Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | WETF | |
Entity Registrant Name | WisdomTree Investments, Inc. | |
Entity Central Index Key | 880,631 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 138,038,503 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 189,272 | $ 165,284 |
Accounts receivable | 28,652 | 18,176 |
Deferred tax asset, net | 6,560 | 3,872 |
Other current assets | 3,543 | 1,708 |
Total current assets | 228,027 | 189,040 |
Fixed assets, net | 10,274 | 10,356 |
Investments | 21,247 | 13,990 |
Deferred tax asset, net | 3,519 | 5,618 |
Goodwill | 1,676 | 1,676 |
Other noncurrent assets | 463 | 71 |
Total assets | 265,206 | 220,751 |
Current liabilities: | ||
Fund management and administration payable | 13,263 | 9,983 |
Compensation and benefits payable | 21,725 | 14,333 |
Accounts payable and other liabilities | 5,368 | 5,115 |
Total current liabilities | 40,356 | 29,431 |
Acquisition payable | 2,278 | 1,757 |
Deferred rent payable | 5,183 | 5,278 |
Total liabilities | $ 47,817 | $ 36,466 |
Stockholders' equity: | ||
Preferred stock, par value $0.01; 2,000 shares authorized | ||
Common stock, par value $0.01; 250,000 shares authorized; issued: 137,770 and 134,959; outstanding: 136,313 and 133,445 | $ 1,377 | $ 1,350 |
Additional paid-in capital | 227,975 | 209,216 |
Accumulated other comprehensive loss | (175) | (53) |
Accumulated deficit | (11,788) | (26,228) |
Total stockholders' equity | 217,389 | 184,285 |
Total liabilities and stockholders' equity | $ 265,206 | $ 220,751 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 137,770,000 | 134,959,000 |
Common stock, shares outstanding | 136,313,000 | 133,445,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue: | ||||
Advisory fees | $ 81,320 | $ 43,938 | $ 141,189 | $ 86,547 |
Other income | 239 | 190 | 511 | 501 |
Total revenues | 81,559 | 44,128 | 141,700 | 87,048 |
Expenses: | ||||
Compensation and benefits | 18,669 | 7,551 | 38,270 | 16,906 |
Fund management and administration | 11,208 | 7,818 | 21,376 | 16,986 |
Marketing and advertising | 3,628 | 2,726 | 6,704 | 5,304 |
Sales and business development | 2,076 | 1,727 | 3,976 | 3,028 |
Professional and consulting fees | 1,604 | 1,840 | 3,067 | 3,635 |
Occupancy, communications and equipment | 943 | 853 | 1,861 | 1,753 |
Depreciation and amortization | 223 | 201 | 443 | 393 |
Third party sharing arrangements | 497 | 115 | 780 | 125 |
Acquisition contingent payment | 264 | 521 | ||
Other | 1,509 | 1,164 | 2,744 | 2,306 |
Total expenses | 40,621 | 23,995 | 79,742 | 50,436 |
Income before taxes | 40,938 | 20,133 | 61,958 | 36,612 |
Income tax expense/(benefit) | 16,766 | 9,531 | 25,724 | (4,194) |
Net income | $ 24,172 | $ 10,602 | $ 36,234 | $ 40,806 |
Net income per share-basic | $ 0.18 | $ 0.08 | $ 0.27 | $ 0.31 |
Net income per share-diluted | $ 0.18 | $ 0.08 | $ 0.26 | $ 0.29 |
Weighted-average common shares-basic | 135,895 | 131,533 | 134,990 | 131,235 |
Weighted-average common shares-diluted | 137,951 | 138,258 | 137,620 | 138,501 |
Cash dividends declared per common share | $ 0.08 | $ 0.16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Comprehensive income | ||||
Net income | $ 24,172 | $ 10,602 | $ 36,234 | $ 40,806 |
Other comprehensive loss | ||||
Foreign currency translation adjustment | (69) | (122) | ||
Comprehensive income | $ 24,103 | $ 10,602 | $ 36,112 | $ 40,806 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 36,234 | $ 40,806 |
Non-cash items included in net income: | ||
Income tax expense/(benefit) | 25,218 | (4,194) |
Depreciation and amortization | 443 | 393 |
Stock-based compensation | 4,952 | 4,045 |
Deferred rent | (70) | 1,286 |
Accretion to interest income and other | 6 | (79) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,318) | 2,546 |
Other assets | (2,279) | (1,230) |
Deferred acquisition contingent payment | 521 | |
Fund management and administration payable | 3,219 | (473) |
Compensation and benefits payable | 7,290 | (9,887) |
Accounts payable and other liabilities | 316 | (553) |
Net cash provided by operating activities | 65,532 | 32,660 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (364) | (3,741) |
Purchase of investments | (8,449) | (1,237) |
Cash acquired on acquisition | 1,349 | |
Proceeds from the redemption of investments | 1,187 | 803 |
Net cash used in investing activities | (7,626) | (2,826) |
Cash flows from financing activities: | ||
Dividends paid | (21,794) | |
Shares repurchased | (15,264) | (5,426) |
Proceeds from exercise of stock options | 3,293 | 116 |
Net cash used in financing activities | (33,765) | (5,310) |
(Decrease)/increase in cash flow due to changes in foreign exchange rate | (153) | 7 |
Net increase in cash and cash equivalents | 23,988 | 24,531 |
Cash and cash equivalents-beginning of period | 165,284 | 104,316 |
Cash and cash equivalents-end of period | 189,272 | 128,847 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | $ 356 | $ 21 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2015 | |
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. • Boost Management Limited • WisdomTree Europe Limited • WisdomTree Management Limited • WisdomTree Japan K. K. 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 to WTT the use of certain of its own indexes on an exclusive basis for the WisdomTree ETFs in the U.S. 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 Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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 is amortized over the relevant service period. 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 revenues are derived primarily from investment advisory agreements with WTT and WisdomTree ETFs. Under these agreements, the Company has licensed to WTT the use of certain of its own indexes on an exclusive basis for the WisdomTree ETFs in the U.S. The Trustees are primarily responsible for overseeing the management and affairs of the WisdomTree ETFs and the Trust 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. The Company 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. 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. At June 30, 2015 and December 31, 2014, the balance of accounts receivable from WTT was approximately $27,127 and $17,288, respectively, which is included as a component of accounts receivable on the Company’s Consolidated Balance Sheets. Revenue from advisory services provided to WTT for the three months ended June 30, 2015 and 2014 was approximately $80,409 and $43,753, respectively, and for the six months ended June 30, 2015 and 2014 was approximately $139,755 and $86,362, respectively. At June 30, 2015 and December 31, 2014, the balance of accounts receivable from BI and WTI was approximately $722 and $157, respectively, which is included as a component of accounts receivable on the Company’s Consolidated Balance Sheets. Revenue from advisory fee services provided to BI and WTI for the three months ended June 30, 2015 and 2014 was approximately $911 and $185, respectively, and for the six months ended June 30, 2015 and 2014 was approximately $1,434 and $185, respectively. Third-Party Sharing Arrangements The Company pays a percentage of its advisory fee revenue based on incremental growth in AUM, subject to caps or minimums, to marketing agents to sell WisdomTree ETFs and for including WisdomTree ETFs on third party customer platforms. Segment, Geographic and Customer Information The Company operates as a single business segment as an ETP sponsor and asset manager providing investment advisory services. 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 11). Recently Issued Accounting Pronouncements In February 2015, the FASB issued Accounting Standards Update 2015-02 (ASU 2015-02) Amendments to the Consolidation Analysis In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09) Revenue from Contracts with Customers 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 Meas
Investments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Investments and Fair Value Measurements | 3. Investments and Fair Value Measurements The following table is a summary of the Company’s investments: June 30, 2015 December 31, 2014 Held-to- Held-to- Federal agency debt instruments $ 21,247 $ 13,990 The following table summarizes unrealized gains, losses and fair value of investments: June 30, 2015 December 31, 2014 Held-to- Held-to- Cost/amortized cost $ 21,247 $ 13,990 Gross unrealized gains 83 112 Gross unrealized losses (573 ) (386 ) Fair value $ 20,757 $ 13,716 The following table sets forth the maturity profile of investments; however these investments may be called prior to maturity date: June 30, 2015 December 31, 2014 Held-to- Held-to- Due within one year $ — $ — Due one year through five years 9,376 1,409 Due five years through ten years 825 350 Due over ten years 11,046 12,231 Total $ 21,247 $ 13,990 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 Level 2 Level 3 This hierarchy requires the use of observable market data when available. The Company’s held-to-maturity securities are categorized as Level 1. The majority of the Company’s acquisition payable of $2,278 is measured at fair value and is categorized as Level 3. Fair value is determined based on a predefined formula which includes observable and unobservable inputs and is subject in part to a minimum payout. Inputs to the predefined formula include the contractual minimum payment obligation, European AUM, the Company’s enterprise value over global AUM, and profitability of the European business (Note 11). During the three and six months ended June 30, 2015, the Company recorded an acquisition contingent payment expense of $264 and $521, respectively, which represents the expense accrual for expected payments due to the former Boost shareholders primarily driven by increased AUM from the Company’s European business. Some of the Company’s 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. |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 4. Fixed Assets The following table summarizes fixed assets: June 30, 2015 December 31, 2014 Equipment $ 1,004 $ 913 Furniture and fixtures 1,789 1,620 Leasehold improvements 8,896 8,795 Less accumulated depreciation and amortization (1,415 ) (972 ) Total $ 10,274 $ 10,356 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 and 2014 were approximately $829 and $768, and for the six months ended June 30, 2015 and 2014 were approximately $1,623 and $1,594. Future minimum lease payments with respect to non-cancelable operating leases at June 30, 2015 are approximately as follows: Remainder of 2015 $ 1,938 2016 3,645 2017 3,389 2018 and thereafter 33,082 Total $ 42,054 The Company’s prior U.S. 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. At that time, the Company recorded a receivable of $3,223 due from the lessor of its new office space related to its leasehold improvement allowance. The balance at June 30, 2015 and December 31, 2014 was $509, which was included in accounts receivable on the Company’s Consolidated Balance Sheets. In May 2015, the Company entered into a new three-year lease agreement for office space in Japan. Pursuant to the new lease agreement, the Company received a lease incentive of a deferred rent period equal to ¥10,440, or $85. In July 2015, the Company entered into a new five-year lease agreement for office space in the U.K. Pursuant to the new lease agreement, the Company received a lease incentive of a deferred rent period equal to £26, or $41. Letter of Credit The Company collateralized its U.S. office lease through a standby letter of credit totaling $1,384. The collateral is included in investments on the Company’s Consolidated Balance Sheets. 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. |
Stock-Based Awards
Stock-Based Awards | 6 Months Ended |
Jun. 30, 2015 | |
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 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 Balance at January 1, 2015 5,330,070 $ 1.61 1,513,939 Granted — $ — 598,244 Exercised/vested (3,052,358 ) $ 1.08 (650,331 ) Forfeitures — $ — (4,523 ) Balance at June 30, 2015 2,277,712 $ 2.32 1,457,329 A summary of stock-based compensation expense is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 $ 2,608 $ 2,030 $ 4,952 $ 4,045 A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: June 30, 2015 Unrecognized Stock-Based Average Employees and directors option awards $ 206 0.50 Employees and directors restricted stock awards $ 16,651 1.73 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 $ 106 $ 108 $ 497 $ 393 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
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 Six Months Ended 2015 2014 2015 2014 (shares in thousands) (shares in thousands) Net income $ 24,172 $ 10,602 $ 36,234 $ 40,806 Shares of common stock and common stock equivalents: Weighted averages shares used in basic computation 135,895 131,533 134,990 131,235 Dilutive effect of stock options and unvested restricted stock 2,056 6,725 2,630 7,266 Weighted averages shares used in dilutive computation 137,951 138,258 137,620 138,501 Basic earnings per share $ 0.18 $ 0.08 $ 0.27 $ 0.31 Dilutive earnings per share $ 0.18 $ 0.08 $ 0.26 $ 0.29 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 six months ended June 30, 2015, and 2014, respectively. 84 and 585 restricted shares were determined to be anti-dilutive and were not included in the calculation of diluted earnings per share for the three months ended June 30, 2015 and 2014, respectively. 548 and 986 restricted shares were determined to be anti-dilutive and were not included in the calculation of diluted earnings per share for the six months ended June 30, 2015 and 2014, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Net operating losses – U.S. The Company has generated net operating losses in the U.S. (“NOLs”). The following table summarizes the activity for NOLs for the six months ended June 30, 2015: December 31, 2014 $ (109,839 ) U.S. GAAP pretax income 65,548 State income taxes (506 ) Income tax differences: Temporary 2,583 Permanent (58,207 ) June 30, 2015 $ (100,421 ) 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 Sheets at March 31, 2014. The balance of the deferred tax asset at June 30, 2015 and December 31, 2014 was $10,079 and $9,490, respectively. At June 30, 2015 and December 31, 2014, $92,214 and $101,108 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 June 30, 2015, the Company has no recognized deferred tax assets related to these NOLs. During the three and six months ended June 30, 2015, the Company recognized tax expense of $16,766 and $25,724. During the six months ended June 30, 2015, the Company’s deferred tax asset increased by $589 and the Company recorded a credit to additional paid-in capital of $25,807 for the amount of NOLs from stock-based compensation utilized to reduce taxes payable during the period. In addition, during the three and six months ended June 30, 2015, the Company recorded $156 and $506 of state income taxes. During the three and six months ended June 30, 2014, the Company recognized a tax expense of $9,531 and a tax benefit of $4,194. During the six months ended June 30, 2014, the Company utilized $4,238 of its deferred tax asset and recorded a credit to additional paid-in capital of $5,293 for the amount of NOLs from stock-based compensation utilized to reduce taxes payable during the period. In the third quarter of 2014, 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 June 30, 2015 is as follows: Stock-based compensation $ 9,124 Deferred rent liability 5,557 NOLs 4,720 Accrued expenses 20,645 Incentive compensation (8,884 ) Fixed assets (5,119 ) Other 217 Total deferred components 26,260 Income tax rate 38.38 % Tax affected $ 10,079 Net operating losses – Non-U.S. The Company’s foreign subsidiaries generated net operating losses outside the U.S. The following table summarizes the activity for NOLs for the six months ended June 30, 2015: December 31, 2014 $ (4,061 ) Foreign subsidiaries loss (3,095 ) June 30, 2015 $ (7,156 ) At June 30, 2015 and December 31, 2014, a deferred tax asset related to these NOLs has been fully offset by a valuation allowance of $1,423 and $816, respectively. |
Shares Repurchased
Shares Repurchased | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Shares Repurchased | 10. Shares Repurchased On October 29, 2014, the Company’s Board of Directors authorized a three-year share repurchase program of up to $100 million. During the three months ended June 30, 2015, the Company repurchased 62 shares of its common stock under this program for an aggregate cost of $1,194. During the six months ended June 30, 2015, the Company repurchased 835 shares of its common stock under this program for an aggregate cost of $15,264. Of these shares, 259 were repurchased to offset tax withholding obligations that occur upon vesting and release of restricted shares for an aggregate cost of $4,385, and 576 shares were repurchased in the open market to offset new shares issued in connection with employee equity grants for an aggregate cost of $10,879. $84,736 remains under this program for future purchases. During the three and six months ended June 30, 2014, the Company repurchased 312 shares of its common stock to offset tax withholding obligations that occur upon vesting and release of restricted shares for an aggregate cost of $5,426. |
Acquisition and Goodwill
Acquisition and Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition and Goodwill | 11. 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 on or about March 31, 2018 using a predefined formula based on the 180-day average of European AUM at December 31, 2017 and will be tied to the Company’s enterprise value over the 180-day average of global AUM at December 31, 2017, 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 acquisition contingent payment on the Company’s Consolidated Statements of Operations and Comprehensive Income and represents compensation for post-acquisition services. The obligation to mandatorily redeem the remaining 12% minority shareholders’ interest in Boost is measured at the fair value of the amount of cash that would be paid under the conditions specified in the agreement. Any change in the carrying amount of the liability will be recognized as an expense. During the three and six months ended June 30, 2015, the Company incurred $110 and $116 of compensation expense and $154 and $405 of interest expense, which represents contingent consideration due to the co-CEOs and non-employee shareholders, respectively. These amounts have both been recorded in acquisition contingent payment on the Company’s Consolidated Statements of Operations and Comprehensive Income. Because the Company is required to redeem the shares from the former Boost shareholders on or about March 31, 2018 using 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. 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 six months ended June 30, 2015: Balance at January 1, 2015 $ 1,676 Goodwill acquired during the period — Balance at June 30, 2015 $ 1,676 |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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 is amortized over the relevant service period. |
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 revenues are derived primarily from investment advisory agreements with WTT and WisdomTree ETFs. Under these agreements, the Company has licensed to WTT the use of certain of its own indexes on an exclusive basis for the WisdomTree ETFs in the U.S. The Trustees are primarily responsible for overseeing the management and affairs of the WisdomTree ETFs and the Trust 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. The Company 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. 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. At June 30, 2015 and December 31, 2014, the balance of accounts receivable from WTT was approximately $27,127 and $17,288, respectively, which is included as a component of accounts receivable on the Company’s Consolidated Balance Sheets. Revenue from advisory services provided to WTT for the three months ended June 30, 2015 and 2014 was approximately $80,409 and $43,753, respectively, and for the six months ended June 30, 2015 and 2014 was approximately $139,755 and $86,362, respectively. At June 30, 2015 and December 31, 2014, the balance of accounts receivable from BI and WTI was approximately $722 and $157, respectively, which is included as a component of accounts receivable on the Company’s Consolidated Balance Sheets. Revenue from advisory fee services provided to BI and WTI for the three months ended June 30, 2015 and 2014 was approximately $911 and $185, respectively, and for the six months ended June 30, 2015 and 2014 was approximately $1,434 and $185, respectively. |
Third-Party Sharing Arrangements | Third-Party Sharing Arrangements The Company pays a percentage of its advisory fee revenue based on incremental growth in AUM, subject to caps or minimums, to marketing agents to sell WisdomTree ETFs and for including WisdomTree ETFs on third party customer platforms. |
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. 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 11). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2015, the FASB issued Accounting Standards Update 2015-02 (ASU 2015-02) Amendments to the Consolidation Analysis In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09) Revenue from Contracts with Customers |
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 Polici19
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Me20
Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Schedule of Investments | The following table is a summary of the Company’s investments: June 30, 2015 December 31, 2014 Held-to- Held-to- Federal agency debt instruments $ 21,247 $ 13,990 |
Schedule of Unrealized Gains, Losses and Fair Value of Investments | The following table summarizes unrealized gains, losses and fair value of investments: June 30, 2015 December 31, 2014 Held-to- Held-to- Cost/amortized cost $ 21,247 $ 13,990 Gross unrealized gains 83 112 Gross unrealized losses (573 ) (386 ) Fair value $ 20,757 $ 13,716 |
Schedule of Maturity Profile of Investments | The following table sets forth the maturity profile of investments; however these investments may be called prior to maturity date: June 30, 2015 December 31, 2014 Held-to- Held-to- Due within one year $ — $ — Due one year through five years 9,376 1,409 Due five years through ten years 825 350 Due over ten years 11,046 12,231 Total $ 21,247 $ 13,990 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | The following table summarizes fixed assets: June 30, 2015 December 31, 2014 Equipment $ 1,004 $ 913 Furniture and fixtures 1,789 1,620 Leasehold improvements 8,896 8,795 Less accumulated depreciation and amortization (1,415 ) (972 ) Total $ 10,274 $ 10,356 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments with respect to non-cancelable operating leases at June 30, 2015 are approximately as follows: Remainder of 2015 $ 1,938 2016 3,645 2017 3,389 2018 and thereafter 33,082 Total $ 42,054 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Balance at January 1, 2015 5,330,070 $ 1.61 1,513,939 Granted — $ — 598,244 Exercised/vested (3,052,358 ) $ 1.08 (650,331 ) Forfeitures — $ — (4,523 ) Balance at June 30, 2015 2,277,712 $ 2.32 1,457,329 |
Summary of Stock-Based Compensation Expense | A summary of stock-based compensation expense is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 $ 2,608 $ 2,030 $ 4,952 $ 4,045 |
Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period | A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: June 30, 2015 Unrecognized Stock-Based Average Employees and directors option awards $ 206 0.50 Employees and directors restricted stock awards $ 16,651 1.73 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of Discretionary Contributions | A summary of the Company made discretionary contributions is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 $ 106 $ 108 $ 497 $ 393 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Six Months Ended 2015 2014 2015 2014 (shares in thousands) (shares in thousands) Net income $ 24,172 $ 10,602 $ 36,234 $ 40,806 Shares of common stock and common stock equivalents: Weighted averages shares used in basic computation 135,895 131,533 134,990 131,235 Dilutive effect of stock options and unvested restricted stock 2,056 6,725 2,630 7,266 Weighted averages shares used in dilutive computation 137,951 138,258 137,620 138,501 Basic earnings per share $ 0.18 $ 0.08 $ 0.27 $ 0.31 Dilutive earnings per share $ 0.18 $ 0.08 $ 0.26 $ 0.29 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Net Operating Losses | The Company has generated net operating losses in the U.S. (“NOLs”). The following table summarizes the activity for NOLs for the six months ended June 30, 2015: December 31, 2014 $ (109,839 ) U.S. GAAP pretax income 65,548 State income taxes (506 ) Income tax differences: Temporary 2,583 Permanent (58,207 ) June 30, 2015 $ (100,421 ) |
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 June 30, 2015 is as follows: Stock-based compensation $ 9,124 Deferred rent liability 5,557 NOLs 4,720 Accrued expenses 20,645 Incentive compensation (8,884 ) Fixed assets (5,119 ) Other 217 Total deferred components 26,260 Income tax rate 38.38 % Tax affected $ 10,079 |
Foreign Subsidiaries [Member] | |
Schedule of Net Operating Losses | The following table summarizes the activity for NOLs for the six months ended June 30, 2015: December 31, 2014 $ (4,061 ) Foreign subsidiaries loss (3,095 ) June 30, 2015 $ (7,156 ) |
Acquisition and Goodwill (Table
Acquisition and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Goodwill Activity | The following table summarizes the goodwill activity for the six months ended June 30, 2015: Balance at January 1, 2015 $ 1,676 Goodwill acquired during the period — Balance at June 30, 2015 $ 1,676 |
Significant Accounting Polici28
Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
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 Polici29
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Financial_Institution | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Financial_InstitutionSegment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | |||||
Cash and cash equivalents maturity period, maximum | 90 days | ||||
Number of financial institutions | Financial_Institution | 1 | 1 | |||
ETF advisory fee revenue | $ 81,320 | $ 43,938 | $ 141,189 | $ 86,547 | |
Number of operating segments | Segment | 1 | ||||
Boost Issuer PLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable related-party | 722 | $ 722 | $ 157 | ||
ETF advisory fee revenue | 911 | 185 | 1,434 | 185 | |
Wisdom Tree Issuer Plc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable related-party | 722 | 722 | 157 | ||
ETF advisory fee revenue | 911 | 185 | 1,434 | 185 | |
WisdomTree Trust [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable related-party | 27,127 | 27,127 | $ 17,288 | ||
ETF advisory fee revenue | $ 80,409 | $ 43,753 | $ 139,755 | $ 86,362 |
Investments and Fair Value Me30
Investments and Fair Value Measurements - Schedule of Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-Maturity debt instruments | $ 21,247 | $ 13,990 |
Federal Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-Maturity debt instruments | $ 21,247 | $ 13,990 |
Investments and Fair Value Me31
Investments and Fair Value Measurements - Schedule of Unrealized Gains, Losses and Fair Value of Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity cost or amortized cost | $ 21,247 | $ 13,990 |
Held-to-maturity gross unrealized gains | 83 | 112 |
Held-to-maturity gross unrealized losses | (573) | (386) |
Held-to-maturity fair value | $ 20,757 | $ 13,716 |
Investments and Fair Value Me32
Investments and Fair Value Measurements - Schedule of Maturity Profile of Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity due within one year | $ 0 | $ 0 |
Held-to-maturity due one year through five years | 9,376 | 1,409 |
Held-to-maturity due five years through ten years | 825 | 350 |
Held-to-maturity due over ten years | 11,046 | 12,231 |
Held-to-maturity cost or amortized cost | $ 21,247 | $ 13,990 |
Investments and Fair Value Me33
Investments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Acquisition payable | $ 2,278 | $ 2,278 | $ 1,757 |
Acquisition contingent payment | 264 | 521 | |
Level 3 [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Acquisition payable | 2,278 | 2,278 | |
Boost Shareholders [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Acquisition contingent payment | $ 264 | $ 521 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (1,415) | $ (972) |
Total | 10,274 | 10,356 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,004 | 913 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,789 | 1,620 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 8,896 | $ 8,795 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ¥ in Thousands, £ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jul. 31, 2015GBP (£) | Jul. 31, 2015USD ($) | May. 31, 2015USD ($) | May. 31, 2015JPY (¥) | Dec. 31, 2014USD ($) | Aug. 31, 2013USD ($) | |
Loss Contingencies [Line Items] | ||||||||||
Operating leases expenses | $ 829 | $ 768 | $ 1,623 | $ 1,594 | ||||||
Period in which U.S. office lease expires | Jan. 1, 2014 | |||||||||
New lease agreement term | 16 years | |||||||||
New lease agreement date | 2013-08 | |||||||||
Lease incentives received including for deferred rent period | $ 3,223 | |||||||||
Leasehold improvement allowance | $ 509 | 509 | $ 509 | $ 3,223 | ||||||
Stand by letter of credit decreased | $ 1,384 | |||||||||
Japan [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
New lease agreement term | 3 years | |||||||||
New lease agreement date | 2015-05 | |||||||||
Lease incentives received including for deferred rent period | $ 85 | ¥ 10,440 | ||||||||
U.K. [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
New lease agreement term | 5 years | |||||||||
New lease agreement date | 2015-07 | |||||||||
U.K. [Member] | Subsequent Events [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Lease incentives received including for deferred rent period | £ 26 | $ 41 |
Commitments and Contingencies36
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2015 | $ 1,938 |
2,016 | 3,645 |
2,017 | 3,389 |
2018 and thereafter | 33,082 |
Total | $ 42,054 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option issuance period | 10 years |
Option issued period | Options are issued 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 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Options and Restricted Stock Activity (Detail) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, beginning balance | 5,330,070 |
Options, Granted | 0 |
Options, Exercised/vested | (3,052,358) |
Options, Forfeitures | 0 |
Options, ending balance | 2,277,712 |
Weighted Average Exercise Price of Options, beginning balance | $ 1.61 |
Weighted Average Exercise Price of Options, Granted | 0 |
Weighted Average Exercise Price of Options, Exercised/vested | 1.08 |
Weighted Average Exercise Price of Options, Forfeitures | 0 |
Weighted Average Exercise Price of Options, ending balance | $ 2.32 |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Awards, beginning balance | 1,513,939 |
Restricted Stock Awards, Granted | 598,244 |
Restricted Stock Awards, Exercised/vested | (650,331) |
Restricted Stock Awards, Forfeitures | (4,523) |
Restricted Stock Awards, ending balance | 1,457,329 |
Stock-Based Awards - Summary 39
Stock-Based Awards - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Stock-based compensation expense | $ 2,608 | $ 2,030 | $ 4,952 | $ 4,045 |
Stock-Based Awards - Summary 40
Stock-Based Awards - Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Employees and Directors Option Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 206 |
Average Remaining Vesting Period | 6 months |
Employees and Directors Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 16,651 |
Average Remaining Vesting Period | 1 year 8 months 23 days |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Discretionary Contributions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Discretionary contributions | $ 106 | $ 108 | $ 497 | $ 393 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 24,172 | $ 10,602 | $ 36,234 | $ 40,806 |
Shares of common stock and common stock equivalents: | ||||
Weighted averages shares used in basic computation | 135,895 | 131,533 | 134,990 | 131,235 |
Dilutive effect of stock options and unvested restricted stock | 2,056 | 6,725 | 2,630 | 7,266 |
Weighted averages shares used in dilutive computation | 137,951 | 138,258 | 137,620 | 138,501 |
Basic earnings per share | $ 0.18 | $ 0.08 | $ 0.27 | $ 0.31 |
Dilutive earnings per share | $ 0.18 | $ 0.08 | $ 0.26 | $ 0.29 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive excluded from calculation of diluted earnings per share | 84 | 585 | 548 | 986 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Operating Losses for Tax Purpose (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Income Tax Disclosure [Abstract] | ||
December 31, 2014 | $ (109,839) | |
U.S. GAAP pretax income | 65,548 | |
State income taxes | $ (156) | (506) |
Income tax differences: | ||
Temporary | 2,583 | |
Permanent | (58,207) | |
June 30, 2015 | $ (100,421) | $ (100,421) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | |
Schedule Of Income Tax [Line Items] | |||||||
Valuation allowance resulting in income tax benefit | $ 3,519,000 | $ 3,519,000 | $ 5,618,000 | $ 13,725,000 | |||
Net deferred tax assets | 10,079,000 | 10,079,000 | 9,490,000 | ||||
Unrecognized stock-based compensation | 92,214,000 | 92,214,000 | 101,108,000 | ||||
NOLs deemed worthless | 3,487,000 | ||||||
Deferred tax asset related to NOLs | 0 | 0 | |||||
Income tax expense/(benefit) | 16,766,000 | $ 9,531,000 | 25,724,000 | $ (4,194,000) | |||
Gross deferred tax asset | 589,000 | $ 4,238,000 | 589,000 | 4,238,000 | |||
Credit to additional paid-in capital for the amount of NOLs from stock-based compensation | 25,807,000 | $ 5,293,000 | |||||
State income taxes | 156,000 | $ 506,000 | |||||
Income tax rate | 38.00% | 38.38% | |||||
Foreign Subsidiaries [Member] | |||||||
Schedule Of Income Tax [Line Items] | |||||||
Deferred tax asset offset by a valuation allowance | $ 1,423,000 | $ 1,423,000 | $ 816,000 | ||||
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Stock-based compensation | $ 9,124 | ||
Deferred rent liability | 5,557 | ||
NOLs | 4,720 | ||
Accrued expenses | 20,645 | ||
Incentive compensation | (8,884) | ||
Fixed assets | (5,119) | ||
Other | 217 | ||
Total deferred components | $ 26,260 | ||
Income tax rate | 38.00% | 38.38% | |
Tax affected | $ 10,079 | $ 9,490 |
Income Taxes - Schedule of Ne47
Income Taxes - Schedule of Net Operating Losses for Tax Purpose - Non-U.S. (Detail) $ in Thousands | Jun. 30, 2015USD ($) |
Foreign Subsidiaries [Member] | |
Operating Loss Carryforwards [Line Items] | |
Foreign subsidiaries loss | $ (3,095) |
Shares Repurchased - Additional
Shares Repurchased - Additional Information (Detail) - Three-Year Share Repurchase Program [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Oct. 29, 2014 | |
Common stock purchase authorized amount | $ 100,000,000 | |||
Repurchased common stock, shares | 62 | 835 | ||
Repurchased common stock, value | $ 1,194,000 | $ 15,264,000 | ||
Repurchased shares, remaining for future purchases | $ 84,736,000 | $ 84,736,000 | ||
Tax Withholding Obligations [Member] | ||||
Repurchased common stock, shares | 312 | 259 | ||
Repurchased common stock, value | $ 5,426,000 | $ 4,385,000 | ||
Employee Equity Grants [Member] | ||||
Repurchased common stock, shares | 576,000 | |||
Repurchased common stock, value | $ 10,879,000 |
Acquisition and Goodwill - Addi
Acquisition and Goodwill - Additional Information (Detail) | Apr. 15, 2014USD ($) | Jun. 30, 2015USD ($)Shareholder | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Shareholder | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Remaining acquiree ownership percentage | 25.00% | |||||
Acquisition ownership percentage | 88.00% | |||||
Stock-based compensation expense | $ 2,608,000 | $ 2,030,000 | $ 4,952,000 | $ 4,045,000 | ||
Goodwill | 1,676,000 | 1,676,000 | $ 1,676,000 | |||
Chief Executive Officer [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Stock-based compensation expense | 110,000 | 116,000 | ||||
Non-Employee Shareholders [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Interest expense | 154,000 | $ 405,000 | ||||
WisdomTree Europe [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition ownership percentage | 75.00% | |||||
Business acquisition consideration transferred | $ 0 | |||||
Payout description | The ultimate payout will be made in cash over two years. | |||||
Payout period | 2 years | |||||
WisdomTree Europe [Member] | Chief Executive Officer [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Guaranteed minimum payment | $ 1,757,000 | $ 1,757,000 | ||||
Boost Shareholders [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of shareholders | Shareholder | 2 | 2 | ||||
Percentage of minority shareholder's | 12.00% | 12.00% | ||||
Redeemable noncontrolling interest, ownership percentage by noncontrolling owners | 25.00% | 25.00% | ||||
Goodwill | $ 1,676,000 | $ 1,676,000 | ||||
Purchase price | 1,757,000 | 1,757,000 | ||||
Boost Shareholders [Member] | Fair Value [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of net assets acquired | $ 81,000 | $ 81,000 |
Acquisition and Goodwill - Summ
Acquisition and Goodwill - Summary of Goodwill Activity (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Business Combination, Goodwill [Abstract] | |
Beginning balance | $ 1,676 |
Goodwill acquired during the period | 0 |
Ending balance | $ 1,676 |
Uncategorized Items - wetf-2015
Label | Element | Value |
Foreign Subsidiaries [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards | us-gaap_DeferredTaxAssetsOperatingLossCarryforwards | $ 4,061 |
Deferred Tax Assets, Operating Loss Carryforwards | us-gaap_DeferredTaxAssetsOperatingLossCarryforwards | $ 7,156 |