Revenues (Tables)

3 Months Ended

Mar. 31, 2020

The following tables present the revenues disaggregated by revenue source:

	Three months ended March 31, 2020
(in thousands)	Retail		National Programs			Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	315,888	$	88,582		$	55,563	$	—	$	—		$	460,033
Fees ⁽²⁾		57,483		34,659			15,641		44,452		(322	)		151,913
Incentive commissions ⁽³⁾		52,802		197			3,759		—		1			56,759
Profit-sharing contingent commissions ⁽⁴⁾		16,095		5,711			2,136		—		—			23,942
Guaranteed supplemental commissions ⁽⁵⁾		4,432		(1,013	)		437		—		—			3,856
Investment income⁽⁶⁾		83		263			50		—		765			1,161
Other income, net ⁽⁷⁾		706		13			112		—		—			831
Total Revenues	$	447,489	$	128,412		$	77,698	$	44,452	$	444		$	698,495

	Three months ended March 31, 2019
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	287,200	$	77,178	$	54,173	$	—	$	(12	)	$	418,539
Fees ⁽²⁾		43,877		30,246		12,510		49,444		(288	)		135,789
Incentive commissions ⁽³⁾		42,775		919		373		—		111			44,178
Profit-sharing contingent commissions ⁽⁴⁾		11,547		860		2,915		—		—			15,322
Guaranteed supplemental commissions ⁽⁵⁾		3,240		4		391		—		—			3,635
Investment income⁽⁶⁾		—		316		40		48		677			1,081
Other income, net ⁽⁷⁾		592		37		107		—		—			736
Total Revenues	$	389,231	$	109,560	$	70,509	$	49,492	$	488		$	619,280

(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, fees negotiated in lieu of commissions, and F&I.

(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.

(8)	Fees within other reflects the elimination of intercompany revenues.

Schedule of Balances of Contract Assets and Contract Liabilities Arising from Contracts with Customers

The balances of contract assets and contract liabilities arising from contracts with customers as of March 31, 2020 and December 31, 2019 were as follows:

(in thousands)	March 31, 2020		December 31, 2019
Contract assets	$	357,567	$	289,609
Contract liabilities	$	53,791	$	58,126