Revenues (Notes)

9 Months Ended

Sep. 30, 2018

Disaggregation of Revenue [Line Items]

Disaggregation of Revenue [Table Text Block]

The following tables present the revenues disaggregated by revenue source:



	Three months ended September 30, 2018
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Base commissions⁽¹⁾	$	207,703	$	92,106	$	62,216	$	—	$	(11	)	$	362,014
Fees⁽²⁾	33,915		43,168		13,887		48,054		(360		)	138,664
Incentive commissions⁽³⁾	11,408		287		44		—		16			11,755
Profit-sharing contingent commissions⁽⁴⁾	5,280		7,786		1,261		—		—			14,327
Guaranteed supplemental commissions⁽⁵⁾	2,573		22		458		—		—			3,053
Investment income⁽⁶⁾	1		138		44		51		485			719
Other income, net⁽⁷⁾	207		12		99		—		—			318
Total Revenues	$	261,087	$	143,519	$	78,009	$	48,105	$	130		$	530,850



	Nine months ended September 30, 2018
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Base commissions⁽¹⁾	$	609,252	$	249,491	$	174,888	$	—	$	(42	)	$	1,033,589
Fees⁽²⁾	94,282		106,839		37,799		137,878		(880		)	375,918
Incentive commissions⁽³⁾	43,356		295		515		—		28			44,194
Profit-sharing contingent commissions⁽⁴⁾	17,879		17,290		4,824		—		—			39,993
Guaranteed supplemental commissions⁽⁵⁾	7,277		75		1,173		—		—			8,525
Investment income⁽⁶⁾	2		384		125		160		1,380			2,051
Other income, net⁽⁷⁾	758		60		401		—		9			1,228
Total Revenues	$	772,806	$	374,434	$	219,725	$	138,038	$	495		$	1,505,498


(1)	Base commissions generally represent a percentage of the premium paid by an insured and are affected by fluctuations in both premium rate levels charged by insurance companies and the insureds’ underlying “insurable exposure units,” which are units that insurance

companies use to measure or express insurance exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance companies establish these premium rates based upon many factors, including loss experience, risk profile and reinsurance rates paid by such insurance companies, none of which we control.


(2)	Fee revenues relate to fees for services other than securing coverage for our customers and fees negotiated in lieu of commissions.


(3)	Incentive commissions include additional commissions over base commissions received from insurance carriers based on predetermined production levels mutually agreed upon by both parties.


(4)	Profit-sharing contingent commissions are based primarily on underwriting results, but may also reflect considerations for volume, growth and/or retention.


(5)	Guaranteed supplemental commissions represent guaranteed fixed-base agreements in lieu of profit-sharing contingent commissions.


(6)	Investment income consists primarily of interest on cash and investments.


(7)	Other income consists primarily of legal settlements and other miscellaneous income.

Contract Assets and Liabilities

The balances of contract assets and contract liabilities arising from contracts with customers as of September 30, 2018 and December 31, 2017 were as follows:



(in thousands)	September 30, 2018		December 31, 2017⁽¹⁾
Contract assets	$	249,294	$	210,323
Contract liabilities	$	63,611	$	51,236


(1)	The balances as of December 31, 2017 have been revised to reflect the impact of adopting the New Revenue Standard.

Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which have not yet been billed in our systems. Deferred revenue (contract liabilities) relates to payments received in advance of performance under the contract before the transfer of a good or service to the customer.

As of September 30, 2018, deferred revenue consisted of $53.9 million as current portion to be recognized within one year and $9.7 million in long term to be recognized beyond one year. As of December 31, 2017, deferred revenue consisted of $44.5 million as current portion to be recognized within one year and $6.7 million in long-term deferred revenue to be recognized beyond one year.

During the nine months ended September 30, 2018, the amount of revenue recognized related to performance obligations satisfied in a previous period, inclusive of changes due to estimates, was approximately $8.1 million.