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Revenues from Contracts with Customers
 9 Months Ended
Sep. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenues from Contracts with Customers

24.

Revenues 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 September 30,

 

 

Nine Months Ended September 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

$

352,027

 

 

$

409,765

 

 

$

1,190,522

 

 

$

1,262,921

 

Data, software, and post-trade

 

21,523

 

 

 

18,364

 

 

 

61,060

 

 

 

55,015

 

Fees from related parties

 

8,814

 

 

 

8,208

 

 

 

20,897

 

 

 

21,224

 

Other revenues

 

4,077

 

 

 

4,162

 

 

 

11,427

 

 

 

9,462

 

Total revenues from contracts with customers

 

386,441

 

 

 

440,499

 

 

 

1,283,906

 

 

 

1,348,622

 

Other sources of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal transactions

 

65,182

 

 

 

75,536

 

 

 

277,946

 

 

 

250,198

 

Interest and dividend income

 

2,418

 

 

 

3,976

 

 

 

13,115

 

 

 

15,454

 

Other revenues

 

998

 

 

 

1,126

 

 

 

2,327

 

 

 

2,801

 

Total revenues

$

455,039

 

 

$

521,137

 

 

$

1,577,294

 

 

$

1,617,075

 

 

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 $689.0 million and $778.4 million at September 30, 2020 and December 31, 2019, respectively. The Company had no impairments related to these receivables during the three and nine months ended September 30, 2020 and 2019.

The Company’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue at September 30, 2020 and December 31, 2019 was $15.2 million and $12.9 million, respectively. During the three months ended September 30, 2020 and 2019, the Company recognized revenue of $7.1 million and $7.3 million, respectively, that was recorded as deferred revenue at the beginning of the period. During the nine months ended September 30, 2020 and 2019, the Company recognized revenue of $8.0 million and $8.8 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 both September 30, 2020 and December 31, 2019, there were $1.4 million of capitalized costs recognized to fulfill a contract.