XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.23.1

Derivatives | 3 Months Ended
--- | ---
Mar. 31, 2023
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 had previously 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):
|  | March 31, 2023 |  | December 31, 2022
Derivative contract |  | Assets |  | Liabilities |  | Notional Amounts(1) |  | Assets |  | Liabilities |  | Notional Amounts(1)
Rate lock commitments |  | $ | 10,076 |  |  | $ | 4,805 |  |  | $ | 329,291 |  |  | $ | 3,181 |  |  | $ | 8,754 |  |  | $ | 140,697 |
Forward sale contracts |  | 6,183 |  |  | 4,487 |  |  | 757,955 |  |  | 11,139 |  |  | 624 |  |  | 278,331 |
Total |  | $ | 16,259 |  |  | $ | 9,292 |  |  | $ | 1,087,246 |  |  | $ | 14,320 |  |  | $ | 9,378 |  |  | $ | 419,028 |
(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 “Commercial mortgage origination, net” on the accompanying unaudited condensed consolidated statements of operations. The change in fair value of rate lock commitments are disclosed net of $1.8 million and $1.3 million of expenses for the three months ended March 31, 2023 and 2022, 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 gains (losses) recognized in income for derivatives |  | Three Months Ended March 31, |  |  |  |
|  |  | 2023 |  | 2022 |  |  |  |  |  |
Derivatives not designed as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Rate lock commitments |  | Commercial mortgage origination, net |  | 7,067 |  |  | (2,969) |  |  |  |  |  |  |
Rate lock commitments |  | Compensation and employee benefits |  | (1,796) |  |  | (1,347) |  |  |  |  |  |  |
Forward sale contracts |  | Commercial mortgage origination, net |  | 1,696 |  |  | 21,516 |  |  |  |  |  |  |
Total |  |  |  | $ | 6,967 |  |  | $ | 17,200 |  |  |  |  |  |  |
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 https://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 https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration