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Contract Assets | 9 Months Ended
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Sep. 30, 2022
Revenue from Contract with Customer [Abstract] |
Contract Assets | Contract Assets Changes in the Company’s contract assets primarily result from the timing difference between the satisfaction of its performance obligation and the customer’s payment. The Company fulfills its obligation under a contract with a customer by transferring services in exchange for consideration from the customer. The Company recognizes contract assets when it transfers services to a customer, recognizes profit share revenue, program fee revenue and claims administration services revenue (“TPA fees”) for amounts not yet billed and the right to consideration is conditional on something other than the passage of time. Accounts receivable are recorded when the customer has been billed or the right to consideration is unconditional. For performance obligations satisfied in previous periods, the Company evaluates and updates its profit share revenue forecast on a quarterly basis and adjusts contract assets accordingly. During the three and nine months ended September 30, 2022, contract asset adjustments attributable to profit share revenue forecast were $1.7 million and $7.1 million, respectively, as compared to contract asset adjustments of $7.5 million and $24.4 million, during the three and nine months ended September 30, 2021, respectively. Contract assets balances for the periods indicated below are as follows:
|  | Contract Assets
|  | Profit Share |  | TPA Fees |  | Program Fees |  | Total
|  | (in thousands)
Ending balance as of June 30, 2022 |  | $ | 98,672 |  |  | $ | 1,437 |  |  | $ | 6,639 |  |  | $ | 106,748 |
Increase due to new business generation |  | 24,853 |  |  | 2,293 |  |  | 21,845 |  |  | 48,991 |
Change in estimates of revenue from performance obligations satisfied in previous periods |  | 1,670 |  |  | — |  |  | — |  |  | 1,670 |
Receivables transferred from contract assets upon billing the lending institutions |  | — |  |  | — |  |  | (20,830) |  |  | (20,830) |
Payments received from insurance carriers |  | (34,446) |  |  | (2,200) |  |  | — |  |  | (36,646) |
Provision for expected credit losses |  | 8 |  |  | — |  |  | (1) |  |  | 7 |
Ending balance as of September 30, 2022 |  | $ | 90,757 |  |  | $ | 1,530 |  |  | $ | 7,653 |  |  | $ | 99,940 |
|  | Contract Assets
|  | Profit Share |  | TPA Fees |  | Program Fees |  | Total
|  | (in thousands)
Ending balance as of December 31, 2021 |  | $ | 105,486 |  |  | $ | 1,316 |  |  | $ | 6,154 |  |  | $ | 112,956 |
Increase due to new business generation |  | 76,855 |  |  | 6,478 |  |  | 62,302 |  |  | 145,635 |
Change in estimates of revenue from performance obligations satisfied in previous periods |  | 7,135 |  |  | — |  |  | — |  |  | 7,135 |
Receivables transferred from contract assets upon billing the lending institutions |  | — |  |  | — |  |  | (60,808) |  |  | (60,808) |
Payments received from insurance carriers |  | (98,773) |  |  | (6,265) |  |  | — |  |  | (105,038) |
Provision for expected credit losses |  | 54 |  |  | 1 |  |  | 5 |  |  | 60 |
Ending balance as of September 30, 2022 |  | $ | 90,757 |  |  | $ | 1,530 |  |  | $ | 7,653 |  |  | $ | 99,940 |
As of September 30, 2022 and December 31, 2021, the portion of the contract assets’ balance estimated to be received within one year consisted of $65.6 million and $70.5 million, respectively, and the portion estimated to be received beyond one year consisted of $34.4 million and $42.4 million, respectively. Contract Costs The fulfillment costs associated with the Company’s contracts with customers do not meet the criteria for capitalization and therefore are expensed as incurred.

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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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