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Revenue from Contracts with Customers | 6 Months Ended
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Jun. 30, 2022
Revenue From Contract With Customer [Abstract] |
Revenue from Contract with Customers | (13) Revenue from Contracts with Customers Our revenues from contracts with customers primarily include:
| • | Commissions and fees earned for the marketing and distribution of investment and savings products underwritten by mutual fund companies and annuity providers. For purposes of revenue recognition, mutual fund companies and annuity providers are considered the customers in marketing and distribution arrangements;
| • | Fees earned for investment advisory and administrative services within our managed investments program;
| • | Account-based fees for transfer agent recordkeeping functions and non-bank custodial services;
| • | Commissions and fees earned from the distribution of Medicare-related insurance products on behalf of health insurance carriers, including tail revenue adjustments;
| • | Marketing development revenues earned for selling Medicare-related insurance products on behalf of health insurance carriers, which is recorded in Other, net revenue;
| • | Fees associated with mortgage distribution and the distribution of other third-party financial products; and
| • | Other revenue from the sale of miscellaneous products and services including monthly subscription fees from the sales representatives for access to Primerica Online (“POL”), our primary sales force support tool.
Premiums from insurance contracts we underwrite, fees received from segregated funds insurance contracts, and income earned on our invested assets are excluded from the definition of revenues from contracts with customers in accordance with U.S. GAAP. Further discussion on the Company’s revenues from contracts with customers and revenue recognition policies are included in Note 18 (Revenue from Contracts with Customers) to our consolidated financial statements within our 2021 Annual Report. The disaggregation of our revenues from contracts with customers were as follows:
|  | Three months ended June 30, |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |  | 2022 |  |  | 2021 |
|  | (In thousands) |
Term Life Insurance segment revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other, net |  | $ | 12,374 |  |  | $ | 12,313 |  | $ | 24,550 |  |  | $ | 24,125 |
Total segment revenues from contracts with customers |  |  | 12,374 |  |  |  | 12,313 |  |  | 24,550 |  |  |  | 24,125 |
Revenues from sources other than contracts with customers |  |  | 398,333 |  |  |  | 371,223 |  |  | 804,586 |  |  |  | 741,440 |
Total Term Life Insurance segment revenues |  | $ | 410,707 |  |  | $ | 383,536 |  | $ | 829,136 |  |  | $ | 765,565 |
Investment and Savings Products segment revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions and fees |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales-based revenues |  | $ | 88,701 |  |  | $ | 104,716 |  | $ | 191,942 |  |  | $ | 202,828 |
Asset-based revenues |  |  | 93,419 |  |  |  | 92,288 |  |  | 190,773 |  |  |  | 177,901 |
Account-based revenues |  |  | 22,592 |  |  |  | 21,848 |  |  | 44,134 |  |  |  | 42,968 |
Other, net |  |  | 3,022 |  |  |  | 2,958 |  |  | 6,166 |  |  |  | 5,907 |
Total segment revenues from contracts with customers |  |  | 207,734 |  |  |  | 221,810 |  |  | 433,015 |  |  |  | 429,604 |
Revenues from sources other than contracts with customers (segregated funds) |  |  | 14,682 |  |  |  | 16,202 |  |  | 30,440 |  |  |  | 31,830 |
Total Investment and Savings Products segment revenues |  | $ | 222,416 |  |  | $ | 238,012 |  | $ | 463,455 |  |  | $ | 461,434 |
Senior Health segment revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions and fees |  | $ | 9,343 |  |  | N/A |  | $ | 10,621 |  |  | N/A |
Other, net |  |  | 2,471 |  |  | N/A |  |  | 7,024 |  |  | N/A |
Total Senior Health segment revenues |  | $ | 11,814 |  |  | N/A |  | $ | 17,645 |  |  | N/A |
Corporate and Other Distributed Products segment revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions and fees |  | $ | 11,951 |  |  | $ | 15,634 |  | $ | 24,579 |  |  | $ | 29,206 |
Other, net |  |  | 889 |  |  |  | 1,042 |  |  | 2,005 |  |  |  | 1,875 |
Total segment revenues from contracts with customers |  |  | 12,840 |  |  |  | 16,676 |  |  | 26,584 |  |  |  | 31,081 |
Revenues from sources other than contracts with customers |  |  | 10,905 |  |  |  | 16,462 |  |  | 23,089 |  |  |  | 34,319 |
Total Corporate and Other Distributed Products segment revenues |  | $ | 23,745 |  |  | $ | 33,138 |  | $ | 49,673 |  |  | $ | 65,400 |
Renewal Commissions Receivable. For revenue associated with ongoing renewal commissions in the Senior Health and Corporate and Other Distributed Products segments, we record a renewal commission receivable asset for the amount of ongoing renewal commissions we anticipate collecting in reporting periods subsequent to the satisfaction of the performance obligation, less amounts that are constrained in the accompanying unaudited condensed consolidated balance sheets. From time to time, new facts or circumstances that were not available at the time of the initial estimate may indicate that the expected renewal commissions are higher or lower than our renewal commissions receivable. In those situations, the expected renewal commissions receivable will be written down or up to its revised expected value by adjustments to revenue, which we refer to as tail revenue adjustments. During the three and six months ended June 30, 2022, we recognized a tail revenue adjustment to reduce the balance of the renewal commissions receivable in the Senior Health business as retention for policies scheduled to renew during the period was lower than expectations. Activity in the Renewal commissions receivable account was as follows:
|  | Three months ended June 30, |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |  | 2022 |  |  | 2021 |
|  | (In thousands) |
Senior Health segment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | 153,783 |  |  | N/A |  | $ | 172,308 |  |  | N/A |
Measurement period adjustment (1) |  |  | (11,863 | ) |  | N/A |  |  | (11,863 | ) |  | N/A |
Commissions revenue |  |  | 9,563 |  |  | N/A |  |  | 22,412 |  |  | N/A |
Less: collections |  |  | (11,910 | ) |  | N/A |  |  | (24,224 | ) |  | N/A |
Tail revenue adjustments from change in estimate |  |  | (5,361 | ) |  | N/A |  |  | (24,421 | ) |  | N/A |
Balance, at the end of period |  | $ | 134,212 |  |  | N/A |  | $ | 134,212 |  |  | N/A |
Corporate and Other Distributed Products segments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of period |  | $ | 59,392 |  |  | $ | 55,704 |  | $ | 59,443 |  |  | $ | 54,845 |
Commissions revenue |  |  | 6,283 |  |  |  | 6,898 |  |  | 11,926 |  |  |  | 13,159 |
Less: collections |  |  | (6,226 | ) |  |  | (5,919 | ) |  | (11,920 | ) |  |  | (11,321 | )
Balance, at the end of period |  | $ | 59,449 |  |  | $ | 56,683 |  | $ | 59,449 |  |  | $ | 56,683 |
(1) The measurement period adjustment was recorded during the three and six months ended June 30, 2022 in order to finalize the purchase price allocation for the acquisition of e-TeleQuote. Refer to Note 14 (Acquisition) for further details. Incremental costs to obtain or fulfill contracts, most notably sales commissions to the sales representatives, are not incurred prior to the recognition of the related revenue. Therefore, we have no assets recognized for incremental costs to obtain or fulfill contracts.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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