Revenues (Tables)

6 Months Ended

Jun. 30, 2020

The following tables present the revenues disaggregated by revenue source:

	Three months ended June 30, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	221,674	$	107,392	$	68,300	$	—	$	—		$	397,366
Fees ⁽²⁾		65,583		37,453		16,856		42,930		(323	)		162,499
Incentive commissions ⁽³⁾		14,706		111		516		—		—			15,333
Profit-sharing contingent commissions ⁽⁴⁾		6,926		9,269		2,458		—		—			18,653
Guaranteed supplemental commissions ⁽⁵⁾		3,405		306		595		—		—			4,306
Investment income⁽⁶⁾		41		129		46		—		117			333
Other income, net ⁽⁷⁾		227		7		82		—		—			316
Total Revenues	$	312,562	$	154,667	$	88,853	$	42,930	$	(206	)	$	598,806

	Six months ended June 30, 2020
(in thousands)	Retail		National Programs			Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	540,218	$	198,159		$	125,776	$	—	$	—		$	864,153
Fees ⁽²⁾		123,224		70,013			32,475		87,382		(644	)		312,450
Incentive commissions ⁽³⁾		64,694		222			2,384		—		—			67,300
Profit-sharing contingent commissions ⁽⁴⁾		23,021		14,980			4,594		—		—			42,595
Guaranteed supplemental commissions ⁽⁵⁾		7,837		(707	)		1,032		—		—			8,162
Investment income⁽⁶⁾		124		392			97		—		882			1,495
Other income, net ⁽⁷⁾		933		21			193		—		—			1,147
Total Revenues	$	760,051	$	283,080		$	166,551	$	87,382	$	238		$	1,297,302

(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 products and services.

(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 June 30, 2020 and December 31, 2019 were as follows:

(in thousands)	June 30, 2020		December 31, 2019
Contract assets	$	313,014	$	289,609
Contract liabilities	$	57,204	$	58,126