Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WETF | |
Entity Registrant Name | WisdomTree Investments, Inc. | |
Entity Central Index Key | 880,631 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 136,911,671 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 70,221 | $ 92,722 |
Securities owned, at fair value | 68,412 | 58,907 |
Securities held-to-maturity | 2,999 | 3,994 |
Accounts receivable | 19,734 | 17,668 |
Prepaid expenses | 3,707 | 3,346 |
Other current assets | 625 | 555 |
Total current assets | 165,698 | 177,192 |
Fixed assets, net | 11,004 | 11,748 |
Securities held-to-maturity | 20,334 | 18,502 |
Deferred tax asset, net | 6,151 | 9,826 |
Investments, carried at cost | 31,909 | 20,000 |
Goodwill | 1,799 | 1,799 |
Intangible asset | 9,953 | 9,953 |
Other noncurrent assets | 800 | 747 |
Total assets | 247,648 | 249,767 |
Current liabilities: | ||
Fund management and administration payable | 14,416 | 13,584 |
Compensation and benefits payable | 14,990 | 14,652 |
Income taxes payable | 3,608 | 4,700 |
Acquisition payable | 3,537 | |
Securities sold, but not yet purchased, at fair value | 1,248 | |
Accounts payable and other liabilities | 6,922 | 5,806 |
Total current liabilities: | 39,936 | 43,527 |
Deferred rent payable | 4,736 | 4,896 |
Total liabilities | 44,672 | 48,423 |
Commitments and Contingencies (Note 8) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.01; 2,000 shares authorized: | ||
Common stock, par value $0.01; 250,000 shares authorized; issued and outstanding: 136,923 and 136,475 at September 30, 2017 and December 31, 2016, respectively | 1,369 | 1,365 |
Additional paid-in capital | 225,795 | 224,739 |
Accumulated other comprehensive income/(loss) | 528 | (44) |
Accumulated deficit | (24,716) | (24,716) |
Total stockholders' equity | 202,976 | 201,344 |
Total liabilities and stockholders' equity | $ 247,648 | $ 249,767 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 136,923,000 | 136,475,000 |
Common stock, shares outstanding | 136,923,000 | 136,475,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Advisory fees | $ 57,574 | $ 51,553 | $ 166,950 | $ 168,099 |
Settlement gain (Note 8) | 6,909 | |||
Other income | 412 | 236 | 2,154 | 549 |
Total revenues | 57,986 | 51,789 | 176,013 | 168,648 |
Expenses: | ||||
Compensation and benefits | 19,492 | 15,328 | 55,787 | 44,897 |
Fund management and administration | 10,862 | 10,372 | 30,574 | 31,037 |
Marketing and advertising | 3,314 | 3,600 | 10,676 | 11,998 |
Sales and business development | 3,617 | 3,075 | 9,968 | 9,356 |
Professional and consulting fees | 1,035 | 1,035 | 3,814 | 5,235 |
Occupancy, communications and equipment | 1,378 | 1,469 | 4,102 | 3,932 |
Depreciation and amortization | 353 | 332 | 1,042 | 978 |
Third-party sharing arrangements | 710 | 622 | 2,312 | 2,238 |
Acquisition payment | 6,738 | |||
Other | 1,729 | 1,731 | 5,195 | 5,186 |
Total expenses | 42,490 | 37,564 | 123,470 | 121,595 |
Income before taxes | 15,496 | 14,225 | 52,543 | 47,053 |
Income tax expense | 7,520 | 6,270 | 25,582 | 23,375 |
Net income | $ 7,976 | $ 7,955 | $ 26,961 | $ 23,678 |
Net income per share - basic | $ 0.06 | $ 0.06 | $ 0.20 | $ 0.17 |
Net income per share - diluted | $ 0.06 | $ 0.06 | $ 0.20 | $ 0.17 |
Weighted-average common shares - basic | 134,709 | 134,046 | 134,552 | 134,541 |
Weighted-average common shares - diluted | 135,933 | 135,190 | 135,768 | 135,583 |
Cash dividends declared per common share | $ 0.08 | $ 0.08 | $ 0.24 | $ 0.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7,976 | $ 7,955 | $ 26,961 | $ 23,678 |
Other comprehensive income | ||||
Unrealized losses on available-for-sale securities, net of tax | (96) | (230) | ||
Foreign currency translation adjustment | 363 | 106 | 802 | 1,026 |
Other comprehensive income | 267 | 106 | 572 | 1,026 |
Comprehensive income | $ 8,243 | $ 8,061 | $ 27,533 | $ 24,704 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 26,961 | $ 23,678 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Settlement gain | (6,909) | |
Deferred income taxes | 3,823 | 14,761 |
Stock-based compensation | 10,558 | 11,092 |
Depreciation and amortization | 1,042 | 978 |
Other | 524 | (248) |
Changes in operating assets and liabilities: | ||
Securities owned, at fair value | 1,146 | |
Accounts receivable | (1,969) | 10,207 |
Prepaid expenses | (361) | (1,370) |
Other assets | (31) | (1) |
Acquisition payable | (3,545) | (218) |
Fund management and administration payable | 561 | 414 |
Compensation and benefits payable | 115 | (18,944) |
Income taxes payable | (628) | 2,260 |
Securities sold, but not yet purchased, at fair value | (1,249) | |
Accounts payable and other liabilities | 1,041 | 1,336 |
Net cash provided by operating activities | 31,079 | 43,945 |
Cash flows from investing activities: | ||
Purchase of fixed assets | (253) | (654) |
Purchase of securities held-to-maturity | (3,009) | (6,048) |
Purchase of securities available-for-sale | (76,776) | |
Purchase of investment | (5,000) | |
Proceeds from held-to-maturity securities maturing or called prior to maturity | 2,162 | 13,579 |
Proceeds from sales and maturities of securities available-for-sale | 65,067 | |
Acquisition less cash acquired | (11,818) | |
Net cash used in investing activities | (17,809) | (4,941) |
Cash flows from financing activities: | ||
Dividends paid | (32,825) | (32,748) |
Shares repurchased | (4,178) | (39,116) |
Proceeds from exercise of stock options | 53 | 107 |
Net cash used in financing activities | (36,950) | (71,757) |
Increase in cash flow due to changes in foreign exchange rate | 1,179 | 815 |
Net decrease in cash and cash equivalents | (22,501) | (31,938) |
Cash and cash equivalents - beginning of period | 92,722 | 210,070 |
Cash and cash equivalents - end of period | 70,221 | 178,132 |
Supplemental disclosure of cash flow information: | ||
Cash paid for taxes | $ 22,130 | $ 6,664 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | Jun. 20, 2017USD ($) |
Convertible Preferred Stock [Member] | Tradeworx Inc [Member] | Series Y Preferred Stock [Member] | |
Fair value of preferred stock | $ 6,909 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business WisdomTree Investments, Inc., through its global subsidiaries (collectively, “WisdomTree” or the “Company”), is an exchange traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers ETPs covering equity, fixed income, currency, alternative and commodity asset classes. The Company has the following wholly-owned operating subsidiaries: • WisdomTree Asset Management, Inc. • Boost Management Limited • WisdomTree Europe Limited • WisdomTree Management Limited • WisdomTree Japan Inc. • WisdomTree Commodity Services, LLC • WisdomTree Asset Management Canada, Inc. The WisdomTree ETFs are issued in the U.S. by WTT. WTT, a non-consolidated open-end non-consolidated non-consolidated The Board of Trustees and Board of Directors of WTT, BI and WTI, respectively, are separate from the Board of Directors of the Company. The respective Trustees and Directors of WTT, BI and WTI, as applicable, are primarily responsible for overseeing the management and affairs of the WisdomTree ETFs, Boost ETPs and the WisdomTree UCITS ETFs for the benefit of the WisdomTree ETF, Boost ETP and the WisdomTree UCITS ETF shareholders, respectively, and have contracted with the Company to provide for general management and administration services. The Company, in turn, has contracted with third parties to provide the majority of these administration services. In addition, certain officers of the Company provide general management services for WTT, BI and WTI. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and in the opinion of management reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of financial condition, results of operations, and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain accounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s consolidated financial statements presentation. These reclassifications had no effect on the previously reported operating results. Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. If the Company has a majority voting interest in a VOE, the entity is consolidated. The Company has a controlling financial interest in a VIE when the Company has a variable interest that provides it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company had no variable interests in any VIEs at September 30, 2017 and December 31, 2016. Segment and Geographic Information The Company operates as an ETP sponsor and asset manager providing investment advisory services in the U.S., Europe, Canada and Japan. These activities are reported in the Company’s U.S. Business and International Business reportable segments. The U.S. Business segment includes the results of the Company’s U.S. operations and Japan sales office, which primarily engages in selling U.S. listed ETFs to Japanese institutional clients. The results of the Company’s European and Canadian operations are reported as the International Business segment. Revenues are primarily derived in the U.S. and the vast majority of the Company’s AUM is currently located in the U.S. Foreign Currency Translation Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated based on the end of period exchange rates from local currency to U.S. dollars. Results of operations are translated at the average exchange rates in effect during the period. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. Actual results could differ materially from those estimates. Revenue Recognition The Company earns investment advisory fees from its ETPs, as well as licensing fees from third parties. ETP advisory fees are based on a percentage of the ETPs’ average daily net assets and recognized over the period the related service is provided. Licensing fees are based on a percentage of the average monthly net assets and recognized over the period the related service is provided. Depreciation and Amortization Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: Equipment 5 years Furniture and fixtures 15 years Leasehold improvements are amortized over the term of their respective leases or service lives of the improvements, whichever is shorter. Fixed assets are recorded at cost less accumulated depreciation and amortization. Occupancy The Company accounts for its office lease facilities as operating leases, which may include free rent periods and escalation clauses. The Company expenses the lease payments associated with operating leases on a straight-line basis over the lease term. Marketing and Advertising Advertising costs, including media advertising and production costs, are expensed when incurred. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be classified as cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer and other obligations due under normal trade terms. An allowance for doubtful accounts is not provided since, in the opinion of management, all accounts receivable recorded are deemed collectible. Impairment of Long-Lived Assets The Company performs a review for the impairment of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of an asset may not be recoverable. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating securities. Unvested share-based payment awards that contain non-forfeitable two-class two-class Securities Owned and Securities Sold, but not yet Purchased (at fair value) Securities owned and securities sold, but not yet purchased are securities classified as either trading or available-for-sale Securities Held-to-Maturity The Company accounts for certain of its investments as held-to-maturity held-to-maturity more-likely-than-not Investments, Carried at Cost The Company accounts for equity securities that do not have a readily determinable fair value as cost method investments to the extent such investments are not subject to consolidation or the equity method. Income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment. Cost method investments held by the Company are assessed for impairment on a quarterly basis. Goodwill Goodwill is the excess of the fair value of the purchase price over the fair values of the identifiable net assets at the acquisition date. The Company tests its goodwill for impairment at least annually and at the time of a triggering event requiring re-evaluation, 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, For impairment testing purposes, goodwill has been allocated to the Company’s U.S. Business reporting unit (See Note 14). The Company has designated April 30 th Intangible Assets Indefinite-lived intangible assets are tested for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets, if any, are amortized over their estimated useful life, which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Company may rely on a qualitative assessment when performing its intangible asset impairment test. Otherwise, the impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. The Company has designated November 30 th Stock-Based Awards Accounting for stock-based compensation requires the measurement and recognition of compensation expense for all equity awards based on estimated fair values. Stock-based compensation is measured based on the grant-date fair value of the award and is amortized over the relevant service period. Income Taxes The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are adjusted by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not In order to recognize and measure any unrecognized tax benefits, management evaluates and determines whether any of its tax positions are more-likely-than-not Non-income Third Party Sharing Arrangements The Company pays a percentage of its advisory fee revenues based on incremental growth in AUM, subject to caps or minimums, to marketing agents to sell WisdomTree ETFs and for including WisdomTree ETFs on third party customer platforms. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments 2016-13). off-balance held-to-maturity) held-to-maturity 2016-13 In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09). 2016-09 paid-in In February 2016, the FASB issued ASU 2016-02, Leases 2016-02), 2016-02 gross-up right-of-use In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities 2016-01). Available-for-sale 2016-01 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2014-09), 2016-08, 2016-10, 2016-12, 2014-09. 2014-09 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. Cash and Cash Equivalents Cash and cash equivalents of approximately $42,635 and $56,484 at September 30, 2017 and December 31, 2016, respectively, were held at one financial institution. At September 30, 2017 and December 31, 2016, cash equivalents were approximately $10,317 and $55,619, respectively. |
Securities Owned and Securities
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) | 4. Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) Securities owned and securities sold, but not yet purchased are measured at fair value. The fair value of securities is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., “the exit price”) in an orderly transaction between market participants at the measurement date. ASC 820, Fair Value Measurements Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Instruments whose significant drivers are unobservable. The availability of observable inputs can vary from product to product and is effected by a wide variety of factors, including, for example, the type of product, whether the product is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair Valuation Methodology Cash and Cash Equivalents Securities (Held-to-Maturity) Securities Owned/Sold But Not Yet Purchased September 30, 2017 December 31, 2016 Securities Owned Trading securities $ 410 $ 1,556 Available-for-sale 68,002 57,351 Total $ 68,412 $ 58,907 Securities Sold, but not yet Purchased Trading securities $ — $ 1,248 Available-for-sale — — Total $ — $ 1,248 Trading securities are investments in ETFs. These instruments are generally traded in active, quoted and highly liquid markets and are therefore classified as Level 1 within the fair value hierarchy. AFS securities are investments in short-term investment grade corporate bonds and are classified as Level 2. Fair value is generally derived from observable bids for these Level 2 financial instruments. AFS Securities The following table summarizes unrealized gains, losses and fair value of the AFS securities: September 30, 2017 December 31, 2016 Cost $ 68,637 $ 57,615 Gross unrealized gains in other comprehensive income — — Gross unrealized losses in other comprehensive income (635 ) (264 ) Fair value $ 68,002 $ 57,351 All the Company’s AFS securities are due within one year. The Company assesses the AFS securities for other-than-temporary impairment on a quarterly basis. No AFS securities were determined to be other-than-temporarily impaired at September 30, 2017 or December 31, 2016. During the three and nine months ended September 30, 2017, the Company received $19,003 and $65,067, respectively, of proceeds from the sale and maturity of available-for-sale Interests Held in Tradeworx, Inc. On June 20, 2017, the Company was issued newly authorized preferred stock of Tradeworx, Inc. (“Tradeworx”) and a warrant to purchase additional preferred stock in connection with the resolution of a dispute related to the Company’s ownership stake in Tradeworx. The fair value of the preferred stock was $6,909 and is included in Investments on the Consolidated Balance Sheets (See Note 6). The fair value of the warrant was determined to be insignificant. The fair value of these interests held were derived from an enterprise valuation of Tradeworx prepared as of April 30, 2017. The Tradeworx enterprise valuation was determined through a combination of a market approach (Guideline Public Company Method) and income approach (discounted cash flow analyses) applied to its business lines. These approaches are predominantly based on unobservable inputs and therefore the valuation of these interests held are classified as Level 3. The table below presents the ranges and weighted averages of significant unobservable inputs used in these approaches to determine the enterprise value of Tradeworx. Market Approach (1) Range (Weighted Average) Revenue multiple 0.9x Income Approach (1) Range (Weighted Average) Weighted average cost of capital (“WACC”) 11.5% – 14.5% (12.6%) (1) The approach and inputs selected varied, based upon the Tradeworx business line being valued. An increase in the revenue multiple would result in a higher enterprise value, whereas, an increase in the WACC would reduce fair value. |
Securities Held-to-Maturity
Securities Held-to-Maturity | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Securities Held-to-Maturity | 5. Securities Held-to-Maturity The following table is a summary of the Company’s securities held-to-maturity: September 30, 2017 December 31, 2016 Federal agency debt instruments (at amortized cost) $ 23,333 $ 22,496 The following table summarizes unrealized gains, losses, and fair value of securities held-to-maturity: September 30, 2017 December 31, 2016 Cost/amortized cost $ 23,333 $ 22,496 Gross unrealized gains 12 13 Gross unrealized losses (1,234 ) (1,353 ) Fair value $ 22,111 $ 21,156 The Company assesses these securities for other-than-temporary impairment on a quarterly basis. No securities were determined to be other-than-temporarily impaired at September 30, 2017 or December 31, 2016. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be at maturity. The following table sets forth the maturity profile of the securities held-to-maturity; September 30, 2017 December 31, 2016 Due within one year $ 2,999 $ 3,994 Due one year through five years 13 1,023 Due five years through ten years 6,028 4,031 Due over ten years 14,293 13,448 Total $ 23,333 $ 22,496 |
Investments, Carried at Cost
Investments, Carried at Cost | 9 Months Ended |
Sep. 30, 2017 | |
Investments Schedule [Abstract] | |
Investments, Carried at Cost | 6. Investments, Carried at Cost The following table sets forth the Company’s investments, carried at cost: September 30, 2017 December 31, 2016 AdvisorEngine Inc. $ 25,000 $ 20,000 Tradeworx, Inc. 6,909 — Total $ 31,909 $ 20,000 AdvisorEngine Inc. On November 18, 2016, the Company made a $20,000 strategic investment in AdvisorEngine Inc. (“AdvisorEngine”), an end-to-end The Series A Preferred is convertible into common stock at the option of the Company and contains various rights and protections including a non-cumulative On April 27, 2017, the Company invested an additional $5,000 in AdvisorEngine to help facilitate AdvisorEngine’s acquisition of Kredible Technologies, Inc., a technology enabled, research-driven practice management firm designed to help advisors acquire new clients, and to continue to fuel AdvisorEngine’s growth, leadership and innovation in the advisor solutions space. The Company received 2,646,062 shares of Series A-1 The Company’s aggregate equity ownership interest in AdvisorEngine is approximately 47% (or 41% on a fully-diluted basis). The investment is accounted for under the cost method of accounting as it is not considered to be in-substance Tradeworx On June 20, 2017, the Company was issued 7,797,533 newly authorized shares of Series Y preferred stock (“Series Y Preferred”) of Tradeworx in connection with the resolution of a dispute related to the Company’s ownership stake in Tradeworx (See Note 8). The Series Y Preferred represents ownership of 19.99% of Tradeworx on a fully diluted basis (excluding certain reserved shares). In addition, the Company was issued a warrant to purchase 3,898,766 shares of Series Y Preferred. The Series Y Preferred ranks pari passu pre-determined The Company recorded the Series Y Preferred at its fair value of $6,909 (See Note 4). The Series Y Preferred is not considered to be in-substance |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 7. Fixed Assets The following table summarizes fixed assets: September 30, 2017 December 31, 2016 Equipment $ 1,870 $ 1,739 Furniture and fixtures 2,435 2,393 Leasehold improvements 11,017 10,877 Less: Accumulated depreciation and amortization (4,318 ) (3,261 ) Total $ 11,004 $ 11,748 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Contractual Obligations The Company has entered into obligations under operating leases with initial non-cancelable Future minimum lease payments with respect to non-cancelable Remainder of 2017 $ 1,059 2018 3,762 2019 3,139 2020 2,873 2021 and thereafter 24,079 Total $ 34,912 Letter of Credit The Company collateralized its U.S. office lease through a standby letter of credit totaling $1,384. The collateral is included in cash and cash equivalents on the Company’s Consolidated Balance Sheets. Questrade Wealth Management Inc. (“Questrade”) Purchase and Sale Agreement On July 26, 2017 the Company and WTAMC entered into a purchase and sale agreement with Questrade pursuant to which WTAMC has agreed to acquire and become the trustee and manager for, a suite of eight Canadian registered ETFs currently sponsored and managed by Questrade with approximately CAD $104,504 (USD $83,670) in AUM at September 30, 2017. The closing of the transaction is subject to obtaining unitholder and regulatory approvals. The purchase price is formulaic which takes into consideration the AUM of the Questrade ETFs at closing, and is estimated to be approximately CAD $2,821 (USD $2,260) based upon the AUM of the Questrade ETFs at September 30, 2017. The Company has agreed to guarantee the indemnification obligations of WTAMC. Settlement – Tradeworx A few years ago, a dispute arose related to the Company’s ownership stake in Tradeworx. In March 2015, the Company was named a party in a lawsuit in the Delaware Court of Chancery pursuant to which a stockholder of Tradeworx sought to have the shares held by the Company invalidated. In August 2016, the court dismissed the claims brought against the Company and Tradeworx (as a nominal defendant), but the number of shares of Tradeworx owned by the Company remained in dispute. On June 20, 2017, the Company, Tradeworx and certain material stockholders of Tradeworx reached an agreement related to the dispute, pursuant to which (i) the litigation was dismissed; (ii) the parties released and agreed not to sue each other with respect to the related claims in the lawsuit; (iii) Tradeworx agreed to indemnify the Company against any such claims; (iv) the Company exchanged its current shares in Tradeworx for new shares of Tradeworx stock and a warrant in accordance with the terms of an equity exchange agreement as described below; and (v) the Company and Tradeworx entered into a stockholders agreement providing for certain rights and obligations of the Company and Tradeworx as described below. Pursuant to the equity exchange agreement, the Company was issued shares of newly authorized preferred stock reflecting ownership of 19.99% of Tradeworx on a fully diluted basis (excluding certain reserved shares). The shares of preferred stock rank pari passu pre-determined pre-emptive During the three months ended June 30, 2017, the Company recorded a pre-tax Contingencies The Company may be subject to reviews, inspections and investigations by regulatory authorities as well as legal proceedings arising in the ordinary course of business. The Company is not currently party to any litigation that is expected to have a material adverse impact on its business, financial position, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company’s revenues are derived primarily from investment advisory agreements with related parties. Under these agreements, the Company has licensed to related parties the use of certain of its own indexes for the U.S. and Canadian WisdomTree ETFs and WisdomTree UCITS ETFs. The Board of Trustees and Board of Directors of the related parties are primarily responsible for overseeing the management and affairs of the U.S. and Canadian WisdomTree ETFs, Boost ETPs and WisdomTree UCITS ETFs for the benefit of their shareholders and have contracted with the Company to provide for general management and administration services. The Company is also responsible for certain expenses of the related parties, including the cost of transfer agency, custody, fund administration and accounting, legal, audit, and other non-distribution The following table summarizes accounts receivable from related parties which are included as a component of Accounts receivable on the Company’s Consolidated Balance Sheets: September 30, 2017 December 31, 2016 Receivable from WTT $ 17,827 $ 16,506 Receivable from BI and WTI 1,067 645 Receivable from WTCS 101 158 Receivable from WTAMC 41 40 Total $ 19,036 $ 17,349 The following table summarizes revenues from advisory services provided to related parties: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Advisory services provided to WTT $ 54,439 $ 49,087 $ 158,206 $ 161,316 Advisory services provided to BI and WTI 2,733 1,915 7,271 5,308 Advisory services provided to WTCS 310 482 1,210 1,406 Advisory services provided to WTAMC 92 69 263 69 Total $ 57,574 $ 51,553 $ 166,950 $ 168,099 |
Stock-Based Awards
Stock-Based Awards | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards | 10. Stock-Based Awards The Company grants equity awards to employees and directors which include restricted stock awards, restricted stock units and stock options. Stock options may be issued for terms of ten years and may vest after at least one year and have an exercise price equal to the Company’s stock price on the grant date. Restricted stock awards and restricted stock units are generally valued based on the Company’s stock price on the grant date. The Company estimates the fair value for stock options using the Black-Scholes option pricing model. All restricted stock awards, restricted stock units and stock option awards require future service as a condition of vesting with certain awards subject to acceleration under certain conditions. On June 20, 2016, the Company’s stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards. The Company also has issued from time to time stock-based awards outside a plan. Stock-based compensation expense for the three months ended September 30, 2017 and 2016 was approximately $3,607 and $3,822, respectively, and for the nine months ended September 30, 2017 and 2016 was approximately $10,558 and $11,092, respectively. A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: September 30, 2017 Unrecognized Stock- Based Compensation Average Remaining Vesting Period Employees and directors $ 18,272 1.61 A summary of stock options, restricted stock and restricted stock unit activity for the three months ended September 30, 2017 is as follows: Stock Options Restricted Stock Awards Restricted Stock Units Balance at July 1, 2017 1,325,947 2,241,633 2,276 Granted — 96,598 3,472 Exercised/vested (10,370 ) (150,454 ) — Forfeitures — (10,948 ) — Balance at September 30, 2017 1,315,577 2,176,829 5,748 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share The following is a reconciliation of the basic and diluted earnings per share computation: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income $ 7,976 $ 7,955 $ 26,961 $ 23,678 (shares in thousands) (shares in thousands) Shares of common stock and common stock equivalents Weighted average common shares used in basic computation 134,709 134,046 134,552 134,541 Dilutive effect of common stock equivalents 1,224 1,144 1,216 1,042 Weighted average common shares used in dilutive computation 135,933 135,190 135,768 135,583 Basic earnings per share $ 0.06 $ 0.06 $ 0.20 $ 0.17 Diluted earnings per share $ 0.06 $ 0.06 $ 0.20 $ 0.17 In the table above, unvested share-based awards that have non-forfeitable two-class Diluted earnings per share is calculated under both the treasury stock and two-class As further discussed in Note 12, the Company adopted ASU 2016-09 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Effective Income Tax Rate – Three and Nine Months Ended September 30, 2017 The Company’s estimated effective income tax rate for the three months ended September 30, 2017 of 48.5% resulted in income tax expense of $7,520. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to a valuation allowance on foreign net operating losses and state and local income taxes. The Company’s estimated effective income tax rate for the nine months ended September 30, 2017 of 48.7% resulted in income tax expense of $25,582. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to a valuation allowance on foreign net operating losses, tax shortfalls associated with the vesting of stock-based compensation awards and state and local income taxes. Effective January 1, 2017, US GAAP was amended with the intention to simplify the accounting for stock-based compensation. This includes the requirement to record the tax effects related to stock-based compensation within income tax expense, rather than additional paid-in Effective Income Tax Rate – Three and Nine Months Ended September 30, 2016 The Company’s estimated effective income tax rate for the three months ended September 30, 2016 of 44.1% resulted in income tax expense of $6,270. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due to a valuation allowance on foreign net operating losses and state and local income taxes. The Company’s estimated effective income tax rate for the nine months ended September 30, 2016 of 49.7% resulted in income tax expense of $23,375. The Company’s tax rate differs from the federal statutory tax rate of 35% primarily due a valuation allowance on foreign net operating losses, the acquisition payment expense (which is non-deductible) Net Operating Losses – U.S. The Company’s pre-tax Net Operating Losses – International The Company’s European and Canadian subsidiaries generated NOLs outside the U.S. These tax effected NOLs were $3,291 at September 30, 2017. The Company established a full valuation allowance related to these NOLs as it is more-likely-than-not Deferred Tax Assets A summary of the components of the Company’s deferred tax asset is as follows: September 30, 2017 December 31, 2016 Deferred tax assets: Accrued expenses $ 4,429 $ 4,552 Stock-based compensation 3,688 5,382 NOLs - Foreign 3,291 4,551 Deferred rent liability 1,952 2,024 NOLs – U.S. 1,398 1,611 Unrealized losses, net 242 101 Other 329 227 Deferred tax assets 15,329 18,448 Deferred tax liabilities: Fixed assets 2,386 2,405 Unrealized gains, net 2,641 — Incentive compensation 338 1,365 Goodwill and intangible assets 522 301 Deferred tax liabilities 5,887 4,071 Total deferred tax assets less deferred tax liabilities 9,442 14,377 Less: valuation allowance (3,291 ) (4,551 ) Deferred tax assets, net $ 6,151 $ 9,826 |
Shares Repurchased
Shares Repurchased | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Shares Repurchased | 13. Shares Repurchased On October 29, 2014, the Company’s Board of Directors authorized a three-year share repurchase program of up to $100,000. On April 27, 2016, the Board of Directors approved a $60,000 increase to the Company’s share repurchase program and extended the term through April 27, 2019. Included under this program are purchases to offset future equity grants made under the Company’s equity plans and are made in open market or privately negotiated transactions. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The timing and actual number of shares repurchased depends on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The repurchase program may be suspended or terminated at any time without prior notice. Shares repurchased under this program are returned to the status of authorized and unissued on the Company’s books and records. During the three and nine months ended September 30, 2017, the Company repurchased 47,317 and 401,813 shares of its common stock, respectively, under this program for an aggregate cost of $484 and $4,178, respectively. During the three and nine months ended September 30, 2016, the Company repurchased 337,824 and 3,753,147 shares of its common stock, respectively, under this program for an aggregate cost of $3,462 and $39,116, respectively. As of September 30, 2017, $92,327 remains available under this program for future purchases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 14. Goodwill and Intangible Assets Goodwill has been allocated to the Company’s U.S. Business reporting unit and is deductible for tax purposes. The Company has designated April 30 th U.S. Business Reporting Unit Balance at July 1, 2017 $ 1,799 Increases/(decreases) — Balance at September 30, 2017 $ 1,799 Goodwill was tested for impairment on April 30, 2017. The fair value of the reporting unit exceeded its carrying value and therefore no impairment was recognized. Intangible Asset (Indefinite-Lived) As part of the GreenHaven acquisition which occurred on January 1, 2016, the Company identified an intangible asset valued at $9,953 related to its customary advisory agreement with the GreenHaven Commodities ETF (renamed the WisdomTree Continuous Commodity Index Fund, or “GCC”). This intangible asset (which is deductible for tax purposes) was determined to have an indefinite useful life. The Company has designated November 30 th Total Balance at July 1, 2017 $ 9,953 Increases/(decreases) — Balance at September 30, 2017 $ 9,953 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 15. Segment Reporting The Company operates as an ETP sponsor and asset manager providing investment advisory services in the U.S., Europe, Canada and Japan. These activities are reported in the Company’s U.S. Business and International Business reportable segments. The U.S. Business segment includes the results of the Company’s U.S. operations and Japan sales office. The results of the Company’s European and Canadian operations are reported as the International Business segment. Information concerning these reportable segments are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues (U.S. Business segment) Advisory fees $ 54,749 $ 49,568 $ 159,416 $ 162,721 Settlement gain — — 6,909 — Other income 590 323 2,410 931 Total revenues (U.S. Business segment) $ 55,339 $ 49,891 $ 168,735 $ 163,652 Revenues (International Business segment) Advisory fees $ 2,825 $ 1,985 $ 7,534 $ 5,378 Other loss (178 ) (87 ) (256 ) (382 ) Total revenues (International Business segment) $ 2,647 $ 1,898 $ 7,278 $ 4,996 Total revenues $ 57,986 $ 51,789 $ 176,013 $ 168,648 Income/(loss) before taxes U.S. Business segment $ 18,493 $ 17,032 $ 61,712 $ 61,326 International Business segment (2,997 ) (2,807 ) (9,169 ) (14,273 ) Total income before taxes $ 15,496 $ 14,225 $ 52,543 $ 47,053 Assets are not reported by segment as such information is not utilized by the chief operating decision maker. The vast majority of the Company’s assets are located in the U.S. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events The Company has evaluated subsequent events through the date of issuance of the accompanying consolidated financial statements. There were no events requiring disclosure. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and in the opinion of management reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of financial condition, results of operations, and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain accounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s consolidated financial statements presentation. These reclassifications had no effect on the previously reported operating results. |
Consolidation | Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity (“VOE”) or a variable interest entity (“VIE”). The usual condition for a controlling financial interest in a VOE is ownership of a majority voting interest. If the Company has a majority voting interest in a VOE, the entity is consolidated. The Company has a controlling financial interest in a VIE when the Company has a variable interest that provides it with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company had no variable interests in any VIEs at September 30, 2017 and December 31, 2016. |
Segment and Geographic Information | Segment and Geographic Information The Company operates as an ETP sponsor and asset manager providing investment advisory services in the U.S., Europe, Canada and Japan. These activities are reported in the Company’s U.S. Business and International Business reportable segments. The U.S. Business segment includes the results of the Company’s U.S. operations and Japan sales office, which primarily engages in selling U.S. listed ETFs to Japanese institutional clients. The results of the Company’s European and Canadian operations are reported as the International Business segment. Revenues are primarily derived in the U.S. and the vast majority of the Company’s AUM is currently located in the U.S. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of subsidiaries whose functional currency is not the U.S. dollar are translated based on the end of period exchange rates from local currency to U.S. dollars. Results of operations are translated at the average exchange rates in effect during the period. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses for the periods presented. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition The Company earns investment advisory fees from its ETPs, as well as licensing fees from third parties. ETP advisory fees are based on a percentage of the ETPs’ average daily net assets and recognized over the period the related service is provided. Licensing fees are based on a percentage of the average monthly net assets and recognized over the period the related service is provided. |
Depreciation and Amortization | Depreciation and Amortization Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: Equipment 5 years Furniture and fixtures 15 years Leasehold improvements are amortized over the term of their respective leases or service lives of the improvements, whichever is shorter. Fixed assets are recorded at cost less accumulated depreciation and amortization. |
Occupancy | Occupancy The Company accounts for its office lease facilities as operating leases, which may include free rent periods and escalation clauses. The Company expenses the lease payments associated with operating leases on a straight-line basis over the lease term. |
Marketing and Advertising | Marketing and Advertising Advertising costs, including media advertising and production costs, are expensed when incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be classified as cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are customer and other obligations due under normal trade terms. An allowance for doubtful accounts is not provided since, in the opinion of management, all accounts receivable recorded are deemed collectible. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company performs a review for the impairment of long-lived assets when events or changes in circumstances indicate that the estimated undiscounted future cash flows expected to be generated by the assets are less than their carrying amounts or when other events occur which may indicate that the carrying amount of an asset may not be recoverable. |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Net income available to common stockholders represents net income of the Company reduced by an allocation of earnings to participating securities. Unvested share-based payment awards that contain non-forfeitable two-class two-class |
Securities Owned and Securities Sold, but not yet Purchased (at fair value) | Securities Owned and Securities Sold, but not yet Purchased (at fair value) Securities owned and securities sold, but not yet purchased are securities classified as either trading or available-for-sale |
Securities Held-to-Maturity | Securities Held-to-Maturity The Company accounts for certain of its investments as held-to-maturity held-to-maturity more-likely-than-not |
Investments, Carried at Cost | Investments, Carried at Cost The Company accounts for equity securities that do not have a readily determinable fair value as cost method investments to the extent such investments are not subject to consolidation or the equity method. Income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment. Cost method investments held by the Company are assessed for impairment on a quarterly basis. |
Goodwill | Goodwill Goodwill is the excess of the fair value of the purchase price over the fair values of the identifiable net assets at the acquisition date. The Company tests its goodwill for impairment at least annually and at the time of a triggering event requiring re-evaluation, 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, For impairment testing purposes, goodwill has been allocated to the Company’s U.S. Business reporting unit (See Note 14). The Company has designated April 30 th |
Intangible Assets | Intangible Assets Indefinite-lived intangible assets are tested for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair values are less than their carrying values. Finite-lived intangible assets, if any, are amortized over their estimated useful life, which is the period over which the assets are expected to contribute directly or indirectly to the future cash flows of the Company. These intangible assets are tested for impairment at the time of a triggering event, if one were to occur. Finite-lived intangible assets may be impaired when the estimated undiscounted future cash flows generated from the assets are less than their carrying amounts. The Company may rely on a qualitative assessment when performing its intangible asset impairment test. Otherwise, the impairment evaluation is performed at the lowest level of identifiable cash flows independent of other assets. The Company has designated November 30 th |
Stock-Based Awards | Stock-Based Awards Accounting for stock-based compensation requires the measurement and recognition of compensation expense for all equity awards based on estimated fair values. Stock-based compensation is measured based on the grant-date fair value of the award and is amortized over the relevant service period. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method, which requires the determination of deferred tax assets and liabilities based on the differences between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which differences are expected to reverse. Deferred tax assets are adjusted by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not In order to recognize and measure any unrecognized tax benefits, management evaluates and determines whether any of its tax positions are more-likely-than-not Non-income |
Third Party Sharing Arrangements | Third Party Sharing Arrangements The Company pays a percentage of its advisory fee revenues based on incremental growth in AUM, subject to caps or minimums, to marketing agents to sell WisdomTree ETFs and for including WisdomTree ETFs on third party customer platforms. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments 2016-13). off-balance held-to-maturity) held-to-maturity 2016-13 In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09). 2016-09 paid-in In February 2016, the FASB issued ASU 2016-02, Leases 2016-02), 2016-02 gross-up right-of-use In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities 2016-01). Available-for-sale 2016-01 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers 2014-09), 2016-08, 2016-10, 2016-12, 2014-09. 2014-09 |
Significant Accounting Polici25
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Related Assets | Depreciation is provided for using the straight-line method over the estimated useful lives of the related assets as follows: Equipment 5 years Furniture and fixtures 15 years |
Securities Owned and Securiti26
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Securities Owned/Sold But Not Yet Purchased | Securities Owned/Sold But Not Yet Purchased September 30, 2017 December 31, 2016 Securities Owned Trading securities $ 410 $ 1,556 Available-for-sale 68,002 57,351 Total $ 68,412 $ 58,907 Securities Sold, but not yet Purchased Trading securities $ — $ 1,248 Available-for-sale — — Total $ — $ 1,248 |
Schedule of Unrealized Gains, Losses and Fair Value of AFS Securities | The following table summarizes unrealized gains, losses and fair value of the AFS securities: September 30, 2017 December 31, 2016 Cost $ 68,637 $ 57,615 Gross unrealized gains in other comprehensive income — — Gross unrealized losses in other comprehensive income (635 ) (264 ) Fair value $ 68,002 $ 57,351 |
Ranges and Weighted Averages of Significant Unobservable Inputs Used to Determine Enterprise Value of Tradeworx | The table below presents the ranges and weighted averages of significant unobservable inputs used in these approaches to determine the enterprise value of Tradeworx. Market Approach (1) Range (Weighted Average) Revenue multiple 0.9x Income Approach (1) Range (Weighted Average) Weighted average cost of capital (“WACC”) 11.5% – 14.5% (12.6%) (1) The approach and inputs selected varied, based upon the Tradeworx business line being valued. |
Securities Held-to-Maturity (Ta
Securities Held-to-Maturity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Schedule of Securities Held-to-Maturity | The following table is a summary of the Company’s securities held-to-maturity: September 30, 2017 December 31, 2016 Federal agency debt instruments (at amortized cost) $ 23,333 $ 22,496 |
Schedule of Unrealized Gains, Losses and Fair Value of Securities Held-to-Maturity | The following table summarizes unrealized gains, losses, and fair value of securities held-to-maturity: September 30, 2017 December 31, 2016 Cost/amortized cost $ 23,333 $ 22,496 Gross unrealized gains 12 13 Gross unrealized losses (1,234 ) (1,353 ) Fair value $ 22,111 $ 21,156 |
Schedule of Maturity Profile of Securities Held-to-Maturity | The following table sets forth the maturity profile of the securities held-to-maturity; September 30, 2017 December 31, 2016 Due within one year $ 2,999 $ 3,994 Due one year through five years 13 1,023 Due five years through ten years 6,028 4,031 Due over ten years 14,293 13,448 Total $ 23,333 $ 22,496 |
Investments, Carried at Cost (T
Investments, Carried at Cost (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments Schedule [Abstract] | |
Investments at Carried Cost | The following table sets forth the Company’s investments, carried at cost: September 30, 2017 December 31, 2016 AdvisorEngine Inc. $ 25,000 $ 20,000 Tradeworx, Inc. 6,909 — Total $ 31,909 $ 20,000 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | The following table summarizes fixed assets: September 30, 2017 December 31, 2016 Equipment $ 1,870 $ 1,739 Furniture and fixtures 2,435 2,393 Leasehold improvements 11,017 10,877 Less: Accumulated depreciation and amortization (4,318 ) (3,261 ) Total $ 11,004 $ 11,748 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments with respect to non-cancelable Remainder of 2017 $ 1,059 2018 3,762 2019 3,139 2020 2,873 2021 and thereafter 24,079 Total $ 34,912 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Accounts Receivable from Related Parties | The following table summarizes accounts receivable from related parties which are included as a component of Accounts receivable on the Company’s Consolidated Balance Sheets: September 30, 2017 December 31, 2016 Receivable from WTT $ 17,827 $ 16,506 Receivable from BI and WTI 1,067 645 Receivable from WTCS 101 158 Receivable from WTAMC 41 40 Total $ 19,036 $ 17,349 |
Summary of Revenues from Advisory Services Provided to Related Parties | The following table summarizes revenues from advisory services provided to related parties: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Advisory services provided to WTT $ 54,439 $ 49,087 $ 158,206 $ 161,316 Advisory services provided to BI and WTI 2,733 1,915 7,271 5,308 Advisory services provided to WTCS 310 482 1,210 1,406 Advisory services provided to WTAMC 92 69 263 69 Total $ 57,574 $ 51,553 $ 166,950 $ 168,099 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period | A summary of unrecognized stock-based compensation expense and average remaining vesting period is as follows: September 30, 2017 Unrecognized Stock- Based Compensation Average Remaining Vesting Period Employees and directors $ 18,272 1.61 |
Summary of Stock Options, Restricted Stock and Restricted Stock Unit Activity | A summary of stock options, restricted stock and restricted stock unit activity for the three months ended September 30, 2017 is as follows: Stock Options Restricted Stock Awards Restricted Stock Units Balance at July 1, 2017 1,325,947 2,241,633 2,276 Granted — 96,598 3,472 Exercised/vested (10,370 ) (150,454 ) — Forfeitures — (10,948 ) — Balance at September 30, 2017 1,315,577 2,176,829 5,748 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the basic and diluted earnings per share computation: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income $ 7,976 $ 7,955 $ 26,961 $ 23,678 (shares in thousands) (shares in thousands) Shares of common stock and common stock equivalents Weighted average common shares used in basic computation 134,709 134,046 134,552 134,541 Dilutive effect of common stock equivalents 1,224 1,144 1,216 1,042 Weighted average common shares used in dilutive computation 135,933 135,190 135,768 135,583 Basic earnings per share $ 0.06 $ 0.06 $ 0.20 $ 0.17 Diluted earnings per share $ 0.06 $ 0.06 $ 0.20 $ 0.17 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Deferred Tax Asset Recorded | A summary of the components of the Company’s deferred tax asset is as follows: September 30, 2017 December 31, 2016 Deferred tax assets: Accrued expenses $ 4,429 $ 4,552 Stock-based compensation 3,688 5,382 NOLs - Foreign 3,291 4,551 Deferred rent liability 1,952 2,024 NOLs – U.S. 1,398 1,611 Unrealized losses, net 242 101 Other 329 227 Deferred tax assets 15,329 18,448 Deferred tax liabilities: Fixed assets 2,386 2,405 Unrealized gains, net 2,641 — Incentive compensation 338 1,365 Goodwill and intangible assets 522 301 Deferred tax liabilities 5,887 4,071 Total deferred tax assets less deferred tax liabilities 9,442 14,377 Less: valuation allowance (3,291 ) (4,551 ) Deferred tax assets, net $ 6,151 $ 9,826 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Activity | The following table summarizes the goodwill activity during the period: U.S. Business Reporting Unit Balance at July 1, 2017 $ 1,799 Increases/(decreases) — Balance at September 30, 2017 $ 1,799 |
Summary of Indefinite-lived Intangible Asset | Total Balance at July 1, 2017 $ 9,953 Increases/(decreases) — Balance at September 30, 2017 $ 9,953 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Information concerning these reportable segments are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues (U.S. Business segment) Advisory fees $ 54,749 $ 49,568 $ 159,416 $ 162,721 Settlement gain — — 6,909 — Other income 590 323 2,410 931 Total revenues (U.S. Business segment) $ 55,339 $ 49,891 $ 168,735 $ 163,652 Revenues (International Business segment) Advisory fees $ 2,825 $ 1,985 $ 7,534 $ 5,378 Other loss (178 ) (87 ) (256 ) (382 ) Total revenues (International Business segment) $ 2,647 $ 1,898 $ 7,278 $ 4,996 Total revenues $ 57,986 $ 51,789 $ 176,013 $ 168,648 Income/(loss) before taxes U.S. Business segment $ 18,493 $ 17,032 $ 61,712 $ 61,326 International Business segment (2,997 ) (2,807 ) (9,169 ) (14,273 ) Total income before taxes $ 15,496 $ 14,225 $ 52,543 $ 47,053 |
Significant Accounting Polici37
Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Significant Accounting Polici38
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents maturity period, maximum | 90 days | |
Income tax expense | $ 248 | $ 1,338 |
ASU 2016-09 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Income tax expense | $ 248 | $ 1,338 |
Decrease in earnings per share basic | $ 0.01 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents held at financial institution | $ 10,317 | $ 55,619 |
Cash and cash equivalents held at one financial institution | $ 42,635 | $ 56,484 |
Securities Owned and Securiti40
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($)Securities | Dec. 31, 2016Securities | Jun. 20, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liquid investments, original maturities | 90 days | |||
Number of AFS securities determined to be other than temporarily impaired | Securities | 0 | 0 | ||
Proceeds from sale and maturity of available-for-sale securities | $ 19,003 | $ 65,067 | ||
Recognized gross realized losses | $ 277 | $ 687 | ||
Tradeworx Inc [Member] | Convertible Preferred Stock [Member] | Series Y Preferred Stock [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of preferred stock | $ 6,909 |
Securities Owned and Securiti41
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) - Schedule of Securities Owned/Sold But Not Yet Purchased (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities Owned Total | $ 68,412 | $ 58,907 |
Securities Sold, but not yet Purchased Total | 1,248 | |
Trading Securities [Member] | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities Owned Total | 410 | 1,556 |
Securities Sold, but not yet Purchased Total | 1,248 | |
Available-for-sale Securities [Member] | ||
Security Owned and Sold, Not yet Purchased, at Fair Value [Line Items] | ||
Securities Owned Total | $ 68,002 | $ 57,351 |
Securities Owned and Securiti42
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) - Schedule of Unrealized Gains, Losses and Fair Value of AFS Securities (Detail) - Available-for-sale Securities [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 68,637 | $ 57,615 |
Gross unrealized gains in other comprehensive income | 0 | 0 |
Gross unrealized losses in other comprehensive income | (635) | (264) |
Fair value | $ 68,002 | $ 57,351 |
Securities Owned and Securiti43
Securities Owned and Securities Sold, but not yet Purchased (and Fair Value Measurement) - Ranges and Weighted Averages of Significant Unobservable Inputs Used to Determine Enterprise Value of Tradeworx (Detail) - Preferred Stock [Member] - Level 3 [Member] | Apr. 30, 2017 |
Minimum [Member] | Income Approach Valuation Technique [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Weighted average cost of capital ("WACC") | 11.50% |
Maximum [Member] | Income Approach Valuation Technique [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Weighted average cost of capital ("WACC") | 14.50% |
Weighted Average [Member] | Income Approach Valuation Technique [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Weighted average cost of capital ("WACC") | 12.60% |
Weighted Average [Member] | Market Approach Valuation Technique [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Revenue multiple | 0.9 |
Securities Held-to-Maturity - S
Securities Held-to-Maturity - Schedule of Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Federal agency debt instruments (at amortized cost) | $ 23,333 | $ 22,496 |
Federal Agency [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Federal agency debt instruments (at amortized cost) | $ 23,333 | $ 22,496 |
Securities Held-to-Maturity -45
Securities Held-to-Maturity - Schedule of Unrealized Gains, Losses and Fair Value of Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity cost or amortized cost | $ 23,333 | $ 22,496 |
Held-to-maturity gross unrealized gains | 12 | 13 |
Held-to-maturity gross unrealized losses | (1,234) | (1,353) |
Held-to-maturity fair value | $ 22,111 | $ 21,156 |
Securities Held-to-Maturity - A
Securities Held-to-Maturity - Additional Information (Detail) - Securities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities determined to be other than temporarily impaired | 0 | 0 |
Securities Held-to-Maturity -47
Securities Held-to-Maturity - Schedule of Maturity Profile of Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity due within one year | $ 2,999 | $ 3,994 |
Held-to-maturity due one year through five years | 13 | 1,023 |
Held-to-maturity due five years through ten years | 6,028 | 4,031 |
Held-to-maturity due over ten years | 14,293 | 13,448 |
Held-to-maturity cost or amortized cost | $ 23,333 | $ 22,496 |
Investments, Carried at Cost -
Investments, Carried at Cost - Details of Investments Carried at Cost (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Nov. 18, 2016 |
Schedule of Cost-method Investments [Line Items] | |||
Investments, carried at cost | $ 31,909 | $ 20,000 | |
Advisor Engine Inc. [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Investments, carried at cost | 25,000 | $ 20,000 | $ 20,000 |
Tradeworx Inc [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Investments, carried at cost | $ 6,909 |
Investment, Carried at Cost - A
Investment, Carried at Cost - Additional Information (Detail) - USD ($) | Jun. 20, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Apr. 27, 2017 | Nov. 18, 2016 |
Schedule of Cost-method Investments [Line Items] | |||||
Cost method investments | $ 31,909,000 | $ 20,000,000 | |||
Advisor Engine Inc. [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Date of agreement | Nov. 18, 2016 | ||||
Cost method investments | $ 25,000,000 | 20,000,000 | $ 20,000,000 | ||
Ownership interest percentage | 47.00% | ||||
Fully diluted ownership interest percentage | 41.00% | ||||
Impairment losses | $ 0 | $ 0 | |||
Advisor Engine Inc. [Member] | Convertible Preferred Stock [Member] | Series A Preferred Stock [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Number of shares purchased | 11,811,856 | ||||
Non-cumulative dividend | 6.00% | ||||
Advisor Engine Inc. [Member] | Convertible Preferred Stock [Member] | Series A- One Convertible Preferred Stock [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Cost method investments | $ 5,000,000 | ||||
Number of shares purchased | 2,646,062 | ||||
Tradeworx Inc [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Cost method investments | $ 6,909,000 | ||||
Tradeworx Inc [Member] | Convertible Preferred Stock [Member] | Series Y Preferred Stock [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Number of shares issued | 7,797,533 | ||||
Fully diluted ownership interest percentage | 19.99% | ||||
Liquidation preference | $ 0.231 | ||||
Fair value of preferred stock | $ 6,909,000 | ||||
Tradeworx Inc [Member] | Warrant [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Warrant exercisable term | 5 years | ||||
Qualified financing determined term | 2 years | ||||
Tradeworx Inc [Member] | Warrant [Member] | Series Y Preferred Stock [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Warrants to purchase shares | 3,898,766 | ||||
Exercisable percentage of warrant if claim brought against Company | 100.00% |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation and amortization | $ (4,318) | $ (3,261) |
Total | 11,004 | 11,748 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,870 | 1,739 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,435 | 2,393 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 11,017 | $ 10,877 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) CAD in Thousands, $ in Thousands | Sep. 30, 2017USD ($)Fund | Sep. 30, 2017CADFund | Jun. 20, 2017 | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Commitments And Contingencies [Line Items] | ||||||||
Operating leases expenses | $ 1,177 | $ 1,203 | $ 3,327 | $ 3,221 | ||||
Standby letter of credit | $ 1,384 | $ 1,384 | 1,384 | |||||
Pre-tax gain | $ 6,909 | |||||||
Tradeworx Inc [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Equity exchange agreement description | Pursuant to the equity exchange agreement, the Company was issued shares of newly authorized preferred stock reflecting ownership of 19.99% of Tradeworx on a fully diluted basis (excluding certain reserved shares). The shares of preferred stock rank pari passu in priority with Tradeworx’s current preferred stockholders. In addition, Tradeworx issued the Company a warrant to purchase up to an additional 50% of the number of shares of preferred stock issued to the Company at closing, exercisable for five years after the closing, at varying exercise prices that increase over time and set at multiples of a pre-determined Tradeworx valuation (or a new valuation if Tradeworx completes a qualified financing, as defined, within two years). If a claim is brought against Tradeworx or the Company relating to the settlement, the warrant will be exercisable for 100% of the number of shares of preferred stock issued to the Company at closing. Pursuant to the stockholders agreement, the Company has the right to appoint one of five directors to Tradeworx’s board of directors, as well as additional customary rights, including (i) consent rights on certain transactions (e.g., related-party transactions and certain changes to organizational documents); (ii) pre-emptive rights on future issuances of shares, subject to customary carve-outs; (iii) information rights; and (iv) registration rights. | |||||||
Tradeworx Inc [Member] | Convertible Preferred Stock [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Pre-tax gain | $ 6,909 | |||||||
Tradeworx Inc [Member] | Convertible Preferred Stock [Member] | Series Y Preferred Stock [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Fully diluted ownership interest percentage | 19.99% | |||||||
Tradeworx Inc [Member] | Warrant [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Warrant to purchase maximum additional percentage of shares | 50.00% | |||||||
Warrant exercisable term | 5 years | |||||||
Exercisable percentage of warrant if claim brought against Company | 100.00% | |||||||
Questrade Wealth Management Inc. Purchase and Sale Agreement [Member] | WisdomTree Asset Management Canada, Inc [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Number of ETF acquired by company | Fund | 8 | 8 | ||||||
Assets under management | $ 83,670 | CAD 104,504 | ||||||
Payment for assets under management | $ 2,260 | CAD 2,821 |
Commitments and Contingencies52
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2017 | $ 1,059 |
2,018 | 3,762 |
2,019 | 3,139 |
2,020 | 2,873 |
2021 and thereafter | 24,079 |
Total | $ 34,912 |
Related Party Transactions - Su
Related Party Transactions - Summary of Accounts Receivable from Related Parties (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 19,036 | $ 17,349 |
WisdomTree Trust [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 17,827 | 16,506 |
Boost Issuer PLC And WisdomTree Issuer plc [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 1,067 | 645 |
WisdomTree Commodity Services LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | 101 | 158 |
WisdomTree Asset Management Canada, Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable from related parties | $ 41 | $ 40 |
Related Party Transactions - 54
Related Party Transactions - Summary of Revenues from Advisory Services Provided to Related Parties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | $ 57,574 | $ 51,553 | $ 166,950 | $ 168,099 |
WisdomTree Trust [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | 54,439 | 49,087 | 158,206 | 161,316 |
Boost Issuer PLC And WisdomTree Issuer plc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | 2,733 | 1,915 | 7,271 | 5,308 |
WisdomTree Commodity Services LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | 310 | 482 | 1,210 | 1,406 |
WisdomTree Asset Management Canada, Inc [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from advisory services | $ 92 | $ 69 | $ 263 | $ 69 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 20, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Stock option issuance period | 10 years | ||||
Option vested period | 1 year | ||||
Option issued period | Stock options may be issued for terms of ten years | ||||
Shares of common stock authorized to issue under equity award plan | 10,000,000 | ||||
Description of new equity award plan | On June 20, 2016, the Company's stockholders approved a new equity award plan under which the Company can issue up to 10,000,000 shares of common stock (less one share for every share granted under prior plans since March 31, 2016 and inclusive of shares available under the prior plans as of March 31, 2016) in the form of stock options and other stock-based awards. | ||||
Stock-based compensation expense | $ 3,607 | $ 3,822 | $ 10,558 | $ 11,092 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Unrecognized Stock-Based Compensation Expense and Average Remaining Vesting Period (Detail) - Employees and Directors [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average Remaining Vesting Period | 1 year 7 months 10 days |
Unrecognized Stock-Based Compensation | $ 18,272 |
Stock-Based Awards - Summary 57
Stock-Based Awards - Summary of Stock Options, Restricted Stock and Restricted Stock Unit Activity (Detail) | 3 Months Ended |
Sep. 30, 2017shares | |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock, beginning balance | 2,241,633 |
Restricted Stock, Granted | 96,598 |
Restricted Stock, Exercised/vested | (150,454) |
Restricted Stock, Forfeitures | (10,948) |
Restricted Stock, ending balance | 2,176,829 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock, beginning balance | 2,276 |
Restricted Stock, Granted | 3,472 |
Restricted Stock, ending balance | 5,748 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, beginning balance | 1,325,947 |
Options, Granted | 0 |
Options, Exercised/vested | (10,370) |
Options, Forfeitures | 0 |
Options, ending balance | 1,315,577 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 7,976 | $ 7,955 | $ 26,961 | $ 23,678 |
Shares of common stock and common stock equivalents: | ||||
Weighted average common shares used in basic computation | 134,709 | 134,046 | 134,552 | 134,541 |
Dilutive effect of common stock equivalents | 1,224 | 1,144 | 1,216 | 1,042 |
Weighted average common shares used in dilutive computation | 135,933 | 135,190 | 135,768 | 135,583 |
Basic earnings per share | $ 0.06 | $ 0.06 | $ 0.20 | $ 0.17 |
Diluted earnings per share | $ 0.06 | $ 0.06 | $ 0.20 | $ 0.17 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Reduction in basic earnings per share | $ 0.01 | |||
Anti-dilutive common stock equivalents excluded from calculation of diluted earnings per share | 337,682 | 516,630 | 1,745,469 | 909,118 |
ASU 2016-09 [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Decrease in earnings per share basic | $ 0.01 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Estimated effective rate | 48.50% | 44.10% | 48.70% | 49.70% |
Income tax expense | $ 7,520 | $ 6,270 | $ 25,582 | $ 23,375 |
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income tax expense | $ 248 | $ 1,338 | ||
Pre-tax federal net operating losses | $ 3,671 | $ 3,671 | ||
Pre-tax federal net operating losses expiration date | 2,024 | |||
Tax effected NOLs - Foreign | $ 3,291 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accrued expenses | $ 4,429 | $ 4,552 |
Stock-based compensation | 3,688 | 5,382 |
NOLs - Foreign | 3,291 | 4,551 |
Deferred rent liability | 1,952 | 2,024 |
NOLs - U.S. | 1,398 | 1,611 |
Unrealized losses, net | 242 | 101 |
Other | 329 | 227 |
Deferred tax assets | 15,329 | 18,448 |
Deferred tax liabilities: | ||
Fixed assets | 2,386 | 2,405 |
Unrealized gains, net | 2,641 | |
Incentive compensation | 338 | 1,365 |
Goodwill and intangible assets | 522 | 301 |
Deferred tax liabilities | 5,887 | 4,071 |
Total deferred tax assets less deferred tax liabilities | 9,442 | 14,377 |
Less: valuation allowance | (3,291) | (4,551) |
Deferred tax assets, net | $ 6,151 | $ 9,826 |
Shares Repurchased - Additional
Shares Repurchased - Additional Information (Detail) - Three-Year Share Repurchase Program [Member] - USD ($) | Apr. 27, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 29, 2014 |
Class of Stock [Line Items] | ||||||
Common stock purchase authorized amount | $ 100,000,000 | |||||
Share repurchase program, increase in authorized amount | $ 60,000,000 | |||||
Share repurchase program, extended term date | Apr. 27, 2019 | |||||
Repurchased common stock, shares | 47,317 | 337,824 | 401,813 | 3,753,147 | ||
Repurchased common stock, value | $ 484,000 | $ 3,462,000 | $ 4,178,000 | $ 39,116,000 | ||
Dollar amount remaining available for future share repurchases | $ 92,327,000 | $ 92,327,000 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets - Summary of Goodwill Activity (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Ending balance | $ 1,799 |
Reportable Subsegments [Member] | U.S. Business segment [Member] | |
Goodwill [Line Items] | |
Beginning balance | 1,799 |
Increases/(decreases) | 0 |
Ending balance | $ 1,799 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | Apr. 30, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill, impairment loss | $ 0 | ||||
Intangible asset related to its customary advisory agreement | $ 9,953,000 | $ 9,953,000 | |||
GreenHaven Commodity Services, LLC [Member] | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Intangible asset related to its customary advisory agreement | $ 9,953,000 | $ 9,953,000 | $ 9,953,000 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Summary of Indefinite-lived Intangible Asset (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Ending balance | $ 9,953 |
GreenHaven Commodity Services, LLC [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Beginning balance | 9,953 |
Increases/(decreases) | 0 |
Ending balance | $ 9,953 |
Segment Reporting - Reportable
Segment Reporting - Reportable Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Advisory fees | $ 57,574 | $ 51,553 | $ 166,950 | $ 168,099 |
Settlement gain | 6,909 | |||
Other income | 412 | 236 | 2,154 | 549 |
Total revenues | 57,986 | 51,789 | 176,013 | 168,648 |
Income/(loss) before taxes | ||||
Total income before taxes | 15,496 | 14,225 | 52,543 | 47,053 |
U.S. Business segment [Member] | ||||
Revenues | ||||
Advisory fees | 54,749 | 49,568 | 159,416 | 162,721 |
Settlement gain | 6,909 | |||
Other income | 590 | 323 | 2,410 | 931 |
Total revenues | 55,339 | 49,891 | 168,735 | 163,652 |
Income/(loss) before taxes | ||||
Total income before taxes | 18,493 | 17,032 | 61,712 | 61,326 |
International Business Segment [Member] | ||||
Revenues | ||||
Advisory fees | 2,825 | 1,985 | 7,534 | 5,378 |
Other loss | (178) | (87) | (256) | (382) |
Total revenues | 2,647 | 1,898 | 7,278 | 4,996 |
Income/(loss) before taxes | ||||
Total income before taxes | $ (2,997) | $ (2,807) | $ (9,169) | $ (14,273) |