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Derivatives | 6 Months Ended
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Jun. 30, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivatives | 6.DERIVATIVES The tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of June 30, 2022 and December 31, 2021. Notional amounts provide an indication of the volume of the Company's derivative activity. Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the condensed consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below. In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition.
|  | June 30, 2022 |
|  | Derivative Assets |  |  | Derivative Liabilities |
|  | Fair Value |  |  | Notional |  |  | Fair Value |  |  | Notional |
Forward foreign currency exchange rate contracts |  | $ | 2,337 |  |  | $ | 200,572 |  |  | $ | 690 |  |  | $ | 172,454 |
Total return swaps and other |  |  | 18,512 |  |  |  | 147,287 |  |  |  | 229 |  |  |  | 3,372 |
LGAC Warrants |  |  | - |  |  |  | - |  |  |  | 2,875 |  |  |  | 11,500 |
LFI and other similar deferred compensation arrangements |  |  | - |  |  |  | - |  |  |  | 345,667 |  |  |  | 366,737 |
Total gross derivatives |  |  | 20,849 |  |  | $ | 347,859 |  |  |  | 349,461 |  |  | $ | 554,063 |
Counterparty and cash collateral netting: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign currency exchange rate contracts |  |  | (21 | ) |  |  |  |  |  |  | (21 | ) |  |  |  |
Total return swaps and other |  |  | (1,730 | ) |  |  |  |  |  |  | (229 | ) |  |  |  |
Total in "other assets" and "other liabilities" |  |  | 19,098 |  |  |  |  |  |  |  | 349,211 |  |  |  |  |
Amounts not netted (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash collateral |  |  | - |  |  |  |  |  |  |  | - |  |  |  |  |
Securities collateral |  |  | - |  |  |  |  |  |  |  | - |  |  |  |  |
|  | $ | 19,098 |  |  |  |  |  |  | $ | 349,211 |  |  |  |  |
|  | December 31, 2021 |
|  | Derivative Assets |  |  | Derivative Liabilities |
|  | Fair Value |  |  | Notional |  |  | Fair Value |  |  | Notional |
Forward foreign currency exchange rate contracts |  | $ | 1,005 |  |  | $ | 253,059 |  |  | $ | 761 |  |  | $ | 174,550 |
Total return swaps and other |  |  | 1,052 |  |  |  | 20,888 |  |  |  | 13,709 |  |  |  | 83,706 |
LGAC Warrants |  |  | - |  |  |  | - |  |  |  | 10,005 |  |  |  | 11,500 |
LFI and other similar deferred compensation arrangements |  |  | - |  |  |  | - |  |  |  | 358,877 |  |  |  | 301,478 |
Total gross derivatives |  |  | 2,057 |  |  | $ | 273,947 |  |  |  | 383,352 |  |  | $ | 571,234 |
Counterparty and cash collateral netting: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward foreign currency exchange rate contracts |  |  | (83 | ) |  |  |  |  |  |  | (83 | ) |  |  |  |
Total return swaps and other |  |  | (1,052 | ) |  |  |  |  |  |  | (11,024 | ) |  |  |  |
Total in "other assets" and "other liabilities" |  |  | 922 |  |  |  |  |  |  |  | 372,245 |  |  |  |  |
Amounts not netted (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash collateral |  |  | - |  |  |  |  |  |  |  | (2,476 | ) |  |  |  |
Securities collateral |  |  | - |  |  |  |  |  |  |  | (391 | ) |  |  |  |
|  | $ | 922 |  |  |  |  |  |  | $ | 369,378 |  |  |  |  |
(a) | Amounts are subject to master netting arrangements but do not meet the criteria for netting on the condensed consolidated statements of financial condition under U.S. GAAP. For some counterparties, the collateral amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the total amount reported is limited to the net derivative assets and net derivative liabilities balances with that counterparty.
Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2022 and 2021, were as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Forward foreign currency exchange rate contracts |  | $ | 3,704 |  |  | $ | (1,719 | ) |  | $ | 5,610 |  |  | $ | 5,099 |
LFI and other similar deferred compensation arrangements |  |  | 35,098 |  |  |  | (16,491 | ) |  |  | 49,421 |  |  |  | (23,978 | )
LGAC Warrants |  |  | 3,220 |  |  |  | (1,725 | ) |  |  | 7,130 |  |  |  | (1,725 | )
Total return swaps and other |  |  | 19,311 |  |  |  | (6,695 | ) |  |  | 25,499 |  |  |  | (10,974 | )
Total |  | $ | 61,333 |  |  | $ | (26,630 | ) |  | $ | 87,660 |  |  | $ | (31,578 | )

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- 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
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