Revenues (Notes)

6 Months Ended

Jun. 30, 2018

Disaggregation of Revenue [Line Items]

Disaggregation of Revenue [Table Text Block]

The following tables present the revenues disaggregated by revenue source:



	Three months ended June 30, 2018
(in thousands)	Retail		National Programs			Wholesale Brokerage		Services		Other			Total
Base commissions⁽¹⁾	$	193,242	$	80,281		$	60,215	$	—	$	(155	)	$	333,583
Fees⁽²⁾	22,689		32,479			12,675		45,831		(286		)	113,388
Incentive commissions⁽³⁾	8,389		(31		)	262		—		3			8,623
Profit-sharing contingent commissions⁽⁴⁾	6,469		5,521			1,991		—		—			13,981
Guaranteed supplemental commissions⁽⁵⁾	2,182		39			272		—		—			2,493
Investment income⁽⁶⁾	—		132			81		36		482			731
Other income, net⁽⁷⁾	346		19			72		—		(49		)	388
Total Revenues	$	233,317	$	118,440		$	75,568	$	45,867	$	(5	)	$	473,187



	Six months ended June 30, 2018
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other			Total
Base commissions⁽¹⁾	$	401,548	$	157,383	$	112,676	$	—	$	(29	)	$	671,578
Fees⁽²⁾	60,367		63,672		23,910		89,824		(522		)	237,251
Incentive commissions⁽³⁾	31,949		9		469		—		12			32,439
Profit-sharing contingent commissions⁽⁴⁾	12,599		9,503		3,563		—		—			25,665
Guaranteed supplemental commissions⁽⁵⁾	4,704		54		715		—		—			5,473
Investment income⁽⁶⁾	1		246		81		109		895			1,332
Other income, net⁽⁷⁾	551		48		302		—		9			910
Total Revenues	$	511,719	$	230,915	$	141,716	$	89,933	$	365		$	974,648

(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 and fees negotiated in lieu of commissions.


(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.

Contract Assets and Liabilities

The balances of contract assets and contract liabilities arising from contracts with customers as of June 30, 2018 and December 31, 2017 were as follows:



(in thousands)	June 30, 2018		December 31, 2017⁽¹⁾
Contract assets	$	213,477	$	210,323
Contract liabilities	$	59,361	$	51,236


(1)	The balances as of December 31, 2017 have been revised to reflect the impact of adopting the New Revenue Standard.

Unbilled receivables (contract assets) arise when the Company recognizes revenue for amounts which have not yet been billed in our systems. Deferred revenue (contract liabilities) relates to payments received in advance of performance under the contract before the transfer of a good or service to the customer.

As of June 30, 2018, deferred revenue consisted of $50.5 million as current portion to be recognized within one year and $8.9 million in long term to be recognized beyond one year. As of December 31, 2017, deferred revenue consisted of $44.5 million as current portion to be recognized within one year and $6.7 million in long term to be recognized beyond one year.

During the six months ended June 30, 2018, the amount of revenue recognized related to performance obligations satisfied in a previous period, inclusive of changes due to estimates, was insignificant.