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Revenue from Contracts with Customers
9 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

23.

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 September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue from contracts with customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions

$

409,082

 

 

$

351,969

 

 

$

1,259,571

 

 

$

1,138,313

 

Data, software, and post-trade

 

18,364

 

 

 

16,547

 

 

 

55,015

 

 

 

47,016

 

Fees from related parties

 

8,208

 

 

 

6,821

 

 

 

21,224

 

 

 

19,054

 

Other revenues

 

3,637

 

 

 

30

 

 

 

8,728

 

 

 

30

 

Total revenue from contracts with customers

 

439,291

 

 

 

375,367

 

 

 

1,344,538

 

 

 

1,204,413

 

Other sources of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal transactions

 

75,536

 

 

 

73,360

 

 

 

250,198

 

 

 

250,266

 

Interest income

 

3,976

 

 

 

2,870

 

 

 

15,454

 

 

 

10,485

 

Other revenues

 

2,334

 

 

 

4,045

 

 

 

6,885

 

 

 

6,295

 

Total revenues

$

521,137

 

 

$

455,642

 

 

$

1,617,075

 

 

$

1,471,459

 

 

As discussed in Note 1— “Organization and Basis of Presentation”, the Company adopted the new revenue recognition standard, as codified within ASC Topic 606, 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, 2018 for detailed information on the recognition of the Company’s revenues from contracts with customers.

 

Disaggregation of Revenue

Refer to Note 22— “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 $543.6 million and $516.1 million at September 30, 2019 and December 31, 2018, respectively. The Company had no impairments related to these receivables during the three and nine months ended September 30, 2019 and 2018.

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 September 30, 2019 and December 31, 2018 was $15.6 million and $12.8 million, respectively. During the three months ended September 30, 2019 and 2018, the Company recognized revenue of $7.3 million and $5.1 million, respectively, that was recorded as deferred revenue at the beginning of the period. During the nine months ended September 30, 2019 and 2018, the Company recognized revenue of $8.8 million and $5.6 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 September 30, 2019, there were $1.7 million of capitalized costs recorded to fulfill a contract. At December 31, 2018, there were no capitalized costs recorded to fulfill a contract.