Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | 136,392,912 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 178,132 | $ 210,070 |
Investments | 1,991 | |
Accounts receivable | 17,282 | 27,576 |
Other current assets | 4,142 | 2,899 |
Total current assets | 201,547 | 240,545 |
Fixed assets, net | 11,790 | 11,974 |
Investments | 14,238 | 23,689 |
Deferred tax asset, net | 6,662 | 14,071 |
Goodwill | 3,475 | 1,676 |
Intangible asset | 9,953 | |
Other noncurrent assets | 787 | 738 |
Total assets | 248,452 | 292,693 |
Current liabilities: | ||
Fund management and administration payable | 13,375 | 12,971 |
Compensation and benefits payable | 9,065 | 28,060 |
Income taxes payable | 5,342 | 3,024 |
Acquisition payable | 3,697 | |
Accounts payable and other liabilities | 6,160 | 5,039 |
Total current liabilities | 37,639 | 49,094 |
Acquisition payable | 3,942 | |
Deferred rent payable | 4,957 | 5,155 |
Total liabilities | 42,596 | 58,191 |
Commitments and Contingencies (See Note 7) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01; 2,000 shares authorized | ||
Common stock, par value $0.01; 250,000 shares authorized; issued and outstanding: 136,424 and 138,415, at September 30, 2016 and December 31, 2015, respectively | 1,364 | 1,384 |
Additional paid-in capital | 237,378 | 257,960 |
Accumulated other comprehensive income/(loss) | 900 | (126) |
Accumulated deficit | (33,786) | (24,716) |
Total stockholders' equity | 205,856 | 234,502 |
Total liabilities and stockholders' equity | $ 248,452 | $ 292,693 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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 | 136,424,000 | 138,415,000 |
Common stock, shares outstanding | 136,424,000 | 138,415,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Advisory fees | $ 51,553 | $ 80,520 | $ 168,099 | $ 221,709 |
Other income | 236 | 233 | 549 | 744 |
Total revenues | 51,789 | 80,753 | 168,648 | 222,453 |
Expenses: | ||||
Compensation and benefits | 15,328 | 19,407 | 44,897 | 57,677 |
Fund management and administration | 10,372 | 10,519 | 31,037 | 31,895 |
Marketing and advertising | 3,600 | 3,573 | 11,998 | 10,277 |
Sales and business development | 3,075 | 2,438 | 9,356 | 6,414 |
Professional and consulting fees | 1,035 | 1,570 | 5,235 | 4,637 |
Occupancy, communications and equipment | 1,469 | 1,183 | 3,932 | 3,044 |
Depreciation and amortization | 332 | 253 | 978 | 696 |
Third-party sharing arrangements | 622 | 485 | 2,238 | 1,265 |
Acquisition payment | 172 | 6,738 | 693 | |
Other | 1,731 | 1,620 | 5,186 | 4,364 |
Total expenses | 37,564 | 41,220 | 121,595 | 120,962 |
Income before taxes | 14,225 | 39,533 | 47,053 | 101,491 |
Income tax expense | 6,270 | 16,245 | 23,375 | 41,969 |
Net income | $ 7,955 | $ 23,288 | $ 23,678 | $ 59,522 |
Net income per share - basic | $ 0.06 | $ 0.17 | $ 0.17 | $ 0.44 |
Net income per share - diluted | $ 0.06 | $ 0.17 | $ 0.17 | $ 0.43 |
Weighted-average common shares - basic | 134,046 | 136,582 | 134,541 | 135,527 |
Weighted-average common shares - diluted | 135,190 | 138,181 | 135,583 | 137,833 |
Cash dividends declared per common share | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive income | ||||
Net income | $ 7,955 | $ 23,288 | $ 23,678 | $ 59,522 |
Other comprehensive income | ||||
Foreign currency translation adjustment | 106 | 168 | 1,026 | 46 |
Comprehensive income | $ 8,061 | $ 23,456 | $ 24,704 | $ 59,568 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 23,678 | $ 59,522 |
Non-cash items included in net income: | ||
Income tax expense | 14,761 | 40,573 |
Depreciation and amortization | 978 | 696 |
Stock-based compensation | 11,092 | 7,878 |
Deferred rent | (173) | (26) |
Accretion to interest income and other | (75) | 9 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,207 | (7,253) |
Other assets | (1,371) | (1,892) |
Acquisition payable | (218) | 693 |
Fund management and administration payable | 414 | 1,216 |
Compensation and benefits payable | (18,944) | 7,402 |
Income taxes payable | 2,260 | 840 |
Accounts payable and other liabilities | 1,336 | 490 |
Net cash provided by operating activities | 43,945 | 110,148 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (654) | (1,606) |
Purchase of investments | (6,048) | (11,353) |
Acquisition less cash acquired | (11,818) | |
Proceeds from investments called prior to maturity | 13,579 | 1,681 |
Net cash used in investing activities | (4,941) | (11,278) |
Cash flows from financing activities: | ||
Dividends paid | (32,748) | (32,867) |
Shares repurchased | (39,116) | (23,689) |
Proceeds from exercise of stock options | 107 | 4,471 |
Net cash used in financing activities | (71,757) | (52,085) |
Increase/(decrease) in cash flows due to changes in foreign exchange rate | 815 | (77) |
Net (decrease)/increase in cash and cash equivalents | (31,938) | 46,708 |
Cash and cash equivalents-beginning of period | 210,070 | 165,284 |
Cash and cash equivalents-end of period | 178,132 | 211,992 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | $ 6,664 | $ 551 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business WisdomTree Investments, Inc., through its global subsidiaries (collectively, “WisdomTree” or the “Company”), is an exchange traded product (“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 Inc • WisdomTree Commodity Services, LLC • WisdomTree Coal Services, LLC • WisdomTree Asset Management Canada, Inc. 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 respective Trustees and Directors of WTT, BI and WTI, as applicable, 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 | 9 Months Ended |
Sep. 30, 2016 | |
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. Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. If the Company has a majority voting interest in a VOE, the entity is consolidated. The Company has a controlling financial interest in a VIE when the Company has a variable interest that provides it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has no variable interests in any VIEs. 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 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 from its ETPs, as well as licensing fees from third parties. ETP 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. 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 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 (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating securities. Unvested share-based payment awards that contain non- forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method. Share-based payment awards that do not contain such rights are not deemed participating securities and are included in diluted shares outstanding (if dilutive) under the treasury stock method. Diluted EPS reflects the reduction in earnings per share assuming dilutive options or other dilutive contracts to issue common stock were exercised or converted into common stock. Diluted EPS is calculated under both the treasury stock method and two-class method. The calculation that results in the most dilutive EPS amount for the common stock is reported in the Company’s consolidated financial statements. Investments (Held-to-Maturity) The Company accounts for all of its investments as held-to-maturity on a settlement date basis, 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 quarterly 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. Financial Instruments (Trading Securities) Financial instruments owned and financial instruments sold, but not yet purchased are recorded on their settlement date and are measured at fair value. 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 and at the time of a triggering event requiring re-evaluation, if one were to occur. Goodwill is impaired if its estimated fair value is less than its carrying value. The Company has designated April 30 th Intangible Assets Indefinite-lived intangible assets are tested for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets, if any, are amortized over their estimated useful life, which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. The Company has designated November 30 th 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. 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. Third-Party Sharing Arrangements The Company pays a percentage of its advisory fee revenues 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, Japan and Canada. Business Combinations and Acquisitions 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. The Company may allocate purchase price to identifiable intangible assets. The estimated fair value of identifiable intangible assets is based on critical estimates, judgments and assumptions derived from: analysis of market conditions; discount rate; discounted cash flows; customer retention rates; and estimated useful lives. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes In February 2015, the FASB issued Accounting Standards Update 2015-02, Amendments to the Consolidation Analysis In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. Cash and Cash Equivalents At September 30, 2016 and December 31, 2015, cash equivalents were approximately $137,314 and $137,481, respectively. Cash and cash equivalents of approximately $144,270 and $152,103 at September 30, 2016 and December 31, 2015, respectively, were held at one financial institution. |
Investments ("Held-to-Maturity"
Investments ("Held-to-Maturity") | 9 Months Ended |
Sep. 30, 2016 | |
Investments Schedule [Abstract] | |
Investments ("Held-to-Maturity") | 4. Investments (“Held-to-Maturity”) The following table is a summary of the Company’s held-to-maturity investments: September 30, 2016 December 31, 2015 Held-to- Held-to- Federal agency debt instruments $ 16,229 $ 23,689 The following table summarizes unrealized gains, losses and fair value of investments: September 30, 2016 December 31, 2015 Held-to- Held-to- Cost/amortized cost $ 16,229 $ 23,689 Gross unrealized gains 27 82 Gross unrealized losses (133 ) (609 ) Fair value $ 16,123 $ 23,162 The following table sets forth the maturity profile of investments; however, these investments may be called prior to the maturity date: September 30, 2016 December 31, 2015 Held-to- Held-to- Due within one year $ 1,991 $ — Due one year through five years 3,026 8,369 Due five years through ten years 6,041 3,127 Due over ten years 5,171 12,193 Total $ 16,229 $ 23,689 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | 5. Financial Instruments and Fair Value Measurement Financial instruments are measured at fair value. The fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., “the exit price”) in an orderly transaction between market participants at the measurement date. Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements 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 drivers are unobservable. The availability of observable inputs can vary from product to product and is effected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair Valuation Methodology Cash and Cash Equivalents Investments (Held-to-Maturity) Financial Instruments Owned/Sold But Not Yet Purchased (Trading Securities) Acquisition Payable (See Note 13) |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 6. Fixed Assets The following table summarizes fixed assets: September 30, 2016 December 31, 2015 Equipment $ 1,727 $ 1,258 Furniture and fixtures 2,416 2,382 Leasehold improvements 10,628 10,312 Less accumulated depreciation and amortization (2,981 ) (1,978 ) Total $ 11,790 $ 11,974 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. 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, 2016 and 2015 were approximately $1,203 and $906, respectively, and for the nine months ended September 30, 2016 and 2015 were approximately $3,221 and $2,529, respectively. Future minimum lease payments with respect to non-cancelable operating leases at September 30, 2016 were approximately as follows: Remainder of 2016 $ 1,057 2017 3,880 2018 3,308 2019 2,956 2020 and thereafter 26,950 Total $ 38,151 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 Cash and cash equivalents 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. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions The Company’s revenues are derived primarily from investment advisory agreements with related parties. Under these agreements, the Company has licensed to related parties the use of certain of its own indexes on an exclusive basis for the U.S. and Canadian WisdomTree ETFs, Boost ETPs and WisdomTree UCITS ETFs. The Board of Trustees and Board of Directors of the related parties are primarily responsible for overseeing the management and affairs of the U.S. and Canadian WisdomTree ETFs, Boost ETPs and WisdomTree UCITS ETFs for the benefit of their shareholders and have contracted with the Company to provide for general management and administration services. The Company is also responsible for certain expenses of the related parties, 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, which is included in fund management and administration on the Company’s Consolidated Statements of Operations. In exchange, the Company receives fees based on a percentage of the ETF average daily net assets. The advisory agreements may be terminated by the related parties upon notice. Certain officers of the Company also provide general management oversight of the related parties; however, these officers have no material decision making responsibilities and primarily implement the decisions of the Board of Trustees and Board of Directors of the related parties. The following table summarizes accounts receivable from related parties which are included as a component of Accounts receivable on the Company’s Consolidated Balance Sheets: September 30, 2016 December 31, 2015 Receivable from WTT $ 15,980 $ 24,560 Receivable from BI and WTI 666 487 Receivable from WTCS and WTC 154 — Receivable from WTAMC 30 — Total $ 16,830 $ 25,047 The following table summarizes revenues from advisory services provided to related parties: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Advisory services provided to WTT $ 49,087 $ 79,242 $ 161,316 $ 218,997 Advisory services provided to BI and WTI 1,915 1,278 5,308 2,712 Advisory services provided to WTCS and WTC 482 — 1,406 — Advisory services provided to WTAMC 69 — 69 — Total $ 51,553 $ 80,520 $ 168,099 $ 221,709 |
Stock-Based Awards
Stock-Based Awards | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards | 9. Stock-Based Awards The Company grants equity awards to employees and directors. Options may be issued for a term of ten years, may vest after at least one year and have an exercise price equal to the fair value of the Company on the date of grant. The Company estimates the fair value for options using the Black-Scholes option pricing model. All stock and option awards require future service as a condition of vesting with certain awards subject to acceleration under certain conditions. On June 20, 2016, the Company’s stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards. The Company also has issued from time to time stock-based awards outside a plan. Options outstanding at September 30, 2016 expire on dates ranging from January 1, 2017 to November 15, 2021. A summary of options and restricted stock activity for the three months ended September 30, 2016 is as follows: Options Weighted Restricted Balance at June 30, 2016 1,447,747 $ 2.73 2,432,066 Granted — $ — 197,459 Exercised/vested (3,500 ) $ 1.07 (126,092 ) Forfeitures — $ — (17,155 ) Balance at September 30, 2016 1,444,247 $ 2.73 2,486,278 A summary of stock-based compensation expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ 3,822 $ 2,926 $ 11,092 $ 7,878 A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: September 30, 2016 Unrecognized Stock-Based Average Employees and directors option awards $ 36 0.32 Employees and directors restricted stock awards $ 24,507 2.0 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share The following is a reconciliation of the basic and diluted earnings per share computation: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (shares in thousands) Net income $ 7,955 $ 23,288 $ 23,678 $ 59,522 Shares of common stock and common stock equivalents Weighted average common shares used in basic computation 134,046 136,582 134,541 135,527 Dilutive effect of common stock equivalents 1,144 1,599 1,042 2,306 Weighted average shares used in dilutive computation 135,190 138,181 135,583 137,833 Basic earnings per share $ 0.06 $ 0.17 $ 0.17 $ 0.44 Diluted earnings per share $ 0.06 $ 0.17 $ 0.17 $ 0.43 In the table above, unvested share-based awards that have non-forfeitable rights to dividends or dividend equivalents are treated as a separate class of securities in calculating EPS. The impact of applying this methodology was a reduction in basic EPS of $0.01 for the nine months ended September 30, 2016. 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 (if dilutive) under the treasury stock method. The Company excluded 516,630 and 243,427 common stock equivalents from its computation of diluted earnings per share for the three months ended September 30, 2016 and 2015, respectively, and 909,118 and 836,427 common stock equivalents from its computation of diluted earnings per share for the nine months ended September 30, 2016 and 2015, respectively, as they were determined to be anti-dilutive. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes Effective Income Tax Rate – Three and Nine Months Ended September 30, 2016 The Company’s effective income tax rate for the three months ended September 30, 2016 of 44.1% resulted in income tax expense of $6,270. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to a valuation allowance on foreign net operating losses and state and local income taxes. The Company’s effective income tax rate for the nine months ended September 30, 2016 of 49.7% resulted in income tax expense of $23,375. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily to due to a valuation allowance on foreign net operating losses, the non-deductibility of the expense associated with the acceleration of the buyout of the remaining minority interest in our European business in May 2016 and state and local taxes. Effective Income Tax Rate – Three and Nine Months Ended September 30, 2015 The Company’s effective income tax rate for the three and nine months ended September 30, 2015 of 41.1% and 41.4%, respectively, resulted in income tax expense of $16,245 and $41,969, respectively. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to state and local income taxes and a valuation allowance on the Company’s foreign net operating losses. Net Operating Losses – U.S. The Company’s pre-tax federal net operating losses for tax purposes (“NOLs”) at September 30, 2016 was $4,195. The Company is limited as to the amount of NOLs it may use in any given year due to a change in ownership that occurred in a prior year, as defined by Section 382 under the Internal Revenue Code. As of July 1, 2016, the Company no longer has any NOLs related to vested stock-based compensation awards that were previously unrecognized under GAAP. Such NOLs were utilized during the quarter ended June 30, 2016 to reduce the Company’s tax liability with a corresponding credit to additional paid-in capital. Net Operating Losses – Foreign The Company’s foreign subsidiaries generated NOLs outside the U.S. The following table summarizes the activity for these NOLs for the nine months ended September 30, 2016: NOL - December 31, 2015 (pre-tax) $ (10,746 ) Foreign subsidiaries loss (7,800 ) NOL - September 30, 2016 (pre-tax) (18,546 ) Tax Rate - Blended 19.0 % NOL (tax effected) - September 30, 2016 $ (3,524 ) At September 30, 2016 and December 31, 2015, the Company established a valuation allowance related to these NOLs of $3,524 and $2,051, respectively. Deferred Tax Assets A summary of the components of the gross and tax effected deferred tax asset as of September 30, 2016 is as follows: Stock-based compensation $ 11,793 Deferred rent liability 5,318 NOL – U.S. 4,195 Accrued expenses 6,040 Incentive compensation (4,442 ) Fixed assets (5,865 ) Other (539 ) Total U.S. deferred components 16,500 U.S. income tax rate 38.4 % U.S. tax effected 6,336 Japan tax effected 326 Total tax effected $ 6,662 |
Shares Repurchased
Shares Repurchased | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Shares Repurchased | 12. Shares Repurchased On October 29, 2014, the Company’s Board of Directors authorized a three-year share repurchase program of up to $100,000. On April 27, 2016, the Board of Directors approved a $60,000 increase to the Company’s share repurchase program and extended the term through April 27, 2019. Purchases under this program will include purchases to offset future equity grants made under the Company’s equity plans and 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. Shares repurchased under this program will be returned to the status of authorized and unissued on the Company’s books and records. During the three and nine months ended September 30, 2016, the Company repurchased 337,824 shares and 3,753,147 shares of its common stock, respectively, under this program for an aggregate cost of $3,462 and $39,116, respectively. During the three and nine months ended September 30, 2015, the Company repurchased 329,635 and 1,164,741 shares of its common stock, respectively, under this program for an aggregate cost of $8,424 and $23,689, respectively. As of September 30, 2016, $96,768 remains under this program for future purchases. |
Business Combinations and Acqui
Business Combinations and Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations and Acquisitions | 13. Business Combinations and Acquisitions GreenHaven Acquisition Effective January 1, 2016, the Company completed the acquisition of 100% of the issued and outstanding membership interest in each of GreenHaven Commodity Services, LLC, the managing owner of the GreenHaven Continuous Commodity Index Fund, and GreenHaven Coal Services, LLC, the sponsor of the GreenHaven Coal Fund, from GreenHaven, LLC and GreenHaven Group LLC, respectively, for approximately $11,800 in cash. As part of the acquisition, the Company recognized an intangible asset of approximately $10,000 and goodwill of approximately $1,800 (which primarily represents potential future performance of the funds), which is deductible for tax purposes. The following table summarizes the purchase price allocation: Fair value acquired: Assets $ 205 Goodwill 1,799 Intangible asset 9,953 Total assets acquired $ 11,957 Less: Liabilities (132 ) Total $ 11,825 Boost Acquisition In April 2014, the Company expanded into Europe through a 75% majority investment in U.K. based ETP sponsor Boost, with an obligation to buy out the remaining minority investment in four years. In May 2016, the Company accelerated the buyout and completed the purchase of the remaining minority interest. As a result, the Company recognized $5,993 of expense for the three months ended June 30, 2016 as an acquisition payment on the Company’s Consolidated Statements of Operations to reflect the purchase price and other related expenses. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 14. Goodwill and Intangible Assets Goodwill The Company has designated April 30 th Balance at January 1, 2016 $ 1,676 Goodwill acquired during the period 1,799 Balance at September 30, 2016 $ 3,475 Goodwill was tested for impairment during the three months ended June 30, 2016. The fair value of the reporting unit exceeded its carrying value and therefore no impairment was recognized. Intangible Asset (Indefinite-Lived) As part of the GreenHaven acquisition, the Company identified an intangible asset related to its customary advisory agreement with the GreenHaven Commodities ETF for $9,953. This intangible asset (which is deductible for tax purposes) was determined to have an indefinite useful life. The Company has designated November 30 th Total Balance at January 1, 2016 $ — Increases – Advisory agreement (Commodities) 9,953 Balance at September 30, 2016 $ 9,953 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events The Company has evaluated subsequent events through the date of issuance of the accompanying consolidated financial statements. There were no events requiring disclosure. |
Significant Accounting Polici22
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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. |
Consolidation | Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. If the Company has a majority voting interest in a VOE, the entity is consolidated. The Company has a controlling financial interest in a VIE when the Company has a variable interest that provides it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has no variable interests in any VIEs. |
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 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 from its ETPs, as well as licensing fees from third parties. ETP 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. |
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 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 (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating securities. Unvested share-based payment awards that contain non- forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of EPS pursuant to the two-class method. Share-based payment awards that do not contain such rights are not deemed participating securities and are included in diluted shares outstanding (if dilutive) under the treasury stock method. Diluted EPS reflects the reduction in earnings per share assuming dilutive options or other dilutive contracts to issue common stock were exercised or converted into common stock. Diluted EPS is calculated under both the treasury stock method and two-class method. The calculation that results in the most dilutive EPS amount for the common stock is reported in the Company’s consolidated financial statements. |
Investments (Held-to-Maturity) | Investments (Held-to-Maturity) The Company accounts for all of its investments as held-to-maturity on a settlement date basis, 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 quarterly 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. |
Financial Instruments (Trading Securities) | Financial Instruments (Trading Securities) Financial instruments owned and financial instruments sold, but not yet purchased are recorded on their settlement date and are measured at fair value. |
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 and at the time of a triggering event requiring re-evaluation, if one were to occur. Goodwill is impaired if its estimated fair value is less than its carrying value. The Company has designated April 30 th |
Intangible Assets | Intangible Assets Indefinite-lived intangible assets are tested for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets, if any, are amortized over their estimated useful life, which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. The Company has designated November 30 th |
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. 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. |
Third-Party Sharing Arrangements | Third-Party Sharing Arrangements The Company pays a percentage of its advisory fee revenues 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, Japan and Canada. |
Business Combinations and Acquisitions | Business Combinations and Acquisitions 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. The Company may allocate purchase price to identifiable intangible assets. The estimated fair value of identifiable intangible assets is based on critical estimates, judgments and assumptions derived from: analysis of market conditions; discount rate; discounted cash flows; customer retention rates; and estimated useful lives. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes In February 2015, the FASB issued Accounting Standards Update 2015-02, Amendments to the Consolidation Analysis In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers |
Significant Accounting Polici23
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 ("Held-to-Maturit24
Investments ("Held-to-Maturity") (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments Schedule [Abstract] | |
Schedule of Held-to-Maturity Investments | The following table is a summary of the Company’s held-to-maturity investments: September 30, 2016 December 31, 2015 Held-to- Held-to- Federal agency debt instruments $ 16,229 $ 23,689 |
Schedule of Unrealized Gains, Losses and Fair Value of Investments | The following table summarizes unrealized gains, losses and fair value of investments: September 30, 2016 December 31, 2015 Held-to- Held-to- Cost/amortized cost $ 16,229 $ 23,689 Gross unrealized gains 27 82 Gross unrealized losses (133 ) (609 ) Fair value $ 16,123 $ 23,162 |
Schedule of Maturity Profile of Investments | The following table sets forth the maturity profile of investments; however, these investments may be called prior to the maturity date: September 30, 2016 December 31, 2015 Held-to- Held-to- Due within one year $ 1,991 $ — Due one year through five years 3,026 8,369 Due five years through ten years 6,041 3,127 Due over ten years 5,171 12,193 Total $ 16,229 $ 23,689 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | The following table summarizes fixed assets: September 30, 2016 December 31, 2015 Equipment $ 1,727 $ 1,258 Furniture and fixtures 2,416 2,382 Leasehold improvements 10,628 10,312 Less accumulated depreciation and amortization (2,981 ) (1,978 ) Total $ 11,790 $ 11,974 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 were approximately as follows: Remainder of 2016 $ 1,057 2017 3,880 2018 3,308 2019 2,956 2020 and thereafter 26,950 Total $ 38,151 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Summary of Accounts Receivable from Related Parties | The following table summarizes accounts receivable from related parties which are included as a component of Accounts receivable on the Company’s Consolidated Balance Sheets: September 30, 2016 December 31, 2015 Receivable from WTT $ 15,980 $ 24,560 Receivable from BI and WTI 666 487 Receivable from WTCS and WTC 154 — Receivable from WTAMC 30 — Total $ 16,830 $ 25,047 |
Summary of Revenues from Advisory Services Provided to Related Parties | The following table summarizes revenues from advisory services provided to related parties: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Advisory services provided to WTT $ 49,087 $ 79,242 $ 161,316 $ 218,997 Advisory services provided to BI and WTI 1,915 1,278 5,308 2,712 Advisory services provided to WTCS and WTC 482 — 1,406 — Advisory services provided to WTAMC 69 — 69 — Total $ 51,553 $ 80,520 $ 168,099 $ 221,709 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Options and Restricted Stock Activity | A summary of options and restricted stock activity for the three months ended September 30, 2016 is as follows: Options Weighted Restricted Balance at June 30, 2016 1,447,747 $ 2.73 2,432,066 Granted — $ — 197,459 Exercised/vested (3,500 ) $ 1.07 (126,092 ) Forfeitures — $ — (17,155 ) Balance at September 30, 2016 1,444,247 $ 2.73 2,486,278 |
Summary of Stock-Based Compensation Expense | A summary of stock-based compensation expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ 3,822 $ 2,926 $ 11,092 $ 7,878 |
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: September 30, 2016 Unrecognized Stock-Based Average Employees and directors option awards $ 36 0.32 Employees and directors restricted stock awards $ 24,507 2.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 2016 2015 2016 2015 (shares in thousands) Net income $ 7,955 $ 23,288 $ 23,678 $ 59,522 Shares of common stock and common stock equivalents Weighted average common shares used in basic computation 134,046 136,582 134,541 135,527 Dilutive effect of common stock equivalents 1,144 1,599 1,042 2,306 Weighted average shares used in dilutive computation 135,190 138,181 135,583 137,833 Basic earnings per share $ 0.06 $ 0.17 $ 0.17 $ 0.44 Diluted earnings per share $ 0.06 $ 0.17 $ 0.17 $ 0.43 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Gross and Tax Effected Deferred Tax Asset Recorded | A summary of the components of the gross and tax effected deferred tax asset as of September 30, 2016 is as follows: Stock-based compensation $ 11,793 Deferred rent liability 5,318 NOL – U.S. 4,195 Accrued expenses 6,040 Incentive compensation (4,442 ) Fixed assets (5,865 ) Other (539 ) Total U.S. deferred components 16,500 U.S. income tax rate 38.4 % U.S. tax effected 6,336 Japan tax effected 326 Total tax effected $ 6,662 |
Foreign Subsidiaries [Member] | |
Schedule of Net Operating Losses for Tax Purposes | The Company’s foreign subsidiaries generated NOLs outside the U.S. The following table summarizes the activity for these NOLs for the nine months ended September 30, 2016: NOL - December 31, 2015 (pre-tax) $ (10,746 ) Foreign subsidiaries loss (7,800 ) NOL - September 30, 2016 (pre-tax) (18,546 ) Tax Rate - Blended 19.0 % NOL (tax effected) - September 30, 2016 $ (3,524 ) |
Business Combinations and Acq31
Business Combinations and Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation | The following table summarizes the purchase price allocation: Fair value acquired: Assets $ 205 Goodwill 1,799 Intangible asset 9,953 Total assets acquired $ 11,957 Less: Liabilities (132 ) Total $ 11,825 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity | The following table summarizes the goodwill activity during the period: Balance at January 1, 2016 $ 1,676 Goodwill acquired during the period 1,799 Balance at September 30, 2016 $ 3,475 |
Summary of Indefinite-lived Intangible Asset | Total Balance at January 1, 2016 $ — Increases – Advisory agreement (Commodities) 9,953 Balance at September 30, 2016 $ 9,953 |
Significant Accounting Polici33
Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Detail) | 9 Months Ended |
Sep. 30, 2016 | |
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 Polici34
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016Segment | Dec. 31, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents maturity period, maximum | 90 days | |
Number of operating segments | Segment | 1 | |
Accounting Standards Update 2015-17 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Reclassification from current to noncurrent assets | $ | $ (9,279) |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents held at financial institution | $ 137,314 | $ 137,481 |
Cash and cash equivalents held at one financial institution | $ 144,270 | $ 152,103 |
Investments ("Held-to-Maturit36
Investments ("Held-to-Maturity") - Schedule of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-Maturity debt instruments | $ 16,229 | $ 23,689 |
Federal Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-Maturity debt instruments | $ 16,229 | $ 23,689 |
Investments ("Held-to-Maturit37
Investments ("Held-to-Maturity") - Schedule of Unrealized Gains, Losses and Fair Value of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity cost or amortized cost | $ 16,229 | $ 23,689 |
Held-to-maturity gross unrealized gains | 27 | 82 |
Held-to-maturity gross unrealized losses | (133) | (609) |
Held-to-maturity fair value | $ 16,123 | $ 23,162 |
Investments ("Held-to-Maturit38
Investments ("Held-to-Maturity") - Schedule of Maturity Profile of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity due within one year | $ 1,991 | |
Held-to-maturity due one year through five years | 3,026 | $ 8,369 |
Held-to-maturity due five years through ten years | 6,041 | 3,127 |
Held-to-maturity due over ten years | 5,171 | 12,193 |
Held-to-maturity cost or amortized cost | $ 16,229 | $ 23,689 |
Financial Instruments and Fai39
Financial Instruments and Fair Value Measurement - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liquid investments, original maturities | P90D | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of acquisition payable | $ 9,900,000 | |
Discounted cash flows, discount rate | 27.50% | |
Level 3 [Member] | ETP [Member] | Europe [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Projected AUM | $ 1,000,000,000 | |
Level 3 [Member] | ETP [Member] | Europe [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Projected AUM | 6,000,000,000 | |
Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments owned | $ 125,000 | 0 |
Fair Value, Inputs, Level 1 [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments sold, but not yet purchased | $ 114,000 | $ 0 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (2,981) | $ (1,978) |
Total | 11,790 | 11,974 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,727 | 1,258 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,416 | 2,382 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 10,628 | $ 10,312 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating leases expenses | $ 1,203 | $ 906 | $ 3,221 | $ 2,529 |
Standby letter of credit | $ 1,384 | $ 1,384 |
Commitments and Contingencies42
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 1,057 |
2,017 | 3,880 |
2,018 | 3,308 |
2,019 | 2,956 |
2020 and thereafter | 26,950 |
Total | $ 38,151 |
Related Party Transactions - Su
Related Party Transactions - Summary of Accounts Receivable from Related Parties (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 16,830 | $ 25,047 |
WisdomTree Trust [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 15,980 | 24,560 |
Boost Issuer PLC And WisdomTree Issuer plc [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 666 | $ 487 |
WisdomTree Commodity Services, LLC And WisdomTree Coal Services, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 154 | |
WisdomTree Asset Management Canada, Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 30 |
Related Party Transactions - 44
Related Party Transactions - Summary of Revenues from Advisory Services Provided to Related Parties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | $ 51,553 | $ 80,520 | $ 168,099 | $ 221,709 |
WisdomTree Trust [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | 49,087 | 79,242 | 161,316 | 218,997 |
Boost Issuer PLC And WisdomTree Issuer plc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | 1,915 | $ 1,278 | 5,308 | $ 2,712 |
WisdomTree Commodity Services, LLC And WisdomTree Coal Services, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | 482 | 1,406 | ||
WisdomTree Asset Management Canada, Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | $ 69 | $ 69 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - shares | Jun. 20, 2016 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Stock option issuance period | 10 years | |
Option vested period | 1 year | |
Option issued period | Options may be issued for a term of ten years | |
Shares of common stock authorized to issue under equity award plan | 10,000,000 | |
Expire start date on options | Jan. 1, 2017 | |
Expire end date on options | Nov. 15, 2021 | |
Description of new equity award plan | On June 20, 2016, the Company's stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards. |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Options and Restricted Stock Activity (Detail) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, beginning balance | 1,447,747 |
Options, Granted | 0 |
Options, Exercised/vested | (3,500) |
Options, Forfeitures | 0 |
Options, ending balance | 1,444,247 |
Weighted Average Exercise Price of Options, beginning balance | $ / shares | $ 2.73 |
Weighted Average Exercise Price of Options, Granted | $ / shares | 0 |
Weighted Average Exercise Price of Options, Exercised/vested | $ / shares | 1.07 |
Weighted Average Exercise Price of Options, Forfeitures | $ / shares | 0 |
Weighted Average Exercise Price of Options, ending balance | $ / shares | $ 2.73 |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Awards, beginning balance | 2,432,066 |
Restricted Stock Awards, Granted | 197,459 |
Restricted Stock Awards, Exercised/vested | (126,092) |
Restricted Stock Awards, Forfeitures | (17,155) |
Restricted Stock Awards, ending balance | 2,486,278 |
Stock-Based Awards - Summary 47
Stock-Based Awards - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Stock-based compensation expense | $ 3,822 | $ 2,926 | $ 11,092 | $ 7,878 |
Stock-Based Awards - Summary 48
Stock-Based Awards - Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Employees and Directors Option Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 36 |
Average Remaining Vesting Period | 3 months 26 days |
Employees and Directors Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Stock-Based Compensation | $ 24,507 |
Average Remaining Vesting Period | 2 years |
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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 7,955 | $ 23,288 | $ 23,678 | $ 59,522 |
Shares of common stock and common stock equivalents: | ||||
Weighted average common shares used in basic computation | 134,046 | 136,582 | 134,541 | 135,527 |
Dilutive effect of common stock equivalents | 1,144 | 1,599 | 1,042 | 2,306 |
Weighted average shares used in dilutive computation | 135,190 | 138,181 | 135,583 | 137,833 |
Basic earnings per share | $ 0.06 | $ 0.17 | $ 0.17 | $ 0.44 |
Diluted earnings per share | $ 0.06 | $ 0.17 | $ 0.17 | $ 0.43 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Reduction in basic EPS | $ 0.01 | |||
Anti-dilutive common stock equivalents excluded from calculation of diluted earnings per share | 516,630 | 243,427 | 909,118 | 836,427 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Schedule Of Income Tax [Line Items] | |||||
Effective rate | 44.10% | 41.10% | 49.70% | 41.40% | |
Income tax expense | $ 6,270 | $ 16,245 | $ 23,375 | $ 41,969 | |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | |
Pre-tax federal net operating losses | $ 4,195 | $ 4,195 | |||
Foreign Subsidiaries [Member] | |||||
Schedule Of Income Tax [Line Items] | |||||
Net operating losses, valuation allowance | $ 3,524 | $ 3,524 | $ 2,051 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Operating Losses for Tax Purposes - Non-U.S. (Detail) - Foreign Subsidiaries [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
NOL - December 31, 2015 (pre-tax) | $ (10,746) |
Foreign subsidiaries loss | (7,800) |
NOL - September 30, 2016 (pre-tax) | $ (18,546) |
Tax Rate - Blended | 19.00% |
NOL (tax effected) - September 30, 2016 | $ (3,524) |
Income Taxes - Summary of Gross
Income Taxes - Summary of Gross and Tax Effected Deferred Tax Asset Recorded (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Deferred Tax Asset [Line Items] | |
Stock-based compensation | $ 11,793 |
Deferred rent liability | 5,318 |
Accrued expenses | 6,040 |
Incentive compensation | (4,442) |
Fixed assets | (5,865) |
Other | (539) |
Total U.S. deferred components | $ 16,500 |
U.S. income tax rate | 38.40% |
Total tax effected | $ 6,662 |
U.S [Member] | |
Deferred Tax Asset [Line Items] | |
NOL - U.S | 4,195 |
Total tax effected | 6,336 |
Japan [Member] | |
Deferred Tax Asset [Line Items] | |
Total tax effected | $ 326 |
Shares Repurchased - Additional
Shares Repurchased - Additional Information (Detail) - Three-Year Share Repurchase Program [Member] - USD ($) | Apr. 27, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Oct. 29, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock purchase authorized amount | $ 100,000,000 | |||||
Share repurchase program, increase in authorized amount | $ 60,000,000 | |||||
Share repurchase program, extended term date | Apr. 27, 2019 | |||||
Repurchased common stock, shares | 337,824 | 329,635 | 3,753,147 | 1,164,741 | ||
Repurchased common stock, value | $ 3,462,000 | $ 8,424,000 | $ 39,116,000 | $ 23,689,000 | ||
Dollar amount remaining for future share repurchases | $ 96,768,000 | $ 96,768,000 |
Business Combinations and Acq55
Business Combinations and Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2016 | Apr. 30, 2014 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||
Business acquisition, goodwill | $ 3,475 | $ 1,676 | |||||
Expense related to acquisition payment | $ 172 | $ 6,738 | $ 693 | ||||
Boost [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of issued and outstanding membership interest acquired | 75.00% | ||||||
Expense related to acquisition payment | $ 5,993 | ||||||
Payout period | 4 years | ||||||
GreenHaven Commodity Services, LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of issued and outstanding membership interest acquired | 100.00% | ||||||
Business acquisition, cash paid | $ 11,800 | ||||||
Business acquisition, recognized an intangible asset | 9,953 | ||||||
Business acquisition, goodwill | $ 1,799 |
Business Combinations and Acq56
Business Combinations and Acquisitions- Summary of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,475 | $ 1,676 | |
GreenHaven Commodity Services, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Assets | $ 205 | ||
Goodwill | 1,799 | ||
Intangible asset | 9,953 | ||
Total assets acquired | 11,957 | ||
Less: Liabilities | (132) | ||
Total | $ 11,825 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Summary of Goodwill Activity (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 1,676 |
Goodwill acquired during the period | 1,799 |
Ending balance | $ 3,475 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible asset related to its customary advisory agreement | $ 9,953,000 | ||
Goodwill, impairment loss | $ 0 | ||
GreenHaven Commodity Services, LLC [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible asset related to its customary advisory agreement | $ 9,953,000 | $ 0 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Summary of Indefinite-lived Intangible Asset (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Ending balance | $ 9,953 |
GreenHaven Commodity Services, LLC [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Beginning balance | 0 |
Increases - Advisory agreement (Commodities) | 9,953 |
Ending balance | $ 9,953 |