Revenue From Contracts with Customers

3 Months Ended

Mar. 31, 2021

Revenue Recognition [Abstract]

Revenue From Contracts with Customers

Revenue from Contracts with Customers

The Company’s revenues from insurance and warranty operations are primarily accounted for under Financial Services-Insurance (Topic 944) that are not within the scope of Revenue for Contracts with Customers (Topic 606). The Company’s remaining revenues that are within the scope of Topic 606 are primarily comprised of revenues from contracts with customers for monthly membership dues for motor clubs, monthly administration fees for services provided for premiums, claims and reinsurance processing revenues, vehicle service contracts, vessel related revenue and warranty coverage revenues for household goods and appliances (collectively, remaining contracts).

The following table presents the disaggregated amounts of revenue from contracts with customers by product type for the following periods:

	Three Months Ended March 31,
	2021		2020
Service and Administrative Fees:
Motor club revenue	$	9,184	$	9,735
Warranty coverage revenue	33,068		21,218
Vessel related revenue	5,699		7,246
Other	5,364		1,701
Revenue from contracts with customers	$	53,315	$	39,900

Service and Administrative Fees

Service fee revenue is recognized as the services are performed. These services include fulfillment, software development, and claims handling for our customers. Management reviews the financial results under each significant contract on a monthly basis. Any losses that may occur due to a specific contract would be recognized in the period in which the loss is determined probable.

Administrative fee revenue includes the administration of premium associated with our producers and their producer owned reinsurance companies (PORCs). In addition, we also earn fee revenue from debt cancellation programs, motor club programs, and warranty programs. Related administrative fee revenue is recognized consistent with the earnings recognition pattern of the underlying insurance policies, debt cancellation contracts and motor club memberships being administered, using Rule of 78's, modified Rule of 78's, pro rata, or other methods as appropriate for the contract. Management selects the appropriate method based on available information, and periodically reviews the selections as additional information becomes available.

We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. The transaction price allocated to remaining unsatisfied or partially unsatisfied performance obligations with an original expected duration exceeding one year was not material at March 31, 2021.

The timing of our revenue recognition may differ from the timing of payment by our customers. We record a receivable when revenue is recognized prior to payment and we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied.

Vessel Related Revenue

The Company generates its revenues from charterers for the charter hire of its vessels. Vessels are chartered under time or voyage charters, where a contract is entered into for the use of a vessel for a specific voyage or a specific period of time and at a specified daily charter rate. Charter revenues are recognized as earned on the straight-line basis over the term of the charter as service is provided.

Revenue is recognized when a charter agreement exists, the vessel is made available to the charterer and collection of the related revenue is reasonably assured. Unearned revenue includes revenue received prior to the balance sheet date relating to services to be rendered after the balance sheet date.

The following table presents the activity in the significant deferred assets and liabilities related to revenue from contracts with customers for the following period:

	January 1, 2021						March 31, 2021
	Beginning balance		Additions		Amortizations		Ending balance
Deferred acquisition costs
Service and Administrative Fees:
Motor club revenue	$	13,081	$	7,649	$	7,079	$	13,651
Warranty coverage revenue	48,734		18,277		5,396		61,615
Total	$	61,815	$	25,926	$	12,475	$	75,266

Deferred revenue
Service and Administrative Fees:
Motor club revenue	$	16,969	$	9,802	$	9,184	$	17,587
Warranty coverage revenue	348,391		58,467		33,068		373,790
Total	$	365,360	$	68,269	$	42,252	$	391,377

For the periods presented, no write-offs for unrecoverable deferred acquisition costs and deferred revenue were recognized.