Revenues from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Revenues from contracts with customers:
Leasing and other commissions	$	120,079	$	217,381	$	260,517	$	389,852
Capital markets commissions	52,959		128,750		180,882		231,547
Management services	105,097		117,472		230,667		215,560
Total	278,135		463,603		672,066		836,959
Other sources of revenue⁽¹⁾:
Gains from mortgage banking activities/originations, net	69,071		45,091		119,494		76,437
Servicing fees and other	36,512		42,784		76,087		85,738
Total	$	383,718	$	551,478	$	867,647	$	999,134


⁽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. 2014-9.

Disaggregation of revenues

Newmark’s chief operating decision-maker, regardless of geographic location, evaluates the operating results, including revenues, 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 June 30, 2020 and December 31, 2019 was $2.3 million and $4.2 million, respectively. During the six months ended June 30, 2020 and 2019, Newmark recognized revenue of $1.9 million and $1.2 million, respectively, that was recorded as deferred revenue at the beginning of the period.