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Revenue from Contracts with Customers
3 Months Ended
Mar. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

24.

Revenue from Contracts with Customers

The following table presents the Company’s total revenues separated between revenues from contracts with customers and other sources of revenues (in thousands):

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

Revenue from contracts with customers:

 

 

 

 

 

 

 

 

Commissions

$

455,855

 

 

$

430,182

 

 

Data, software, and post-trade

 

19,398

 

 

 

17,910

 

 

Fees from related parties

 

5,521

 

 

 

5,795

 

 

Other revenues

 

3,957

 

 

 

2,853

 

 

Total revenue from contracts with customers

 

484,731

 

 

 

456,740

 

 

Other sources of revenue:

 

 

 

 

 

 

 

 

Principal transactions

 

113,311

 

 

 

84,230

 

 

Interest income

 

4,161

 

 

 

3,665

 

 

Other revenues

 

964

 

 

 

116

 

 

Total revenues

$

603,167

 

 

$

544,751

 

 

 

As discussed in Note 1— “Organization and Basis of Presentation”, the Company adopted the new revenue recognition standard as of January 1, 2018. There was no significant impact to the Company’s unaudited condensed consolidated financial statements for the periods presented as a result of applying the new revenue recognition standard.

Refer to Note 3— “Summary of Significant Accounting Policies” in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2019 for detailed information on the recognition of the Company’s revenues from contracts with customers.

 

Disaggregation of Revenue

Refer to Note 23—“Segment, Geographic and Product Information,” for a further discussion on the allocation of revenues to geographic regions.

 

Contract Balances

The timing of our revenue recognition may differ from the timing of payment by our customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.

The Company had receivables related to revenues from contracts with customers of $820.9 million and $778.4 million at March 31, 2020 and December 31, 2019, respectively. The Company had no impairments related to these receivables during the three months ended March 31, 2020 and 2019.

The Company’s deferred revenue primarily relates to customers paying advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue at March 31, 2020 and December 31, 2019 was $15.9 million and $12.9 million, respectively. During the three months ended March 31, 2020 and 2019, the Company recognized revenue of $6.4 million and $6.3 million, respectively, that was recorded as deferred revenue at the beginning of the period.

Contract Costs

The Company capitalizes costs to fulfill contracts associated with different lines of its business where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized.

At March 31, 2020 and December 31, 2019, there were $1.4 million of capitalized costs recognized to fulfill a contract.