Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'WETF | ' |
Entity Registrant Name | 'WisdomTree Investments, Inc. | ' |
Entity Central Index Key | '0000880631 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 133,492,949 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $151,287 | $104,316 |
Accounts receivable | 16,268 | 18,100 |
Other current assets | 2,208 | 1,320 |
Total current assets | 169,763 | 123,736 |
Fixed assets, net | 10,263 | 6,252 |
Investments | 12,224 | 11,748 |
Deferred tax asset, net | 8,253 | ' |
Goodwill | 1,676 | ' |
Other noncurrent assets | 56 | 55 |
Total assets | 202,235 | 141,791 |
Current liabilities: | ' | ' |
Fund management and administration payable | 8,833 | 10,394 |
Compensation and benefits payable | 7,062 | 14,278 |
Accounts payable and other liabilities | 4,956 | 4,384 |
Total current liabilities | 20,851 | 29,056 |
Acquisition payable | 1,757 | ' |
Deferred rent payable | 5,326 | 3,706 |
Total liabilities | 27,934 | 32,762 |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.01; 2,000 shares authorized | 0 | 0 |
Common stock, par value $0.01; 250,000 shares authorized; issued: 133,516 and 132,247; outstanding: 131,947 and 130,350 | 1,335 | 1,322 |
Additional paid-in capital | 198,040 | 184,201 |
Accumulated other comprehensive loss | -9 | ' |
Accumulated deficit | -25,065 | -76,494 |
Total stockholders' equity | 174,301 | 109,029 |
Total liabilities and stockholders' equity | $202,235 | $141,791 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 133,516 | 132,247 |
Common stock, shares outstanding | 131,947 | 130,350 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Advisory fees | $46,942 | $39,437 | $133,489 | $105,691 |
Other income | 172 | 193 | 673 | 611 |
Total revenues | 47,114 | 39,630 | 134,162 | 106,302 |
Expenses: | ' | ' | ' | ' |
Compensation and benefits | 9,990 | 9,648 | 26,896 | 26,577 |
Fund management and administration | 8,465 | 8,794 | 25,451 | 26,123 |
Marketing and advertising | 3,341 | 2,031 | 8,645 | 6,164 |
Sales and business development | 1,279 | 1,305 | 4,307 | 4,626 |
Professional and consulting fees | 1,383 | 542 | 5,018 | 1,812 |
Occupancy, communications, and equipment | 882 | 723 | 2,635 | 1,691 |
Depreciation and amortization | 207 | 84 | 600 | 249 |
Third-party sharing arrangements | 187 | 374 | 312 | 913 |
Other | 1,123 | 1,164 | 3,429 | 3,086 |
Total expenses | 26,857 | 24,665 | 77,293 | 71,241 |
Income before taxes | 20,257 | 14,965 | 56,869 | 35,061 |
Income tax | 9,634 | ' | 5,440 | ' |
Net income | 10,623 | 14,965 | 51,429 | 35,061 |
Net income per share-basic | $0.08 | $0.12 | $0.39 | $0.28 |
Net income per share-diluted | $0.08 | $0.11 | $0.37 | $0.25 |
Weighted-average common shares-basic | 131,778 | 126,509 | 131,418 | 125,909 |
Weighted-average common shares-diluted | 138,346 | 140,097 | 138,476 | 139,805 |
Other comprehensive income | ' | ' | ' | ' |
Net income | 10,623 | 14,965 | 51,429 | 35,061 |
Foreign currency translation adjustment | -9 | ' | -9 | ' |
Comprehensive income | $10,614 | $14,965 | $51,420 | $35,061 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $51,429 | $35,061 |
Non-cash items included in net income: | ' | ' |
Income tax | 5,396 | ' |
Depreciation and amortization | 600 | 249 |
Stock-based compensation | 6,122 | 5,186 |
Deferred rent | 1,620 | 111 |
Accretion to interest income and other | -76 | 108 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 2,049 | -3,683 |
Other assets | -811 | -720 |
Fund management and administration payable | -1,579 | 3,697 |
Compensation and benefits payable | -7,510 | 7,235 |
Accounts payable and other liabilities | -590 | 471 |
Net cash provided by operating activities | 56,650 | 47,715 |
Cash flows from investing activities: | ' | ' |
Purchase of fixed assets | -4,580 | -1,118 |
Purchase of investments | -1,384 | -3,358 |
Cash acquired on acquisition | 1,349 | ' |
Proceeds from the redemption of investments | 868 | 2,693 |
Net cash used in investing activities | -3,747 | -1,783 |
Cash flows from financing activities: | ' | ' |
Shares repurchased | -6,259 | -1,413 |
Proceeds from exercise of stock options | 341 | 1,349 |
Net cash used in financing activities | -5,918 | -64 |
Decrease in cash flows due to changes in foreign exchange rate | -14 | ' |
Net increase in cash and cash equivalents | 46,971 | 45,868 |
Cash and cash equivalents-beginning of period | 104,316 | 41,246 |
Cash and cash equivalents-end of period | 151,287 | 87,114 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for taxes | $66 | $33 |
Organization_and_Description_o
Organization and Description of Business | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Organization and Description of Business | ' | |||
1 | Organization and Description of Business | |||
WisdomTree Investments, Inc., through its subsidiaries in the U.S., U.K., Jersey and Ireland (collectively, “WisdomTree” or the “Company”), is an ETP sponsor and asset manager headquartered in New York. WisdomTree offers ETPs covering equity, fixed income, currency, alternative and commodity asset classes. The Company has the following operating subsidiaries: | ||||
• | WisdomTree Asset Management, Inc. (“WTAM”) is a New York based investment adviser registered with the SEC providing investment advisory and other management services to WisdomTree Trust (“WTT”) and WisdomTree exchange traded funds (“ETFs”). | |||
• | Boost Management Limited (“BML” or “Boost”) is a Jersey based investment manager providing investment and other management services to Boost Issuer PLC (“BI”) and Boost ETPs. | |||
• | WisdomTree Europe Limited (“WisdomTree Europe”) is a U.K. based company registered with the Financial Conduct Authority providing management and other services to BML and WTML. | |||
• | WisdomTree Management Limited (“WTML”) is an Ireland based investment manager providing investment and other management services to WisdomTree Issuer PLC (“WTI”) and WisdomTree UCITS ETFs. | |||
The WisdomTree ETFs are issued in the U.S. by WTT. WTT, a non-consolidated third party, is a Delaware statutory trust registered with the SEC as an open-end management investment company. The Company has licensed the use of certain of its own indexes on an exclusive basis in the U.S. to WTT for the WisdomTree ETFs. The Boost ETPs are issued by BI. BI, a non-consolidated third party, is a public limited company organized in Ireland. The WisdomTree UCITS ETFs are issued by WTI. WTI, a non-consolidated third party, is a public limited company organized in Ireland. | ||||
The Board of Trustees and Board of Directors of WTT, BI and WTI, respectively, are separate from the Board of Directors of the Company. The Trustees and Directors of WTT, BI and WTI respectively, are primarily responsible for overseeing the management and affairs of the WisdomTree ETFs, Boost ETPs and the WisdomTree UCITS ETFs for the benefit of the WisdomTree ETF, Boost ETP and the WisdomTree UCITS ETF shareholders, respectively, and have contracted with the Company to provide for general management and administration services. The Company, in turn, has contracted with third parties to provide the majority of these administration services. In addition, certain officers of the Company provide general management services for WTT, BI and WTI. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Significant Accounting Policies | ' | ||||
2 | Significant Accounting Policies | ||||
Basis of Presentation | |||||
These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and in the opinion of management reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of financial condition, results of operations, and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. | |||||
All intercompany accounts and transactions have been eliminated in consolidation. Certain accounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s consolidated financial statements presentation. These reclassifications had no effect on the previously reported operating results. | |||||
Foreign Currency Translation | |||||
Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated based on the end of period exchange rates from local currency to U.S. dollars. Results of operations are translated at the average exchange rates in effect during the period. | |||||
Use of Estimates | |||||
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. Actual results could differ materially from those estimates. | |||||
Revenue Recognition | |||||
The Company earns investment advisory fees as well as licensing fees from third parties. Advisory fees are based on a percentage of the ETPs average daily net assets and recognized over the period the related service is provided. Licensing fees are based on a percentage of the average monthly net assets and recognized over the period the related service is provided. | |||||
Depreciation and Amortization | |||||
Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: | |||||
Equipment | 5 years | ||||
Furniture and fixtures | 15 years | ||||
Leasehold improvements are amortized over the term of their respective leases or service lives of the improvements, whichever is shorter. Fixed assets are stated at cost less accumulated depreciation and amortization. | |||||
Marketing and Advertising | |||||
Advertising costs, including media advertising and production costs are expensed when incurred. | |||||
Cash and Cash Equivalents | |||||
The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be classified as cash equivalents. Cash and cash equivalents are held primarily with one large financial institution. | |||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||
Accounts receivable are customer and other obligations due under normal trade terms. An allowance for doubtful accounts is not provided since, in the opinion of management, all accounts receivable recorded are deemed collectible. | |||||
Impairment of Long-Lived Assets | |||||
On a periodic basis, the Company performs a review for the impairment of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of an asset may not be recoverable. | |||||
Earnings per Share | |||||
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the reduction in earnings per share assuming options or other contracts to issue common stock were exercised or converted into common stock. | |||||
Investments | |||||
The Company accounts for all of its investments as held-to-maturity, which are recorded at amortized cost. For held-to-maturity investments, the Company has the intent and ability to hold investments to maturity and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. | |||||
On a periodic basis, the Company reviews its portfolio of investments for impairment. If a decline in fair value is deemed to be other-than-temporary, the security is written down to its fair value through earnings. | |||||
Goodwill | |||||
Goodwill is the excess of the fair value of the purchase price over the fair values of the identifiable net assets at the acquisition date. The Company tests its goodwill for impairment at least annually. An impairment loss is triggered if the estimated fair value of the operating reporting unit is less than the estimated net book value. Such loss is calculated as the difference between the estimated fair value of goodwill and its carrying value. | |||||
Stock-Based Awards | |||||
Accounting for stock-based compensation requires the measurement and recognition of compensation expense for all equity awards based on estimated fair values. The Company accounts for stock-based compensation for its employees based on the cost of employee services received in exchange for a stock-based award. Stock-based compensation is measured based on the grant-date fair value of the award and are amortized over the relevant service period. | |||||
Stock-based awards granted to non-employees for goods or services are valued at the fair value of the equity instruments issued or the fair value of consideration received, whichever is a more reliable measure of the fair value of the transaction, and recognized when performance obligations are complete. | |||||
Income Taxes | |||||
The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are adjusted by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. | |||||
In order to recognize and measure any unrecognized tax benefits, management evaluates and determines whether any of its tax positions are more-likely-than-not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Once it is determined that a position meets this recognition threshold, the position is measured to determine the amount of benefit to be recognized in the consolidated financial statements. | |||||
The Company records interest expense and penalties related to tax expenses as income tax expense. | |||||
Related Party Transactions | |||||
The Company’s primary revenues and the majority of its expenses are associated with providing investment advisory services to WTT and WisdomTree ETFs. The Trustees of WTT are primarily responsible for overseeing the management and affairs of the WisdomTree ETFs and WTT for the benefit of the WisdomTree ETF shareholders and WTT has contracted with the Company to provide for general management and administration of WTT and the WisdomTree ETFs. Certain officers of the Company also provide general management oversight of WTT; however, these officers have no material decision making responsibilities and primarily implement the decisions of the Trustees of WTT. The Company has granted WTT an exclusive license to certain of its indexes for operation of the WisdomTree ETFs and is also responsible for certain expenses of WTT, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, and other non-distribution services, excluding extraordinary expenses, taxes and certain other expenses. In exchange, the Company receives fees based on a percentage of the ETF average daily net assets. The advisory agreements may be terminated by WTT upon notice. At September 30, 2014 and December 31, 2013, the balance of accounts receivable from WTT was approximately $15,471 and $14,791, respectively, which are included as a component of accounts receivable on the Company’s Consolidated Balance Sheet. Revenue from advisory services provided to WTT for the three months ended September 30, 2014 and 2013 was approximately $46,660 and $39,437, respectively, and for the nine months ended September 30, 2014 and 2013 was approximately $133,022 and $105,691, respectively. | |||||
Revenue from advisory fee services provided to BI for three months ended September 30, 2014 was approximately $282 and for the period from April 15, 2014 to September 30, 2014 was approximately $467. | |||||
Third Party Sharing Arrangements | |||||
Third party sharing arrangements expense consists of payments for marketing agreements with third parties. | |||||
Segment, Geographic and Customer Information | |||||
The Company operates as a single business segment as an ETP sponsor and asset manager providing investment advisory services. As of and for the three and nine months ended September 30, 2014, substantially all of the Company’s revenues, pretax income and assets are derived or located in the U.S. The Company maintains operations in Europe through its acquisition of Boost, now known as WisdomTree Europe (Note 10). | |||||
Recently Issued Accounting Pronouncements | |||||
In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09) Revenue from Contracts with Customers, which is a new comprehensive revenue recognition standard on the financial reporting requirements for revenue from contracts entered into with customers. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The Company is currently assessing the potential impact of the adoption of this guidance on its consolidated financial statements. | |||||
Business Combinations | |||||
The Company includes the results of operations of the businesses that it acquires from the respective dates of acquisition. The fair values of the purchase price of the acquisitions are allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. | |||||
Subsequent Events | |||||
The Company has evaluated subsequent events after the date of the consolidated financial statements to consider whether or not the impact of such events needed to be reflected or disclosed in the consolidated financial statements. Such evaluation was performed through the issuance date of the consolidated financial statements. |
Investments_and_Fair_Value_Mea
Investments and Fair Value Measurements | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Investments and Fair Value Measurements | ' | ||||||||
3 | Investments and Fair Value Measurements | ||||||||
The following table summarizes the Company’s held-to-maturity investments: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Federal agency debt instruments | $ | 12,224 | $ | 11,748 | |||||
The following table summarizes unrealized gains, losses, and fair value of held-to-maturity investments: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Cost/amortized cost | $ | 12,224 | $ | 11,748 | |||||
Gross unrealized gains | 80 | 20 | |||||||
Gross unrealized losses | (650 | ) | (1,459 | ) | |||||
Fair value | $ | 11,654 | $ | 10,309 | |||||
The following table sets forth the maturity profile of held-to-maturity investments; however, these investments may be called prior to their stated maturity date: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Due within one year | $ | — | $ | — | |||||
Due one year through five years | — | — | |||||||
Due five years through ten years | 665 | 686 | |||||||
Due over ten years | 11,559 | 11,062 | |||||||
Total | $ | 12,224 | $ | 11,748 | |||||
Fair Value Measurement | |||||||||
Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. | |||||||||
These three types of inputs create the following fair value hierarchy: | |||||||||
Level 1—Quoted prices for identical instruments in active markets. | |||||||||
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | |||||||||
Level 3—Instruments whose significant value drivers are unobservable. | |||||||||
This hierarchy requires the use of observable market data when available. The Company’s held-to-maturity securities are categorized as Level 1. The Company does not intend to sell its held-to-maturity investments before the recovery of their amortized cost bases which may be at maturity. Some of our financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities are categorized as Level 3. |
Fixed_Assets
Fixed Assets | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Fixed Assets | ' | ||||||||
4 | Fixed Assets | ||||||||
The following table summarizes fixed assets: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Equipment | $ | 850 | $ | 518 | |||||
Furniture and fixtures | 1,618 | 1,005 | |||||||
Leasehold improvements | 8,546 | 4,880 | |||||||
Less accumulated depreciation and amortization | (751 | ) | (151 | ) | |||||
Total | $ | 10,263 | $ | 6,252 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
5 | Commitments and Contingencies | ||||
Contractual Obligations | |||||
The Company has entered into obligations under operating leases with initial non-cancelable terms in excess of one year for office space, telephone, and data services. Expenses recorded under these agreements for the three months ended September 30, 2014 and 2013 were approximately $778, and $582, respectively, and for the nine months ended September 30, 2014 and 2013 were approximately $2,372 and $1,312, respectively. | |||||
Future minimum lease payments with respect to non-cancelable operating leases at September 30, 2014 are approximately as follows: | |||||
Remainder of 2014 | $ | 809 | |||
2015 | 3,054 | ||||
2016 | 2,840 | ||||
2017 and thereafter | 35,126 | ||||
Total | $ | 41,829 | |||
The Company’s prior office lease expired in January 2014. In August 2013, the Company entered into a new 16 year lease agreement. Pursuant to the new lease agreement, the Company received lease incentives which include a deferred rent period and a leasehold improvement allowance equal to $3,223. The Company recorded a receivable of $3,223 due from the lessor of its new office space related to its leasehold improvement allowance, which was included in accounts receivable on the Company’s Consolidated Balance Sheet at December 31, 2013. The balance at September 30, 2014 was $509. | |||||
Letter of Credit | |||||
The Company collateralized its office lease through a standby letter of credit. At September 30, 2014 and December 31, 2013, the Company provided letters of credit totaling $1,384 and $1,803, respectively, which are included in investments on the Company’s Consolidated Balance Sheet. | |||||
Contingencies | |||||
The Company is subject to various routine reviews and inspections by regulatory authorities as well as legal proceedings arising in the ordinary course of business. The Company is not currently party to any litigation or other legal proceedings that are expected to have a material impact on its business, financial position or results of operations. |
StockBased_Awards
Stock-Based Awards | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Stock-Based Awards | ' | ||||||||||||||
6 | Stock-Based Awards | ||||||||||||||
The Company grants equity awards to employees and directors. Options are issued generally for terms of ten years and vest between two to four years. Options are issued with an exercise price equal to the fair value of the Company on the date of grant. The Company estimated the fair value for options using the Black-Scholes option pricing model. All restricted stock and option awards require future service as a condition of vesting with certain awards subject to acceleration under certain conditions. Restricted stock awards generally vest over three years. | |||||||||||||||
A summary of options and restricted stock activity is as follows: | |||||||||||||||
Options | Weighted | Restricted | |||||||||||||
Average | Stock | ||||||||||||||
Exercise Price | Awards | ||||||||||||||
of Options | |||||||||||||||
Balance at January 1, 2014 | 7,844,691 | $ | 1.29 | 1,896,877 | |||||||||||
Granted | — | $ | — | 623,088 | |||||||||||
Exercised/vested | (1,042,422 | ) | $ | 0.33 | (946,385 | ) | |||||||||
Forfeitures | — | $ | — | (3,662 | ) | ||||||||||
Balance at September 30, 2014 | 6,802,269 | $ | 1.44 | 1,569,918 | |||||||||||
A summary of stock-based compensation expense is as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
$ | 2,077 | $ | 1,781 | $ | 6,122 | $ | 5,186 | ||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||
7 | Employee Benefit Plans | ||||||||||||||
The Company has a 401(k) savings plan covering all eligible employees in which the Company can make discretionary contributions from its profits. | |||||||||||||||
A summary of the Company made discretionary contributions is as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
$ | 113 | $ | 128 | $ | 506 | $ | 391 | ||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
8 | Earnings Per Share | ||||||||||||||||
The following is a reconciliation of the basic and diluted earnings per share computation: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(shares in thousands) | (shares in thousands) | ||||||||||||||||
Net income | $ | 10,623 | $ | 14,965 | $ | 51,429 | $ | 35,061 | |||||||||
Shares of common stock and common stock equivalents: | |||||||||||||||||
Weighted averages shares used in basic computation | 131,778 | 126,509 | 131,418 | 125,909 | |||||||||||||
Dilutive effect of stock options and unvested restricted stock | 6,568 | 13,588 | 7,058 | 13,896 | |||||||||||||
Weighted averages shares used in dilutive computation | 138,346 | 140,097 | 138,476 | 139,805 | |||||||||||||
Basic earnings per share | $ | 0.08 | $ | 0.12 | $ | 0.39 | $ | 0.28 | |||||||||
Dilutive earnings per share | $ | 0.08 | $ | 0.11 | $ | 0.37 | $ | 0.25 | |||||||||
Diluted earnings per share reflects the reduction in earnings per share assuming options or other contracts to issue common stock were exercised or converted into common stock under the treasury stock method. The dilutive effect of options to purchase shares of common stock and restricted shares were included in the diluted earnings per share in the three and nine months ended September 30, 2014 and 2013, respectively. 624,478 and 1,196,888 restricted shares were determined to be anti-dilutive and were not included in the calculation of diluted earnings per share for the three and nine months ended September 30, 2014, respectively. There were no anti-dilutive shares included in the calculation of diluted earnings per share for the three and nine months ended September 30, 2013. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Taxes | ' | ||||
9 | Income Taxes | ||||
Net operating losses – U.S. | |||||
The Company generated net operating losses in the U.S. (“NOLs”) during periods prior to September 30, 2014. The following table summarizes the activity for NOLs for the nine months ended September 30, 2014: | |||||
December 31, 2013 | $ | (140,959 | ) | ||
U.S. GAAP pretax income | 59,142 | ||||
Income tax differences: | |||||
Temporary | 627 | ||||
Permanent | (20,507 | ) | |||
September 30, 2014 | $ | (101,697 | ) | ||
During the first quarter of 2014, management determined that although realization is not assured, it believed that it is more likely than not that its gross deferred tax asset would be realized. Therefore, it released the valuation allowance previously recorded resulting in an income tax benefit of $13,725 on the Company’s Consolidated Statements of Operations and Comprehensive Income in the three months ended March 31, 2014 and a corresponding deferred tax asset on the Company’s Consolidated Balance Sheet at March 31, 2014. | |||||
At September 30, 2014 and December 31, 2013, $98,210 and $111,635 of the NOLs were generated from stock-based compensation amounts recognized for tax purposes at the time options are exercised (at the intrinsic value) or restricted stock is vested (at fair value of the share price) in excess of amounts previously expensed at the date of grant for U.S. GAAP purposes. These amounts cannot be recognized as a deferred tax asset under U.S. GAAP. In addition, $3,487 of the NOLs are deemed worthless. Therefore, at September 30, 2014, the Company has no recognized deferred tax assets related to these NOLs. | |||||
During the three and nine months ended September 30, 2014, the Company recognized tax expense of $9,634 and $5,440. During the nine months ended September 30, 2014, the Company utilized $5,472 of its deferred tax asset and the Company recorded a credit to additional paid-in capital of $13,649 for the amount of NOLs from stock-based compensation utilized to reduce taxes payable during the period. | |||||
The Company completed a state tax study which resulted in a reduction of its current baseline operating tax rate in the U.S. from 45% to approximately 38%. The Company reduced the carrying value of its deferred tax asset which had previously been recorded using the higher rate. | |||||
A summary of the components of the gross and tax affected deferred tax asset as of September 30, 2014 is as follows: | |||||
Stock-based compensation | $ | 15,689 | |||
Deferred rent liability | 5,703 | ||||
Other | 111 | ||||
Total gross deferred tax asset | 21,503 | ||||
Income tax rate | 38.38 | % | |||
Tax affected | $ | 8,253 | |||
Net operating losses – Non-U.S. | |||||
During the nine months ended September 30, 2014, the Company’s foreign subsidiaries generated $2,318 of NOLs. At September 30, 2014, a deferred tax asset related to these NOLs has been fully offset by a valuation allowance of $487. |
Acquisition_and_Goodwill
Acquisition and Goodwill | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Acquisition and Goodwill | ' | ||||
10 | Acquisition and Goodwill | ||||
On April 15, 2014, the Company completed its acquisition of Boost, a U.K. and Jersey based ETP sponsor, now known as WisdomTree Europe, as part of the Company’s strategy to expand internationally. Under the terms of the agreement, the Company owns 75% of WisdomTree Europe and the former Boost shareholders own 25%. The Company will acquire the remaining 25% ownership interest at the end of four years using a predefined formula based on European assets under management at the end of the four year period and will be tied to the Company’s enterprise value over global AUM at the time of payout, and affected by profitability of the European business. No consideration was transferred on the acquisition date. The ultimate payout will be made in cash over two years. | |||||
Two shareholders of Boost, who owned 88% of Boost prior to the acquisition, became co-CEOs of WisdomTree Europe and are guaranteed a minimum payment of $1,757 for their interest if they terminate their employment without good reason or they are terminated for cause. The Company determined that this minimum payment represents consideration transferred and was recognized and measured at acquisition-date fair value to determine the purchase price. Any future payments made to the co-CEOs in excess of the minimum payments is accounted for separately from the business combination as compensation expense for post-acquisition services. | |||||
Because the Company is required to redeem the shares from the former Boost shareholders at the end of four years under a predefined formula, under U.S. GAAP, the Company does not reflect the 25% interest held by the former Boost shareholders in WisdomTree Europe as non-controlling interest (“NCI”). The obligation to mandatorily redeem the NCI for cash was measured at fair value on the acquisition date and is re-measured at the amount of cash that would be paid under the conditions specified in the contract as if settlement occurred at the reporting date. Any change in the carrying amount of the liability will be recognized as an expense. | |||||
The Company recorded goodwill of $1,676 in connection with this acquisition. Goodwill represents the excess value of the purchase price over the $81 fair value of the net assets acquired, consisting primarily of accounts receivable, accounts payable and fixed assets. While the Company paid no consideration up front to the former Boost shareholders, under the terms of the acquisition agreement, $1,757 was deemed to represent the purchase price. Goodwill is not expected to be tax deductible. | |||||
The following table summarizes the goodwill activity for the nine months ended September 30, 2014: | |||||
Balance at January 1, 2014 | $ | — | |||
Goodwill acquired during the period | 1,676 | ||||
Balance at September 30, 2014 | $ | 1,676 | |||
Transaction costs of $1,607 were incurred during the nine months ended September 30, 2014 in connection with this acquisition. Such expenses are recorded in professional and consulting fees, other and sales and business development in the Company’s Consolidated Statements of Operations and Comprehensive Income. |
Shares_Repurchased
Shares Repurchased | 9 Months Ended | |
Sep. 30, 2014 | ||
Equity [Abstract] | ' | |
Shares Repurchased | ' | |
11 | Shares Repurchased | |
During the nine months ended September 30, 2014 and 2013, the Company repurchased 392,346 and 118,156 shares of its common stock for an aggregate cost of $6,259 and $1,413, respectively, which were withheld pursuant to the terms of awards granted to employees to cover income tax withholding obligations. |
Subsequent_Event
Subsequent Event | 9 Months Ended | |
Sep. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Event | ' | |
12 | Subsequent Event | |
On October 29, 2014, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per share of common stock. The first dividend will be paid on November 26, 2014 to stockholders of record as of the close of business on November 12, 2014. The Board also authorized the purchase of up to $100 million of the Company’s common stock over three years, including purchases to offset future equity grants made under the Company’s equity plans. Purchases under this program will be made in open market or privately negotiated transactions. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program may be suspended or terminated at any time without prior notice. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Basis of Presentation | ' | ||||
Basis of Presentation | |||||
These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and in the opinion of management reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of financial condition, results of operations, and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company’s wholly owned subsidiaries. | |||||
All intercompany accounts and transactions have been eliminated in consolidation. Certain accounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s consolidated financial statements presentation. These reclassifications had no effect on the previously reported operating results. | |||||
Foreign Currency Translation | ' | ||||
Foreign Currency Translation | |||||
Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated based on the end of period exchange rates from local currency to U.S. dollars. Results of operations are translated at the average exchange rates in effect during the period. | |||||
Use of Estimates | ' | ||||
Use of Estimates | |||||
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. Actual results could differ materially from those estimates. | |||||
Revenue Recognition | ' | ||||
Revenue Recognition | |||||
The Company earns investment advisory fees as well as licensing fees from third parties. Advisory fees are based on a percentage of the ETPs average daily net assets and recognized over the period the related service is provided. Licensing fees are based on a percentage of the average monthly net assets and recognized over the period the related service is provided. | |||||
Depreciation and Amortization | ' | ||||
Depreciation and Amortization | |||||
Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: | |||||
Equipment | 5 years | ||||
Furniture and fixtures | 15 years | ||||
Leasehold improvements are amortized over the term of their respective leases or service lives of the improvements, whichever is shorter. Fixed assets are stated at cost less accumulated depreciation and amortization. | |||||
Marketing and Advertising | ' | ||||
Marketing and Advertising | |||||
Advertising costs, including media advertising and production costs are expensed when incurred. | |||||
Cash and Cash Equivalents | ' | ||||
Cash and Cash Equivalents | |||||
The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be classified as cash equivalents. Cash and cash equivalents are held primarily with one large financial institution. | |||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | ||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||
Accounts receivable are customer and other obligations due under normal trade terms. An allowance for doubtful accounts is not provided since, in the opinion of management, all accounts receivable recorded are deemed collectible. | |||||
Impairment of Long-Lived Assets | ' | ||||
Impairment of Long-Lived Assets | |||||
On a periodic basis, the Company performs a review for the impairment of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of an asset may not be recoverable. | |||||
Earnings per Share | ' | ||||
Earnings per Share | |||||
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the reduction in earnings per share assuming options or other contracts to issue common stock were exercised or converted into common stock. | |||||
Investments | ' | ||||
Investments | |||||
The Company accounts for all of its investments as held-to-maturity, which are recorded at amortized cost. For held-to-maturity investments, the Company has the intent and ability to hold investments to maturity and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. | |||||
On a periodic basis, the Company reviews its portfolio of investments for impairment. If a decline in fair value is deemed to be other-than-temporary, the security is written down to its fair value through earnings. | |||||
Goodwill | ' | ||||
Goodwill | |||||
Goodwill is the excess of the fair value of the purchase price over the fair values of the identifiable net assets at the acquisition date. The Company tests its goodwill for impairment at least annually. An impairment loss is triggered if the estimated fair value of the operating reporting unit is less than the estimated net book value. Such loss is calculated as the difference between the estimated fair value of goodwill and its carrying value. | |||||
Stock-Based Awards | ' | ||||
Stock-Based Awards | |||||
Accounting for stock-based compensation requires the measurement and recognition of compensation expense for all equity awards based on estimated fair values. The Company accounts for stock-based compensation for its employees based on the cost of employee services received in exchange for a stock-based award. Stock-based compensation is measured based on the grant-date fair value of the award and are amortized over the relevant service period. | |||||
Stock-based awards granted to non-employees for goods or services are valued at the fair value of the equity instruments issued or the fair value of consideration received, whichever is a more reliable measure of the fair value of the transaction, and recognized when performance obligations are complete. | |||||
Income Taxes | ' | ||||
Income Taxes | |||||
The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are adjusted by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. | |||||
In order to recognize and measure any unrecognized tax benefits, management evaluates and determines whether any of its tax positions are more-likely-than-not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Once it is determined that a position meets this recognition threshold, the position is measured to determine the amount of benefit to be recognized in the consolidated financial statements. | |||||
The Company records interest expense and penalties related to tax expenses as income tax expense. | |||||
Related Party Transactions | ' | ||||
Related Party Transactions | |||||
The Company’s primary revenues and the majority of its expenses are associated with providing investment advisory services to WTT and WisdomTree ETFs. The Trustees of WTT are primarily responsible for overseeing the management and affairs of the WisdomTree ETFs and WTT for the benefit of the WisdomTree ETF shareholders and WTT has contracted with the Company to provide for general management and administration of WTT and the WisdomTree ETFs. Certain officers of the Company also provide general management oversight of WTT; however, these officers have no material decision making responsibilities and primarily implement the decisions of the Trustees of WTT. The Company has granted WTT an exclusive license to certain of its indexes for operation of the WisdomTree ETFs and is also responsible for certain expenses of WTT, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, and other non-distribution services, excluding extraordinary expenses, taxes and certain other expenses. In exchange, the Company receives fees based on a percentage of the ETF average daily net assets. The advisory agreements may be terminated by WTT upon notice. At September 30, 2014 and December 31, 2013, the balance of accounts receivable from WTT was approximately $15,471 and $14,791, respectively, which are included as a component of accounts receivable on the Company’s Consolidated Balance Sheet. Revenue from advisory services provided to WTT for the three months ended September 30, 2014 and 2013 was approximately $46,660 and $39,437, respectively, and for the nine months ended September 30, 2014 and 2013 was approximately $133,022 and $105,691, respectively. | |||||
Revenue from advisory fee services provided to BI for three months ended September 30, 2014 was approximately $282 and for the period from April 15, 2014 to September 30, 2014 was approximately $467. | |||||
Third Party Sharing Arrangements | ' | ||||
Third Party Sharing Arrangements | |||||
Third party sharing arrangements expense consists of payments for marketing agreements with third parties. | |||||
Segment, Geographic and Customer Information | ' | ||||
Segment, Geographic and Customer Information | |||||
The Company operates as a single business segment as an ETP sponsor and asset manager providing investment advisory services. As of and for the three and nine months ended September 30, 2014, substantially all of the Company’s revenues, pretax income and assets are derived or located in the U.S. The Company maintains operations in Europe through its acquisition of Boost, now known as WisdomTree Europe (Note 10). | |||||
Recently Issued Accounting Pronouncements | ' | ||||
Recently Issued Accounting Pronouncements | |||||
In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09) Revenue from Contracts with Customers, which is a new comprehensive revenue recognition standard on the financial reporting requirements for revenue from contracts entered into with customers. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2016. The Company is currently assessing the potential impact of the adoption of this guidance on its consolidated financial statements. | |||||
Business Combinations | ' | ||||
Business Combinations | |||||
The Company includes the results of operations of the businesses that it acquires from the respective dates of acquisition. The fair values of the purchase price of the acquisitions are allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. | |||||
Subsequent Events | ' | ||||
Subsequent Events | |||||
The Company has evaluated subsequent events after the date of the consolidated financial statements to consider whether or not the impact of such events needed to be reflected or disclosed in the consolidated financial statements. Such evaluation was performed through the issuance date of the consolidated financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Schedule of Estimated Useful Lives of Related Assets | ' | ||||
Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: | |||||
Equipment | 5 years | ||||
Furniture and fixtures | 15 years |
Investments_and_Fair_Value_Mea1
Investments and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Schedule of Held-to-maturity Investments | ' | ||||||||
The following table summarizes the Company’s held-to-maturity investments: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Federal agency debt instruments | $ | 12,224 | $ | 11,748 | |||||
Schedule of Unrealized Gains, Losses, and Fair Value of Held-to-maturity Investments | ' | ||||||||
The following table summarizes unrealized gains, losses, and fair value of held-to-maturity investments: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Cost/amortized cost | $ | 12,224 | $ | 11,748 | |||||
Gross unrealized gains | 80 | 20 | |||||||
Gross unrealized losses | (650 | ) | (1,459 | ) | |||||
Fair value | $ | 11,654 | $ | 10,309 | |||||
Schedule of Maturity Profile of Held-to-maturity Investments | ' | ||||||||
The following table sets forth the maturity profile of held-to-maturity investments; however, these investments may be called prior to their stated maturity date: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Due within one year | $ | — | $ | — | |||||
Due one year through five years | — | — | |||||||
Due five years through ten years | 665 | 686 | |||||||
Due over ten years | 11,559 | 11,062 | |||||||
Total | $ | 12,224 | $ | 11,748 | |||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Fixed Assets | ' | ||||||||
The following table summarizes fixed assets: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Equipment | $ | 850 | $ | 518 | |||||
Furniture and fixtures | 1,618 | 1,005 | |||||||
Leasehold improvements | 8,546 | 4,880 | |||||||
Less accumulated depreciation and amortization | (751 | ) | (151 | ) | |||||
Total | $ | 10,263 | $ | 6,252 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments | ' | ||||
Future minimum lease payments with respect to non-cancelable operating leases at September 30, 2014 are approximately as follows: | |||||
Remainder of 2014 | $ | 809 | |||
2015 | 3,054 | ||||
2016 | 2,840 | ||||
2017 and thereafter | 35,126 | ||||
Total | $ | 41,829 | |||
StockBased_Awards_Tables
Stock-Based Awards (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
Summary of Options and Restricted Stock Activity | ' | ||||||||||||||
A summary of options and restricted stock activity is as follows: | |||||||||||||||
Options | Weighted | Restricted | |||||||||||||
Average | Stock | ||||||||||||||
Exercise Price | Awards | ||||||||||||||
of Options | |||||||||||||||
Balance at January 1, 2014 | 7,844,691 | $ | 1.29 | 1,896,877 | |||||||||||
Granted | — | $ | — | 623,088 | |||||||||||
Exercised/vested | (1,042,422 | ) | $ | 0.33 | (946,385 | ) | |||||||||
Forfeitures | — | $ | — | (3,662 | ) | ||||||||||
Balance at September 30, 2014 | 6,802,269 | $ | 1.44 | 1,569,918 | |||||||||||
Summary of Stock-Based Compensation Expense | ' | ||||||||||||||
A summary of stock-based compensation expense is as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
$ | 2,077 | $ | 1,781 | $ | 6,122 | $ | 5,186 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||
Summary of Discretionary Contributions | ' | ||||||||||||||
A summary of the Company made discretionary contributions is as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
$ | 113 | $ | 128 | $ | 506 | $ | 391 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following is a reconciliation of the basic and diluted earnings per share computation: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(shares in thousands) | (shares in thousands) | ||||||||||||||||
Net income | $ | 10,623 | $ | 14,965 | $ | 51,429 | $ | 35,061 | |||||||||
Shares of common stock and common stock equivalents: | |||||||||||||||||
Weighted averages shares used in basic computation | 131,778 | 126,509 | 131,418 | 125,909 | |||||||||||||
Dilutive effect of stock options and unvested restricted stock | 6,568 | 13,588 | 7,058 | 13,896 | |||||||||||||
Weighted averages shares used in dilutive computation | 138,346 | 140,097 | 138,476 | 139,805 | |||||||||||||
Basic earnings per share | $ | 0.08 | $ | 0.12 | $ | 0.39 | $ | 0.28 | |||||||||
Dilutive earnings per share | $ | 0.08 | $ | 0.11 | $ | 0.37 | $ | 0.25 |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Schedule of Net Operating Losses for Tax Purposes | ' | ||||
The Company generated net operating losses in the U.S. (“NOLs”) during periods prior to September 30, 2014. The following table summarizes the activity for NOLs for the nine months ended September 30, 2014: | |||||
December 31, 2013 | $ | (140,959 | ) | ||
U.S. GAAP pretax income | 59,142 | ||||
Income tax differences: | |||||
Temporary | 627 | ||||
Permanent | (20,507 | ) | |||
September 30, 2014 | $ | (101,697 | ) | ||
Summary of Gross and Tax Affected Deferred Tax Asset Recorded | ' | ||||
A summary of the components of the gross and tax affected deferred tax asset as of September 30, 2014 is as follows: | |||||
Stock-based compensation | $ | 15,689 | |||
Deferred rent liability | 5,703 | ||||
Other | 111 | ||||
Total gross deferred tax asset | 21,503 | ||||
Income tax rate | 38.38 | % | |||
Tax affected | $ | 8,253 | |||
Acquisition_and_Goodwill_Table
Acquisition and Goodwill (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Business Combinations [Abstract] | ' | ||||
Summary of Goodwill Activity | ' | ||||
The following table summarizes the goodwill activity for the nine months ended September 30, 2014: | |||||
Balance at January 1, 2014 | $ | — | |||
Goodwill acquired during the period | 1,676 | ||||
Balance at September 30, 2014 | $ | 1,676 | |||
Significant_Accounting_Policie3
Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '5 years |
Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '15 years |
Significant_Accounting_Policie4
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Financial_Institution | Segment | Boost Issuer PLC [Member] | Boost Issuer PLC [Member] | WisdomTree Trust [Member] | WisdomTree Trust [Member] | WisdomTree Trust [Member] | WisdomTree Trust [Member] | ||||
Financial_Institution | |||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents maturity period, maximum | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' |
Number of financial institutions | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable related-party | $15,471 | ' | $15,471 | ' | $14,791 | ' | ' | ' | ' | ' | ' |
ETF advisory fee revenue | $46,942 | $39,437 | $133,489 | $105,691 | ' | $282 | $467 | $46,660 | $39,437 | $133,022 | $105,691 |
Number of operating segments | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Investments_and_Fair_Value_Mea2
Investments and Fair Value Measurements - Schedule of Held-to-maturity Investments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-Maturity debt instruments | $12,224 | $11,748 |
Federal Agency [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-Maturity debt instruments | $12,224 | $11,748 |
Investments_and_Fair_Value_Mea3
Investments and Fair Value Measurements - Schedule of Unrealized Gains, Losses, and Fair Value of Held-to-maturity Investments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Held-to-maturity cost or amortized cost | $12,224 | $11,748 |
Held-to-maturity gross unrealized gains | 80 | 20 |
Held-to-maturity gross unrealized losses | -650 | -1,459 |
Held-to-maturity fair value | $11,654 | $10,309 |
Investments_and_Fair_Value_Mea4
Investments and Fair Value Measurements - Schedule of Maturity Profile of Held-to-maturity Investments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Held-to-maturity due within one year | ' | ' |
Held-to-maturity due one year through five years | ' | ' |
Held-to-maturity due five years through ten years | 665 | 686 |
Held-to-maturity due over ten years | 11,559 | 11,062 |
Held-to-maturity total | $12,224 | $11,748 |
Fixed_Assets_Schedule_of_Fixed
Fixed Assets - Schedule of Fixed Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Less accumulated depreciation and amortization | ($751) | ($151) |
Total | 10,263 | 6,252 |
Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 850 | 518 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | 1,618 | 1,005 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, Gross | $8,546 | $4,880 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' |
Operating leases expenses | $778 | $582 | $2,372 | $1,312 | ' |
Period in which office lease expires | ' | ' | 1-Jan-14 | ' | ' |
New lease agreement term | ' | ' | '16 years | ' | ' |
New lease agreement date | ' | ' | '2013-08 | ' | ' |
Lease incentives received including a deferred rent period and a leasehold improvement allowance | 3,223 | ' | 3,223 | ' | ' |
Leasehold improvement allowance | 509 | ' | 509 | ' | 3,223 |
Stand by letter of credit decreased | ' | ' | $1,384 | ' | $1,803 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Remainder of 2014 | $809 |
2015 | 3,054 |
2016 | 2,840 |
2017 and thereafter | 35,126 |
Total | $41,829 |
StockBased_Awards_Additional_I
Stock-Based Awards - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock option issuance period | '10 years |
Option issued period | 'Options are issued generally for terms of ten years |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Option vested period | '3 years |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Option vested period | '2 years |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Option vested period | '4 years |
StockBased_Awards_Summary_of_O
Stock-Based Awards - Summary of Options and Restricted Stock Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options, beginning balance | 7,844,691 |
Options, granted | ' |
Options, exercised/vested | -1,042,422 |
Options, forfeitures | ' |
Options, ending balance | 6,802,269 |
Weighted average exercise price of options, beginning balance | $1.29 |
Weighted average exercise price of options, granted | ' |
Weighted average exercise price of options, exercised/vested | $0.33 |
Weighted average exercise price of options, forfeitures | ' |
Weighted average exercise price of options, ending balance | $1.44 |
Restricted Stock Awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted stock awards, beginning balance | 1,896,877 |
Restricted stock awards, granted | 623,088 |
Restricted stock awards, exercised/vested | -946,385 |
Restricted stock awards, forfeitures | -3,662 |
Restricted stock awards, ending balance | 1,569,918 |
StockBased_Awards_Summary_of_S
Stock-Based Awards - Summary of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' |
Stock-based compensation expense | $2,077 | $1,781 | $6,122 | $5,186 |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Discretionary Contributions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Discretionary contributions | $113 | $128 | $506 | $391 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $10,623 | $14,965 | $51,429 | $35,061 |
Shares of common stock and common stock equivalents: | ' | ' | ' | ' |
Weighted averages shares used in basic computation | 131,778 | 126,509 | 131,418 | 125,909 |
Dilutive effect of stock options and unvested restricted stock | 6,568 | 13,588 | 7,058 | 13,896 |
Weighted averages shares used in dilutive computation | 138,346 | 140,097 | 138,476 | 139,805 |
Basic earnings per share | $0.08 | $0.12 | $0.39 | $0.28 |
Dilutive earnings per share | $0.08 | $0.11 | $0.37 | $0.25 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Anti-dilutive excluded from calculation of diluted earnings per share | 624,478 | 0 | 1,196,888 | 0 |
Income_Taxes_Schedule_of_Net_O
Income Taxes - Schedule of Net Operating Losses for Tax Purposes (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ' |
31-Dec-13 | ($140,959) |
U.S. GAAP pretax income | 59,142 |
Income tax differences: | ' |
Temporary | 627 |
Permanent | -20,507 |
30-Sep-14 | ($101,697) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Income Tax [Line Items] | ' | ' | ' | ' |
Valuation allowance resulting in income tax benefit | $8,253,000 | $8,253,000 | $13,725,000 | ' |
Unrecognized stock-based compensation | 98,210,000 | 98,210,000 | ' | 111,635,000 |
NOLs deemed worthless | ' | 3,487,000 | ' | ' |
Deferred tax asset related to NOLs | 0 | 0 | ' | ' |
Income tax expense/(benefit) | 9,634,000 | 5,440,000 | ' | ' |
Gross deferred tax asset | 5,472,000 | 5,472,000 | ' | ' |
Credit to additional paid-in capital for the amount of NOLs from stock-based compensation | 13,649,000 | 13,649,000 | ' | ' |
Income tax rate | ' | 38.38% | ' | ' |
NOLs available for deferred tax asset | 21,503,000 | 21,503,000 | ' | ' |
Foreign Subsidiaries [Member] | ' | ' | ' | ' |
Schedule Of Income Tax [Line Items] | ' | ' | ' | ' |
NOLs available for deferred tax asset | 2,318,000 | 2,318,000 | ' | ' |
Deferred tax asset related to NOLs, valuation allowance | $487,000 | $487,000 | ' | ' |
Previously Reported [Member] | ' | ' | ' | ' |
Schedule Of Income Tax [Line Items] | ' | ' | ' | ' |
Income tax rate | ' | 45.00% | ' | ' |
Income_Taxes_Summary_of_Gross_
Income Taxes - Summary of Gross and Tax Affected Deferred Tax Asset Recorded (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ' | ' |
Stock-based compensation | $15,689 | ' |
Deferred rent liability | 5,703 | ' |
Other | 111 | ' |
Total gross deferred tax asset | 21,503 | ' |
Income tax rate | 38.38% | ' |
Tax affected | $8,253 | $13,725 |
Acquisition_and_Goodwill_Addit
Acquisition and Goodwill - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | |
Apr. 15, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ' | ' | ' |
Time period over percentage change of ownership occur | '4 years | ' | ' |
Business acquisition consideration transferred | $0 | ' | ' |
Payout description | ' | 'The ultimate payout will be made in cash over two years. | ' |
Payout period | '4 years | ' | ' |
Acquisition transaction cost | ' | 1,607,000 | ' |
Goodwill | ' | 1,676,000 | ' |
WisdomTree Europe [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition ownership percentage | 75.00% | ' | ' |
Boost Shareholders [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition ownership percentage | 25.00% | 88.00% | ' |
Number of shareholders | ' | 2 | ' |
Redeemable noncontrolling interest, ownership percentage by noncontrolling owners | ' | 25.00% | ' |
Goodwill | ' | 1,676,000 | ' |
Purchase price | ' | 1,757,000 | ' |
Boost Shareholders [Member] | Fair Value[Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Fair value of net assets acquired | ' | 81,000 | ' |
Boost Shareholders [Member] | Minimum [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Acquisition transaction cost | ' | $1,757,000 | ' |
Acquisition_and_Goodwill_Summa
Acquisition and Goodwill - Summary of Goodwill Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Business Combination, Goodwill [Abstract] | ' |
Beginning balance | ' |
Goodwill acquired during the period | 1,676 |
Ending balance | $1,676 |
Shares_Repurchased_Additional_
Shares Repurchased - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Equity [Abstract] | ' | ' |
Repurchased common stock, shares | 392,346 | 118,156 |
Repurchased shares, value | $6,259 | $1,413 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (Subsequent Events [Member], USD $) | 0 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Oct. 29, 2014 |
Subsequent Event [Line Items] | ' |
Cash dividends declared | $0.08 |
Dividend payable, date to be paid | 26-Nov-14 |
Dividend payable, record date | 12-Nov-14 |
Dividend declaration date | 29-Oct-14 |
Stock repurchase period | '3 years |
Maximum [Member] | ' |
Subsequent Event [Line Items] | ' |
Common stock purchase authorized amount | 100 |