Non-Insurance Revenues from Contracts with Customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Non-Insurance Revenues from Contracts with Customers

Non-Insurance Revenues from Contracts with Customers

Non-Insurance revenue is recognized when obligations under the terms of a contract with a customer are satisfied; generally this occurs over time as obligations are fulfilled. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services.

Deferred Non-Insurance Warranty Revenue

The Company had a deferred non-insurance warranty revenue balance of $4.7 billion reported in Deferred non-insurance warranty revenue as of December 31, 2023 and 2022. For the year ended December 31, 2023, the Company recognized $1.4 billion of revenues that were included in the deferred revenue balance as of January 1, 2023. For the year ended December 31, 2022, the Company recognized $1.3 billion of revenues that were included in the deferred revenue balance as of January 1, 2022. For the years ended December 31, 2023 and 2022, Non-insurance warranty revenue recognized from performance obligations related to prior periods due to a change in estimate was not material. The Company expects to recognize approximately $1.4 billion of the deferred revenue in 2024, $1.1 billion in 2025, $0.8 billion in 2026 and $1.4 billion thereafter.

Cost to Obtain and Fulfill Non-Insurance Warranty Contracts with Customers

For each of the years ended December 31, 2023 and 2022, capitalized commission costs were $3.6 billion and capitalized administrator service costs were $62 million and $53 million. For each the years ended December 31, 2023 and 2022, the amount of amortization of capitalized costs was $1.2 billion and there were no impairment losses related to the costs capitalized. There were no adjustments to deferred costs recorded for the years ended December 31, 2023 and 2022.