XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.21.2

Derivatives | 6 Months Ended
--- | ---
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives Newmark accounts for its derivatives at fair value and recognizes all derivatives as either assets or liabilities on the accompanying 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). In addition, Newmark has entered into the Nasdaq Forwards (see Note 1 — “Organization and Basis of Presentation”) that are accounted for as derivatives. The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Derivative contract |  | Assets |  | Liabilities |  | Notional Amounts(1) |  | Assets |  | Liabilities |  | Notional Amounts(1)
Rate lock commitments |  | $ | 21,374 |  |  | $ | 3,707 |  |  | $ | 613,275 |  |  | $ | 21,034 |  |  | $ | 2,977 |  |  | $ | 296,972 |
Nasdaq Forwards |  | — |  |  | — |  |  | — |  |  | 12,822 |  |  | — |  |  | 174,000 |
Forward sale contracts |  | 4,026 |  |  | 11,331 |  |  | 1,023,446 |  |  | 7,632 |  |  | 14,971 |  |  | 1,359,482 |
Total |  | $ | 25,400 |  |  | $ | 15,038 |  |  | $ | 1,636,721 |  |  | $ | 41,488 |  |  | $ | 17,948 |  |  | $ | 1,830,454 |
(1)Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and do 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 “Gains from mortgage banking activities/originations, net” on the accompanying unaudited condensed consolidated statements of operations. The change in fair value of rate lock commitments are disclosed net of $1.1 million and $0.5 million of income for the three months ended June 30, 2021 and 2020, respectively, and $2.2 million and $0.9 million of expenses for the six months ended June 30, 2021 and 2020, respectively. The changes in fair value of rate lock commitments are reported as part of “Compensation and employee benefits” on the accompanying unaudited condensed consolidated statements of operations. Gains and losses on derivative contracts, which are included on the accompanying unaudited condensed consolidated statements of operations were as follows (in thousands):
|  | Location of gain (loss) recognized in income for derivatives |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  |
Derivatives not designed as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Nasdaq Forwards |  | Other income (loss), net |  | $ | (6,802) |  |  | $ | (22,945) |  |  | $ | (12,404) |  |  | $ | (1,772) |  |  |
Rate lock commitments |  | Gains (loss) from mortgage banking activities/originations, net |  | 15,149 |  |  | (10,208) |  |  | 19,843 |  |  | 49,955 |  |  |
Rate lock commitments |  | Compensation and employee benefits |  | (1,060) |  |  | 512 |  |  | (2,177) |  |  | (899) |  |  |
Forward sale contracts |  | Gains (loss) from mortgage banking activities/originations, net |  | (10,061) |  |  | 29,388 |  |  | (7,304) |  |  | (48,292) |  |  |
Total |  |  |  | $ | (2,774) |  |  | $ | (3,253) |  |  | $ | (2,042) |  |  | $ | (1,008) |  |  |
Derivative assets and derivative liabilities are included in “Other current assets”, “Other assets” and the “Accounts payable, accrued expenses and other liabilities”, on the accompanying unaudited condensed consolidated balance sheets.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration