Vehicle Service Agreement Vehicle service agreement (Tables)

12 Months Ended

Dec. 31, 2018

Product Warranty Liability [Line Items]

VEHICLE SERVICE AGREEMENT LIABILITY

Vehicle service agreement fees include the fees collected to cover the costs of future automobile mechanical breakdown claims and the associated administration of those claims. Vehicle service agreement fees are initially recorded as deferred service fees. On a quarterly basis, the Company compares the remaining deferred service fees balance to the estimated amount of expected future claims under the vehicle service agreement contracts and records an additional accrual when the deferred service fees balance is less than expected future claims costs.

A reconciliation of the changes in the vehicle service agreement liability, including deferred service fees related to vehicle service agreements, as of December 31, 2018 and December 31, 2017, were as follows:



(in thousands)
	2018			2017
Balance at January 1, net	$	40,794		$	38,713
Gross service fees for vehicle service agreements sold	22,556			18,921
Recognition of service fees on vehicle service agreements	(18,939		)	(16,654		)
Liability for claims authorized on vehicle service agreements	5,711			5,327
Payments of claims authorized on vehicle service agreements	(5,735		)	(5,377		)
Re-estimation of deferred service fees	(653		)	(136		)
Balance at December 31, net	$	43,734		$	40,794

The vehicle service agreement liability is presented as components of deferred services fees and accrued expenses and other liabilities in the consolidated balance sheets as follows:



(in thousands)			December 31,
	2018		2017
Deferred service fees	$	43,495	$	40,531
Accrued expenses and other liabilities	239		263
Balance at December 31, net	$	43,734	$	40,794

Reportable Subsegments [Member]

Product Warranty Liability [Line Items]

Other Liabilities [Table Text Block]

The vehicle service agreement liability is presented as components of deferred services fees and accrued expenses and other liabilities in the consolidated balance sheets as follows:



(in thousands)			December 31,
	2018		2017
Deferred service fees	$	43,495	$	40,531
Accrued expenses and other liabilities	239		263
Balance at December 31, net	$	43,734	$	40,794