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Compensation (Tables)
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Compensation Cost for Share-based Payment Arrangements
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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Issuance of common stock and exchangeability expenses
$
7

 
$
2,559

 
$
2,481

 
$
3,220


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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Issuance of common stock and exchangeability expenses
$
306

 
$
21,511

 
$
8,425

 
$
22,172

Allocations of net income to limited partnership units and FPUs (1)
1,104

 
11,601

 
1,653

 
17,915

Limited partnership units amortization
6,011

 
5,044

 
7,906

 
11,377

RSU amortization
3,560

 
1,197

 
5,911

 
1,760

Equity-based compensation and allocations of net income to limited partnership units and FPUs (2)
$
10,981

 
$
39,353

 
$
23,895

 
$
53,224

(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 Newmark and BGC RSUs are as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
RSU amortization
$
3,560

 
$
1,197

 
$
5,911

 
$
1,760


Newmark recognized compensation expense/(benefit) related to these limited partnership units that were not redeemed as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Limited partnership units amortization
$
6,011

 
$
5,044

 
$
7,906

 
$
11,377


Compensation expense related to these limited partnership units held by Newmark employees was as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Issuance of common stock and exchangeability expenses
$
299

 
$
18,952

 
$
5,944

 
$
18,952
Activity Associated with Limited Partnership Units
A summary of the activity associated with limited partnership units held by Newmark employees is as follows:
 
Newmark Units
 
BGC Units
Balance, January 1, 2019
44,733,487

(1) 
61,870,969

Issued
13,813,204

 
319,586

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

 
(2,198,720
)
Balance, December 31, 2019
60,800,852

 
56,053,701

Issued
5,451,714

 
1,064,781

Redeemed/exchanged units
(1,314,615
)
 
(1,269,498
)
Forfeited units/other
(5,067
)
 
(1,671
)
Balance, June 30, 2020
64,932,884

 
55,847,313

 
 
 
 
Total exchangeable units outstanding:
 
 
 
December 31, 2019
10,108,598

 
24,692,695

June 30, 2020
10,527,658

 
26,071,003


(1) 
Includes 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). The Limited Partnership table above also includes acquisition-related partnership units. As of June 30, 2020, there were 5.3 million partnership units in Newmark Holdings outstanding, of which 2.2 million units were exchangeable, and 9.6 million partnership units in BGC Holdings outstanding, of which 5.0 million were exchangeable. As of December 31, 2019, there were 5.3 million partnership units in Newmark Holdings outstanding, of which 1.4 million units were exchangeable, and 9.5 million partnership units in BGC Holdings outstanding, of which 2.9 million were exchangeable. A summary of the BGC Holdings and Newmark Holdings limited partnership units held by Newmark employees is as follows:
 
Newmark
Units
 
BGC
Units
Regular units
60,514,149

 
54,233,769

Preferred Units
4,418,735

 
1,613,544

Balance, June 30, 2020
64,932,884

 
55,847,313
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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
BGC Units
38,552

 
232,625

 
187,832

 
291,625

Newmark Units
26,212

 
24,466

 
168,653

 
54,466

Total
64,764

 
257,091

 
356,485

 
346,091
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):
 
June 30,
2020
 
December 31,
2019
Notional Value(1)
$
253,730

 
$
261,025

Estimated fair value of the post-termination payout(2)
$
58,568

 
$
51,378

Outstanding limited partnership units in BGC Holdings
5,397,109

 
6,251,816

Outstanding limited partnership units in BGC Holdings - unvested
1,133,784

 
1,508,510

Outstanding limited partnership units in Newmark Holdings
17,820,912

 
17,097,639

Outstanding limited partnership units in Newmark Holdings - unvested
9,028,859

 
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. Liability balance also includes $6.8 million of acquisition related post-termination units.
Schedule of Grant of Conversion Rights
 
June 30,
2020
 
December 31,
2019
Notional Value
$
193,278

 
$
194,995

Estimated fair value of limited partnership units (1)
$
187,646

 
$
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 Newmark and BGC RSUs held by Newmark employees is as follows (fair value amount in thousands):
 
Newmark RSUs(1)
 
BGC 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
219,887

$
13.52

$
2,973

2.28
 
168,675

$
9.77

$
1,619

0.98
Granted
4,766,611

7.42

35,344

 
 
—

—

—

 
Settled units (delivered shares)
(109,007
)
11.70

(1,275
)
 
 
(107,820
)
9.38

(1,011
)
 
Forfeited units
(193,920
)
8.67

(1,681
)
 
 
(14,048
)
10.02

(141
)
 
Balance, December 31, 2019
4,683,571

$
7.55

$
35,361

5.69
 
46,807

$
9.97

$
467

0.25
Granted
6,203,624

$
8.63

$
53,512

 
 
7,912

$
3.69

$
29

 
Settled units (delivered shares)
(626,788
)
$
8.00

$
(5,015
)
 
 
(40,642
)
$
10.35

$
(421
)
 
Forfeited units
(48,645
)
$
8.65

$
(421
)
 
 
(1,063
)
$
10.52

$
(11
)
 
Balance, June 30, 2020
10,211,762

$
8.17

$
83,437

6.14
 
13,014

$
4.94

$
64

1.71
(1) 
Beginning January 1, 2018, Newmark began granting stand-alone Newmark RSUs to Newmark employees with the awards vesting ratably over the two- to eight-year vesting period into shares of Newmark Class A common stock.
(2) 
RSUs granted to these individuals generally vest over a two to four year period.