Revenues from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue From Contract With Customer [Abstract]

(13)Revenues from Contracts with Customers

The following table presents Newmark’s total revenues separately for its 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
Revenues from contracts with customers:
Leasing and other commissions	$	213,242	$	203,904	$	603,094	$	541,417
Capital markets commissions		144,666		115,436		376,213		318,491
Management services		104,184		101,968		319,746		306,129
Total		462,092		421,308		1,299,053		1,166,037
Other sources of revenue:
Gains from mortgage banking activities/originations, net⁽¹⁾		72,332		51,972		148,769		132,763
Servicing fees and other⁽¹⁾		52,210		45,529		137,946		117,088
Total	$	586,634	$	518,809	$	1,585,768	$	1,415,888

(1)

Although these items have customers under contract, they were recorded as other sources of revenue as they were excluded from the scope of ASU No. 2014-09.

Disaggregation of Revenue

Newmark’s chief operating decision maker regardless of geographic location evaluates the operating results of Newmark as total real estate (See Note 3 — “Summary of Significant Accounting Policies” for further discussion).

Contract Balances

The timing of Newmark’s revenue recognition may differ from the timing of payment by its customers. Newmark records a receivable when revenue is recognized prior to payment and Newmark has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, Newmark records deferred revenue until the performance obligations are satisfied.

Newmark’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, 2019 and December 31, 2018 was $2.5 million and $4.2 million, respectively. During the three and nine months ended September 30, 2019, Newmark recognized revenue of $1.4 million that was recorded as deferred revenue at the beginning of the period.