Revenues (Tables)

9 Months Ended

Sep. 30, 2020

The following tables present the revenues disaggregated by revenue source:

	Three months ended September 30, 2020
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	265,028	$	116,184	$	80,442	$	—	$	—		$	461,654
Fees ⁽²⁾		70,440		45,722		17,803		43,497		(323	)		177,139
Incentive commissions ⁽³⁾		13,913		215		326		—		14			14,468
Profit-sharing contingent commissions ⁽⁴⁾		6,359		5,499		1,881		—		—			13,739
Guaranteed supplemental commissions ⁽⁵⁾		3,591		182		623		—		—			4,396
Investment income⁽⁶⁾		19		205		45		—		80			349
Other income, net ⁽⁷⁾		123		11		119		—		1,964			2,217
Total Revenues	$	359,473	$	168,018	$	101,239	$	43,497	$	1,735		$	673,962

	Nine months ended September 30, 2020
(in thousands)	Retail		National Programs			Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	805,245	$	314,344		$	206,218	$	—	$	—		$	1,325,807
Fees ⁽²⁾		193,664		115,736			50,278		130,879		(968	)		489,589
Incentive commissions ⁽³⁾		78,607		436			2,710		—		14			81,767
Profit-sharing contingent commissions ⁽⁴⁾		29,380		20,478			6,476		—		—			56,334
Guaranteed supplemental commissions ⁽⁵⁾		11,429		(525	)		1,655		—		—			12,559
Investment income⁽⁶⁾		143		597			141		—		963			1,844
Other income, net ⁽⁷⁾		1,056		32			312		—		1,964			3,364
Total Revenues	$	1,119,524	$	451,098		$	267,790	$	130,879	$	1,973		$	1,971,264

(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, fees negotiated in lieu of commissions, and F&I products and services.

(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.

(8)	Fees within other reflects the elimination of intercompany revenues.

Schedule of Balances of Contract Assets and Contract Liabilities Arising from Contracts with Customers

The balances of contract assets and contract liabilities arising from contracts with customers as of September 30, 2020 and December 31, 2019 were as follows:

(in thousands)	September 30, 2020		December 31, 2019
Contract assets	$	319,869	$	289,609
Contract liabilities	$	54,881	$	58,126