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Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended
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Jun. 30, 2019
Fair Value Disclosures [Abstract] |
Fair Value Hierarchy of Financial Assets and Liabilities under U.S. GAAP Guidance | The following table sets forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance at June 30, 2019 and December 31, 2018 (in thousands):
|  | As of June 30, 2019 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities |  | $ | 33,659 |  |  | $ | — |  |  | $ | — |  |  | $ | 33,659 |
Nasdaq Forwards |  |  | — |  |  |  | — |  |  |  | 48,652 |  |  |  | 48,652 |
Loans held for sale, at fair value |  |  | — |  |  |  | 818,909 |  |  |  | — |  |  |  | 818,909 |
Rate lock commitments |  |  | — |  |  |  | — |  |  |  | 21,951 |  |  |  | 21,951 |
Forwards |  |  | — |  |  |  | — |  |  |  | 2,845 |  |  |  | 2,845 |
Total assets |  | $ | 33,659 |  |  | $ | 818,909 |  |  | $ | 73,448 |  |  | $ | 926,016 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities—contingent consideration |  | $ | — |  |  | $ | — |  |  | $ | 38,712 |  |  | $ | 38,712 |
Rate lock commitments |  |  | — |  |  |  | — |  |  |  | 2,428 |  |  |  | 2,428 |
Forwards |  |  | — |  |  |  | — |  |  |  | 27,261 |  |  |  | 27,261 |
Total Liabilities |  | $ | — |  |  | $ | — |  |  | $ | 68,401 |  |  | $ | 68,401 |
|  | As of December 31, 2018 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities |  | $ | 48,942 |  |  | $ | — |  |  | $ | — |  |  | $ | 48,942 |
Nasdaq Forwards |  |  | — |  |  |  | — |  |  |  | 77,619 |  |  |  | 77,619 |
Loans held for sale, at fair value |  |  | — |  |  |  | 990,864 |  |  |  | — |  |  |  | 990,864 |
Rate lock commitments |  |  | — |  |  |  | — |  |  |  | 6,732 |  |  |  | 6,732 |
Forwards |  |  | — |  |  |  | — |  |  |  | 8,177 |  |  |  | 8,177 |
Total assets |  | $ | 48,942 |  |  | $ | 990,864 |  |  | $ | 92,528 |  |  | $ | 1,132,334 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities—contingent consideration |  | $ | — |  |  | $ | — |  |  | $ | 32,552 |  |  | $ | 32,552 |
Rate lock commitments |  |  | — |  |  |  | — |  |  |  | 7,470 |  |  |  | 7,470 |
Forwards |  |  | — |  |  |  | — |  |  |  | 9,208 |  |  |  | 9,208 |
Total Liabilities |  | $ | — |  |  | $ | — |  |  | $ | 49,230 |  |  | $ | 49,230 |
Changes in Level 3 Nasdaq Forwards, Rate Lock Commitments, Forwards and Contingent Consideration Measured at Fair Value on Recurring Basis | Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the three months ended June 30, 2019 were as follows (in thousands):
|  | Opening Balance April 1, 2019 |  |  | Total realized and unrealized gains (losses) included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2019 |  |  | Unrealized gains (losses) outstanding as of June 30, 2019 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rate Lock Commitments |  | $ | 10,210 |  |  | $ | 21,951 |  |  | $ | — |  |  | $ | (10,210 | ) |  | $ | 21,951 |  |  | $ | 21,951 |
Forwards |  |  | 5,964 |  |  |  | 2,845 |  |  |  | — |  |  |  | (5,964 | ) |  |  | 2,845 |  |  |  | 2,845 |
Nasdaq Forwards |  |  | 64,290 |  |  |  | (15,638 | ) |  |  | — |  |  |  | — |  |  |  | 48,652 |  |  |  | (15,638 | )
Total Assets |  | $ | 80,464 |  |  | $ | 9,158 |  |  | $ | — |  |  | $ | (16,174 | ) |  | $ | 73,448 |  |  | $ | 9,158 |
|  | Opening Balance April 1, 2019 |  |  | Total realized and unrealized (gains) losses included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2019 |  |  | Unrealized (gains) losses outstanding as of June 30, 2019 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities – contingent consideration(1) |  | $ | 31,357 |  |  | $ | (65 | ) |  | $ | 7,758 |  |  | $ | (338 | ) |  | $ | 38,712 |  |  | $ | (65 | )
Rate Lock Commitments |  |  | 5,190 |  |  |  | 2,428 |  |  |  | — |  |  |  | (5,190 | ) |  |  | 2,428 |  |  |  | 2,428 |
Forwards |  |  | 9,596 |  |  |  | 27,261 |  |  |  | — |  |  |  | (9,596 | ) |  |  | 27,261 |  |  |  | 27,261 |
Total Liabilities |  | $ | 46,143 |  |  | $ | 29,624 |  |  | $ | 7,758 |  |  | $ | (15,124 | ) |  | $ | 68,401 |  |  | $ | 29,624 |
| (1) | Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations.
Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the three months ended June 30, 2018 were as follows (in thousands):
|  | Opening Balance as of April 1, 2018 |  |  | Total realized and unrealized gains (losses) included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2018 |  |  | Unrealized gains (losses) outstanding as of June 30, 2018 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rate Lock Commitments |  | $ | 8,750 |  |  | $ | 14,448 |  |  | $ | — |  |  | $ | (8,750 | ) |  | $ | 14,448 |  |  | $ | 14,448 |
Forwards |  |  | 9,687 |  |  |  | 16,442 |  |  |  | — |  |  |  | (9,687 | ) |  |  | 16,442 |  |  |  | 16,442 |
Nasdaq Forwards |  |  | — |  |  |  | (2,808 | ) |  |  | 21,893 |  |  |  | — |  |  |  | 19,085 |  |  |  | (2,808 | )
Total Assets |  | $ | 18,437 |  |  | $ | 28,082 |  |  | $ | 21,893 |  |  | $ | (18,437 | ) |  | $ | 49,975 |  |  | $ | 28,082 |
|  | Opening Balance as of April 1, 2018 |  |  | Total realized and unrealized (gains) losses included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2018 |  |  | Unrealized (gains) losses outstanding as of June 30, 2018 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities – contingent consideration(1) |  | $ | 23,088 |  |  | $ | 295 |  |  | $ | 688 |  |  | $ | (2,497 | ) |  | $ | 21,574 |  |  | $ | 295 |
Rate Lock Commitments |  |  | 8,980 |  |  |  | 13,945 |  |  |  | — |  |  |  | (8,980 | ) |  |  | 13,945 |  |  |  | 13,945 |
Forwards |  |  | 2,421 |  |  |  | 641 |  |  |  | — |  |  |  | (2,421 | ) |  |  | 641 |  |  |  | 641 |
Total Liabilities |  | $ | 34,489 |  |  | $ | 14,881 |  |  | $ | 688 |  |  | $ | (13,898 | ) |  | $ | 36,160 |  |  | $ | 14,881 |
| (1) | Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations.
Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the six months ended June 30, 2019 were as follows (in thousands):
|  | Opening Balance as of January 1, 2019 |  |  | Total realized and unrealized gains (losses) included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2019 |  |  | Unrealized gains (losses) outstanding as of June 30, 2019 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rate Lock Commitments |  | $ | 6,732 |  |  | $ | 21,951 |  |  | $ | — |  |  | $ | (6,732 | ) |  | $ | 21,951 |  |  | $ | 21,951 |
Forwards |  |  | 8,177 |  |  |  | 2,845 |  |  |  | — |  |  |  | (8,177 | ) |  |  | 2,845 |  |  |  | 2,845 |
Nasdaq Forwards |  |  | 77,619 |  |  |  | (28,967 | ) |  |  | — |  |  |  | — |  |  |  | 48,652 |  |  |  | (28,967 | )
Total Assets |  | $ | 92,528 |  |  | $ | (4,171 | ) |  | $ | — |  |  | $ | (14,909 | ) |  | $ | 73,448 |  |  | $ | (4,171 | )
|  | Opening Balance as of January 1, 2019 |  |  | Total realized and unrealized (gains) losses included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2019 |  |  | Unrealized (gains) losses outstanding as of June 30, 2019 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities – contingent consideration(1) |  | $ | 32,552 |  |  | $ | 1,319 |  |  | $ | 7,758 |  |  | $ | (2,917 | ) |  | $ | 38,712 |  |  | $ | 1,319 |
Rate Lock Commitments |  |  | 7,470 |  |  |  | 2,428 |  |  |  | — |  |  |  | (7,470 | ) |  |  | 2,428 |  |  |  | 2,428 |
Forwards |  |  | 9,208 |  |  |  | 27,261 |  |  |  | — |  |  |  | (9,208 | ) |  |  | 27,261 |  |  |  | 27,261 |
Total Liabilities |  | $ | 49,230 |  |  | $ | 31,008 |  |  | $ | 7,758 |  |  | $ | (19,595 | ) |  | $ | 68,401 |  |  | $ | 31,008 |
| (1) | Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations.
Changes in Level 3 Nasdaq Forwards, rate lock commitments, forwards and contingent consideration measured at fair value on recurring basis for the six months ended June 30, 2018 were as follows (in thousands):
|  | Opening Balance as of January 1, 2018 |  |  | Total realized and unrealized gains (losses) included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2018 |  |  | Unrealized gains (losses) outstanding as of June 30, 2018 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rate Lock Commitments |  | $ | 2,923 |  |  | $ | 14,448 |  |  | $ | — |  |  | $ | (2,923 | ) |  | $ | 14,448 |  |  | $ | 14,448 |
Forwards |  |  | 3,753 |  |  |  | 16,442 |  |  |  | — |  |  |  | (3,753 | ) |  |  | 16,442 |  |  |  | 16,442 |
Nasdaq Forwards |  |  | — |  |  |  | (2,808 | ) |  |  | 21,893 |  |  |  | — |  |  |  | 19,085 |  |  |  | (2,808 | )
Total Assets |  | $ | 6,676 |  |  | $ | 28,082 |  |  | $ | 21,893 |  |  | $ | (6,676 | ) |  | $ | 49,975 |  |  | $ | 28,082 |
|  | Opening Balance as of January 1, 2018 |  |  | Total realized and unrealized (gains) losses included in Net income(1) |  |  | Issuances |  |  | Settlements |  |  | Closing Balance as of June 30, 2018 |  |  | Unrealized (gains) losses outstanding as of June 30, 2018 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable, accrued expenses and other liabilities – contingent consideration(1) |  | $ | 23,710 |  |  | $ | 432 |  |  | $ | 688 |  |  | $ | (3,256 | ) |  | $ | 21,574 |  |  | $ | 432 |
Rate Lock Commitments |  |  | 2,390 |  |  |  | 13,945 |  |  |  | — |  |  |  | (2,390 | ) |  |  | 13,945 |  |  |  | 13,945 |
Forwards |  |  | 657 |  |  |  | 641 |  |  |  | — |  |  |  | (657 | ) |  |  | 641 |  |  |  | 641 |
Total Liabilities |  | $ | 26,757 |  |  | $ | 15,018 |  |  | $ | 688 |  |  | $ | (6,303 | ) |  | $ | 36,160 |  |  | $ | 15,018 |
| (1) | Realized and unrealized losses are reported in “Other income (loss), net” in Newmark’s unaudited condensed consolidated statements of operations.
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements The following tables present quantitative information about the significant unobservable inputs utilized by Newmark in the fair value measurement of Level 3 assets and liabilities measured at fair value on a recurring basis:
June 30, 2019 |
Level 3 assets and liabilities |  | Assets |  |  | Liabilities |  |  | Significant Unobservable Inputs |  | Range |  | Weighted Average |
Accounts payable, accrued expenses and other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  |  | $ | 38,712 |  |  | Discount rate |  | 0.3% - 10.4% |  | 8.1% |
|  |  |  |  |  |  |  |  |  | Probability of meeting earnout and contingencies |  | 99% - 100% |  | 99.5% |
|  |  |  |  |  |  |  |  |  | Financial forecast information |  |  |  |  |  |
Derivative assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nasdaq Forwards |  | $ | 48,652 |  |  | $ | — |  |  | Volatility |  | 27.75% - 35.25% |  | 32.2% |
Forward sale contracts |  | $ | 2,845 |  |  | $ | 27,261 |  |  | Counterparty credit risk |  | N/A |  | N/A |
Rate lock commitments |  | $ | 21,951 |  |  | $ | 2,428 |  |  | Counterparty credit risk |  | N/A |  | N/A |
December 31, 2018 |
Level 3 assets and liabilities |  | Assets |  |  | Liabilities |  |  | Significant Unobservable Inputs |  | Range |  | Weighted Average |
Accounts payable, accrued expenses and other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  |  | $ | 32,552 |  |  | Discount rate |  | 0.3%-10.4% |  | 8.2% |
|  |  |  |  |  |  |  |  |  | Probability of meeting earnout and contingencies |  | 99%-100%(1) |  | 99.6% |
|  |  |  |  |  |  |  |  |  | Financial forecast information |  |  |  |  |  |
Derivative assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nasdaq Forwards |  | $ | 77,619 |  |  | $ | — |  |  | Volatility |  | 23.7%-34.8%(2) |  | 30.2% |
Forward sale contracts |  | $ | 8,177 |  |  | $ | 9,208 |  |  | Counterparty credit risk |  | N/A |  | N/A |
Rate lock commitments |  | $ | 6,732 |  |  | $ | 7,470 |  |  | Counterparty credit risk |  | N/A |  | N/A |
| (1) | Newmark’s estimate of contingent consideration as of June 30, 2019 and December 31, 2018 was based on the acquired business’ projected future financial performance, including revenues.
| (2) | The volatility of Newmark’s Nasdaq Forwards is primarily based on the underlying Nasdaq stock price.

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- Definition Tabular disclosure of information about asset and liability measured at fair value under fair value option. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14210-108612 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14217-108612 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 + Details
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