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Derivatives (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Contracts

The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands):

		As of June 30, 2019												As of December 31, 2018
Derivative contract		Assets				Liabilities				Notional Amounts				Assets				Liabilities				Notional Amounts
Forwards		$	51,497		(1)	$	27,261			$	1,794,842		(2)	$	85,796		(1)	$	9,208			$	1,574,114		(2)
Rate lock commitments			21,951				2,428				640,671				6,732				7,470				240,720
Total		$	73,448			$	29,689			$	2,435,513			$	92,528			$	16,678			$	1,814,834

(1) Included in Forwards is $48.7 million and $77.6 million of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively (See Note 1 — Organization and Basis of Presentation). Newmark recorded $29.0 million and $(19.0) million of unrealized (gains)/losses for a change in the fair value of the Nasdaq Forwards as of June 30, 2019 and December 31, 2018, respectively.

(2) 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. Included in the notional amounts of forwards is $361.0 million for the Nasdaq Forwards as of June 30, 2019 and December 31, 2018.

Summary of Gain (Loss) on Change in Fair Value of Derivatives Included in Condensed Consolidated Statements of Operations

The table below summarizes gains and losses on derivative contracts which are included in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 (in thousands):

		Location of gain (loss) recognized		Three Months Ended June 30,								Six Months Ended June 30,
		in income for derivatives		2019				2018				2019				2018
Derivatives not   designed as hedging   instruments:
Nasdaq Forwards		Other income (loss)		$	(15,638	)		$	2,808			$	(28,967	)		$	2,808
Rate lock commitments		Gains from mortgage banking activities/originations, net			14,292				1,515				21,379				3,784
Rate lock commitments		Compensation and employee benefits			211				(782	)			(1,856	)			(3,282	)
Forward sale contracts		Gains from mortgage banking activities/originations, net			(20,784	)			8,536				(24,416	)			15,802
				$	(21,919	)		$	12,077			$	(33,860	)		$	19,112

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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