XML 144 R61.htm IDEA: XBRL DOCUMENT v3.20.1
Compensation (Tables)
 3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Compensation Cost for Share-based Payment Arrangements Newmark recognized compensation expense/(benefit) related to these limited partnership units that were not redeemed as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Limited partnership units amortization
$
1,895

 
$
6,335


Compensation expense related to BGC RSUs and Newmark RSUs are as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
RSU amortization
$
2,351

 
$
562


Newmark incurred compensation expense related to Class A common stock, limited partnership units and RSUs held by Newmark employees as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Issuance of common stock and exchangeability expenses
$
8,119

 
$
661

Allocations of net income (1)
549

 
6,313

Limited partnership units amortization
1,895

 
6,335

RSU amortization
2,351

 
562

Equity-based compensation and allocations of net income to limited partnership units and FPUs (2)
$
12,914

 
$
13,871

(1) 
Certain limited partnership units receive quarterly allocations of net income and are generally contingent upon services being provided by the unit holders, including the Preferred Distribution.
(2) 
Reclassifications have been made to previously reported amounts to conform to the new presentation (see Note 1 — “Organization and Basis of Presentation”).

Compensation expense related to the issuance of Newmark or BGC Class A common stock and grants of exchangeability on Newmark Holdings and BGC Holdings limited partnership units to Newmark employees is as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Issuance of common stock and exchangeability expenses
$
2,474

 
$
661


Compensation expense related to these limited partnership units held by Newmark employees was as follows (in thousands):
 
Three Months Ended March 31,
 
2020
 
2019
Issuance of common stock and exchangeability expenses
$
5,645

 
$
—
Activity Associated with Limited Partnership Units
A summary of the activity associated with limited partnership units held by Newmark employees is as follows:
 
BGC Units
 
Newmark Units
 
Balance, January 1, 2019
61,870,969

 
44,733,487

(1) 
Granted
319,586

 
13,813,204

 
Redeemed/exchanged units
(3,938,134
)
 
(2,487,885
)
 
Forfeited units/other
(2,198,720
)
 
4,742,046

 
Balance, December 31, 2019
56,053,701

 
60,800,852

 
Granted
884,335

 
1,650,749

 
Redeemed/exchanged units
(439,178
)
 
(588,031
)
 
Forfeited units/other
—

 
(677
)
 
Balance, March 31, 2020
56,498,858

 
61,862,893

 
 
 
 
 
 
Total exchangeable units outstanding:
 
 
 
 
December 31, 2019
24,692,695

 
10,108,598

 
March 31, 2020
24,353,910

 
9,902,345

 

(1) 
Represents the pre-IPO Newmark employees share-equivalent limited partnership units in BGC Holdings.

The Limited Partnership Units table above includes both regular and Preferred Units. The Preferred Units are not entitled to participate in partnership distributions other than with respect to the Preferred Distribution (see Note 2 — “Limited Partnership Interests in BGC Holdings and Newmark Holdings” for further information on Preferred Units). A summary of the BGC Holdings and Newmark Holdings limited partnership units held by Newmark employees is as follows:
 
BGC
Units
 
Newmark
Units
Regular units
54,956,732

 
58,256,181

Preferred Units
1,542,126

 
3,606,712

Balance, March 31, 2020
56,498,858

 
61,862,893
Schedule of Units Redeemed
A summary of units held by Newmark employees redeemed in connection with the issuance of Newmark or BGC Class A common stock (at the current exchange ratio) or granted exchangeability for Newmark or BGC Class A common stock is as follows:
 
Three Months Ended March 31,
 
2020
 
2019
BGC Holdings units
149,280

 
58,855

Newmark Holdings units
142,441

 
29,690

Total
291,721

 
88,545
Schedule of Limited Partnership Units With a Post-Termination Payout
Limited partnership units with a post-termination payout held by Newmark employees are as follows (dollars in thousands):
 
March 31,
2020
 
December 31,
2019
Notional Value(1)
$
240,251

 
$
261,025

Estimated fair value of the post-termination payout(2)
$
59,925

 
$
58,149

Outstanding limited partnership units in BGC Holdings
5,323,593

 
6,251,816

Outstanding limited partnership units in BGC Holdings - unvested
1,163,775

 
1,508,510

Outstanding limited partnership units in Newmark Holdings
16,138,694

 
17,097,639

Outstanding limited partnership units in Newmark Holdings - unvested
8,678,865

 
9,357,822

(1) 
Beginning January 1, 2018, Newmark began granting stand-alone limited partnership units in Newmark Holdings to Newmark employees.
(2) 
Included in “Other long-term liabilities” on the accompanying unaudited condensed consolidated balance sheets.
Schedule of Grant of Conversion Rights
 
March 31,
2020
 
December 31,
2019
Notional Value
$
193,278

 
$
194,995

Estimated fair value of limited partnership units (1)
$
187,503

 
$
182,800

(1) 
Included in “Other long-term liabilities” on the accompanying unaudited condensed consolidated balance sheets.
Activity Associated with Restricted Stock Units
A summary of the activity associated with RSUs held by Newmark employees is as follows (fair value amount in thousands):
 
BGC RSUs(1)
 
Newmark RSUs(2)
 
Restricted
Stock
Units
Weighted-
Average
Grant Date
Fair Value
Per Share
Fair
Value
Amount
Weighted-
Average
Remaining
Contractual
Term (Years)
 
Restricted
Stock
Units
Weighted-
Average
Grant Date
Fair Value
Per Share
Fair
Value
Amount
Weighted-
Average
Remaining
Contractual
Term (Years)
Balance, January 1, 2019
168,675

$
9.77

$
1,619

0.98
 
219,887

$
13.52

$
2,973

2.28
Granted
—

—

—

 
 
4,766,611

7.42

35,344

 
Settled units (delivered shares)
(107,820
)
9.38

(1,011
)
 
 
(109,007
)
11.70

(1,275
)
 
Forfeited units
(14,048
)
10.02

(141
)
 
 
(193,920
)
8.67

(1,681
)
 
Balance, December 31, 2019
46,807

$
9.97

$
467

0.25
 
4,683,571

$
7.55

$
35,361

5.69
Granted
—

$
—

$
—

 
 
1,686,149

$
9.58

$
16,153

 
Settled units (delivered shares)
(35,825
)
$
10.32

$
(370
)
 
 
(425,271
)
$
8.50

$
(3,616
)
 
Forfeited units
(857
)
$
10.54

$
(9
)
 
 
(17,669
)
$
8.54

$
(151
)
 
Balance, March 31, 2020
10,125

$
8.71

$
88

0.18
 
5,926,780

$
8.06

$
47,747

6.08
(1) 
RSUs granted to these individuals generally vest over a two- to four-year period
(2) 
Beginning January 1, 2018, Newmark began granting stand-alone Newmark RSUs to Newmark employees and the awards vest ratably over the two- to eight-year vesting period into shares of Newmark Class A common stock.