested RSUs | $ | 17,600 | 17,600 | ||||||
Deferred cash compensation expense recognized | $ | 200 | 400 | ||||||
Liability for deferred cash compensation awards | $ | 1,100 | 1,100 | $ 1,500 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense (benefit) before income tax related to limited partnership units | $ | $ 1,000 | $ 1,800 | ||||||
N Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted during period | 7,600,000 | 7,600,000 | ||||||
Executives And Non-Executives Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Notional value with post-termination pay-out amount | $ | $ 83,800 | $ 83,800 | 92,700 | |||||
Aggregate estimated fair value of limited partnership units | $ | 26,600 | 26,600 | $ 22,600 | |||||
Limited Partnership Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense (benefit) before income tax related to limited partnership units | $ | $ 24,000 | $ 1,800 | $ 30,300 | $ (6,900) | ||||
Limited Partnership Units [Member] | Employees and Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted | 2,200,000 | 200,000 | ||||||
Aggregate estimated grant date fair values | $ | $ 16,500 | $ 2,900 | ||||||
Newmark Holdings, L.P. [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of limited partnership units granted exchangeability | 24,000 | 2,200,000 | 54,000 | 3,300,000 | ||||
Compensation expense (benefit) before income tax related to limited partnership units | $ | $ 2,600 | $ 60,300 | $ 3,200 | $ 82,100 | ||||
Number of units redeemed | 1,000 | |||||||
Expense related to units redeemed | $ | $ 7 | |||||||
Aggregate estimated grant date fair value of outstanding RSUs | $ | $ 18,400 | $ 2,900 | $ 18,400 | $ 2,900 | ||||
Newmark Holdings, L.P. [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Limited partnership units outstanding | 2,326,662 | 2,326,662 | 219,887 | |||||
Awards granted | 2,191,303 | 264,532 | ||||||
Newmark Holdings, L.P. [Member] | Executives And Non-Executives Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Notional value with post-termination pay-out amount | $ | $ 120,900 | $ 120,900 | ||||||
Aggregate estimated fair value of limited partnership units | $ | $ 14,700 | $ 14,700 | ||||||
Number of unvested limited partnership units with post-termination pay-out | 4,700,000 | 4,700,000 | ||||||
Limited partners capital account units held by BGC | 2,100,000 | 2,100,000 | 1,500,000 | |||||
Newmark Holdings, L.P. [Member] | Non Executive [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Notional value with post-termination pay-out amount | $ | $ 20,700 | $ 20,700 | ||||||
Aggregate estimated fair value of limited partnership units | $ | $ 19,000 | $ 19,000 | ||||||
Number of unvested limited partnership units with post-termination pay-out | 1,700,000 | 1,700,000 | ||||||
Newmark Holdings, L.P. [Member] | Share Equivalent Limited Partnership Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Limited partnership units outstanding | 59,445,626 | 44,700,000 | 59,445,626 | 44,700,000 | 44,733,487 | 29,413,143 | ||
Awards granted | 10,746,929 | 19,141,943 | ||||||
Newmark Holdings, L.P. [Member] | Executives And Non-Executives Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate estimated fair value of limited partnership units | $ | $ 14,700 | $ 14,700 | ||||||
Number of unvested limited partnership units with post-termination pay-out | 10,000,000 | 10,000,000 | 3,800,000 | |||||
Limited partners capital account units held by BGC | 7,100,000 | 7,100,000 | ||||||
BGC Holdings, L.P. [Member] | Executives And Non-Executives Employees [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of unvested limited partnership units with post-termination pay-out | 7,500,000 | 7,500,000 | 8,400,000 | |||||
Limited partners capital account units held by BGC | 2,300,000 | 2,300,000 | 3,300,000 | |||||
BGC Holdings, L.P. [Member] | Non Executive [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of unvested limited partnership units with post-termination pay-out | 1,200,000 | 1,200,000 | ||||||
NEWMARK Group Inc Parent [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate estimated grant date fair value of outstanding RSUs | $ | $ 800 | $ 2,100 | $ 800 | $ 2,100 | ||||
Unrecognized compensation expense related to unvested RSUs | $ | 1,000 | $ 1,000 | ||||||
NEWMARK Group Inc Parent [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation expense (benefit) before income tax related to limited partnership units | $ | $ 200 | $ 200 | ||||||
BGC Holdings, L.P. [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of limited partnership units granted exchangeability | 233,000 | 5,000,000 | 292,000 | 6,700,000 | ||||
Number of units redeemed | 0 | |||||||
Restricted stock unit, Conversion description | Each RSU is settled into one share of Newmark Class A common stock upon completion of the vesting period. | |||||||
BGC Holdings, L.P. [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Limited partnership units outstanding | 73,829 | 73,829 | 168,675 | 346,538 | ||||
Awards granted | 3,439 | |||||||
BGC Holdings, L.P. [Member] | Employees and Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted | 0 | 200,000 | ||||||
Aggregate estimated grant date fair values | $ | $ 0 | $ 2,900 | ||||||
BGC Holdings, L.P. [Member] | Limited Partnership Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Limited partnership units outstanding | 58,118,793 | 61,900,000 | 58,118,793 | 61,900,000 | 61,870,969 | 64,708,915 | ||
Awards granted | 270,515 | 2,872,825 | ||||||
Maximum [Member] | Limited Partnership Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 5 years | |||||||
Maximum [Member] | Limited Partnership Units [Member] | Employees and Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 8 years | |||||||
Maximum [Member] | BGC Holdings, L.P. [Member] | Employees and Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 4 years | |||||||
Minimum [Member] | Limited Partnership Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 3 years | |||||||
Minimum [Member] | Limited Partnership Units [Member] | Employees and Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 2 years | |||||||
Minimum [Member] | BGC Holdings, L.P. [Member] | Employees and Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 2 years | |||||||
Class A Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Limited partnership units exchange ratio | 0.9495 | |||||||
Class A Common Stock [Member] | Newmark Holdings, L.P. [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 10,300,000 | 9,300,000 | ||||||
Class A Common Stock [Member] | BGC Holdings, L.P. [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Conversion of Stock, Shares Converted | 25,800,000 | 26,000,000 | ||||||
Class A Common Stock [Member] | Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 4 years | |||||||
Class A Common Stock [Member] | Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted shares, restriction period | 2 years | |||||||
Newmark Equity Plan [Member] | Class A Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares registered to be delivered pursuant to awards granted | 50,000,000 | |||||||
Newmark Equity Plan [Member] | Class A Common Stock [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized to be delivered pursuant to awards granted | 400,000,000 |
Compensation - Activity Associa
Compensation - Activity Associated with Limited Partnership Units (Detail) - BGC Holdings, L.P. [Member] - Limited Partnership Units [Member] - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units, Balance outstanding at beginning of period | 61,870,969 | 64,708,915 | 64,708,915 |
Number of Units, Granted | 270,515 | 2,872,825 | |
Number of Units, Redeemed/exchanged units | (1,938,794) | (5,650,292) | |
Number of Units, Forfeited units | (2,083,897) | (60,479) | |
Number of Units, Balance outstanding at end of period | 58,118,793 | 61,900,000 | 61,870,969 |
Compensation - Summary of Activ
Compensation - Summary of Activity of Number of Share Equivalent Limited Partnership Units and Post IPO Grants (Detail) - Newmark Holdings, L.P. [Member] - Share Equivalent Limited Partnership Units [Member] - shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units, Balance outstanding at beginning of period | 44,733,487 | 29,413,143 | 29,413,143 |
Number of Units, Granted | 10,746,929 | 19,141,943 | |
Number of Units, Redeemed/exchanged units | (880,960) | (3,793,351) | |
Number of Units, Forfeited units | (28,248) | ||
Number of Units, Forfeited units/Other units | 4,846,170 | ||
Number of Units, Balance outstanding at end of period | 59,445,626 | 44,700,000 | 44,733,487 |
Compensation - Activity Assoc_2
Compensation - Activity Associated with Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Newmark Holdings, L.P. [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units, Balance outstanding at beginning of period | 219,887 | ||
Number of Units, Granted | 2,191,303 | 264,532 | |
Number of Settled units (delivered shares) | (55,669) | (8,109) | |
Number of Units, Forfeited units | (28,859) | (36,536) | |
Number of Units, Balance outstanding at end of period | 2,326,662 | 219,887 | |
Balance at the beginning of period | $ 13.52 | ||
Granted | 7.53 | $ 13.54 | |
Settled units (delivered shares) | 13.89 | 13.36 | |
Forfeited units | 11.30 | 13.71 | |
Balance at the end of period | $ 7.56 | $ 13.52 | |
Weighted-Average Remaining Contractual Term (Years) | 4 years 8 months 8 days | 2 years 3 months 10 days | |
BGC Holdings, L.P. [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units, Balance outstanding at beginning of period | 168,675 | 346,538 | |
Number of Units, Granted | 3,439 | ||
Number of Settled units (delivered shares) | (84,984) | (147,006) | |
Number of Units, Forfeited units | (9,862) | (34,296) | |
Number of Units, Balance outstanding at end of period | 73,829 | 168,675 | 346,538 |
Balance at the beginning of period | $ 9.77 | $ 9.56 | |
Granted | 7.64 | ||
Settled units (delivered shares) | 9.29 | 9.17 | |
Forfeited units | 9.94 | 10.01 | |
Balance at the end of period | $ 10.30 | $ 9.77 | $ 9.56 |
Weighted-Average Remaining Contractual Term (Years) | 8 months 12 days | 11 months 23 days | 1 year 10 months 6 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Business acquisition, contingent cash consideration | $ 27,195 | $ 28,099 |
Acquisitions from 2014 through 2019 [Member] | ||
Loss Contingencies [Line Items] | ||
Business acquisition, contingent cash consideration | $ 22,700 | |
Business acquisition, contingent consideration limited partnership units | 1.4 | |
Construction Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Total remaining draws on construction loans committed to fund | $ 694,000 | $ 294,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ / shares in Units, $ in Millions | Jul. 31, 2019USD ($)$ / shares | Jul. 31, 2019USD ($) |
Subsequent Event [Line Items] | ||
Common stock dividends per share declared | $ / shares | $ 0.10 | |
Dividend payable date | Sep. 5, 2019 | |
Dividends payable date declared | Jul. 31, 2019 | |
Dividends payable date of record | Aug. 20, 2019 | |
CCRE Lending [Member] | ||
Subsequent Event [Line Items] | ||
Loans receivable, commercial real estate loan amount | $ 146.6 | $ 146.6 |
Loan maturity date | Aug. 6, 2029 | |
Loans receivable, fixed interest rate | 4.38% | 4.38% |
Loans receivable, brokerage service amount | $ 0.7 | |
Chief Executive Officer [Member] | CCRE Lending [Member] | ||
Subsequent Event [Line Items] | ||
Percentage of ownership interest of loan receivable | 19.00% |