XML 40 R23.htm IDEA: XBRL DOCUMENT
v3.21.2

Investments | 9 Months Ended
--- | ---
Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract] |
Investments | Investments Equity Method Investments The carrying value of the Company’s equity method investments was $30.6 million as of September 30, 2021 and $37.7 million as of December 31, 2020, and is included in “Investments” in the Company’s unaudited condensed consolidated statements of financial condition. The Company recognized gains of $1.8 million and $1.5 million related to its equity method investments for the three months ended September 30, 2021 and 2020, respectively. The Company recognized gains of $4.6 million and $3.7 million related to its equity method investments for the nine months ended September 30, 2021 and 2020, respectively. The Company’s share of the net gains or losses is reflected in “Gains (losses) on equity method investments” in the Company’s unaudited condensed consolidated statements of operations. For the three and nine months ended September 30, 2021, the Company did not record impairment charges related to existing equity method investments. For the three and nine months ended September 30, 2020, the Company recorded $0.2 million and $2.7 million, respectively, of impairment charges relating to existing equity method investments. The impairment was recorded in “Other income (loss)” in the Company’s unaudited condensed consolidated statements of operations. The Company did not sell any equity method investments during the three months ended September 30, 2021. The Company sold part of an equity method investment with a fair value of $3.8 million during the nine months ended September 30, 2021. During the three and nine months ended September 30, 2020, the Company did not sell any equity method investments. As of September 30, 2021, the Company reclassified an equity method investment with a carrying value of $2.6 million as Assets held for sale. See Note 14—“Related Party Transactions,” for information regarding related party transactions with unconsolidated entities included in the Company’s unaudited condensed consolidated financial statements. Investments Carried Under Measurement Alternative The Company has acquired equity investments for which it did not have the ability to exert significant influence over operating and financial policies of the investees. These investments are accounted for using the measurement alternative in accordance with the guidance on recognition and measurement. The carrying value of these investments as of September 30, 2021 and December 31, 2020 was $0.2 million and $0.4 million, respectively, and they are included in “Investments” in the Company’s unaudited condensed statements of financial condition. The Company did not recognize any gains, losses, or impairments relating to investments carried under the measurement alternative for both the three and nine months ended September 30, 2021 and 2020. As of September 30, 2021, the Company reclassified an equity investment carried under the measurement alternative with a carrying value of $0.2 million as Assets held for sale. In addition, the Company owns membership shares, which are included in “Other assets” in the Company’s unaudited condensed consolidated statements of financial condition as of September 30, 2021 and December 31, 2020. These equity investments are accounted for using the measurement alternative in accordance with the guidance on recognition and measurement. The Company recognized $0.2 million and $0.1 million of unrealized gains to reflect observable transactions for these shares during the three and nine months ended September 30, 2021, respectively. The Company recognized $1.0 million of unrealized losses to reflect observable transactions for these shares during both the three and nine months ended September 30, 2020, respectively. The unrealized losses are reflected in “Other income (loss)” in the Company’s unaudited condensed consolidated statements of operations. Investments in VIEs Certain of the Company’s equity method investments are considered VIEs as defined under the accounting guidance for consolidation. The Company is not considered the primary beneficiary of and therefore does not consolidate these VIEs. The Company’s involvement with such entities is in the form of direct equity interests and related agreements. The Company’s maximum exposure to loss with respect to the VIEs is its investment in such entities, as well as a credit facility and a subordinated loan. The following table sets forth the Company’s investment in its unconsolidated VIEs and the maximum exposure to loss with respect to such entities (in thousands):
| September 30, 2021 |  | December 31, 2020
| Investment |  | Maximum Exposure to Loss |  | Investment |  | Maximum Exposure to Loss
Variable interest entities¹ | $ | 1,044 |  |  | $ | 2,024 |  |  | $ | 1,258 |  |  | $ | 2,238 |
__________________________ 1 The Company has entered into a subordinated loan agreement with Aqua, whereby the Company agreed to lend the principal sum of $980 thousand. The Company’s maximum exposure to loss with respect to its unconsolidated VIEs includes the sum of its equity investments in its unconsolidated VIEs and the $980 thousand subordinated loan to Aqua. Consolidated VIE The Company is invested in a limited liability company that is focused on developing a proprietary trading technology. The limited liability company is a VIE and it was determined that the Company is the primary beneficiary of this VIE because the Company was the provider of the majority of this VIE’s start-up capital and has the power to direct the activities of this VIE that most significantly impact its economic performance, primarily through its voting percentage and consent rights on the activities that would most significantly influence the entity. The consolidated VIE had total assets of $8.7 million and $7.2 million as of September 30, 2021 and December 31, 2020, respectively, which primarily consisted of clearing margin. There were no material restrictions on the consolidated VIE’s assets. The consolidated VIE had total liabilities of $2.2 million and $1.0 million as of September 30, 2021 and December 31, 2020, respectively. The Company’s exposure to economic loss on this VIE was $4.9 million and $4.8 million as of September 30, 2021 and December 31, 2020.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration