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Related Party Transactions | 12 Months Ended
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Dec. 31, 2019
Related Party Transactions |
Related Party Transactions | 14. Related Party Transactions The Company enters into transactions with its affiliates from time to time which are considered to be related party transactions. Prior to the Reorganization Transactions, the Bank Stockholders were collectively considered to be related parties of the Company. As a result of the Reorganization Transactions, they are no longer considered to be related parties. As a result, the related party transactions listed below include transactions with the Bank Stockholders or their respective affiliates for pre-IPO periods only. At December 31, 2019 and 2018, the following balances with such affiliates were included in the consolidated statements of financial condition in the following line items (in thousands):
|  | Successor |  | Successor
|  | December 31, 2019 |  | December 31, 2018
Cash and cash equivalents |  | $ | — |  | $ | 283,790
Receivables from brokers and dealers and clearing organizations |  |  | — |  |  | 3,332
Deposits with clearing organizations |  |  | — |  |  | 500
Accounts receivable |  |  | — |  |  | 40,730
Receivable from affiliates |  |  | 2,525 |  |  | 3,243
Other assets |  |  | — |  |  | 9
Payable to brokers and dealers and clearing organizations |  |  | — |  |  | 2,404
Deferred revenue |  |  | 4,733 |  |  | 9,151
Payable to affiliates |  |  | 1,506 |  |  | 5,009
The following balances with such affiliates were included in the consolidated statements of income in the following line items (in thousands):
|  | Successor |  | Successor |  |  | Predecessor |  | Predecessor
|  | Year Ended |  | October 1, 2018 |  |  | January 1, 2018 |  | Year Ended
|  | December 31, |  | to |  |  | to |  | December 31,
|  | 2019 |  | December 31, 2018 |  |  | September 30, 2018 |  | 2017
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
Transaction fees (1) |  | $ | 59,643 |  | $ | 59,259 |  |  | $ | 159,663 |  | $ | 151,695
Subscription fees (1) |  |  | 5,670 |  |  | 5,718 |  |  |  | 16,627 |  |  | 37,426
Commissions (1) |  |  | 16,186 |  |  | 12,401 |  |  |  | 34,944 |  |  | 43,315
Refinitiv market data fees (2) |  |  | 55,635 |  |  | 13,467 |  |  |  | 36,851 |  |  | 50,125
Operating Income:(3) |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) |  |  | 858 |  |  | 17 |  |  |  | 34 |  |  | (415)
Shared Services Fees (4) : |  |  |  |  |  |  |  |  |  |  |  |  |
Technology and communications |  |  | 2,960 |  |  | 740 |  |  |  | 2,220 |  |  | 2,960
General and administrative |  |  | 430 |  |  | 180 |  |  |  | 539 |  |  | 719
Occupancy |  |  | 481 |  |  | 155 |  |  |  | 466 |  |  | 621
| (1) |  | For pre-IPO periods, represents fees and commissions from affiliates of the Bank Stockholders.
| (2) |  | The Company maintains a market data license agreement with Refinitiv (TR in the predecessor period). Under the agreement, the Company delivers to Refinitiv certain market data feeds which Refinitiv redistributes to its customers. The Company earns license fees and royalties for these feeds.
| (3) |  | For pre-IPO periods, represents interest income from money market funds invested with and savings accounts deposited with affiliates of the Bank Stockholders.
| (4) |  | The Company maintains a shared services agreement with Refinitiv (TR in the predecessor period). Under the terms of the agreement, Refinitiv provides the Company with certain real estate, payroll, benefits administration, insurance, content, financial reporting and tax support.
The Company reimburses affiliates of Refinitiv (TR in the predecessor period) for expenses paid on behalf of the Company for various services including salaries and bonuses, marketing, professional fees, communications, data costs and certain other administrative services. For the year ended December 31, 2019, the 2018 Successor Period, the 2018 Predecessor Period and the year ended December 31, 2017, the Company reimbursed such affiliates approximately $6.7 million, $3.8 million, $28.7 million, and $38.4 million, respectively, for these expenses. The Company is indemnified by Refinitiv for any tax liabilities that existed in the entity contributed by Refinitiv as a result of the Refinitiv Contribution. $2.7 million is included in other assets on the December 31, 2019 consolidated statement of financial condition related to this indemnification. The Company engaged Blackstone Advisory Partners L.P., an affiliate of Blackstone, to provide certain financial consulting services in connection with the IPO and the October 2019 follow-on offering for a fee of $1.0 million and $0.5 million, respectively, which fee, with respect to the October 2019 follow-on offering, was reimbursed by the underwriters. $1.5 million is included in additional paid-in capital on the December 31, 2019 consolidated statement of financial condition related to these offering costs. During 2014, the Company issued Class A Shares and unvested Class P-1(A) Shares to some of the Bank Stockholders as a result of a $120.0 million capital contribution. In connection with this investment, employees invested $5.3 million in the Company and were issued Class C Shares and unvested Class P-1(C) Shares. Certain Class P-1(A) Shares and Class P-1(C) Shares vested on July 31, 2018, based on a formula determined by the Company’s new credit platforms’ revenues and any remaining unvested Class P-1(A) Shares and Class P-1(C) Shares were cancelled and as a result no contingent consideration has been recognized related to these shares subsequent to that date. The Company recognized contingent consideration for the 2018 Predecessor Period and for the year ended December 31, 2017 of $26.8 million and $58.5 million, respectively, relating to these shares, which is included in net revenue on the consolidated statements of income.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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