On November 30, 2018, the Company completed the Spin-Off of Newmark, and distributed to its stockholders all of the shares of Newmark Class A common stock and Newmark Class B common stock that the Company then owned in a manner that is intended to qualify as generally tax-free for U.S. federal income tax purposes. The shares of Newmark Class A common stock held by the Company were distributed to the holders of shares of BGC Class A common stock, and the shares of Newmark Class B common stock held by the Company were distributed to the holders of shares of BGC Class B common stock. Therefore, the Company no longer consolidates Newmark within its financial results subsequent to the Spin-Off.

The Company has determined that the Spin-Off met the criteria for reporting the financial results of Newmark as discontinued operations within BGC’s consolidated results for all periods through the November 30, 2018 Distribution Date. Newmark’s results are presented in “Consolidated net income (loss) from discontinued operations, net of tax” and the related noncontrolling interest in Newmark and its subsidiaries is presented in “Net income (loss) from discontinued operations attributable to noncontrolling interest in subsidiaries” in the Company’s unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2018.

The following table provides the components of consolidated net income (loss) from discontinued operations, net of tax and net income (loss) from discontinued operations attributable to noncontrolling interest in subsidiaries:

	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Revenues:
Commissions	$	319,349	$	859,924
Gains from mortgage banking activities/originations, net		51,972		132,764
Real estate management and other services		101,881		305,880
Servicing fees		34,948		96,207
Fees from related parties		307		935
Interest income		13,076		26,575
Other revenues		79		232
Total revenues		521,612		1,422,517
Expenses:
Compensation and employee benefits		293,639		826,300
Equity-based compensation and allocations of net income to limited partnership units and FPUs		35,669		118,538
Total compensation and employee benefits		329,308		944,838
Occupancy and equipment		19,045		54,745
Fees to related parties		4,099		11,817
Professional and consulting fees		11,162		26,252
Communications		2,615		9,480
Selling and promotion		14,704		43,373
Commissions and floor brokerage		300		758
Interest expense		22,750		57,933
Other expenses		54,824		157,836
Total expenses		458,807		1,307,032
Other income (losses), net:
Gains (losses) on equity method investments		17		5,037
Other income (loss)		93,653		93,893
Total other income (losses), net		93,670		98,930
Income (loss) from operations before income taxes		156,475		214,415
Provision (benefit) for income taxes		33,737		49,287
Consolidated net income (loss) from discontinued operations, net of tax		122,738		165,128
Less: Net income (loss) from discontinued operations attributable to noncontrolling interest in subsidiaries		34,062		46,473
Net income (loss) from discontinued operations available to common stockholders	$	88,676	$	118,655

Total net cash used in operating activities from discontinued operations was $280.5 million for the nine months ended September 30, 2018. Total net cash used in investing activities from discontinued operations was $12.2 million for the nine months ended September 30, 2018.

During the three months ended September 30, 2018, exchangeability was granted on 0.9 million and 0.5 million LPUs in BGC Holdings and Newmark Holdings, respectively, held by Newmark employees, for which Newmark incurred compensation expense of $12.2 million. During the nine months ended September 30, 2018, exchangeability was granted on 7.7 million and 3.9 million LPUs in BGC Holdings and Newmark Holdings, respectively, held by Newmark employees, for which Newmark incurred compensation expense of $94.3 million. This expense was recorded as part of “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in the table above, and are included in “Consolidated net income (loss) from discontinued operations, net of tax” in the Company’s unaudited condensed consolidated statements of operations.

Certain LPUs and FPUs generally receive quarterly allocations of net income, which are cash distributed on a quarterly basis and generally contingent upon services provided by the unit holder. Newmark’s allocation of income to Newmark Holdings LPUs and FPUs held by Newmark employees was $23.7 million and $30.6 million for the three and nine months ended September 30, 2018. This expense was recorded as part of “Equity-based compensation and allocations of net income to limited partnership units and FPUs” in the table above, and is included in “Consolidated net income (loss) from discontinued operations, net of tax” in the Company’s unaudited condensed consolidated statements of operations.

In connection with the Separation, on December 13, 2017, Newmark OpCo assumed all of BGC U.S. OpCo’s rights and obligations under the 2042 Promissory Note in relation to the 8.125% Senior Notes and the 2019 Promissory Note in relation to the 5.375% Senior Notes. Newmark repaid the $112.5 million outstanding principal amount under the 2042 Promissory Note on September 5, 2018, and repaid the $300.0 million outstanding principal amount under the 2019 Promissory Note on November 23, 2018. In addition, as part of the Separation, Newmark assumed the obligations of BGC as borrower under the Term Loan and Converted Term Loan. Newmark repaid the outstanding balance of the Term Loan as of March 31, 2018, and repaid the outstanding balance of the Converted Term Loan as of November 6, 2018. For the three and nine months ended September 30, 2018, $17.5 million and $42.3 million, respectively, of interest expense on the obligations assumed as part of the Separation, were included as part of discontinued operations in the table above. In addition, on March 19, 2018, the Company borrowed $150.0 million under the BGC Credit Agreement from Cantor, and loaned Newmark $150.0 million under the Intercompany Credit Agreement on the same day. All borrowings outstanding under the Intercompany Credit Agreement were repaid as of November 7, 2018. The interest expense for the three and nine months ended September 30, 2018 related to the $150.0 million borrowed under the BGC Credit Agreement was $1.3 million and $3.5 million, respectively, and were allocated to discontinued operations in the table above.