Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Fair Value Hierarchy of Financial Assets and Liabilities under U.S. GAAP Guidance

The following table sets forth by level within the fair value hierarchy financial assets and liabilities accounted for at fair value under U.S. GAAP guidance (in thousands):


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	99	$	—	$	—	$	99
Loans held for sale, at fair value	—		528,944		—		528,944

Rate lock commitments	—		—		9,604		9,604

Forward Sale Contracts	—		—		1,259		1,259
Total	$	99	$	528,944	$	10,863	$	539,906
Liabilities:

Contingent consideration	—		—		25,740		25,740
Rate lock commitments	—		—		1,023		1,023
Forward Sale Contracts	—		—		20,304		20,304
Total	$	—	$	—	$	47,067	$	47,067


	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	788	$	—	$	—	$	788
Loans held for sale, at fair value	—		138,345		—		138,345

Rate lock commitments	—		—		3,181		3,181

Forward Sale Contracts	—		—		11,139		11,139
Total	$	788	$	138,345	$	14,320	$	153,453
Liabilities:
Contingent consideration	$	—	$	—	$	8,343	$	8,343
Rate lock commitments	—		—		8,754		8,754
Forwards Sale Contracts	—		—		624		624
Total	$	—	$	—	$	17,721	$	17,721

Schedule of Changes in Level 3 RBC Forwards, Rate Lock Commitments, Forwards and Contingent Consideration Measured at Fair Value on Recurring Basis

Changes in Level 3 rate lock commitments, Forward Sale Contracts and contingent consideration measured at fair value on recurring basis were as follows (in thousands):


	As of December 31, 2023
	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Assets:
Rate lock commitments	$	3,181	$	9,604	$	—	$	(3,181)	$	9,604	$	9,604
Forward Sales Contracts	11,139		1,259		—		(11,139)		1,259		1,259

Total	$	14,320	$	10,863	$	—	$	(14,320)	$	10,863	$	10,863

	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Liabilities:
Contingent consideration	$	8,343	$	6,192	$	12,189	$	(984)	$	25,740	$	6,192
Rate lock commitments	8,754		1,023		—		(8,754)		1,023		1,023
Forward Sales Contracts	624		20,304		—		(624)		20,304		20,304
Total	$	17,721	$	27,519	$	12,189	$	(10,362)	$	47,067	$	27,519


	As of December 31, 2022
	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Assets:
Rate lock commitments	$	3,957	$	3,181	$	—	$	(3,957)	$	3,181	$	3,181
Forward Sales Contracts	4,544		11,139		—		(4,544)		11,139		11,139

Total	$	8,501	$	14,320	$	—	$	(8,501)	$	14,320	$	14,320

	Opening Balance		Total realized and unrealized gains (losses) included in Net income		Additions		Settlements		Closing Balance		Unrealized gains (losses) outstanding
Liabilities:
Contingent consideration	$	12,338	$	(1,893)	$	6,226	$	(8,328)	$	8,343	$	(1,893)
Rate lock commitments	2,836		8,754		—		(2,836)		8,754		8,754
Forward Sales Contracts	2,180		624		—		(2,180)		624		624
Total	$	17,354	$	7,485	$	6,226	$	(13,344)	$	17,721	$	7,485

Summary of Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about the significant unobservable inputs utilized by Newmark in the fair value measurement of Level 3 assets and liabilities measured at fair value on a recurring basis:


December 31, 2023
Level 3 assets and liabilities	Assets		Liabilities		Significant Unobservable Inputs	Range		Weighted Average
Accounts payable, accrued expenses and other liabilities:
Contingent consideration	$	—	$	25,740	Discount rate	0.0% - 8.0%	(1)	2.6%
					Probability of meeting earnout and contingencies	99.0% - 100.0%	(1)	99.7%

Derivative assets and liabilities:

Forward Sales Contracts	$	1,259	$	20,304	Counterparty credit risk	N/A		N/A
Rate lock commitments	$	9,604	$	1,023	Counterparty credit risk	N/A		N/A


December 31, 2022
Level 3 assets and liabilities	Assets		Liabilities		Significant Unobservable Inputs	Range		Weighted Average
Accounts payable, accrued expenses and other liabilities:
Contingent consideration	$	—	$	8,343	Discount rate	4.0% - 11.8%	(1)	5.1%
					Probability of meeting earnout and contingencies	75.0% - 100.0%	(1)	98.9%

Derivative assets and liabilities:

Forward Sales Contracts	$	11,139	$	624	Counterparty credit risk	N/A		N/A
Rate lock commitments	$	3,181	$	8,754	Counterparty credit risk	N/A		N/A

(1)Newmark’s estimate of contingent consideration as of December 31, 2023 and December 31, 2022 was based on the acquired business’ projected future financial performance, including revenues.