Revenues

Fee Income Revenue Recognition

Fee income is recognized upon transfer of control of promised services when provided to customers in an amount that reflects the consideration expected to be received in exchange for those services. Fee income can be based on a rate per plan or per participant, percentage of assets under management or administration, or rate based on the services provided.

Certain recordkeeping and administrative contracts include non-performance penalties if certain customer satisfaction metrics are not met. The Company estimates a reduction in fee income for non-performance penalties based on an analysis of historical loss.

The sources of fee income from contracts with customers include:

Administration, Recordkeeping, Servicing, and Distribution Fees

Fees earned for providing recordkeeping, shareholder servicing and distribution of funds, administrative, trustee, and custodial services for retirement plan sponsors, plan participants, insurance policy holders and IRA account holders. Recordkeeping contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for the individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. These fees are primarily earned over time (i.e. services are rendered daily) and are calculated as a percentage of assets under administration or as a rate per plan or per participants in a plan. These fees also include service revenues that are recognized as services are rendered and are based upon established billing rates. Such services include loan processing and postage fees. Fees are generally invoiced quarterly and are either deducted directly from plan or participant assets or due within 30 days.

Investment Advisory and Asset Management Fees

Fees earned for investment advisory and asset management and administrative services to retirement plan sponsors, plan participants, insurance policyholders and IRA accountholders, and affiliates of the Company. These fees are primarily earned over time (i.e. services are rendered daily) and are calculated as a percentage of average daily net assets under management or are based upon established billing rates. Fees are generally invoiced quarterly and due within 30 days or are deducted directly from plan, participant, or other investment accounts.

Other Fees

Other fees includes insurance product related fees earned under the guidance of Topic 944, Financial Services - Insurance such as fees for certain variable annuity guaranteed death benefits and insurance risk charges.

The following table presents fee income disaggregated by type of services and segment:



	Three Months Ended September 30, 2018
	Individual Markets		Empower Retirement		Other		Total
Administration, recordkeeping and servicing fees	$	1,263	$	172,239	$	—	$	173,502
Investment advisory and asset management fees	3,758		69,165		1,768		74,691
Other fee income	26,963		15,634		—		42,597
Total Fee Income	$	31,984	$	257,038	$	1,768	$	290,790



	Nine Months Ended September 30, 2018
	Individual Markets		Empower Retirement		Other		Total
Administration, recordkeeping and servicing fees	$	3,565	$	497,438	$	—	$	501,003
Investment advisory and asset management fees	10,456		206,135		5,331		221,922
Other fee income	82,757		47,768		—		130,525
Total Fee Income	$	96,778	$	751,341	$	5,331	$	853,450

At September 30, 2018 and December 31, 2017, included in other assets are customer contract receivables of $247,428 and $234,256, respectively. The Company did not have material bad debt expense during the three and nine months ended September 30, 2018.

Assets Recognized from the Costs to Obtain and Fulfill a Contract

The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it is expected that the costs are recoverable and the benefit of those costs will be longer than one year. The Company also recognizes an asset for costs that relate directly to fulfilling a contract and are expected to be recovered. At September 30, 2018, the Company included deferred contract costs related to ASC 606 of $45,842 in the DAC and VOBA balance in the condensed consolidated balance sheet.