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v3.23.1

Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Summary of 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 (in thousands):
| As of March 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Marketable securities | $ | 441 |  |  | $ | — |  |  | $ | — |  |  | $ | 441 |
Loans held for sale, at fair value | — |  |  | 434,852 |  |  | — |  |  | 434,852 |
Rate lock commitments | — |  |  | — |  |  | 10,076 |  |  | 10,076 |
Forward sale contracts | — |  |  | — |  |  | 6,183 |  |  | 6,183 |
Total | $ | 441 |  |  | $ | 434,852 |  |  | $ | 16,259 |  |  | $ | 451,552 |
Liabilities: |  |  |  |  |  |  |
Contingent consideration | — |  |  | — |  |  | 20,985 |  |  | 20,985 |
Rate lock commitments | — |  |  | — |  |  | 4,805 |  |  | 4,805 |
Forward sale contracts | — |  |  | — |  |  | 4,487 |  |  | 4,487 |
Total | $ | — |  |  | $ | — |  |  | $ | 30,277 |  |  | $ | 30,277 |
| As of December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Marketable securities | $ | 788 |  |  | $ | — |  |  | $ | — |  |  | $ | 788 |
Loans held for sale, at fair value | — |  |  | 138,345 |  |  | — |  |  | 138,345 |
Rate lock commitments | — |  |  | — |  |  | 3,181 |  |  | 3,181 |
Forward sale contracts | — |  |  | — |  |  | 11,139 |  |  | 11,139 |
Total | $ | 788 |  |  | $ | 138,345 |  |  | $ | 14,320 |  |  | $ | 153,453 |
Liabilities: |  |  |  |  |  |  |
Contingent consideration | $ | — |  |  | $ | — |  |  | $ | 8,343 |  |  | $ | 8,343 |
Rate lock commitments | — |  |  | — |  |  | 8,754 |  |  | 8,754 |
Forwards sale contracts | — |  |  | — |  |  | 624 |  |  | 624 |
Total | $ | — |  |  | $ | — |  |  | $ | 17,721 |  |  | $ | 17,721 |
Schedule of Changes in Level 3 RBC Forwards, Rate Lock Commitments, Forwards and Contingent Consideration Measured at Fair Value on Recurring Basis | Changes in Level 3 rate lock commitments, forward sale contracts and contingent consideration measured at fair value on recurring basis were as follows (in thousands):
| As of March 31, 2023
| Opening Balance |  | Total realized and unrealized gains (losses) included in Net income |  | Additions |  | Settlements |  | Closing Balance |  | Unrealized gains (losses) outstanding
Assets: |  |  |  |  |  |  |  |  |  |  |
Rate lock commitments | $ | 3,181 |  |  | $ | 10,076 |  |  | $ | — |  |  | $ | (3,181) |  |  | $ | 10,076 |  |  | $ | 10,076 |
Forward sale contracts | 11,139 |  |  | 6,183 |  |  | — |  |  | (11,139) |  |  | 6,183 |  |  | 6,183 |
Total | $ | 14,320 |  |  | $ | 16,259 |  |  | $ | — |  |  | $ | (14,320) |  |  | $ | 16,259 |  |  | $ | 16,259 |
| Opening Balance |  | Total realized and unrealized gains (losses) included in Net income |  | Additions |  | Settlements |  | Closing Balance |  | Unrealized gains (losses) outstanding
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Contingent consideration | $ | 8,343 |  |  | $ | 453 |  |  | $ | 12,189 |  |  | $ | — |  |  | $ | 20,985 |  |  | $ | 453 |
Rate lock commitments | 8,754 |  |  | 4,805 |  |  | — |  |  | (8,754) |  |  | 4,805 |  |  | 4,805 |
Forward sale contracts | 624 |  |  | 4,487 |  |  | — |  |  | (624) |  |  | 4,487 |  |  | 4,487 |
Total | $ | 17,721 |  |  | $ | 9,745 |  |  | $ | 12,189 |  |  | $ | (9,378) |  |  | $ | 30,277 |  |  | $ | 9,745 |
| As of December 31, 2022
| Opening Balance |  | Total realized and unrealized gains (losses) included in Net income |  | Additions |  | Settlements |  | Closing Balance |  | Unrealized gains (losses) outstanding
Assets: |  |  |  |  |  |  |  |  |  |  |
Rate lock commitments | $ | 3,957 |  |  | $ | 3,181 |  |  | $ | — |  |  | $ | (3,957) |  |  | $ | 3,181 |  |  | $ | 3,181 |
Forward sale contracts | 4,544 |  |  | 11,139 |  |  | — |  |  | (4,544) |  |  | 11,139 |  |  | 11,139 |
Total | $ | 8,501 |  |  | $ | 14,320 |  |  | $ | — |  |  | $ | (8,501) |  |  | $ | 14,320 |  |  | $ | 14,320 |
| Opening Balance |  | Total realized and unrealized gains (losses) included in Net income |  | Additions |  | Settlements |  | Closing Balance |  | Unrealized gains (losses) outstanding
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Contingent consideration | $ | 12,338 |  |  | $ | (1,893) |  |  | $ | 6,226 |  |  | $ | (8,328) |  |  | $ | 8,343 |  |  | $ | (1,893) |
Rate lock commitments | 2,836 |  |  | 8,754 |  |  | — |  |  | (2,836) |  |  | 8,754 |  |  | 8,754 |
Forward sale contracts | 2,180 |  |  | 624 |  |  | — |  |  | (2,180) |  |  | 624 |  |  | 624 |
Total | $ | 17,354 |  |  | $ | 7,485 |  |  | $ | 6,226 |  |  | $ | (13,344) |  |  | $ | 17,721 |  |  | $ | 7,485 |
Summary of 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:
March 31, 2023
Level 3 assets and liabilities |  | Assets |  | Liabilities |  | Significant Unobservable Inputs |  | Range |  | Weighted Average
Accounts payable, accrued expenses and other liabilities: |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  |  | $ | 20,985 |  |  | Discount rate |  | 4.0% - 11.8% | (1) | 3.4%
|  |  |  |  |  | Probability of meeting earnout and contingencies |  | 75.0% - 100.0% | (1) | 99.3%
Derivative assets and liabilities: |  |  |  |  |  |  |  |  |  |
Forward sale contracts |  | $ | 6,183 |  |  | $ | 4,487 |  |  | Counterparty credit risk |  | N/A |  | N/A
Rate lock commitments |  | $ | 10,076 |  |  | $ | 4,805 |  |  | Counterparty credit risk |  | N/A |  | N/A
December 31, 2022
Level 3 assets and liabilities |  | Assets |  | Liabilities |  | Significant Unobservable Inputs |  | Range |  | Weighted Average
Accounts payable, accrued expenses and other liabilities: |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | — |  |  | $ | 8,343 |  |  | Discount rate |  | 4.0% - 11.8% | (1) | 5.1%
|  |  |  |  |  | Probability of meeting earnout and contingencies |  | 75.0% - 100.0% | (1) | 98.9%
Derivative assets and liabilities: |  |  |  |  |  |  |  |  |  |
Forward sale contracts |  | $ | 11,139 |  |  | $ | 624 |  |  | Counterparty credit risk |  | N/A |  | N/A
Rate lock commitments |  | $ | 3,181 |  |  | $ | 8,754 |  |  | Counterparty credit risk |  | N/A |  | N/A
(1)Newmark’s estimate of contingent consideration as of March 31, 2023 and December 31, 2022 was based on the acquired business’ projected future financial performance, including revenues.

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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 https://asc.fasb.org/extlink&oid=123596393&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 https://asc.fasb.org/extlink&oid=123596393&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 https://asc.fasb.org/extlink&oid=123596393&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 https://asc.fasb.org/extlink&oid=123596393&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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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