Revenues from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues from contracts with customers:
Commissions	$	389,768	$	382,640	$	824,988	$	838,495
Data, software, and post-trade	21,602		20,139		43,588		39,537
Fees from related parties	4,245		6,562		8,030		12,083
Other revenues	3,172		3,391		7,071		7,350
Total revenues from contracts with customers	418,787		412,732		883,677		897,465
Other sources of revenues:
Principal transactions	81,997		99,453		180,760		212,764
Interest and dividend income	11,455		6,536		14,493		10,697
Other revenues	211		367		1,096		1,329
Total revenues	$	512,450	$	519,088	$	1,080,026	$	1,122,255

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, 2020 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 $338.3 million, which excludes $561.1 million of receivables classified as Assets held for sale, and $629.4 million at June 30, 2021 and December 31, 2020, respectively. The Company had no impairments related to these receivables during the three and six months ended June 30, 2021 and 2020.

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 June 30, 2021 and December 31, 2020 was $9.8 million and $15.0 million, respectively. At June 30, 2021, the Company reclassified $6.0 million of deferred revenue as Liabilities held for sale.

During the three months ended June 30, 2021 and 2020, the Company recognized revenue of $7.6 million and $6.8 million, respectively, that was recorded as deferred revenue at the beginning of the period. During the six months ended June 30, 2021 and 2020, the Company recognized revenue of $8.3 million and $7.4 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.

The Company did not have any capitalized costs to fulfill a contract as of June 30, 2021. At December 31, 2020, there were $1.7 million of capitalized costs recognized to fulfill a contract. At June 30, 2021, the Company reclassified $1.7 million of capitalized costs recognized to fulfill a contract as Assets held for sale.