Revenues from Contracts with Customers

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues from contracts with customers:
Leasing and other commissions	$	114,947	$	213,242	$	375,465	$	603,094
Capital markets commissions	82,956		144,666		263,838		376,213
Management services	107,439		104,184		338,106		319,746
Total	305,342		462,092		977,409		1,299,053
Other sources of revenue(1):
Gains from mortgage banking activities/originations, net	91,192		72,332		210,686		148,769
Servicing fees and other	39,390		52,210		115,477		137,946
Total	$	435,924	$	586,634	$	1,303,572	$	1,585,768

(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 September 30, 2020 and December 31, 2019 was $1.9 million and $4.2 million, respectively. During the nine months ended September 30, 2020 and September 30, 2019, Newmark recognized revenue of $2.3 million and $1.2 million, respectively, that was recorded as deferred revenue at the beginning of the period.