Revenue Recognition and Deferred Revenue

9 Months Ended

Sep. 30, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer

The following table presents the Insurance Distribution business operations revenues recognized in accordance with the Revenue

from Contracts with Customers Topic of the ASC disaggregated by policy type for the affected periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Employer Stop Loss	$	2	$	2	$	7	$	6
Affinity Products	5		4		14		13
Other	—		—		1		—
Total	$	7	$	7	$	22	$	20

During the nine months ended September 30, 2022 and 2021, the amount of revenue recognized related to performance obligations satisfied in a previous period, inclusive of changes due to estimates was approximately $5 and $8, respectively.

Contract Assets and Liabilities

The balances of contract assets and contract liabilities with customers were as follows:

	September 30, 2022		December 31, 2021
Commissions receivable	$	3	$	2
Contract assets	4		4
Contract liabilities	1		1

Contract assets represent estimated future consideration related to base commissions and profit-sharing commissions that were recognized as revenue upon the placement of the policy. The Company does not have the right to bill or collect payment on i) base commissions until the insurer has collected the related premiums from policyholders nor ii) profit-sharing commissions

until after the contract year is completed. Changes in contract assets during the nine months ended September 30, 2022, is primarily due to growth in the business, reclassifications to receivables (unconditional right) and collections.

Contract liabilities represent advance consideration received from customers related to employer stop loss base commissions that will be recognized over time as claims servicing is performed, which typically occurs between 17 and 20 months from contract inception. During the nine months ended September 30, 2022 and 2021, the Company recognized revenue that was included in the contract liability balance as of the beginning of the period of $1.