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Derivatives | 3 Months Ended
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Mar. 31, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivatives |
(10) | Derivatives
Newmark accounts for its derivatives at fair value, and recognized all derivatives as either assets or liabilities in its unaudited condensed consolidated balance sheets. In its normal course of business, Newmark enters into commitments to extend credit for mortgage loans at a specific rate (rate lock commitments) and commitments to deliver these loans to third-party investors at a fixed price (forward sale contracts). These transactions are accounted for as derivatives. The fair value of derivative contracts, computed in accordance with the Newmark’s netting policy, is set forth below (in thousands):
|  | March 31, 2018 |  |  | December 31, 2017 |
|  |  |  |  |  |  |  |  |  | Notional |  |  |  |  |  |  |  |  |  |  | Notional |
Derivative contract |  | Assets |  |  | Liabilities |  |  | Amounts (1) |  |  | Assets |  |  | Liabilities |  |  | Amounts(1) |
Forwards |  | $ | 9,687 |  |  | $ | 2,421 |  |  | $ | 1,324,711 |  |  | $ | 3,753 |  |  | $ | 657 |  |  | $ | 541,359 |
Rate lock commitments |  |  | 8,750 |  |  |  | 8,980 |  |  |  | 374,197 |  |  |  | 2,923 |  |  |  | 2,390 |  |  |  | 180,918 |
Total |  | $ | 18,437 |  |  | $ | 11,401 |  |  |  |  |  |  | $ | 6,676 |  |  | $ | 3,047 |  |  |  |  |
(1) | Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and does not represent anticipated losses.
The change in fair value of rate lock commitments and forward sale contracts related to mortgage loans are reported as part of “Gain from mortgage banking activities/originations, net” in Newmark’s unaudited condensed consolidated statements of operations. The change in fair value of rate lock commitments are disclosed net of expenses of $2.5 million and $0.8 million for the three months ended March 31, 2018 and 2017, which are reported as part of “Compensation and employee benefits” in the Newmark’s unaudited condensed consolidated statements of operations. The fair value of Newmark’s derivatives for rate lock commitments and forward sale contracts are as follows (in thousands) and are included in “Gain from mortgage banking activities/originations, net” and “Compensation and employee benefits” in the unaudited condensed consolidated statements of operations:
|  | Location of gain (loss) recognized |  | Three Months Ended March 31, |
|  | in income for derivatives |  | 2018 |  |  | 2017 |
Derivatives not designed as hedging instruments: |  |  |  |  |  |  |  |  |  |
Rate lock commitments |  | Gains from mortgage banking activities/originations, net |  | $ | 2,269 |  |  | $ | 132 |
Rate lock commitments |  | Compensation and employee benefits |  |  | (2,500 | ) |  |  | (807 | )
Forward sale contracts |  | Gains from mortgage banking activities/originations, net |  |  | 7,266 |  |  |  | 3,317 |
|  |  |  | $ | 7,035 |  |  | $ | 2,642 |
Derivative assets and derivative liabilities are included in “Other current assets” and the current portion of “Accounts payable, accrued expenses and other liabilities,” respectively.

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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